Software - Russia

Russia

In 2024, the projected revenue in the Software market in Russia is expected to reach US$3.62bn.
The dominant player in this market segment is Enterprise Software , which is projected to have a market volume of US$1.52bn in 2024.
Looking ahead, the revenue is expected to grow at an annual growth rate (CAGR 2024-2029) of 1.86%, resulting in a market volume of US$3.97bn by 2029.
In comparison to other countries, United States is forecasted to generate the most revenue in 2024, amounting to US$363.40bn.
Russia's software market is booming with a surge in demand for cybersecurity solutions to combat increasing cyber threats.

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Analyst Opinion

Russia, the largest country in the world, is known for its rich cultural heritage, beautiful landscapes, and its rapidly growing economy. The software market in Russia has been growing at a steady pace over the years, with the emergence of new technologies and the increasing demand for digital solutions.

Customer preferences: Russian consumers are increasingly adopting digital technologies, resulting in a growing demand for software solutions. The most popular software products in Russia are office applications, antivirus software, and multimedia software. The demand for cloud-based solutions is also growing, as more businesses are shifting towards remote work and online operations.

Trends in the market: The software market in Russia is expected to grow in the coming years, driven by the increasing demand for digital solutions and the emergence of new technologies. The demand for cloud-based solutions is expected to grow, as more businesses are looking for flexible and scalable solutions. The gaming industry is also growing in Russia, with the increasing popularity of mobile gaming and the emergence of new gaming technologies.

Local special circumstances: The software market in Russia is unique due to the country's specific cultural and political circumstances. The Russian government has been promoting the use of domestic software solutions, which has led to the emergence of local software companies. Additionally, the Russian language is unique and requires specific language support in software products, making it challenging for foreign companies to penetrate the market.

Underlying macroeconomic factors: The Russian economy has been growing in recent years, driven by the country's natural resources and its large population. The government has been investing in infrastructure and technology, creating a favorable environment for the software market to grow. However, the political situation in Russia can be unstable at times, which can impact the business environment and the software market. Additionally, the country's economic sanctions and geopolitical tensions can create challenges for foreign companies operating in the Russian market.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.