Software

Saudi Arabia

Highlights

In 2024, the projected revenue in the Software market in Saudi Arabia is expected to reach US$1.48bn.
The market is dominated by Enterprise Software , which is projected to have a market volume of US$612.60m in 2024.
Over the period of 2024-2029, the revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.33%, resulting in a market volume of US$1.83bn by 2029.
When compared globally, United States is expected to generate the highest revenue, amounting to US$363.40bn in 2024.
Saudi Arabia is experiencing a surge in demand for software solutions as businesses increasingly embrace digital transformation.

Key regions:

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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Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Saudi Arabian software market has been experiencing significant growth in recent years.

Customer preferences: The demand for software products in Saudi Arabia is driven by a growing population of tech-savvy consumers who are increasingly reliant on technology in their daily lives. As a result, there is a growing demand for software products that can help consumers manage their personal and professional lives more efficiently.

Trends in the market: One of the most significant trends in the Saudi Arabian software market is the increasing adoption of cloud-based software solutions. This trend is being driven by the growing number of businesses in Saudi Arabia that are looking to reduce their IT costs and improve their overall efficiency. Cloud-based software solutions offer a number of benefits, including lower costs, greater scalability, and improved collaboration.Another important trend in the Saudi Arabian software market is the increasing demand for mobile software applications. As smartphone adoption rates continue to rise in Saudi Arabia, there is a growing need for software products that are designed specifically for mobile devices. This trend is being driven by a number of factors, including the increasing availability of high-speed mobile networks and the growing popularity of mobile commerce.

Local special circumstances: Saudi Arabia is a unique market, with a number of local factors that are shaping the growth of the software industry. For example, the Saudi Arabian government has been actively promoting the growth of the country's technology sector as part of its broader economic diversification efforts. This has led to a number of initiatives aimed at supporting the growth of the software industry, including the establishment of technology parks and the provision of financial incentives for technology startups.Another important factor shaping the growth of the software industry in Saudi Arabia is the country's rapidly growing population. With a median age of just 31 years, Saudi Arabia has one of the youngest populations in the world. This has led to a growing demand for software products that are designed to meet the needs of young, tech-savvy consumers.

Underlying macroeconomic factors: There are a number of underlying macroeconomic factors that are driving the growth of the software industry in Saudi Arabia. One of the most important of these is the country's strong economic growth, which has been driven by a number of factors, including high oil prices and a growing non-oil sector.Another important macroeconomic factor is the country's rapidly expanding middle class. As incomes continue to rise in Saudi Arabia, there is a growing demand for software products that can help consumers manage their personal and professional lives more efficiently.Overall, the Saudi Arabian software market is poised for continued growth in the coming years, driven by a combination of local and global factors. As the country continues to invest in its technology sector and its population continues to grow and become more tech-savvy, the demand for software products is likely to continue to rise.

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.