Software

Software - Serbia

Serbia

Highlights

In 2024, the projected revenue in the Software market in Serbia is estimated to reach US$204.10m.
It is worth noting that the market is dominated by Enterprise Software , which is expected to have a projected market volume of US$85.16m in the same year.
Looking ahead, the revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 8.50%.
This growth trajectory will result in a market volume of US$306.90m by 2029.
When compared globally, it is noteworthy that United States is expected to generate the highest revenue, amounting to US$363.40bn in 2024.
Serbia has emerged as a leading destination for software development outsourcing, with its highly skilled workforce and competitive cost advantage.

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

Serbia, a country located in Southeast Europe, has been experiencing a steady growth in its software market in recent years.

Customer preferences: The demand for software products in Serbia is mainly driven by the country's growing IT industry, which is attracting more foreign investors. The market is dominated by small and medium-sized companies that offer custom software solutions to clients in various industries, such as finance, healthcare, and retail. Additionally, there is a growing interest in cloud-based software solutions, which are becoming increasingly popular among businesses of all sizes.

Trends in the market: One of the main trends in the software market in Serbia is the increasing adoption of open-source software. This is driven by the country's strong developer community, which is actively contributing to various open-source projects. Another trend is the growing demand for mobile applications, as more and more people are using smartphones and tablets to access the internet. As a result, mobile app development has become a key area of focus for many software companies in Serbia.

Local special circumstances: Serbia's software market is heavily influenced by the country's political and economic situation. The government has been actively promoting the IT industry as a key driver of economic growth, and has implemented various measures to support the sector, such as tax incentives and subsidies. However, the market is also facing challenges, such as a shortage of skilled IT professionals and a lack of investment in research and development.

Underlying macroeconomic factors: Serbia's software market is closely tied to the country's overall economic performance. The country has been experiencing steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. Additionally, Serbia's strategic location and favorable business environment have made it an attractive destination for foreign investors, which has further boosted the growth of the software market. However, the market is also vulnerable to external factors, such as global economic downturns and political instability in the region.

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.