Software - Slovakia

Slovakia

The Software market in Slovakia is expected to generate a revenue of US$502.70m in 2024.
Among the various segments, Enterprise Software is projected to dominate with a market volume of US$208.20m in the same year.
The market is anticipated to exhibit a steady annual growth rate (CAGR 2024-2029) of 8.12%, leading to a market volume of US$742.80m by 2029.
When compared globally, United States is forecasted to generate the highest revenue of US$363.40bn in 2024.
Slovakia's software market is experiencing a surge in demand for cybersecurity solutions to protect sensitive data.

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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Currency

Analyst Opinion

Slovakia, a small country in Central Europe, has been experiencing a steady growth in its software market.

Customer preferences: Customers in Slovakia have been showing a growing interest in software that can help them increase their productivity and efficiency. This has led to an increased demand for software that can automate various business processes, such as accounting, payroll, and customer relationship management. Additionally, customers are also looking for software that can help them with data analytics and visualization, as well as cybersecurity solutions to protect their sensitive information.

Trends in the market: One of the major trends in the software market in Slovakia is the growing adoption of cloud-based software solutions. This trend is driven by the increasing need for remote work and collaboration, which has been accelerated by the COVID-19 pandemic. Cloud-based software allows users to access their data and applications from anywhere, at any time, which is particularly important for businesses that have employees working remotely.Another trend in the market is the growth of the mobile software segment. As more and more people in Slovakia are using smartphones and tablets, there is a growing demand for mobile applications that can provide a seamless user experience. This trend is particularly evident in the e-commerce sector, where businesses are increasingly relying on mobile applications to reach their customers.

Local special circumstances: Slovakia has a highly skilled workforce in the IT sector, which has been a driving force behind the growth of the software market. The country has a large number of universities and technical schools that offer IT-related programs, which has helped to create a pool of talented IT professionals. Additionally, Slovakia has a favorable business environment, with low taxes and a relatively low cost of living, which has attracted many foreign companies to set up their operations in the country.

Underlying macroeconomic factors: The Slovakian economy has been growing steadily in recent years, which has created a favorable environment for the software market. The country has a stable political system and is a member of the European Union, which has helped to attract foreign investment. Additionally, the government has been investing in infrastructure and technology, which has helped to create a supportive environment for the IT sector. Overall, the software market in Slovakia is expected to continue growing in the coming years, driven by the increasing demand for cloud-based and mobile software solutions.

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.