Software - Southeast Asia

Southeast Asia

Highlights

In Southeast Asia, the Software market is anticipated to witness a significant growth in revenue, with a projected value of US$9.42bn in 2025.
Among the various segments within the market, Enterprise Software stands out as the dominant force, with a projected market volume of US$4.01bn in the same year.
This segment is expected to exhibit a steady annual growth rate of 6.55% from 2025 to 2029, resulting in a market volume of US$12.14bn by the end of the forecast period.
When comparing the global landscape, United States is forecasted to generate the highest revenue in the Software market, reaching US$379.29bn in 2025.
In Southeast Asia, the software market in Indonesia is experiencing rapid growth due to the increasing demand for digital solutions in various industries.

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 Software market in Southeast Asia has been growing rapidly in recent years, driven by a combination of factors such as the increasing adoption of cloud-based technologies and the rise of digital transformation initiatives across various industries.

Customer preferences: Customers in Southeast Asia are increasingly looking for software solutions that can help them streamline their business operations, improve productivity, and enhance customer experience. Cloud-based software solutions are becoming increasingly popular due to their scalability, flexibility, and cost-effectiveness. Additionally, there is a growing demand for software solutions that can enable remote work and collaboration, which has become increasingly important in the wake of the COVID-19 pandemic.

Trends in the market: In Indonesia, the software market is expected to grow rapidly due to the country's large population and increasing internet penetration. The government's efforts to promote digitalization and the rise of e-commerce platforms are also expected to drive demand for software solutions. In Thailand, the software market is expected to grow due to the country's strong manufacturing sector and the increasing adoption of Industry 4.0 technologies.In Singapore, the software market is expected to grow due to the country's status as a regional hub for technology and innovation. The government's efforts to promote digitalization and the rise of fintech and e-commerce startups are also expected to drive demand for software solutions.

Local special circumstances: In the Philippines, the software market is expected to grow due to the country's large and young population, which is increasingly tech-savvy. The rise of the business process outsourcing (BPO) industry is also expected to drive demand for software solutions.In Vietnam, the software market is expected to grow due to the country's large and rapidly growing economy, as well as the government's efforts to promote digitalization and the rise of e-commerce platforms.

Underlying macroeconomic factors: The Southeast Asian region is home to a large and rapidly growing middle class, which is driving demand for software solutions across various industries. Additionally, the region's young and tech-savvy population is increasingly adopting digital technologies, which is creating new opportunities for software companies.Overall, the Software market in Southeast Asia is expected to continue growing in the coming years, driven by a combination of factors such as the increasing adoption of cloud-based technologies, the rise of digital transformation initiatives, and the region's large and rapidly growing middle class.

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.

Software - Southeast Asia

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