Software - Southern Africa

Southern Africa

The Software market in Southern Africa is expected to witness a significant growth in the coming years.
By 2024, the projected revenue for the market is estimated to be US$2.72bn.
Among the various segments within the market, Enterprise Software is expected to dominate with a projected market volume of US$1.16bn in 2024.
This indicates a strong presence of Enterprise Software solutions in the region.
Furthermore, the Software market is anticipated to experience a steady annual growth rate of 4.25% from 2024 to 2029.
This growth rate suggests that the market volume is likely to reach US$3.35bn by 2029.
This signifies a positive trend and potential opportunities for businesses operating in the Southern African Software market.
In terms of global comparison, United States is expected to generate the highest revenue in the Software market.
In 2024, the projected revenue for the United States is estimated to be US$363.40bn.
This highlights the dominance of the US market in the global Software market industry.
Overall, the Software market in Southern Africa shows promising prospects for growth, with Enterprise Software leading the way.
As the market continues to evolve, businesses in the region have the opportunity to capitalize on these trends and expand their presence in the Software market industry.
Southern Africa's software market is experiencing a surge in demand for cloud-based solutions, as businesses seek flexible and cost-effective software solutions.

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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Market

Region

Region comparison

Currency

Analyst Opinion

Southern Africa is a region that has been experiencing significant growth in the software market in recent years. This growth has been driven by various factors, including customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the main drivers of the software market in Southern Africa is customer preferences. Customers in the region are increasingly looking for software solutions that are tailored to their specific needs. This has led to the development of a wide range of software products that cater to different industries and sectors. Additionally, customers in Southern Africa are increasingly looking for software solutions that are easy to use and affordable.

Trends in the market: One of the most significant trends in the software market in Southern Africa is the growth of cloud-based software solutions. Cloud-based software solutions are becoming increasingly popular in the region due to their flexibility and affordability. Additionally, there has been an increase in the development of mobile-based software solutions, as more customers in Southern Africa are using smartphones and other mobile devices.

Local special circumstances: One of the unique aspects of the software market in Southern Africa is the prevalence of small and medium-sized enterprises (SMEs). SMEs make up a significant portion of the business landscape in the region, and they have unique software needs. As a result, there has been a significant increase in the development of software solutions that cater specifically to SMEs in Southern Africa.

Underlying macroeconomic factors: The software market in Southern Africa is also being driven by underlying macroeconomic factors. One of the most significant factors is the growth of the region's economy. Southern Africa has experienced significant economic growth in recent years, which has led to an increase in demand for software solutions. Additionally, the region's growing middle class has led to an increase in demand for software solutions that cater to their needs, such as online shopping and mobile banking.In conclusion, the software market in Southern Africa is experiencing significant growth due to a combination of customer preferences, local special circumstances, and underlying macroeconomic factors. As the region continues to grow and evolve, it is likely that the software market will continue to expand and develop new solutions to meet the needs of customers in the region.

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.