Software - Taiwan

Taiwan

The Software market in Taiwan is expected to witness a significant increase in revenue, reaching an estimated value of US$4.69bn in 2024.
Among the various segments in the market, Enterprise Software is projected to dominate with a market volume of US$2.01bn in the same year.
This indicates a strong presence and demand for enterprise software solutions in Taiwan.
Furthermore, the Software market in Taiwan is expected to experience a steady growth rate, with a projected annual growth rate (CAGR 2024-2029) of 5.71%.
This growth is anticipated to result in a market volume of US$6.19bn by 2029.
This indicates a positive trend in the adoption and utilization of software solutions in various industries withTaiwan.
In comparison to other countries, United States is forecasted to generate the highest revenue in the Software market, reaching an estimated value of US$363.40bn in 2024.
This highlights the dominance of the United States in the global software market and its significant contribution to the overall revenue generated in the industry.
Taiwan's software market is experiencing a surge in demand for AI-powered solutions, driving innovation and growth in the industry.

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

Taiwan, known for its technology industry, has a thriving software market that caters to both domestic and international customers.

Customer preferences: Taiwanese customers prefer software that is efficient, user-friendly, and cost-effective. They also value software that is compatible with their existing systems and can integrate with other software easily.

Trends in the market: One of the major trends in the software market in Taiwan is the increasing demand for cloud-based software solutions. This is driven by the need for flexible and scalable software that can be accessed from anywhere. Another trend is the growth of artificial intelligence (AI) and machine learning (ML) software, which is being used in various industries such as healthcare, finance, and manufacturing.

Local special circumstances: Taiwan has a highly skilled workforce and a strong technology infrastructure, which makes it an ideal location for software development. The government has also implemented policies to support the growth of the software industry, such as tax incentives and funding for research and development.

Underlying macroeconomic factors: Taiwan's economy is heavily dependent on exports, particularly in the technology sector. The software industry plays an important role in driving innovation and competitiveness in this sector. Additionally, the government's focus on developing a digital economy has led to increased investment in software and technology infrastructure. However, the industry also faces challenges such as competition from other countries and the need to keep up with rapidly evolving technology trends.

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.