Software - Tanzania

Tanzania

In 2024, the revenue in the Software market in Tanzania is projected to reach US$196.70m.
The dominant player in this market segment is Enterprise Software , which is expected to have a market volume of US$84.50m in the same year.
Looking ahead, the revenue is forecasted to grow at an annual rate of 9.40% (CAGR 2024-2029), resulting in a market volume of US$308.30m by 2029.
In comparison to other countries, United States is expected to generate the highest revenue, reaching US$363.40bn in 2024.
Tanzania's software market is experiencing a surge in demand for mobile applications, driven by the country's high mobile penetration rate.

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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Analyst Opinion

The software market in Tanzania is experiencing a significant growth due to various underlying factors.

Customer preferences: Tanzanian customers have shown a growing interest in software solutions that can improve their daily activities. This includes software for accounting, project management, and customer relationship management. Small and medium-sized enterprises are increasingly adopting software solutions to improve their internal processes and increase efficiency.

Trends in the market: One of the major trends in the software market in Tanzania is the shift towards cloud-based solutions. This trend is driven by the need for cost-effective solutions and the flexibility of cloud-based software. Additionally, there is a growing demand for mobile applications that can be accessed from smartphones and tablets. This trend is driven by the increasing use of mobile devices in Tanzania.

Local special circumstances: One of the unique circumstances in Tanzania is the presence of a large informal sector. This sector is characterized by small businesses that operate without proper documentation and registration. The informal sector accounts for a significant portion of the Tanzanian economy, and software solutions that can cater to their needs are in high demand.

Underlying macroeconomic factors: The Tanzanian economy has been growing steadily over the past decade, with an average annual growth rate of 6-7%. This growth has been driven by various factors, including foreign investment and the growth of the service sector. The government has also been implementing policies to support the growth of the digital economy, including the development of infrastructure and the promotion of e-commerce. These factors have contributed to the growth of the software market in Tanzania.In conclusion, the software market in Tanzania is experiencing significant growth due to the increasing adoption of software solutions by small and medium-sized enterprises, the shift towards cloud-based solutions, the demand for mobile applications, the presence of a large informal sector, and the underlying macroeconomic factors. The market is expected to continue growing as more businesses adopt digital solutions to improve their operations and increase efficiency.

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.