Software Development (Global Market)

Market segments

• Business Intelligence, BI (Global Market)
• CPQ (Configure, Price and Quote) Sales Optimization Software
• CRM (Global Market)
• ECM (Global Market)
• ERP systems (global market)
• HRM systems (global market)
• Linux
• PLM (Global Market)
• PaaS (Global Market)
• SCM (Global Market)
• SOA (Global Market)
• SaaS (Global Market)
• System Management Software
• Unified Communications Global
• Business Process Analysis, BPA (Global Market)
• Blockchain (global market)
• Big Data (Big Data) Global Market
• Geometric cores (in Russia and the world)
• Horizontal Portals (Global Market)
• Graphics Software (Global Market)
• Artificial Intelligence (Global Market)
• Enterprise Wireless E-mail (Global Market)
• Operating Systems (Global Market)
• Mobile Platform Operating Systems (Global Market)
• DSS Software (Global)
• Medical Imaging Analysis Software (Global Market)
• Information Security Software (Global Market)
• Collaboration Software (Global Market)
• E-Commerce Software (Global Market)
• Music and Video Editing Software (Global Market)
• mHealth Applications (Global Market)
• Data Backup (Global)
• CAD (Global Market)
• SPO (free software) in countries of the world
• DBMS (Global Market)
• Middleware (AIM) - Global Market
• Information Security Services (Global Market)
• Project Management Systems (Global Market)

Trends in Enterprise Software Development

Main article: Trends in software development

2023

Growth in the global software testing services market by 4% to $43.15 billion

In 2023, costs in the global software testing services market reached $43.15 billion. For comparison, a year earlier, expenses in this area were estimated at $41.52 billion. Thus, growth was recorded at 4%, as stated in the Market Research Future review, presented in mid-December 2024.

The market in question shows steady positive dynamics due to a number of factors. One is the increasing complexity of software products, requiring rigorous testing to ensure quality and performance. In addition, requirements for software from customers are growing.

Another industry driver is the use of Agile and DevOps techniques. The first involves a flexible approach to managing software development projects, which is often used in small teams. The Agile concept is characterized by work in short iterations of two to three weeks. Moreover, at the end of each cycle, testing is usually carried out, which allows you to identify possible errors and prevent more serious problems. In turn, DevOps assumes that the interaction of development, testing and operation teams is combined into one continuous and automatic process on a pipeline basis. The main goal of both approaches is to increase the efficiency of creating software products, including through comprehensive testing.

Artificial intelligence technologies and automation tools have a positive impact on the industry. The increasing complexity of the software often leads to longer test cycles and puts a significant burden on specialists. AI systems and automation tools solve this problem by providing faster and more accurate detection of errors in the code and the execution of tests in general.

The authors of the report identify four key market segments: functional testing, performance testing, automated testing and security testing. In 2023, the first of these areas provided revenue in the amount of $12.5 billion. Another $8 billion fell on performance testing, about $11 billion - on automated testing. Security testing brought in $11.65 billion. Significant players in the industry are named:

• IBM;
• Wipro;
• Telerik;
• Cognizant;
• HCL Technologies;
• Serco;
• DXC Technology;
• Capgemini;
• Qualitest;
• Atos;
• Mindtree;
• Tata Consultancy Services;
• Infosys;
• Accenture;
• Zensar Technologies.

Geographically, North America was the leader in 2023, where software testing services provided revenue of $20 billion. The region dominates with its advanced technology infrastructure, high adoption of automation and AI technologies. This is followed by Europe with an estimate of $10 billion, and the Asia-Pacific region closes the top three, where costs amounted to approximately $8 billion. South America's contribution was recorded at $3 billion, the Middle East and Africa brought in $2.15 billion. Testing services are in demand in areas such as IT and telecommunications, healthcare, banking, financial services and insurance, retail, manufacturing, etc.

At the end of 2024, revenue in the segment under consideration is estimated at $44.84 billion. Market Research Future analysts believe that in the future, the CAGR will be 3.92%. As a result, by 2032, costs on a global scale could increase to $61 billion.^[1]

The volume of the global corporate software market for the year grew by 11.1% and reached $788.1 billion - Gartner

At the end of 2023, costs in the global enterprise-class software market reached $788.1 billion. This is 11.1% more compared to 2022, when this market was estimated at $709.4 billion. One of the main drivers of growth is the rapid development and adoption of artificial intelligence technologies. Industry trends are addressed in the Gartner survey, which TAdviser reviewed in early November 2024.

Enterprise software includes software classes such as enterprise resource management (ERM) systems, customer relationship management (CRM) platforms, engineering applications, supply chain management ( SCM ) tools, database management system (DMS), information security solutions, etc . It is noted that against the background of the ongoing digital transformation, the need for such products is growing around the world. The industry is driven by the development of social media marketing platforms and the expansion of e-commerce.

Data on the corporate software market from Market Research Future analysts

High demand for corporate software is observed in such areas as banking, aerospace, automotive, power, telecommunications, insurance, etc. The need for effective analytics of large amounts of data is increasing: AI and machine learning algorithms help to solve this problem. Another market driver is the ongoing adoption of cloud computing: this model significantly reduces the cost of deploying systems and provides greater flexibility, which stimulates the implementation of new enterprise-class software solutions.

It is noted that large players invest heavily in research and development to expand the range of products. In addition, enterprise software suppliers are taking a number of strategic initiatives to expand their presence in various regions: we are talking about mergers and acquisitions, cooperation with other organizations, etc. Significant market players are named:

• Microsoft;
• VMware;
• CA Technologies;
• IBM;
• HP;
• Symantec;
• Oracle;
• EMC;
• SAP.

The Gartner study notes that the global corporate software industry is showing positive dynamics, despite the difficult business environment, macroeconomic obstacles and the formed geopolitical situation. The growth is driven by increased investment in analytics, generative AI technology, cloud solutions and cybersecurity. The largest segment in 2023 was CRM systems with a share of about 13.6% in total costs, which corresponds to $107.2 billion. Another 13.1%, or approximately $103.2 billion, fell on DBMS. Next comes information security software with a 10.4% share and revenue of $82 billion. The fastest growing segment is networking software with a 15.6% gain, followed by all sorts of analytics platforms.

From a geographical point of view, analysts estimate that North America is the leader, where many leading developers are concentrated. In addition, AI technologies and cloud platforms are actively developing here. Europe and the Asia-Pacific region are also showing high growth rates. Vertically, the corporate software industry is segmented into BFSI (banking, financial services and insurance), healthcare, retail, IT and telecommunications, etc. The IT and telecommunications sector is estimated to have the most significant contribution to total sales. Companies in this area are actively digitalizing their business operations in order to demonstrate greater transparency and speed up the product development process.^{[2] [3]}

The global corporate software market grew by 12% over the year and reached $356 billion. Leaders - IDC

At the end of 2023, the volume of the global enterprise-class software market reached $356 billion. This is 12% more compared to the result for 2022, when the costs in this area were estimated at $318 billion. One of the growth factors is the introduction of artificial intelligence systems, including generative (Genia). This is stated in the IDC study, the results of which were published on June 20, 2024.

It is noted that the integration of AI functions into corporate software provides a number of additional advantages. Among them are faster receipt of analytical information and increased speed of decision-making. As a result, it is easier to maintain certain business processes, which saves time and money. Coupled with cloud technology as the basis for rapid innovation, enterprises can accelerate ROI and improve their competitive capabilities.

At the end of 2023, the volume of the global enterprise-class software market reached $356 billion

SaaS services (software as a service) and cloud applications continue to show growth in the corporate market. With new capabilities such as Genia and different uses, companies can transform business processes and gain a significant competitive advantage. Organizations are implementing more modern, functional and intelligent enterprise applications, "says Mickey North Rizza, IDC vice president.

Business AI helps improve the customer experience with interactive virtual assistants and conversational analytics. Enterprises can accelerate process optimization by processing documents, adding data, and optimizing the supply chain. In addition, employee productivity is enhanced through efficient search, code generation, and automatic reporting. GeniI tools can be used in all areas of business, including design, marketing, finance and sales.

Analysts identify several key segments in the enterprise software market. These are enterprise resource management (ERM) systems, customer relationship management platforms CRM (), engineering applications, management tools (), supply chains SCM and production applications. There are different functional directions in each of these categories. The five largest suppliers of enterprise-class software products in 2023 included,,, and, SAP Salesforce Oracle Microsoft Intuit which together accounted for 21.2% of global revenue. Moreover, SAP and Salesforce differ only by 0.2%, and therefore IDC considers these companies as leaders.

According to IDC forecasts, global costs in the enterprise application market in 2028 will exceed $600 billion. Analysts believe that organizations will continue to integrate traditional artificial intelligence, machine learning and Genia tools into workflows. In addition, companies will invest in qualitatively new tools to maintain the relevance of their software as they transform digitally. At the same time, the public cloud will become the main model for deploying enterprise software: cloud platforms in 2028 will account for more than 70% of the costs in this area. The CAGR (compound percentage CAGR) in public cloud-based enterprise applications is expected to be 16.5%, while the corresponding indicator for the entire market as a whole will be 11.1%.^[4]

2022

Named the leaders of the global market for custom software development services - Gartner

At the end of 2022, the total revenue of 20 leading companies providing software Custom Software Development (CSD) services amounted to approximately $75.34 billion. This software helps corporate clients in the implementation of digital transformation, and also allows them to accelerate the creation of new products and services. This is stated in the study, the Gartner results of which were published on November 27, 2023.

It is estimated that in 2022, approximately 67% of revenue in the CSD market was provided by large customers, about 20% by medium-sized organizations and 13% by small enterprises. At the same time, the bulk of the revenue from software development for the order fell on banking and financial structures (23%); media and communications (21%); health and life sciences (10%); production (10%); retail (8%). Thus, together these segments provided approximately 72% of the total industry volume.

Gartner says one of CSD's global market leaders is Accenture. This company in 2022 demonstrated an increase in revenue from custom software development services by 86% on an annualized basis. Approximately 90% of such receipts were accounted for by large customers, the remaining 10% - by medium-sized customers. Geographically, 39% of Accenture's revenue from CSD services came from North America, 5% from Latin America, 38% from Europe, the Middle East and Africa (EMEA), 18% from Asia-Pacific. The top five industries by number of customers include retail, banking and investment services, telecommunications, consumer goods and the public sector.

Another major player in the industry, Gartner analysts call Deloitte. For this developer, revenue from CSD services rose 20% year-on-year. About 85% of revenues came from large customers, the remaining 15% from medium-sized customers. In Deloitte's overall CSD revenue structure, approximately 50% is in North America, 5% is in Latin America, 23% is in EMEA, and 22% is in Asia Pacific. The company receives the most orders from organizations in the government sector, in the field of banking and investment services, in the fields of health and life science, media and production. Deloitte focuses on helping its customers rethink and optimize their business by implementing a product strategy and developing specialized software.

Epam is also among the leaders. She had a 38% increase in revenue from CSD services in 2022. Approximately 80% of revenue in this segment was provided by large customers, 20% - by medium-sized enterprises. In Epam's revenue mix, about 60% is in North America, 38% is in the EMEA market, and 2% is in the Asia-Pacific region. The top five industries by customer include telecommunications and technology services, retail, financial services, healthcare and insurance.

The rating of leading players includes TCS Corporation, which showed a 13% increase in revenue from CSD services in 2022 compared to the previous year. The bulk of revenue - 83% - came from large customers, 14% from midsize customers and 3% from small customers. The revenue structure is as follows: 50% from North America, 2% from Latin America, 34% from the EMEA region and 14% from the Asia-Pacific region. The top five industries by number of customers include banking and investment services; retail; insurance; communications and media; health care and life sciences.^[5]

Global sales of software with AI elements for the year reached $64 billion

At the end of 2022, the volume of the global software market with artificial intelligence elements reached approximately $64 billion. In the future, steady growth is expected. Such data are given in the IDC study, the results of which were released on October 31, 2023.

Analysts take into account sales of specialized AI platforms, AI applications, system infrastructure software (SIS) of artificial intelligence and software for the development and deployment of AI applications (with the exception of artificial intelligence platforms). At the same time, platforms and applications of generative AI are not taken into consideration.

Investment momentum in artificial intelligence and automation technologies remains unchanged despite macroeconomic uncertainty and changing market dynamics. Companies understand that the use of advanced systems is not only a strategic necessity, but also a decisive factor in achieving long-term success. Despite the potential challenges and risks, organizations are confident that the introduction of AI will continue to be key to ensuring the sustainability of their business operations in the future and maintaining leadership among competitors, says Raghunandhan Kuppuswamy, IDC's AI research manager.

Experts believe that in the period from 2022 to 2027, the CAGR (average annual growth rate in complex percentages) in the market under consideration will be 31.4%. As a result, by 2027, the volume of the global software industry with AI elements will reach almost $251 billion.

AI applications are the largest category of software with elements of artificial intelligence, which in 2023 accounts for about a third of the total market volume in monetary terms. This category includes collaboration tools, content and enterprise resource management (ERM) tools, supply chain management systems, manufacturing, operations and engineering applications, and customer relationship management (CRM) tools. Revenue growth in the AI applications segment will lag behind the market average as a whole: the CAGR value in the period up to 2027 will be 21.1%.

The second largest category by revenue in 2023 is AI platforms. The CAGR indicator until 2027 in this area, according to IDC, will be 35.8%. Moreover, for most of the period of time under consideration, it is the AI platforms that will bring the largest revenue in the market. Platform solutions make it easier to develop AI models and applications, such as intelligent assistants, that can mimic a person's cognitive abilities.

The two smallest market segments in terms of revenue are system infrastructure software of artificial intelligence and software for the development and deployment of AI applications. However, in these categories, IDC analysts believe, the highest growth rates will be observed until 2027 - 32.6% and 38.7%, respectively. The first of these segments benefits from integration with existing software systems, allowing organizations to extract valuable information from vast amounts of data to make informed decisions and optimize operations. This category includes tools for business intelligence, data management, integration, application development, and more.

As for the software sector for generative AI, it will also develop rapidly, according to IDC. Analysts believe that by 2027, global costs for such software will reach $28.3 billion.^[6]

The volume of the corporate software market is estimated at $279.6 billion

On January 12, 2023, IDC released the results of a study of the global enterprise software (software) market. Costs in the corresponding segment in 2022 reached $279.6 billion.

Analysts note that enterprise software vendors and their customers will continue the transition from local applications to the cloud model, although this process can take years. Companies that do not use this concept will suffer losses due to the huge costs associated with the use of local applications and software products created in-house. Their competitors implementing cloud technologies and using application programming interfaces will gain a significant advantage as cloud platforms are seen as an integral part of business operations in the digital world.

It is not enough for companies to sit idly by and rely on their technological backstop in the form of software and hardware assets to maintain an efficient operation. In a digital environment, enterprise software must be constantly updated to meet growing demands for performance, scalability and reliability, "said Heather Hershey, Research Director, IDC Worldwide Digital Commerce.

Experts say organizations need to invest in new tools to keep their suite of apps up to date. To do this, you can use the tools of automation of processes and analytics of a huge amount of available and generated data.

In addition to the ongoing migration to the cloud, IDC has identified a number of other significant market changes that are driving the growth of the enterprise application industry.

· Products (SaaS software as a service) as well as cloud-based intelligent applications are essential to successful business growth. Organizations looking to stay afloat require solutions based on AI the cloud concept and modular architecture.

· Application Programming Interface (API) technology will be the backbone of the enterprise application market. Such tools help organize the effective interaction of various programs and disparate codebases.

· A phased migration to the cloud will continue - especially in B2B enterprises. TaskApps and low-code/no-code development tools will play an important role.

· New rules on data privacy and ethics are changing how organizations collect and use information. Moreover, management issues come to the fore. Compliance has become a distinctive factor in enterprises that prioritize reliability.

According to IDC forecasts, the CAGR (compound percentage CAGR) in the global enterprise software market over five years will be approximately 8.0%. As a result, in 2026, the industry will reach $385.2 billion. It is noted that the enterprise application market is a competitive industry that includes software for certain tasks and universal products. Enterprise applications can be delivered as a pre-integrated set of components or as standalone solutions that automate certain functional business processes, such as accounting, human resources management, or supply chains. In general, the enterprise application market consists of a number of segments: company resource management, customer relationship management, engineering applications, supply chain management applications and production applications.^[7]

2021: The world's largest manufacturers of business software

The total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, reached $613 billion in this market in 2021, which is 10% more than a year earlier. This is evidenced by the data of analysts Synergy Research Group, published on December 21, 2021. Read more here.

2020

The corporate software market grew by 4.1%, to $241 billion - IDC

Companies' global spending on corporate software in 2020 increased by 4.1% compared to 2019 and reached $241 billion. This was reported by IDC analysts in a study, excerpts from which were published on September 16, 2021.

Business software experts called the leaders of SAP Salesforce Oracle Intuit the market companies,,, and, Microsoft which at the end of 2020 accounted for 22.8% of sales. The shares of vendors separately are not specified.

IDC enterprise software includes products such as enterprise resource management (ERM) and customer relationship management (CRM) systems, engineering applications, supply chain management (SCM ) solutions, production solutions, etc.

According to analysts, the growth of the global corporate software market is due to the fact that companies are actively investing in their digital sustainability in order to cope with the negative consequences of the COVID-19 coronavirus pandemic. The deteriorating economic situation spurred organizations to digitally transform their businesses.

In IDC terminology, digital resilience is the ability of companies to quickly adapt to the difficulties that have arisen by using information technology to restore business and capitalize on changed conditions - in 2020, it became the focus of organizations. Under these conditions, corporate software is critical for digital sustainability and the implementation of a strategy for the transition to digital technologies.

Digital sustainability has become a prerequisite in the digital world. Adapting quickly to the challenges that business faces requires the company to use digital capabilities as part of its portfolio of enterprise applications, says IDC analyst Mickey North Rizza. - Modular intelligent applications help businesses leverage data and get analytics content to maneuver more efficiently so companies can stay resilient and cash in on changed terms.

IDC expects that sales of enterprise software on a global scale by the end of 2025 will reach $334 billion. The main driver of this rise will be the desire of companies to update their applications in order to achieve the digital sustainability and flexibility that they need to thrive in the digital economy. Spending on enterprise-grade public cloud services is expected to grow 13.6% annually, surpassing the growth rate of the entire market (+ 6.7%) and the segment of local solutions installed on client computers.

IDC cites the results of its survey of business representatives, according to which the share of companies planning to increase investments in corporate software in 2020 increased to 64% from 33% a year earlier. Among small and medium-sized businesses, this figure increased from 27% to 59%, and among large organizations - from 42% to 72%. The main emphasis in these investment strategies is on:

• Improve client applications to protect and increase revenue growth
• investing in modular systems to improve operations, finance, manufacturing, procurement, supply chain, facilities, distribution, HR and other functions.
• Add, extend, and terminate workflows using TaskApps to enhance automation
• Understanding the current and future health of the enterprise, from on-premises and hybrid models to cloud and integrated packages, to improve the entire digital development organization.^[8]

Enterprise Software Market Up 8.8% - Gartner

software By the end of 2020, the global corporate class market grew by 8.8% in dollar terms, analysts calculated (Gartner data released in May 2021). At the same time, they did not specify the indicator in monetary terms.

According to the researchers, the most pronounced growth in 2020 was demonstrated by segments such as database management systems (), DBMS mail services, customer relationship management systems, etc.

Microsoft was named the leader in the global business software market at Gartner. The second position of analysts was given by Oracle, the third - by SAP. At the same time, the shares of these producers are not specified.

Gartner draws attention to the surge in demand for collaboration and video conferencing tools such as Zoom, Microsoft Teams and Cisco Webex in 2020. High interest in these platforms is caused by the consequences of the coronavirus COVID-19, which led to a massive transition of companies to a remote work format. According to analysts, global spending on software for collaboration, employee communication and organization of corporate social networks in 2020 reached $3.8 billion. In 2021, a 17 percent growth of the segment is expected, up to $4.5 billion.

The need to hastily abandon office work, while keeping the business afloat, gave impetus to many markets, including the markets for collaboration solutions and corporate social networks, says Gartner vice president of research and one of the authors of the study, Craig Roth. - These products have moved from the "good to have" category to the "need to have" category in just a few weeks.

Among the segments examined in the study, collaboration management tools, including Asana, Trello and Monday.com, turned out to be the most powerful factor in the growth of the entire corporate software market, as companies sought to digitize "non-standard" task management and coordination processes that would otherwise require e-mail.

Tracking and coordinating work outside of formal project plans became much more difficult when you could not ask a colleague through the wall about the status. These tools, the demand for which was already on the rise, received an additional impetus during the pandemic, Roth said.

Gartner predicts that 65% of enterprise software will include collaboration features in one form or another by 2025. The development of this trend is facilitated by the manufacturers themselves. Thus, Microsoft decided to embed the corporate messenger Microsoft Teams will be available as part of a set of products, and Dynamics 365 Salesforce plans to deeply integrate the technology of the absorbed company (Slack one of the leaders in the collaboration services market) with its products.^[9][10]

2019: Corporate Software Market Growth by 7.5%

The volume of the global enterprise software market in 2019 reached $224.6 billion, an increase of 7.5% compared to 2018. This is evidenced by the data of the analytical company IDC.

Experts associated the growth in business software sales with technological transformation projects that companies implement to solve the problems of the digital economy. In these initiatives, state-of-the-art software that provides automation, communication capabilities and insights into the future of the market provides a critical competitive advantage, the report said.

According to experts, corporate solutions are the engine of business, since they provide important data, intelligent and computational tools necessary for the functioning of the business in the digital economy, and each area of ​ ​ activity in the company depends on many applications.

Digital transformation projects make important changes to companies, such as the ability to work anywhere, anytime, identifying new ideas through cognitive and predictive processes, and changes in corporate capabilities through the use of modern and cloud business applications, says Mickey North Rizza, vice president of Enterprise Applications and Digital Commerce at IDC. - Enterprise software is the foundation of business processes, employee engagement and customer experience.

Public cloud services are gaining popularity in the corporate software market. In 2019, they accounted for 40.3% of software sales, and in 2024 the share could grow to 56.8%. At the same time, the entire corporate software market will grow by 3.4% annually and will exceed $265.7 billion by 2024, the IDC predicts.

Manufacturers of business software solutions offer new use cases for such products, using big data, analytical tools, and machine learning to provide a more effective understanding of workflows.

Vendors are also working to automate lower-level tasks. Analysts believe that this trend will continue and will become a key factor determining the position of companies in the corporate software market.

At the end of 2019, IDC named SAP the largest manufacturer of such software and gave it a share of 7.7%. The entire top five is as follows:

• SAP (7,7%);
• Oracle (5,1%);
• Salesforce (5%);
• Intuit (3%);
• Microsoft (2,1%).

IDC identifies several major segments of the enterprise software market:

• Corporate Resource Management Systems
• Customer Relationship Management (CRM) systems
• engineering applications;
• Supply chain applications
• solutions for the manufacturing sector.

According to experts, the capabilities of enterprise software began to expand rapidly, which led to the formation of a "buyer market" for solutions designed for organizations and businesses, as they can solve more problems than before. However, after several decades of steady growth of about 7% per year, the growth of the enterprise software market is expected to slow down to about 4% in the coming decade.

Understanding these market changes is key to meeting the changing needs of customers who are moving to open source cloud solutions that pay for usage and require minimal code writing as part of their global strategic plans, the report noted.^[11]

2016: Gartner valuation: $326 billion

In 2017, Gartner analysts projected that the enterprise software market would grow at a strong pace relative to other segments of the IT industry. So, if in 2016 software sales increased by 5.3% (to $326 billion), then in 2017-2018. growth is expected by 7.6% and 8.6% - to $351 and $381 billion, respectively. Researchers attribute the growing sales of software to the continued investments of companies in analytics, AI, big data tools and Solution SaaS.

2013

Gartner: Market Size $407.3 Billion (+ 4.8%), Microsoft Leads

The global software market grew in 2013 by 4.8% compared with 2012 to $407.3 billion due to the distribution of cloud solutions, according to a report by analytics firm Gartner.

According to the company's analysts, the industry ON is at a point of cyclical development, when organizations invest in supporting existing solutions in order to maintain their competitiveness in the market. The growth of the global market at the moment is due to the development of cloud services and the distribution of software as a service. SaaS

Microsoft remained the leader in the global software market in 2013, sales of software products of which grew by 6% to $65.7 billion in the reporting period.

Second place went to Oracle, which received $29.6 billion in 2013, 3.4% higher than in 2012.

In third place is IBM with software sales of $29.1 billion. The highest growth in the year was demonstrated by a company Salesforce specializing in cloud solutions - its sales increased by 33.3% to $3.8 billion#^[12]

Top 100 Software Developers in Europe

In early December 2014, the French investment company Truffle Capital published a new edition of the rating of the largest software manufacturers in Europe. The list is based on revenue figures for 2013.^[13]

The first place among the leading European software companies is still held by SAP, which in 2013 earned about 16.8 billion euros on software, which corresponds to 39% of the total revenue of 100 companies included in the rating.

File:Klooop.png

Top 20 European software developers

The top three (except SAP, which includes Dassault Systemes and Sage Group) account for 47% of software sales in the region. The top 5 vendors (Hexagon AB - 4th place, Wincor Nixdorf - 5th place) controls 53% of revenue, the Top 10 - about 63%. Fifty hundred hundred companies receive approximately 90% of revenues in the European software market. It is worth noting that the above-mentioned share indicators of producers have not changed compared to 2012.

According to Truffle Capital, in 2013, European software companies earned a total of 57.4 billion euros, where 42 billion euros fell on the implementation of software. The rest is made up of income from various services and other sources. In 2012, the net software revenue of vendors was measured at 41 billion euros, a year earlier - 37 billion euros, in 2010 - 31 billion euros.

In 2013, European software companies earned 42 billion euros from the sale of software

According to Bernard-Louis Roques, general partner in IT and co-founder of Truffle Capital, the Eurozone software sector is under pressure from many negative factors and is going through times when manufacturers' expenses exceed their revenues.

"Apparently,

the European software market is on the verge of change. Local suppliers face a unique situation that combines a significant paradigm shift towards cloud solutions, slower growth (in 2013, total vendor revenue increased by only 2.7%, which was not in the entire history of Truffle's observation of the market) and pressure on investment potential (for the second year in a row, R&D costs exceed profit), "said Bernard-Louis Rock

.

He also added that analytics tools and Big Data will soon become mainstream in the market.

IDC forecast to 2017

According to IDC at the end of November 2013^[14]the annual growth of the global software market in 2013 will be 4.3% in dollar terms. The final forecast is significantly lower than what IDC gave in May 2013 (+ 5.7%), largely due to changes in the Japanese yen exchange rate in the second quarter.

In constant currency (also in dollars), the growth forecast for the end of 2013 is still quite high: at 5.9%. In the period up to 2017, IDC forecasts the CAGR of this market within 6%.

Forecast for the Global Software Market by Region to 2017

The highest growth rate of IDC is expected in the segments of collaboration applications, software for managing structured data and data access, analytics and business information search. Here, in the next five years, the annual revenue growth of vendors can reach 8%.

The second wave of high demand falls on traditional corporate applications such as CRM, ERM, SCM, and also industrial systems: software sales are expected to grow within 6% annually.

"Enterprises are starting to implement new applications that did not exist before or that were not previously required," explained Christine Dover, research director at IDC.

From a regional point of view, developing countries continue to outperform developed markets in terms of software sales growth. Thus, the average annual growth rate in the software market in the Asia-Pacific region (with the exception of Japan), Latin America, Central Europe, the Middle East and Africa will be 8.2% until 2017. Whereas in North America, Western Europe and Japan - 5.4%.

IDC: First half of 2013

The global corporate software market grew by 5.5% in annual comparison in the first half of 2013 to $179 billion: this is how the weakening of the European economy "ricocheted" in the market, experts from IDC^[15]. True, in the first half of 2012, growth was even lower - 5.1%, and at the end of 2013, IDC predicts market growth of 5.7%.

According to IDC Vice President Henry Morris, businesses are actively considering new opportunities and solutions to manage increasing amounts of information.

IDC divides the enterprise software market into three key segments: application, application development and implementation, as well as the infrastructure solutions segment. Thus, the segment of corporate applications separately grew in monetary terms by 5.8% in the first half of 2013, which was not little facilitated by an increase in 28.3% of sales of "social" software for enterprises.

In the segment of application development and implementation, growth in the first half of 2013 was slightly lower, about 5.1%, and the third mentioned segment, infrastructure solutions, reached the same level.

In certain regions, such as Latin America, market growth was above the global average - 8.6%, in the United States - 7.9%. In Western Europe, by comparison, it was only 5.1%. In the Asia-Pacific region (excluding Japan) - 6.6%. Japan is excluded from the calculations, as the devaluation of the yen led to a 9.2% fall in the market when calculated in dollar terms.

Top 5 software vendors in the first half of 2013, revenue of $ million

Vendor	1st half of 2013, revenue	1st half of 2013, share	1st half of 2012, revenue	1st half of 2012, share	Annual growth
Microsoft	32990	18,4%	29398	17,3%	12,2%
Oracle	15442	8,6%	15076	8,9%	2,4%
IBM	13582	7,6%	13632	8%	-0,4%
SAP	8101	4,5%	7570	4,5%	7%
Symantec	3234	1,8%	3148	1,9%	2,7%
Другие	105867	59,1%	101103	59,5	4,7%
Всего	179216	100%	169927	100%	5,5%

IDC, 2013

IDC named the largest software suppliers in the first half of 2013 in descending order of share: Microsoft, Oracle, IBM, SAP, Symantec.

Gartner's 2014 Enterprise Software Spending Forecast

According to Gartner^[16] March 2013, global enterprise software costs will grow significantly until 2014, with both on-premises and SaaS solutions being the driver.

However, the difference in preferred models of buying software will be significant from region to region, so vendors will have to develop individual presence strategies for markets in different countries, according to Gartner.

In regions where the maturity of the IT industry is great, such as North America and Western Europe, there is little expectation of an increase in software budgets in 2013-2014. On the contrary, emerging markets in Eastern Europe, Latin America and the Asia-Pacific region will show a significant increase in software spending.

In emerging markets, the purchase of software licenses (on-premieses) will continue to play a key role among all software purchase models: 69% of Gartner survey participants plan to increase the cost of buying software licenses by 2014 compared to 47% of respondents in mature markets. Regional differences are also evident in terms of maintenance and support costs: under this item, much larger amounts are pledged to the budgets of companies in mature markets compared to companies in emerging markets.

As the impact of negative factors grows in the global economy, more companies are showing interest in new software purchase models, in particular, cloud technologies and specifically SaaS models. Business in North America is showing maximum interest in SaaS and public cloud solutions: here 60% of respondents plan to increase the budget for cloud systems by 2014. In other regions, especially in the Asia-Pacific, application hosting and the construction of private cloud systems are popular.

Interestingly, among the key IT spending priorities for 2013, global companies noted the introduction of CRM, ERP and productivity improvement systems. Also, many companies plan to spend money on infrastructure security tools and virtualization software.

2012

In 2012, the global market software () ON grew by 3.6% in annual comparison and amounted to $342 billion, the market growth rate decreased by half compared to 2010-2011, according to a study [ IDC^[17] in April 2013.

Analysts believe that in 2012 the market entered a phase of conservative growth, although rapid growth will still persist in certain segments, such as data access, analytics and data delivery, collaboration applications, CRM, information security software, and network management systems. The average annual growth rate of these segments will be 6-7%, which is twice the growth rate of the corporate software market.

In the IDC taxonomy, the global software market consists of three major segments: the application segment, the application development and deployment segment, and the infrastructure systems segment. The fastest growing among them is the second, it accounted for about 24% of the total volume of the global software market, its growth in comparison with 2011 amounted to the maximum 4.6%. The largest vendors in this segment are Oracle (21.6%), as well as IBM, Microsoft, SAP and SAS.

The largest segment of the global software market remains the segment of software applications (its share in the overall market structure is 49%), an increase in 2012 by 2011 amounted to 3.3%. The maximum growth rate is noted in the subsegments of CRM systems and collaboration systems - about 7%. Microsoft leads here with a 13.7% share, followed also by SAP, Oracle, IBM and Adobe.

The infrastructure systems segment accounts for 27% of the global software market, its growth in 2012 was also 3.3%. The maximum growth rate was shown by subsegments of systems information security and network management systems - by more than 6%. Here, the leader is also. Microsoft with a 28% share, large market shares also among companies,, IBM Symantec EMC Corporation and. VMware

Top 5 global software vendors according to the results of revenue in 2012, $ million

	Vendor	Revenue 2012	Market Share 2012	Revenue 2011	Market Share 2011	Growth 2011-2012
1 |Microsoft	58454	17,1%	57694	17,4%	1,3%
2 |IBM	29129	8,5%	28861	8,7%	0,9%
3 |Oracle	27826	8,1%	26772	8,1%	3,9%
4 |SAP	16988	5%	16161	4,9%	5,1%
5 |Symantec	6423	1,9%	6417	1,9%	0,1%
	Others	203818	59,5%	194808	58,9%	4,6%
	Total	342638	100%	330712	100%	3,6%

IDC, 2013

Share of regional software markets in 2012

IDC, 2013

From a regional point of view, the most depressed results in 2012 were shown by the Western European market: the decline of this market in comparison with 2011 is expressed in double digits, while it accounts for 26.5% of the global software market. The US market accounts for 45% of the world market, its growth was 6%. The fastest growing regional markets remain Latin America, Asia-Pacific (excluding Japan), and Central Europe, the Middle East and Africa.

According to the results of 2012, Saudi Arabia, Peru, Colombia, China and Turkey are distinguished among the countries by the growth rate of the software market in IDC.

Application segment

The global software application market will reach $166 billion in 2012, an increase of 3.7% compared to 2011, according to IDC^[18]. However, this is the lowest market gain in the last three years, with analysts expecting such a slowdown as the period of intensive recovery from the 2008 crisis ended.

A number of segments of the business application market showed above-average growth in 2012: for example, in the CRM systems market, the customer service systems segment grew by 6.9%, marketing systems - by 7.9%, and sales automation systems - by 6.7%, the market for applications for collective work increased by 8.6%, and corporate social applications - by as much as 40.1%. There is also an increase in the market of financial efficiency systems and strategic management, it amounted to 8.4% in comparison with 2011.

In 2013, the revenue of business application providers in the markets is expected to seriously increase, of developing countries with each such region having its own focus. Asia Pacific (excluding Japan) is projected to see strong demand for asset management systems (up 16%) as well as search and data discovery solutions (13.4%). In Latin America, in the top ERP and CRM systems (an increase of 10.3% and 9%, respectively). In the CEMA region, where Vostochnaya belongs, Europe business analytics segments, BI as well as the segment of financial efficiency solutions and strategic management (will increase by 14.5% in 2013) will show the maximum growth.

Share of application vendors in the global market in the 1st half of 2012

IDC, 2012

According to IDC data for the first half of 2012, the following vendors held the largest shares in the global business application market: Microsoft (14.4%), SAP (6.7%), Oracle (6.3%), IBM (2.4%) and Adobe Systems (2.2%).

At the same time, among the top 10 vendors (in addition to the top five named above, Intuit, Siemens, Infor, Salesforce and Dassault Systemes), the revenue of all companies for the first half of 2012 exceeded $1 billion and increased by a total of 0.9% compared to the first half of 2011 and 2.4% compared to the first half of 2009.

Software development tools Market

According to IDC^[19] in 2012, the global software development tools and application adoption market will reach $80.6 billion, corresponding to 3.7% growth compared to 2011. According to analysts, despite the slowdown in the growth rate of this market in the second half of 2012, the forecast for 2013 is very positive. In general, Oracle, IBM and Microsoft led the market in the first half of 2012 in terms of revenue, which together accounted for more than half of the market - 54.7%.

IDC, 2012

The largest segment of this market, according to IDC, is the relational DBMSs segment, accounting for 34%. Oracle is the leader in this market with a share of about 50% in relation to other vendors. The growth rate of this segment will exceed the growth rate of the application market as a whole in 2013.

The maximum growth rate is recorded in the segment of distributed cache management systems, which, however, is not large, and will amount to $228 million in 2012. However, its growth in the first half of 2012 was 15.9%, and it is expected to be consistently high in 2013.

The segment of integration systems and access to data in 2012 will amount to $4 billion, here it leads IBM with a share of 17.5% of the segment's revenue, followed by and SAS Institute Inc. (SAS Institute) (SAS Institute). Informatica It is also expected to grow developers' revenue between 2012 and 2016. Also in the report of IDC analysts it is said that they associate serious expectations with the PAM (Process Automation Middleware) systems segment.

In the market of analytics and reporting systems, as well as BI systems, software developers will also be successful in 2013 and beyond. Among the leaders of this market are named SAP, IBM, SAS, and Oracle, among the second-tier vendors - MicroStrategy, Qlik (QlikTech), Information Builders, Tableau Software, Actuate Software, Panorama Software and Tibco Software. The average annual growth rate of these two segments in the aggregate will be 8.6% up to 2016.

Top 100 Software Developers in Europe

At the end of 2012, the revenue of key European software companies increased by 10% to 41.1 billion euros (in 2011 - 37.3 billion euros, since 2010 - 30.9 billion euros), however, profitability decreased due to the growing volume of investments in SaaS and other mobile/cloud solutions.

This is stated in the ranking of the top 100 largest software companies in Europehttp ^[12], prepared by Truffle Capital. Also, significant amounts of funds are directed by software developers to R & D.

The study is carried out annually with the support of the Commissioner of the European Commission for Digital Affairs Neelie Kroes, as well as in conjunction with IDC and other research companies.

As Nili Cruz noted in connection with the release of the study, "The European software development industry is flourishing, and its contribution to the region's economy is significant during a period of fierce global competition."

Top 15 software developers in Europe by revenue for 2012

Truffle Capital, 2013

The growth in revenue of companies for 2012 averaged from 5 to 15% (for 72% versus 43% a year earlier). Cloud solutions as a trend have the most capacious potential for the industry (will grow by 80% by 2014), mobile applications are in second place (55%).

Among the ranking companies, the top 100 for 2012, 42 vendors showed revenues of 200 million euros or more, 62 vendors - more than 100 million euros (in 2011 there were 60 of them), and 97 vendors earned more than 50 million euros (in 2011 there were 90). However, as noted above, the total profit of companies decreased from 6.6 billion euros in 2011 to 5.8 billion euros in 2012 (a decrease of 8.7%). At the same time, in 2012, the investment of software developers in Europe in scientific development increased by 20%, and the number of jobs involved in R&D - by 6%.

The software development industry in Europe employs 63 thousand qualified specialists, 6.8 billion euros were spent on the development of new products in 2012, so it is this industry that remains a catalyst for innovation in the region, analysts conclude.

Full ranking is available here.

IDC data for the 1st half of 2012

The global software market grew 4.7% to $167 billion in the first half of 2012. This is stated in the report "Worldwide Semiannual Software Tracker" of the analytical company IDC, published on November 7, 2012.

IDC, considering the regional software segments, is confident that a slight slowdown in the global market has had restrained development trends in Western Europe, where analysts note stagnation and location to decline. This segment occupies approximately 27% of the global software market and is the only area that is experiencing growth tension in the first half of 2012.

The software market in, USA which accounts for about 45% of the global software market, grew by 6.8% during the reporting period. And emerging markets (Latin America, the Pacific, excluding Japan) showed steady gains similar to 2011. The countries with the most dynamic software development markets IDC considered Colombia,, Russia Filipina,, Peru and China New Zealand.

IDC singles out the application segment, which analysts said was one of the fastest growing (+ 5.1%), accounting for about 49% of the entire industry. Analysts explain this development by the growth of CRM applications. The other two most dynamic areas were application development and deployment, as well as infrastructure software.

Considering the application segment, analysts highlighted the direction of social applications, which is growing at double-digit rates, which is not typical for the global market. So the segment in the first half of 2012 grew by almost 15%.

"More

companies are thinking about social solutions, how to manage and make decisions through applications integrated with systems that replace social media," said IDC Corporate Social Networking and Collaboration Technology Research Manager Vanessa Thompson. "Now companies can see a trend towards increasing the ability to exchange or transfer content between employees and customers and a transition to new technologies."

Among corporate applications, IDC highlights the CRM direction as the only one to double its performance. Service, marketing and sales lines grew by about 12%, and the contact center service segment failed to achieve two-digit performance.

At the same time, IDC considers virtualization to be the fastest growing segment of the world's software. Thus, the direction of virtual machines and cloud computing increased by 17.8%, while the direction of virtualization of client computing systems almost doubled its indicators. This, of course, is slightly lower than the indicators of the previous three years, however, analysts are confident that the figures for the first half of 2012 also look impressive.

"The

virtualization direction continues to be one of the fastest growing, with steady growth. However, one can note a slight slowdown in mature markets, where the saturation level is higher than in other countries, "said Gary Chen, manager of cloud research and software for IDC virtualization systems

.

IDC expects the industry's booming growth to slow down in 2012 and move to more conservative single-digit development indicators. Analysts warn that profits for 2012 will be lower than in 2011 and 2010.

2011

IDC: Software market size grew by nearly double digits

In 2011, the global software market grew in almost double digits, the highest growth rate since the 2008 financial crisis, according to IDC^[20]Nevertheless, in 2012, IDC expects a more conservative growth rate in the global software market, primarily due to economic problems that are currently noted in the EMEA region .

In 2011, 35 software vendors reached revenue of $1 billion or more, accumulating a total of 62% of the market. The remaining 38% of the market is divided between more than 1.1 thousand vendors. For the first time, Attachmate and Cadence Design Systems were included in the list of vendors with a billion turnover in 2011. Also in this group of vendors, only three companies achieved growth of more than 20% - VMware, Salesforce and Cadence Design Systems.

In terms of market share, Microsoft remains the number one software vendor in the world; it owns 17.8% of the world market in monetary terms as of 2011. That's more than double the market share of its closest competitor, IBM. Next, in descending order of share, are Oracle and SAP, whose business is far ahead of the overall market in terms of growth.

As for the technological segments of the global software market, according to the results of 2011, the maximum increase was shown by corporate social software, virtualization tools, and teamwork applications.

Among the regions of the world, the highest growth in the software market in 2011 was recorded in the Asia-Pacific region and Japan, although in 2012, according to IDC forecasts, this region will align with the rest. America, supported by the rapid development of Latin American countries, will have a stable share of about 53% of the global software market in the next few years.

Top 100 Software Developers in Europe

According to the results of 2011, the largest European software developers included:

• SAP - Germany - €13.9bn
• Dassault Systemes - France - €1.7bn
• Sage - Britain - €1.4bn
• Wincor Nixdorf - Germany - €1.1bn
• Hexagon - Sweden - €1.1bn

Full rating for 2011

Free reports

PwC's "Global 100 Software Leaders Key players & market trends" report, December 2010.

Notes