APEJ Software Market Continues To Grow
Driven by technologies such as enterprise resource planning (ERP), customer relationship management (CRM) and business intelligence (BI), the enterprise application software market in Asia-Pacific (excluding Japan) is expected to grow in the coming months. A recent Gartner study reveals the application software market grew 6.5% in 2013 to reach $12.6 billion, slightly lower growth than in 2012, but will continue to see better days ahead.
Apart from CRM, ERP and BI, segments such as supply chain management (SCM), enterprise content management (ECM), digital content creation (DCC), Web conferencing and project and portfolio management (PPM) software also witnessed a steady growth, says the research firm.
While Australia stood out as the fastest growing market among the mature Asia-Pacific countries driven by the growth in CRM investments, emerging countries such as India grew in areas such as BI and analytics, as well as SaaS and cloud-based deployments, according to the report.
Another recent Gartner report reveals that the Indian BI software revenue is forecast to reach $139 million in 2014, a 15% increase over 2013 revenue of $121.2 million, this forecast includes revenue for BI platforms, analytic applications and corporate performance management software.
“As enterprises start to make investments again after the elections, we expect business intelligence and analytics to be one of the key areas of investments to drive revenue growth and improve service efficiencies,” said Bhavish Sood, research director at Gartner. “We see signs of the emerging importance of BI in India as senior executives are increasingly exploring the different styles of analytics to resolve their business imperatives,” he said in the report.
Meanwhile, China continued to face moderating growth due to slowing domestic and export market demand, with application software revenue showing an increase of 5.9% over 2012. ERP is still the dominant software revenue contributor in many emerging countries, where local vendors played stronger roles, such as in China.
In terms of vendor revenue, Microsoft is leading the enterprise application software market in 2013 in Asia Pacific excluding Japan, ahead of SAP, Oracle, IBM and Yonyou, said Gartner.
The share of Microsoft in the Asia Pacific enterprise application software market 23.6%, while on the other hand, the second largest vendor SAP has a share of 12% in the enterprise application software market. The enterprise application software share of Oracle and IBM is 7.2% and 4.1% respectively.
“The software industry is in the middle of a multi-year cyclical transition as organisations are focusing investment on technologies to support existing systems, in order to maintain competitiveness,” said Gartner research director Yanna Dharmasthira while adding that at the same time, they are taking advantage of cloud/subscription-based pricing, where it makes sense to grow and advance the business.
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