India Software Market Set For Accelerated Growth In 2019: IDC
Today every business is a software business. While 2018 promises to be no less transformational in the world of software development, the next one year is likely to be more exciting with newer applications and technologies powered by AI, IoT and analytics coming to the fore.
A year-on-year (y-o-y) growth of 14.1% is expected to be achieved by India software market by the end of year 2018, as per IDC’s latest Asia Pacific (excluding Japan) Semiannual Software Tracker, 1H 2018. The market is poised to be valued as USD 5.7 billion in 2018.Today, India stands among the top three contributors in the APeJ region’s software market share; accounting 12.6% of the overall market. Also, the country is estimated to achieve a CAGR of 14.4% between 2017 and 2022- this is the highest growth rate anticipated amongst the APeJ countries for the above-mentioned period.
“Sustained growth in digital technology investments by Indian organizations to accomplish priorities such as modernization of legacy infrastructure and achieving operational excellence are driving the growth story of India software market,” said Ranganath Sadasiva, Director Enterprise Solutions, IDC India.
IDC classifies the Software market into three primary categories: Applications, Application Development and Deployment (AD&D), and System Infrastructure (SI) Software. Applications contributed the bulk of the spending with a 58.8% share, followed by AD&D and SI software with shares of 23.5% and 17.7%, respectively, in 1H 2018.
For the forecast period, 2017-2022, IDC predicts Collaborative Applications, Enterprise Resource Management (ERM) Applications and Content Workflow & Management Applications and Customer Relationship Management (CRM) to be the top opportunity areas for the vendor community (please refer table below):
“The high growth markets clearly indicate the emphasis India organizations are placing toward the implementation enterprise applications for business processes efficiency. There is tremendous business potential for collaborative, ERM, content management, and CRM applications in the next 3-5 years”, said Sandeep Kumar Sharma, Associate Research Manager, Software and Services, IDC India.
According to IDC’s estimate Application Development and Deployment account for 23.5% of the total India software market. “DevOps is amongst the top infrastructure related priorities for majority of larger organizations in India currently. This is being led by their need for agility, nimbleness to market, and better user experience,” said Mohsin Baig, Market Analyst, Enterprise Software, IDC India.