Asia-Pacific to lead enterprise software boom
11 Nov 2009
Asia Pacific's enterprise software market revenue is forecast to grow 10.2 per cent to reach US$22.1 billion (A$22.7 billion) next year, the fastest growth of any region of the world, Gartner says.
In its latest report on the regional enterprise software market, the research company said this would be a significant rise from 6.6 per cent this year.
It, still, however, is below the , 13.8 per cent growth achieved in the region in 2008.
“Within the region, the volatile economy is impacting the application software segment more than the infrastructure software segment,” Garther said.
“Despite the recent slowdown in growth, Asia Pacific still has a positive outlook over the five-year forecast period from 2008 through to 2013, achieving a compound annual growth rate (CAGR) of 10.8 per cent, the highest of any region worldwide.
The company said that for the next five years, China, India and Vietnam would register the highest CAGRs of 14.6 per cent, 12.4 per cent and 10.7 per cent respectively.
Of the mature markets, Australia and Singapore will also have attractive CAGRs, of 9.5 per cent and 9.4 per cent respectively.
“China and India continue to benefit from a large domestic customer base and government stimulus packages, as well as relatively low market penetration,” the company said.
“Australia and Singapore’s revenue is supported by a consistent maintenance revenue stream and a strong vendor channel and service infrastructure, as well as positive expectations for end-user software budget increases in 2010.
“Asia Pacific will have a more positive outlook compared with other regions such as Europe and North America and as a result, major vendors will continue to target higher-growth markets in the region,” said Yanna Dharmasthira, research director at Gartner.
“However business customers continue to have strong bargaining power in the region.
China will continue to lead software demand in the region, with a 12.2 per cent growth rate in 2009 and 14.5 per cent growth in 2010.
Australia is the next-largest market with a 5.4 per cent growth rate in 2009 and 8.2 per cent growth in 2010.
“Although some mature countries are experiencing a notable recession, Australia's economic growth in 2009 will experience only slight negative growth before picking up in 2010. Australia also has the advantage of a well-established IT infrastructure and a well-developed sales and service infrastructure,” the company said.
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