Enterprise Software - Germany

Germany

Germany's Enterprise Software market is expected to generate a revenue of €11.79bn by 2024.
Among the different software categories, Customer Relationship Management Software is projected to dominate the market with a projected market volume of €3.47bn in the same year.
The market is expected to grow at an annual rate of 4.60% (CAGR 2024-2029), resulting in a market volume of €14.76bn by 2029.
Furthermore, the average spend per employee in the Enterprise Software market in Germany is projected to reach €258.40 in 2024.
In comparison to other countries, United States is expected to generate the highest revenue in the Enterprise Software market, with a projected amount of €138.10bn in 2024.
Germany's enterprise software market is experiencing a surge in demand due to the country's strong focus on innovation and digital transformation.

Key regions: France, United Kingdom, Australia, Canada, South Korea

Definition:

The Enterprise Software market covers software applications designed to support essential business activities by large organizations such as enterprise resource planning, customer relationship management, business intelligence, and supply chain management.

Products in the Enterprise 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 Enterprise Software market contains eight markets that are based on the functionality of the software:

Business Intelligence Software refers to software applications that support organizations to analyze, visualize, and report data.
Content Management Software refers to a wide range of software applications that support organizations to manage their digital content such as documents, images, and videos.
Customer Relationship Management Software refers to software applications that support organizations to manage their interactions with customers, clients, and prospects.
eCommerce Software refers to a wide range of software applications that support organizations to manage their online sales channels.
Enterprise Performance Management Software refers to software solutions that help organizations to manage and improve their performance across various areas, such as finance, operations, and strategy.
Enterprise Resource Planning Software refers to software applications that support organizations to manage, integrate and optimize important business activities related to resources such as people, finance, capital, materials, and orders.
Supply Chain Management Software refers to software applications that support organizations to manage their supply chain activities such as inventory optimization, supplier and vendor management, and logistic operations.
AI Development Tool Software refers to a specialized category of software designed to facilitate the creation, testing, deployment, and management of artificial intelligence (AI) models and applications.
Other Enterprise Software refers to aggregated revenues for the types of enterprise software that are not specifically mentioned in the other Enterprise Software markets, such as Project Management Software, Product Life Cycle Management Software, and Production and Operation Software.

Additional Information:

The Enterprise Software market comprises revenue and revenue growth 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 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 SAP, Salesforce, Adobe, and Oracle.

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Analyst Opinion

The demand for enterprise software in Germany has been steadily increasing in recent years, driven by a growing need for digital transformation across various industries.

Customer preferences: German companies have been prioritizing enterprise software solutions that offer greater automation, efficiency, and scalability. Cloud-based software has also become increasingly popular due to its flexibility and cost-effectiveness. Additionally, there has been a rising demand for software that can integrate with other systems and provide real-time data insights.

Trends in the market: One major trend in the German enterprise software market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to automate processes, improve decision-making, and enhance customer experiences. Another trend is the growing popularity of software-as-a-service (SaaS) models, which offer greater scalability and cost savings for businesses. Finally, there has been a shift towards more customized software solutions that can be tailored to meet the specific needs of individual businesses.

Local special circumstances: Germany has a highly skilled workforce and a strong tradition of engineering and innovation. This has led to a thriving technology sector, with many startups and established companies developing cutting-edge enterprise software solutions. Additionally, German businesses are subject to strict data protection regulations, which has led to a greater emphasis on secure software solutions.

Underlying macroeconomic factors: Germany is the largest economy in Europe and has a highly diversified industrial base. The country has a strong focus on innovation and technology, which has helped to drive demand for enterprise software. Additionally, the COVID-19 pandemic has accelerated the adoption of digital technologies across various industries, further boosting the demand for enterprise software solutions.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.

Forecasts:

We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. 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.