Software - Mexico

Mexico

In 2024, the Software market in Mexico is expected to generate a revenue of €4.24bn.
The dominant player in this market segment is Enterprise Software , which is projected to have a market volume of €1.71bn in the same year.
Looking ahead, the revenue is anticipated to grow at an annual growth rate of 4.17% (CAGR 2024-2029), resulting in a market volume of €5.20bn by 2029.
When compared globally, United States is forecasted to generate the highest revenue of €333.50bn in 2024.
Mexico's software market is experiencing a surge in demand for cloud-based solutions, driven by the country's growing tech-savvy population and increasing adoption of digital transformation initiatives.

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the 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 market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change 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 consumers (B2C), 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 Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

Mexico, a country with a rich cultural heritage, is also known for its rapidly developing economy. The Software market in Mexico has been showing remarkable growth in the past decade, and this trend is expected to continue in the coming years.

Customer preferences: The Mexican market is highly receptive to new technologies and software solutions. The country has a large and young population, with a growing middle class that is increasingly tech-savvy. Mexican customers are looking for software solutions that are user-friendly, cost-effective, and can be easily integrated into their existing systems. Cloud-based solutions are particularly popular, as they offer flexibility, scalability, and cost savings.

Trends in the market: One of the major trends in the Mexican software market is the shift towards cloud-based solutions. This trend is driven by the growing demand for software solutions that can be accessed from anywhere, on any device. Another trend is the increasing use of artificial intelligence (AI) and machine learning (ML) in software development. Mexican companies are investing heavily in AI and ML technologies to improve their efficiency, productivity, and customer experience.

Local special circumstances: Mexico has a large and diverse economy, with a mix of traditional industries and modern, high-tech sectors. The country is home to a number of multinational corporations, as well as a thriving startup ecosystem. The Mexican government has implemented a number of policies to support the growth of the software industry, including tax incentives and funding for research and development. However, the market is also highly competitive, with many local and international players vying for market share.

Underlying macroeconomic factors: Mexico's economy has been growing steadily in recent years, driven by a combination of factors including a young and growing population, political stability, and a strategic location. The country has a highly skilled workforce, particularly in the fields of science, technology, engineering, and mathematics (STEM). However, Mexico also faces some challenges, including high levels of inequality, corruption, and crime. These factors can impact the software market by affecting consumer confidence, investment decisions, and business operations.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. 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.