The Productivity Software market covers software applications that are designed to support individuals and organizations in increasing their efficiency and effectiveness in carrying out their tasks. This market includes applications ranging from common office software to complex creative software applications that are used for both personal and business purposes.
Products in the Productivity 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.
The Productivity Software market contains five markets that are based on the functionality of the software:
Administrative Software refers to software applications that are used to manage various administrative tasks and processes within an organization.
Collaboration Software refers to software applications that are used to facilitate communication and collaboration among teams and individuals within an organization.
Office Software refers to software applications that are used for productivity and work-related tasks in an office environment.
Creative Software refers to software applications designed to support tasks such as graphic design, video editing, 3D modeling, music composition, and photo editing.
Construction and Design Software refers to software applications in the areas such as Computer-Aided Design (CAD), Manufacturing (CAM), and Product Lifecycle Management (PLM).
The Productivity 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 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, Zoom, Adobe, SAP, and Dassault Systems.
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The Productivity Software segment has been growing at a stable rate over the last couple of years. This steady rise in numbers is predominantly driven by the introduction of faster and more efficient software programs and tools created by various software providers. The increased use of smartphones and applications has also been a contributing factor to the segment’s growth. Additionally, companies are increasingly recognizing the importance of retaining employees, and are therefore providing them with effective tools that help them be more productive.
Compared to other productivity software, the popularity of collaboration software grew immensely during the pandemic. This can be attributed to the increased use of this type of software as employees started to work from home, and both schools and universities began offering classes online.
Despite the short-term effects of the current economic crisis, which has forced many companies to reduce their IT budget, this segment is projected to continue growing in a stable manner in the coming years. It is also expected to benefit from the decision made by various companies to shift from on-premises software to cloud-based software in an effort to reduce operating costs and increase flexibility.
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.
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.
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.