Software - Spain

Spain

Revenue in the Software market is projected to reach €4.30bn in 2024.
Enterprise Software dominates the market with a projected market volume of €1.79bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.36%, resulting in a market volume of €5.10bn by 2028.
In global comparison, most revenue will be generated in the United States (€323.20bn in 2024).

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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Analyst Opinion

Spain, a country known for its rich culture, delicious cuisine, and beautiful beaches, has also been experiencing growth in its software market.

Customer preferences: Spanish consumers have been increasingly adopting software products, particularly those related to cloud computing, mobile applications, and cybersecurity. The demand for cloud computing has been driven by the growing need for remote work and data storage solutions. Mobile applications have become more popular due to the widespread use of smartphones and tablets. Cybersecurity has also become a priority for Spanish businesses and individuals, as cyber threats continue to evolve.

Trends in the market: Spain's software market has been growing steadily, with a particular focus on cloud computing and software as a service (SaaS) solutions. The COVID-19 pandemic has accelerated this trend, as more businesses have had to move their operations online. The demand for SaaS solutions has also been driven by the need for cost-effective and flexible software solutions. In addition, the Spanish government has been investing in digital transformation initiatives, which has further increased the demand for software products.

Local special circumstances: Spain has a vibrant startup ecosystem, with Barcelona and Madrid being two of the most important hubs. The Spanish government has been supportive of startups, providing funding and other resources to help them grow. This has led to the emergence of many innovative software companies in Spain. In addition, Spain has a large pool of skilled software developers, which has helped to fuel the growth of the software industry.

Underlying macroeconomic factors: Spain's economy has been recovering from the global financial crisis of 2008, although the COVID-19 pandemic has had a significant impact. Despite this, the Spanish government has continued to invest in digital transformation initiatives, recognizing the importance of technology in driving economic growth. In addition, Spain's membership in the European Union has provided access to a large market and funding opportunities for software companies.

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.