Menu
IDC: software revenues, growth vary by region

IDC: software revenues, growth vary by region

Revenue and growth in the worldwide software market varies significantly by market segment, region and industry, with banking a hot IT investment area in Europe, manufacturing in Asia-Pacific, mining in Latin America and insurance in the US, according to a new report from International Data Corp (IDC).

The report, Software vendor's guide to worldwide vertical markets, examines a breakdown of 12 worldwide software markets by 20 industries.

"In many cases, a software market is growing more slowly internationally [outside the US] than it is in the United States, but the international business opportunity is larger," Carey Azzara, program director of IDC's Corporate Computing Vertical Views research group, said.

For example, the information access tools market is increasing at a rate of more than 15 per cent in the US, compared with 14 per cent internationally, while the tools present 22 per cent more opportunity in the international market in terms of revenue versus growth, he said.

There are numerous software markets where a specific industry is growing faster in one geographic region than in others.

Health care is growing faster internationally than in the US but, because it accounts for a much larger share of US software revenues than international revenues, it presents more of an opportunity in the US, IDC said.

On the other hand, banking is growing faster internationally and presents more of an opportunity outside the US, particularly in Europe, Azzara said.

The manufacturing industry is doing well in all markets, but burgeoning in Asia-Pacific, according to Azzara. The market could grow to $US61.9 billion by 2002, the report predicted. The study "is operating under the assumptions that some of the Asia-Pacific and Latin American economic conditions will reverse in five years", he said.

The wholesale and retail industries are expected to see strong growth as they emerge from a period of lagging IT investment, while agriculture and construction will represent limited opportunity, the report predicted.

One of the software markets that is growing faster than others is customer relationship management software, which includes sales force automation, Azzara said. "It is young and growing rapidly" although the growth rate is based on a small revenue base.

Finally, the research has found the US holds about 40 per cent of the worldwide software market.

The report looked at four areas of applications: enterprise resource management; customer relationship management; office; and vertical industry applications. The software tools examined were information access; multi-user database software; components, objects and development environments; and development life cycle software.http://www.idc.com/


Follow Us

Join the newsletter!

Error: Please check your email address.
Show Comments