Gartner Forcast:India’s enterprise software market
expected to be the world’s third fastest growing by 2016
Gartner’s new research highlights the growth prospects of the India’s enterprise software market despite a troublesome economy. According to the research, the market may rise by 13% in 2012, recording a revenue of USD 3.22 billion. The report clearly puts forward that India’s enterprise software market would continue to rise strongly, at a compound annual growth rate (CAGR) of 13.6 per cent from 2009 to 2016. This is expected to be the third highest jump in the world.
Asheesh Raina, principal research analyst at Gartner:
“With Indian enterprises continuing to embrace IT to improve productivity and drive growth, penetration of ICT infrastructure has been growing rapidly during the past decade. The primary drivers of growth have been domestic demand, the growing maturity of users and incremental enhancements in the technology. India also enjoys a rich presence of all international software and hardware vendors, backed by a very strong ecosystem of system integrators, service providers, and business partners. A combination of high domestic demand, the presence of global vendors and entry of new small vendors with innovative products have made the overall ecosystem apt for robust growth.”
This year, India’s enterprise software market is deemed as the fourth largest in the Asia Pacific region. It is forecasted that India will account for a whopping 11% of Asia Pacific’s total revenue of USD 29.33 billion, 1.15% of the global software market estimated at USD 280 billion.
The country’s share in the Asia/Pacific software market is expected to rise from 11% in 2012 to 12.1% by 2016, accounting for $5.4 billion revenue or 1.5% share of the global market.
“End users in Asia/Pacific are expecting to increase their spending on application and infrastructure software, with China and India being the most optimistic and leading the way for budget increases, followed closely by Malaysia and South Korea. The high intention to increase budgets in India is expected because of the rapidly growing economy, globalization of operations, and ongoing investment in India as a customer service-related outsourcing destination. Optimism regarding spending within Indian organizations reflects confidence in India’s regional economic performance, as well as the need to adopt better technology to effectively compete in a tougher global environment.”
Current software spending segments:
- Operating systems
- AIM and
- Application Development
Forecasted top spending segments (next five years):
- Conferencing and team collaboration
- Enterprise content management
- CRM and ERP
Excerpted from the press release, Gartner Says India Will Be The Worlds Third Fastest Growing Enterprise Software Market through 2016, on Gartner website .
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