Global enterprise software revenues seen growing 9.5% in 2011

- Wednesday, June 22, 2011

Global enterprise software revenues seen growing 9.5% in 2011

Enterprise software revenues are set to surpass US$267bn this year on a global scale, a 9.5% increase from US$244bn in 2010, according to a market study by Gartner.

Latin America will have the fastest growth in enterprise software revenue of all the regions in 2011, followed by Asia-Pacific (excluding Japan).

According to Gartner's projections, the market will continue growing next year, with US$288bn in forecasted revenues globally.

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"The market for enterprise software continues to recover well following the 2009 downturn, with signs of ongoing growth on the horizon," said Joanne Correia, managing VP at Gartner.

Emerging countries such as India and Brazil, which were less affected by the economic downturn than the US and Europe, are expected to continue to invest heavily in enterprise software initiatives in the next few years.

Meanwhile, spending in enterprise infrastructure software is expected to increase 9% to US$153bn in 2011, led by the operating systems (OS) segment and database management systems.

Regarding enterprise application software, Gartner predicts total spending of US$114bn in 2011, a 10.2% increase from 2010, with enterprise resource planning (ERP) as the largest segment with US$23.3bn.

"We have identified a strong correlation between GDP growth and enterprise software spending growth, where software tends to grow 4-6% above GDP in normal market conditions," Correia said.

"Overall, emerging markets' growth will slow over the forecast period, but will continue to be faster than those of the developed world. However, economic growth in almost all the emerging countries is also likely to be affected by the slowing trends in Europe and Japan," said Yanna Dharmasthira, research director at Gartner. "Among the largest emerging markets, China and Brazil will see the most pronounced slowing trends."