Enterprise Software - Indonesia

Indonesia

Revenue in the Enterprise Software market is projected to reach US$486.20m in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$146.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 9.82%, resulting in a market volume of US$707.20m by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$3.38 in 2024.
In global comparison, most revenue will be generated in the United States (US$147.60bn in 2024).

Key regions: Germany, United States, Canada, Netherlands, France

Definition:

The Enterprise Software market covers software applications designed to support essential business activities by large organizations such as enterprise resource planning, customer relationship management, business intelligence, and supply chain management.

Products in the Enterprise 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 Enterprise Software market contains eight markets that are based on the functionality of the software:

Business Intelligence Software refers to software applications that support organizations to analyze, visualize, and report data.
Content Management Software refers to a wide range of software applications that support organizations to manage their digital content such as documents, images, and videos.
Customer Relationship Management Software refers to software applications that support organizations to manage their interactions with customers, clients, and prospects.
eCommerce Software refers to a wide range of software applications that support organizations to manage their online sales channels.
Enterprise Performance Management Software refers to software solutions that help organizations to manage and improve their performance across various areas, such as finance, operations, and strategy.
Enterprise Resource Planning Software refers to software applications that support organizations to manage, integrate and optimize important business activities related to resources such as people, finance, capital, materials, and orders.
Supply Chain Management Software refers to software applications that support organizations to manage their supply chain activities such as inventory optimization, supplier and vendor management, and logistic operations.
Other Enterprise Software refers to aggregated revenues for the types of enterprise software that are not specifically mentioned in the other Enterprise Software markets, such as Project Management Software, Product Life Cycle Management Software, and Production and Operation Software.

Additional Information:

The Enterprise 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 SAP, Salesforce, Adobe, and Oracle.

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Analyst Opinion

The Enterprise Software market in Indonesia has been growing at a steady pace in recent years.

Customer preferences: Indonesian businesses are increasingly looking for software solutions that can help them streamline their operations and improve their productivity. As a result, there has been a growing demand for enterprise software that can automate tasks, manage data, and provide insights into business performance. Cloud-based solutions have become increasingly popular in Indonesia, as they offer businesses a cost-effective and scalable way to access the latest software tools and technologies.

Trends in the market: The Enterprise Software market in Indonesia has been driven by the growth of the country's digital economy. With more than 150 million internet users and a rapidly expanding e-commerce sector, businesses are looking for ways to stay competitive in the digital age. This has led to a growing demand for enterprise software solutions that can help businesses manage their online presence, automate their sales and marketing processes, and provide real-time analytics and insights into customer behavior.

Local special circumstances: One of the unique challenges facing the Enterprise Software market in Indonesia is the country's complex regulatory environment. The government has introduced a number of regulations aimed at promoting the growth of the digital economy, but these regulations can be difficult for businesses to navigate. Additionally, the country's infrastructure can be unreliable, particularly in more rural areas, which can make it difficult for businesses to access cloud-based software solutions.

Underlying macroeconomic factors: Indonesia's economy has been growing steadily in recent years, driven by a combination of domestic consumption and foreign investment. The country's large and growing middle class has created a significant market for enterprise software solutions, particularly in industries such as retail, healthcare, and manufacturing. Additionally, the government has made significant investments in infrastructure and technology, which has helped to create a more favorable environment for businesses looking to invest in the country.

Methodology

Data coverage:

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.

Forecasts:

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.

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.