Worldwide software market poised for 5.9% growth
Revised 2014 estimate down on previous forecast of 6.2% growth, according to IDC
The worldwide software market is forecast to grow 5.9% year-over-year in 2014, down from previous forecasts that predicted 6.2% growth this year, according to IDC.
However, IDC added that the compound annual growth rate (CAGR) for the software industry for 2013 to 2018 will remain close to 6% as previously predicted.
Big data analytics and enterprise applications will continue to drive software market growth until 2018, IDC said. The research house predicted that structured data management software, collaborative applications and data access, analysis and delivery solutions will show the strongest growth with a CAGR of 9% to 2018.
"Leveraging the social dimension of the Internet keeps fuelling the collaboration growth, much of which is in the form of software as a service," said Henry Morris, senior vice president for Worldwide Software, Services and Executive Advisory Research at IDC.
"This is complementary to the increased attention to big data and analytics solutions, which help enterprises understand and act on anticipated customer behaviour and new insights into product reliability and maintenance."
In the enterprise applications category, CRM, ERP, SCM and operations and manufacturing applications will continue to show CAGR rates around 6%, IDC said.
"Enterprises are starting to implement applications that either didn't exist or weren't needed in the past, such as commerce applications in all industries, not just retail, but also manufacturing, hospitality, food and beverage, and even the public sector," said Christine Dover, research director of Enterprise Applications and Digital Commerce at IDC.
"IDC is also seeing applications in categories that didn't exist in the past (e.g., subscription billing, spend optimisation, and revenue management) for requirements that may have been met using custom applications or manual processes."
In terms of geographies, emerging regions will continue to experience stronger growth than mature economies, IDC said. The research house predicted that the 2013-2018 CAGR for Asia/Pacific (excluding Japan), Latin America, and the CEMA region will be 8.5%. Meanwhile, mature regions such as North America, Western Europe and Japan will see a CAGR of 5.9%, IDC said.