Software - Italy

Italy

Italy's Software market is expected to generate a projected revenue of €7.49bn by 2024.
The dominant segment within this market is Enterprise Software , which is projected to reach a market volume of €3.08bn in the same year.
With an annual growth rate (CAGR 2024-2029) of 3.18%, the revenue is anticipated to increase, resulting in a market volume of €8.76bn by 2029.
When compared globally, United States is forecasted to generate the highest revenue in the Software market, reaching €337.00bn in 2024.
Italy has a strong presence in the software market, with a focus on developing innovative solutions for industries such as fashion and automotive.

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the 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 market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change 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 Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Analyst Opinion

The Italian Software market has been developing at a steady pace in recent years, with a number of trends and factors contributing to its growth.

Customer preferences: Italian customers are increasingly demanding software solutions that are user-friendly, customizable, and compatible with multiple devices. They also value software that is secure, reliable, and provides good customer support. Cloud-based software solutions are becoming more popular, as they offer greater flexibility and scalability, and can be accessed from anywhere with an internet connection.

Trends in the market: One trend that is driving growth in the Italian Software market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to develop more advanced and sophisticated software solutions, such as chatbots, virtual assistants, and predictive analytics tools. Another trend is the growing importance of data privacy and cybersecurity, with Italian companies investing in software solutions that can protect their sensitive data from cyber threats.

Local special circumstances: The Italian Software market is characterized by a high degree of fragmentation, with many small and medium-sized enterprises (SMEs) operating in the sector. This has led to intense competition, with companies competing on price, quality, and innovation. The Italian government has also been promoting the development of the Software market through initiatives such as the Industry 4.0 plan, which aims to stimulate innovation and competitiveness in the sector.

Underlying macroeconomic factors: The Italian Software market is influenced by a number of macroeconomic factors, including the overall economic growth of the country, the level of investment in research and development, and the availability of skilled labor. The Italian economy has been growing at a slow but steady pace in recent years, which has helped to support the growth of the Software market. The government has also been investing in research and development, particularly in the areas of AI and ML, which has helped to drive innovation in the sector. However, the availability of skilled labor remains a challenge, with many Italian companies struggling to find qualified software developers and engineers.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. 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.