• IDC
  • About IDC
  • IDC Media Center
  • Current: Asia/Pacific* Software Market Reached US$53.5B in 2022, Expected to Hit Almost US$100B by 2027, Says IDC
Press FAQ

Publication date: 29 Aug 2023

Asia/Pacific* Software Market Reached US$53.5B in 2022, Expected to Hit Almost US$100B by 2027, Says IDC

Contact

For more information, contact:

The top growth themes for software investments in 2022 were customer and employee experience, data-driven decision-making, and automation.

SINGAPORE, August 29, 2023 – The software market in Asia/Pacific excluding Japan and China (APeJC) region recorded a 12.1% year-over-year (YoY) growth to reach US$53.5 billion in 2022, according to the International Data Corporation (IDC) Worldwide Semiannual Software Tracker (2022H2 release). Some softening can be expected in 2023 as the region grapples with global economic uncertainties, inflationary pressures, and supply chain disruptions, before it stabilizes towards the later part of the year. The size of the software market is expected to hit $99.3 billion by 2027, representing a 13.3% compound annual growth rate (CAGR) over the 2022-2027 period.

“The region remains highly resilient - fueled by economic recovery in China and the normalization of digital initiatives in a post-pandemic era. The software industry has also become less susceptible to economic downturns as technology forms an integral part of an organization's digital strategy, and the shift to public cloud services has also provided some revenue stability for the industry,” says Chris Zhang, Senior Research Manager, Software, Data & Analytics at IDC APAC.

Share the image

Customer and employee experience, data-driven decision making, and automation were mega themes that drove software investments in 2022. Artificial intelligence platforms, collaborative applications, and integration and orchestration middleware were the top three fastest growing secondary markets with a YoY growth of 35.8%, 28.3% and 21.4% respectively in 2022.

The Application Development and Deployment (AD&D) market posted the strongest YoY growth of 12.7% in 2022 with the highest five-year CAGR at 17.1% through 2027. Customer experience has mandated organizations to place data at the core, leveraging on various technologies (AI/ML, cloud, data lakes and warehouses, integration/orchestration, etc.) to eliminate data and system silos and support real-time decision making. The adoption of modern development tools and practices such as microservices, APIs and DevOps also plays a pivotal role in agility and time to market for digital products and services. While Generative AI (GenAI) has taken the industry by storm, CXOs and business leaders are more interested in practical applications, governance and implications/risks around ethics, security, and IP, etc.

As the largest software segment, the applications market grew 12.4% YoY in 2022 with a projected 13.3% CAGR by 2027. AI-infused/AI-centric applications are quickly becoming the next generation of applications, with emphasis on interconnectedness and automation to unlock employees' productivity, enhance operational efficiency, and transform experiences. This has directly boosted the demand for software development and modernization tools in the AD&D market. Lastly, collaborative applications can be expected to be one of the least susceptible to budget reductions as hybrid work becomes a mainstay.

Intelligent automation is alleviating the issue of talent scarcity in the system infrastructure software (SIS) market, which grew 10.8% YoY in 2022 (projected to grow at 8.7% CAGR from 2022-2027). Interests around “AIOps” or “NoOps” to "do more with less" and navigate complexities in hybrid cloud environments have risen over the last 24 months, while early mainstream adoption of containers and Kubernates was observed amongst enterprise organizations. Security budgets to remain resilient as securing corporate resources in a hybrid working model remains a key focus.

Join our second IDC TechTalk Live featuring Avneesh Saxena, Group VP for Data & analytics, IDC Asia/Pacific and Roger Ling, Assoc. VP for Software, Services, and Cloud, IDC Asia/Pacific, as they discuss the key trends and turning points shaping the software and IT services market in Asia/Pacific (excluding Japan and China) along with useful IDC data and forecasts. Watch the IDC TechTalk Live on 30 Aug, 2:30 PM – 3:00 PM SGT by registering HERE.

Share the image

*Asia/Pacific excluding Japan and China

-Ends-

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and online query tools.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.



Coverage


Regions Covered

Asia Pacific


Topics Covered