IDC press release
A/NZ software market revenue is expected to reach US$33 billion by 2027.
Sydney, Australia, 16 June 2023 – According to International Data Corporation’s (IDC) latest IDC Worldwide Semiannual Software Tracker (2022H2), annual software spending across Australia and New Zealand (A/NZ) will grow 12% year-on-year (YoY) in 2022, ahead of the United States. reached. $18.7 billion. The 12% year-on-year growth rate is in line with long-term market growth, with a sharp 18% growth in 2021 as the market becomes more conscious of cost control amid uncertain economic conditions. After the expansion, it grew moderately. A/NZ software market revenue is expected to reach USD 33 billion by 2027, with a compound annual growth rate (CAGR) of 12% from 2022 to 2027.
“Despite continued economic pressures in both countries, A/NZ software spending remains highly resilient and software solutions provide A/NZ organizations with competitive differentiation, innovation and improved performance. We continue to provide opportunities,” said Anastasia Antonova, Data & Research Manager. Analysis of IDC A/NZ.
Source: IDC Worldwide Software Tracker, 2022H2 Release
While the overall A/NZ software market continued its strong growth trajectory through 2022, the artificial intelligence (AI) platforms, collaboration applications, and integration and orchestration middleware software markets grew the most at 35%, 24%, and 23% year-on-year. recorded strong growth. % respectively in 2022.
Without a doubt, artificial intelligence has become a hot topic of discussion and controversy around the world. While there is a lot of debate surrounding AI, it is clear that its application is still in its infancy and has already demonstrated the potential to revolutionize traditional business operations. Remarkably, the artificial intelligence platform software market recorded the highest year-on-year growth rate of 35% across Australia and New Zealand in 2022. The market maintains a strong growth trajectory and is projected to grow at a 35% CAGR until 2027.
“We have seen a growing number of use cases for AI in various industries across the region. We see AI technology as a strategic business imperative to automate processes and improve customer, employee and business experiences,” added Antonova. Additionally, it is important to note that both Australian and New Zealand government agencies are increasing funding to embrace and support artificial intelligence as a strategic technology to drive economic growth.
Despite economic headwinds and uncertainty, the A/NZ joint applications market grew 24% year-on-year to reach US$545 million. The winds of change from the COVID-19 pandemic have made businesses recognize the critical role of collaboration in the digital world. Collaborative applications are now at the core of successful digital enterprises, driving opportunity, inclusivity, and productivity. This enables people, customers and partners to connect from anywhere, creating a more productive and inclusive work culture.
The collaboration applications market shows no signs of slowing down and is projected to reach US$1.3 billion by 2027 at a CAGR of 18%. Continuously building a collaborative cultural infrastructure that supports real-world communications and live events helps A/NZ businesses retain and attract talent, customers and partners. By contrast, companies that have not digitally enhanced their culture of collaboration will find it much harder to compete, hire and retain talent.
In 2022, A/NZ Integration and Orchestration Middleware Software Market will register the third strongest annual growth rate of 23%, reaching US$445 million in 2022. This growth is being fueled by event stream processing software that enables automation and automated decision making. Organizations are driving automation and optimization of business processes to increase efficiency and reduce operating costs. A/NZ’s investment in the integration and orchestration software market continues to grow rapidly and is expected to double by 2027 as integration and automation use cases continue to grow.
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About IDC
International Data Corporation (IDC) is a leading 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 provides global, regional, and local expertise on technology and industry opportunities and trends in more than 110 countries. IDC’s analysis and insights help IT professionals, business executives, and the investment community make fact-based technology decisions to achieve key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), one of the world’s leading technology media, data and marketing services companies. For more information about IDC, please visit www.idc.com. Follow IDC on Twitter. @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
