View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Cloud
August 28, 2015

Enterprise application software market to hit $200bn by 2019

Modernisation, functional expansion and digital transformation projects touted as future growth drivers.

By CBR Staff Writer

Global spending on enterprise application software is set to break the $200bn mark by 2019, driven primarily by modernisation, functional expansion and digital transformation projects.

Gartner expects that the worldwide enterprise application software market will increase by 7.5% annually to hit $150bn in 2015 and rise to over $201bn by 2019.

Marketing, e-commerce and advanced analytics software will be the market sub-segments demonstrating the biggest growth.

The research firm highlighted several key areas of change in the market, including transitioning to subscription-based models, modernisation of core enterprise applications and the rise of digital business-related market dynamics.

By 2019, 28% of global installed human capital management systems will be SaaS-based, up from 13% in 2014.

Gartner expects that by 2020, 75% of application purchases supporting digital business will be "build," not "buy".

Cloud is also set to hit a tipping point, with 60% of businesses set up for the technology by 2020.

Content from our partners
Why food manufacturers must pursue greater visibility and agility
How to define an empowered chief data officer
Financial management can be onerous for CFOs, but new tech is helping lighten the load

By 2020, 75% of businesses are expected to use advanced analytics, as the shift changes from measurement to analysis and optimisation.

Gartner research director Bianca Granetto said: "The majority of spending is going towards modernising, functionally expanding or substituting long-standing business and office applications with cloud-based software-as-a-service.

"Projects have been approved and budgeted for, often over a multiyear period, meaning the pace of spending and adoption isn’t subject to any impending urgency."

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU