Singapore and Hong Kong, June 25, 2013 – According to the Asia/Pacific Excluding Japan (APEJ) Semiannual Enterprises Applications (EA) Tracker, the EA software market experienced a better than expected growth of 9.8% in 2012.
Despite a few countries in the region undergoing local pressures, and the unfavorable economic climate in the last 12-18 months, the enterprise applications market has continued its steady growth owing to Cloud, Big Data, Business Analytics, and verticalized solutions.
“Although the economic environment has not been conducive, increased consumer demands and the emergence of the third platform convergence will leave Asian businesses few options but to embrace newer enterprise applications. The integration of social, mobile, and embedded analytics features in applications will drive a completely new set of competitive dynamics, and the availability of such applications on the cloud/SaaS deployment model is an incentive for prospective buyers,” says Sabharinath Bala, Research Manager of IDC’s Asia/Pacific Enterprise Application Software Research.
Key points from the study include:
- SAP, Oracle, Yonyou, Infor, and Microsoft are the top five vendors by market share and together they hold almost half of the overall EA market.
- SAP continued its dominance in the EA marketplace, posting strong growth in 2012. It witnessed strong demand for its supply chain and manufacturing solutions during the research period.
- Other prominent global vendors that posted strong growth in 2012 include NetSuite, AspenTech, and Epicor. Regional vendors like Ramco Systems, Tally, and MYOB posted moderate to good growth.
- Although there is still a significant degree of wariness when it comes to the adoption of mission-critical applications on the public cloud, software-as-a-service (SaaS) customer relationship management (CRM) is gaining increased popularity in the region.
- Due to the higher adoption of SaaS, analytics, and mobile applications, mature markets like Australia, Singapore, Korea, and Hong Kong will attract more EA investments owing to replacement cycles.
- Industry-specific solutions are sought after in markets like Taiwan, Thailand, and India, especially in the retail, manufacturing, and transportation space, as there are several SMBs working closely with large OEMs and global vendors that IDC expects would want to automate a few of their processes.
At the secondary market level, the product supply chain (PSC) market witnessed the highest growth rate with a minor increase in percentage share in 2012 and stood at 23.1% as compared to 22.9% in 2011, while there was a slight decline for CRM applications share of the EA market. There was strong demand for human capital management (HCM), project and portfolio management (PPM), and logistics applications in 2012. IDC expects the overall EA market to grow at a compound annual growth rate (CAGR) of 9.2% to reach US$9.4 billion in 2017.
Notes:
- Countries covered in IDC’s Asia/Pacific Semiannual Enterprise Applications Tracker include Australia, New Zealand, Korea, India, the PRC, Taiwan, Hong Kong, Singapore, Malaysia, and Thailand.
- Software revenue consists of license, maintenance, and other software revenue.
- Enterprise applications include enterprise resource management, customer relationship management and product supply chain management.
- All revenues reported here are based on 2H 2012 figures and in US$.
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