IDC Sees Steady Increase for Software Revenues
December 6, 2022
International Data Corporation sees strong revenue results for the global
software industry among fears of inflation and the ongoing Russia-Ukraine war.
Current geopolitical and macroeconomic turmoil is not expected to have a
decisive impact on software growth as businesses push for more automation and
digitalization to save costs and improve supply chains across the globe.
On a regional level, Europe, the Middle East, and Africa (EMEA) saw
year-over-year revenue growth of 7.1% in current currency ($USD) and 16.4% in
constant currency in the first half of 2022. This represented a slower growth
than the other global regions where the Americas reached 16.4% year-over-year
growth in both current and constant $USD and Asia/Pacific (including Japan) (APJ)
saw a year-over-year increase of 10.6% in current currency and 18% in constant
The main reason for a slower performance in EMEA lies in inflationary impacts,
especially with the weakening of the euro to the dollar. This is evidenced in
the much closer performance of EMEA in constant currency, which eliminates the
effect of fluctuating exchange rates. Apart from the macroeconomic headwinds for
EMEA, there was also a substantial year-over-year decline in Russian revenues –
down 22.5% in current $USD and down 18.5% in constant currency – which is
expected to continue into the second half of the year as more companies pull out
the many challenges facing the EMEA region, and Europe in particular, software
demand remains strong," said
Thomas Vavra, IDC associate vice president, European
Software Data & Analytics. "As was the case with Covid, adversity can be a
driver of software spending as companies seek to remain competitive and agile."
According to the Software Tracker forecast, the EMEA region is expected to grow
8.9% year over year in 2023. This is about two percentage points lower than the
Americas and three percentage points lower than APJ. The compound annual growth
rate (CAGR) for the four-year period 2022-2026 is expected to reach 10.9%, which
is just a half percentage point below the Americas. In terms of primary markets,
Application Development & Deployment is expected to outperform Applications and
System Infrastructure Software by a substantial margin and achieve a 17.1% CAGR
across the observed period.
"In recent years, there has been a lot of spending on applications. Now,
companies and organizations are seeking ways to maximize their performance and
utility. As a result, we see renewed focus on development and deployment tools
and platforms such as Analytics and Business Intelligence, AI platforms, and
data management," said Vavra.
Bob Bova the President and CEO of AccuSpeechMobile
added, "The past three years have exposed the vulnerabilities of aging
applications especially connected to the supply chain. Companies are evaluating
upgrades and full on replacement of edge based and cloud software.
AccuSpeechMobile is a big part of this migration to edge based data collection
providing industry leading voice enabled workflows both inside and outside the
Well positioned to leverage this
trend is the
IRI Voracity data management platform, given
its ability to combine data processing performance with utility across multiple
data sources and silos. By virtue of the IRI CoSort engine in Voracity, IRI SVP
David Friedland explained that "users get faster ETL for analytics, plus the
data masking and cleansing functions required for governed, compliant production
and development environments."