The FINANCIAL — Overall, the Australian software market grew by 5.6% year on year (YoY) in 2014, slightly above the growth 5.3% IDC forecast in the first half of 2014 (1H14). The market is set to grow by a five year compound annual growth rate (CAGR) of 5.8% to reach A$10,902M in 2019.
The growth engine of the Australian software market was the Enterprise Resource Planning (ERP) software market, which grew by 11.3% YoY in 2014, realising the highest growth rate across all markets in 2014. This represents a huge gain and a major driver for the overall Australian software market, seeing that the ERP market is the third largest segment of the overall software market. Growth within the ERP software market was mainly generated by the Financial Applications, Payroll Accounting and Human Capital Management (HCM) software markets. Those three sub-markets realised double-digit growth in 1H14 and 2H14. Cloud solutions were a major contributor to the growth of the overall Applications market, according to IDC.
Big Data and Analytics technologies played a key role in the growth of the Australian Application Development and Deployment market (AD&D) in 2014. In particular the Data Access, Analysis and Delivery software market grew by 9.4% YoY, fueled by an 18.2% YoY growth of Advanced and Predictive Analytics software. “In particular, self-service data discovery and visualization tools are high in demand and fueling growth in the market. We’ve seen a change in IT end-user profile in particular in the analytics space. As line-of-business managers are becoming more and more tech savvy, they expect solutions to be not only technically advanced but also easy to use, easy on the eye, and more affordable,” said Melanie Disse, Associate Market Analyst, ANZ Software & Analytics.
Also fueled by Third Platform technologies, the System Infrastructure Software (SIS) market continued to expand, mainly driven by Storage and Security solutions in 2014, which grew 10% YoY and 9% YoY respectively. This market also has the highest 5-year CAGR of 8.1%, reaching $A3,374M in 2019. The Security software market is set to grow at a 5-year CAGR of 9.1% YoY to reach A$1,067M and become the largest SIS-submarket in 2019. “The Australian security spending is driven by an increase of threats, targeting any verticals and company size. Anyone is at risk, forcing vendors to educate and provide not only one product at specific aim but a whole set of offerings.” said Lydie Virollet, Associate Market Analyst, ANZ Software & Security.