After dipping almost 3 percent in 2009, revenue for enterprise software spending worldwide is expected to rise 4.5 percent in 2010 to more than $232 billion, according to market research firm Gartner.
In its latest report on enterprise software spending, Forecast: Enterprise Software Markets, Worldwide, 2009-2014, 3Q10 Update,” Gartner notes the sector is on track for continued growth in 2011, as well, with revenues expected to reach $246.6 billion. Through 2014, the firm predicts revenue will grow at a 6 percent CAGR to reach $297 billion worldwide.
In North America, enterprise software spending is forecast to reach $110.8 billion in 2010, which is an 8.5 percent increase from 2009 revenue of $102.1 billion.
Gartner notes the majority of enterprise software spending has taken place in the first half of 2010, as evidenced by strong earnings announcements by technology companies in that time period.
These earnings were driven primarily by pent-up software demand, and with that demand having been mostly satisfied, somewhat slower growth is expected for the latter half of 2010,” said Colleen Graham, research director at Gartner. A loss of momentum and general economic weakness will drive some organizations to exercise caution in end-of-year software purchases. However, despite these challenges, key markets such as virtualization, operating systems and security are expected to finish the year with double-digit growth.”
Gartner believes the market will continue to grow through 2014, when spending in North America will surpass $143.6 billion, according to the report.