Worldwide enterprise software revenue is on pace to reach $288 billion by 2012 on the back of a strong demand, research firm Gartner said today.
The global enterprise software market is expected to reach $288 billion by 2012, Gartner said in a statement.
It is expected to surpass $267 billion in 2011, growing at 9.5% over 2010 when the revenue stood at $244 billion, the statement added.
"The market for enterprise software continues to recover well following the 2009 downturn, with signs of ongoing growth on the horizon," Gartner Managing Vice President Joanne Correia said.
Emerging countries such as Poland, India, China and Brazil, which were less affected by the latest economic downturn than the US and Europe, are expected to continue to invest heavily in enterprise software initiatives in the next few years.
Economic recovery is evident across all regions, although concerns have arisen in some countries in Europe and Asia, Correia added.
However, the earthquake and tsunami in Japan has created additional marketplace uncertainty with a multiplicity of effects that are beginning to be determined.
"GDP results and other research have pointed to a Q2 CY11 slowdown in demand with some recovery later in the year," Correia said.
Enterprise infrastructure software spending is on pace to total $153.3 billion in 2011, a 9% increase from 2010 revenue of $140.6 billion.
The market is led by the operating systems (OS) segment, in which revenue is projected to reach $32.6 billion in 2011, followed by database management systems (DBMSs) revenue at $25.5 billion, Gartner said.
Global enterprise application software spending is forecast to total $114.4 billion in 2011, a 10.2% increase from 2010 spending of $103.8 billion.
Enterprise resource planning (ERP) is the largest segment within the enterprise application software market.
ERP revenue is expected to reach $23.3 billion, followed by office suites with $15.7 billion.
"We have identified a strong correlation between GDP growth and enterprise software spending growth, where software tends to grow 4-6% above GDP in normal market conditions," Correia said.
However, there are concerns about the rising cost of commodities, including oil, and its impact on certain regional and country economies, she added.
