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Despite the economic challenges, the enterprise software market in India is expected to grow at a compounded annual growth rate of 14.6% from 2011 to 2016, which is the highest growth rate in the world.
According to research and analyst firm Garter, the enterprise software market in India is projected to grow 13.7% in 2012 to reach $3.45 billion.
Increasing globalisation of the Indian economy is leading to a growing need for latest software solutions with improved functionalities, it added.
India will be the fourth largest enterprise software market in Asia Pacific region in 2012, with a share of 11.4% of the $30.30 billion market. This will be 1.24% of the total worldwide enterprise software market, which is expected to reach $278 billion in 2012.
Gartner says India’s share in the software market in the Asia Pacific region is expected to reach 12.68% by 2016, with the market touching $5.98 billion.
During that time, its share in the worldwide enterprise software market is expected to increase to 1.66%, says Gartner.
However, India is still relatively a small and evolving market when compared with some other countries in the Asia Pacific region such as China.
In 2011, China had a 26.34% share in the enterprise software product market in Asia Pacific region.
Indonesia and Singapore are the other two big spenders on enterprise software in the region.
“India enjoys a rich presence of international software and hardware vendors, backed by a strong ecosystem of system integrators, service providers and business partners,” said Asheesh Raina, principal research analyst at Gartner.
“A combination of sustainable domestic demand, presence of global vendors and entry of new small vendors with innovative products have made the overall ecosystem apt for robust growth,” Raina added.
According to Gartner, Indian enterprises are expected to increase their spending on analytics and business intelligence, mobility, cloud and collaboration technologies.