SYDNEY, May 12, 2022 – The Australia and New Zealand software market grew by 17.5% year-on-year in 2021, an accelerated growth of 8.5% in 2020. This was driven by investment in key technology capabilities to create digitally enabled operations that help create value for the organization and for the general public. ecosystem. Key investment areas include customer relationship management, digital workflow and collaboration, enterprise resource management and security.
As digital services increasingly become the default channel for customer engagement, customer-facing metrics are given top priority on most organizations’ digital transformation agenda. Customers expect their interactions with organizations to be trusted, direct, personalized, and self-service enabled. Organizations are responding to these customer demands by leveraging digital capabilities throughout the customer lifecycle, from customer contact initiation to transaction and customer care. Therefore, spending on customer relationship management (CRM) applications grew by 20.3% in 2021 in A/NZ, reaching USD 1.23 billion.
To meet rapidly changing customer demand and market conditions, CRM must not only be digitally enabled, but the entire operation of the organization must become more efficient and agile, with employees supported by the right digital tools. Thus, the A/NZ market is increasing investments in content workflow and collaboration applications and management applications, growing 38.3% and 23.9% year-over-year, respectively. Spending on enterprise resource management (ERM) applications also grew 17.5% year over year in 2021, as organizations take further steps to inspect business processes through a digital lens and transform their core business IT to drive productivity and efficiency, and to prepare for future product and service innovation. “The world is now in the digital-first economy, and it has never been more important than now to have the right digital tools and business apps to empower employees and run businesses smarter, building the company of the future,” he says. Anastasia Antonova, Senior Software Market Analyst at IDC Australia/New Zealand.
The A/NZ market is building itself towards a more digitally driven economy, therefore digital product and service innovation is high on any organization’s priority list. Organizations are also investing in building an enterprise-wide data strategy and leveraging artificial intelligence (AI) technology to maximize the power of their organizational data. Reflected in spending, the market saw spending on AI platforms grow by 35.6% in 2021. IDC expects to see continued investment in AI technologies in A/NZ as AI tools are key to better decision-making. of decisions, better business results and a sustainable competitive advantage and innovations. In the same year, the A/NZ integration and orchestration middleware market grew by 31.6%, as demand for interconnectivity and innovation from organizations remains high.
As organizations increasingly rely on digital technology to operate and develop their software capabilities to deliver products and services in a digital-first world, cyber security receives renewed focus and the need to better manage the development process and software release becomes increasingly important. In 2021, the A/NZ market also saw a 19.5% increase in spending on security software, and a 26.4% increase in software quality and tool lifecycle.
“In 2021, we saw the Australian and New Zealand market continue to make progress in aligning digital adoption with business objectives, with organizations making investments to deliver better value to customers and build competitive advantage as business conditions continue to improve.” remain volatile in the coming year,” concludes John Feng, Research Manager for Software Research at IDC Australia/New Zealand.
About IDC crawlers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets in more than 100 countries around the world. Using proprietary tools and research processes, IDC Trackers are updated semiannually, quarterly, and monthly. Tracker results are delivered to clients in easy-to-use Excel deliverables and online query tools.
International Data Corporation (IDC) is the world’s leading provider of market intelligence, advisory services and events for the information technology, telecommunications and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise in technology, IT benchmarking and sourcing, and industry opportunities and trends in more than 110 countries. IDC’s insights and analysis help IT professionals, business executives, and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading technology media, data and marketing services company. For more information about IDC, visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC blog for industry news and insights.