Digital Transformation Era Projects a Promising Future for Enterprise Applications Software, Says IDC

Digital Transformation Era Projects a Promising Future for Enterprise Applications Software, Says IDC

Singapore and Hong Kong, July 8, 2014 – The Asia/Pacific excluding Japan (APeJ) Enterprise Applications (EA) software market posted a mediocre growth of 5.1% in 2013. Unlike 2012, when the EA market grew 9%, Asian enterprises were more cautious about their investment in 2013. Although organizations were keen in upgrading existing back-office applications to embrace the 3rd platform technologies – cloud, analytics, mobility, and social – watchful spending strategy of customers and the ad hoc nature of deployments did not warrant for sustained growth in 2013.

“The 3rd platform technologies, especially cloud, will be a critical driver for enterprise applications growth in APeJ. Enterprises are moving from an ad hoc deployment of cloud-based applications and other 3rd platform technologies, to a phase of strategic implementation. This new era of digital transformation and the speed of innovation of Asian businesses is expected to bring the market back on track in 2014 and through the forecast period,” says Sabharinath Bala, Research Manager of IDC’s Asia/Pacific Enterprise Application Software Research.

It was the usual suspects – SAP, Oracle, Yonyou, Infor, and Microsoft – that dominated in the region from a market share perspective, but most of these major vendors were challenged strongly by niche new players as well as the established SaaS/Cloud-based applications vendors. Some of the names noteworthy of mentioning include Cornerstone OnDemand, Kronos, NetSuite, Workday, and Xero – all of which posted strong double-digit growth in 2013.

“Although most of the major vendors have been creating new internal IP, as well as acquiring assets and expanding their cloud capability inorganically, the challenge of integrating these new resources with their existing portfolio and convincing clients and prospects to take the cloud path remained critical in attracting newer EA investments. But this scenario is slowly changing and vendors that rely primarily on maintenance and upgrade revenue for their existing legacy systems will start losing relevance in the coming days. Vendors offering cloud-based systems capable of delivering the agility, flexibility, and scalability of the dynamic Asian businesses, will trump them in their own game,” adds Sabharinath.

IDC expects the overall EA market to grow at a compound annual growth rate (CAGR) of 8.4% and reach US$9.5 billion in 2018. Double-digit growth is expected from markets like enterprise asset management, logistics, and procurement; and there will be strong support from mature markets like financial accounting, human capital management, and inventory management.

Digital Transformation Era Projects a Promising Future for Enterprise Applications Software, Says IDC

Total Market Size 2013 = US$B 6.4

IDC’s Asia/Pacific Semiannual Enterprise Applications Tracker provides total market size and vendor share for the 17 segments of the Asia/Pacific enterprise applications software market. The Tracker covers close to 200 software vendors across a total of 14 country markets. Historical market size, vendor share, and forecasts are updated on a semiannual basis.


  1. Countries covered in IDC’s Asia/Pacific Semiannual Enterprise Applications Tracker include Australia, New Zealand, Korea, India, the PRC, Taiwan, Hong Kong, Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, and Rest of Asia/Pacific.
  2. Software revenue consists of license, maintenance, SaaS subscriptions, and other software revenue.
  3. Enterprise applications include enterprise resource management, customer relationship management and product supply chain management.
  4. All revenues reported here are based on 2H 2013 figures and in 2013 Annual Constant US$.


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About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Trackerproducts on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting

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For press enquiries, please contact:

Sabharinath Bala

Research Manager

IDC Asia/Pacific Enterprise Applications Software


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Marketing & Events Manager