The enterprise applications grew 12% lasty year worldwide, according to IDC, with artificial intelligence (AI), and in particular generative AI (GenAI), helping to drive the increases and ‘reshape the employee and customer experience of business software’.
► High-end apps sales were up 12.0% in 2023
► Forecast to surpass $600 billion in 2028
IDC said that worldwide revenues reached $356 billion last year and are due to expand. IDC forecasts worldwide revenues for the enterprise applications market will be more than $600 billion in 2028 as organisations integrate AI, machine learning, and GenAI into their workflows, creating faster and more intelligent insights and decisions.
The firm also expects customers to invest in new tools to keep their application portfolio up to date as they move further into the digital era. Meanwhile, public cloud will become the foundational deployment model for enterprise applications software, accounting for more than 70% of new enterprise applications spending in 2028. Demand for public cloud-based enterprise applications is forecast to produce a five-year compound annual growth rate (CAGR) of 16.5%, surpassing the 11.1% CAGR for the overall market.
The top five enterprise application vendors in 2023 were SAP, Salesforce, Oracle, Microsoft and Intuit, which together accounted for 21.2% of worldwide revenues.
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