The Market Potential
The Fast-Growing Market in APJ will Provide Revenue that Will Eventually Outpace Mature Markets
- APJ has a growing population, a growing workforce, and a growing consumer class.
- It is home to a fast-growing population of digital natives.
- A combination of better access to the internet, growing prosperity and improved education has created a new class of digital entrepreneurs uniquely positioned to identify and fill gaps in the regional market. (Source: KPMG, Emerging Giants in Asia)
- Dedicate sustained growth as an early entrant to APJ as you continue differentiation over your competitors
Singapore
Country information on the IT landscape in Singapore
The software market was USD 5.9 Billion in 2020 and is estimated to grow to USD 8.5 Billion in 2025, a compound growth of 7.7%. The biggest challenge for foreign software companies is the highly competitive landscape. The city-state is a regional hub for technology and innovation with many well-established local and international players. Singapore has a mature IT market and a sophisticated customer base with high expectations for quality and innovation. One interesting aspect of the opportunity in Singapore is that there are many regional HQs for companies located in Singapore; winning referenceable customers in Singapore often provides significant opportunities to leverage the same company in various countries elsewhere.
Korea
Country information on the IT landscape in Korea
The software market had total revenues of $10.6bn in 2020, representing a compound annual growth rate (CAGR) of 2.3% between 2016 and 2020. In South Korea, the biggest challenge for foreign software companies is the strong presence of well-established domestic players dominating the market. South Korea has a highly developed IT infrastructure and a vibrant technology ecosystem, which has given rise to numerous successful local software companies that cater to domestic market needs. The market is dominated by Chaebols such as Samsung and Hyundai, and to gain traction in South Korea, it will be essential to navigate these relationships.
China
Country information on the IT landscape in China
The China applications market is the largest in the region and provides an attraction for international software companies. However, there are several challenges which must be considered. First and foremost are the comparatively strict government regulations for foreign companies, including data localisation and censorship. Some companies have been successful through local partnerships to assist in localisation and market presence; however, this is also countered by the comparative weakness of intellectual property rights which is a risk to be managed. The Great Firewall is also challenging for cloud providers, where access to certain international websites is blocked. There can also be temporary international total blocks which would cause customer access disruptions for cloud sites outside China.
Hong Kong
Country information on the IT landscape in Hong Kong
The overall IT market in HK is projected to grow by US$6.72 billion with a CAGR of 6.81% for 2021 through 2026. The market has been impacted by both Covid and the gradual increase of China's influence in politics and the economy. However, that being said, there is still significant opportunity as HK still has regional HQs of many companies and global HQs of significant local companies, all of whom tend to be very innovative in using technology. Therefore the market is quite congested with most international players plus many local companies competing. The overall infrastructure is excellent, providing a stable and high-speed environment, leading to the rapid adoption of mobile technologies.
Australia
Country information on the IT landscape in Australia
The Australian software market had total revenues of $12.4bn in 2020, representing a compound annual growth rate (CAGR) of 1.7% between 2016 and 2020. The biggest challenge for foreign software companies entering the Australian market is likely the competition from well-established local and international players. The Australian software market is mature, with numerous strong players providing various software solutions and services. Gaining a foothold in this competitive landscape can be challenging for new entrants, particularly if they do not have a unique selling proposition or innovative offering that sets them apart from existing solutions.
India
Country information on the IT landscape in India
In India, the revenue in the Enterprise Software segment is projected to reach US$3.13bn in 2023. The largest subsegment is Customer Relationship Management Software, with a projected market volume of US$0.94bn in 2023. The single biggest challenge for foreign software companies is the diverse and complex nature of the market, which can make it challenging to navigate and cater to the unique needs of various customer segments. This challenge stems from several factors, including cultural and linguistic diversity, varying levels of digital infrastructure, price sensitivity, and regional differences in customer preferences.
Malaysia
Country information on the IT landscape in Malaysia
In Malaysia, the biggest challenge for foreign software companies is navigating the diverse market landscape and adapting to local business practices, customer preferences, and regulations. One of the more notable challenges is working through the government's pro-bumiputra policies. If you wish to sell to the Malaysian government and even some private entities, you must work through a Malay Partner. The Malaysian market is characterised by advanced urban centres, less developed rural areas, and cultural and linguistic diversity.
Indonesia
Country information on the IT landscape in Indonesia
In Indonesia, the Software market is projected to reach US$1.05bn in 2023. The largest segment is Enterprise Software, with a projected market volume of US$0.42bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 8.97%, resulting in a market volume of US$1.48bn by 2027. The single biggest challenge for foreign software companies is navigating diversity. And fragmented market landscape includes varying levels of digital infrastructure, cultural and linguistic diversity, and a mix of urban and rural populations. This complexity can make it difficult for foreign software companies to cater to the unique needs of various customer segments.