Enterprise Software

September 2017

Sectorwatch

According to Gartner, the forecast for 2017 global spending for enterprise software is $392.4 billion in constant U.S. dollars, with growth of 8.6% over 2016. As a result of growth coming from key areas such as CRM and DBMS, the market is expected to reach $543.5 billion in 2021. 

Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation