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June 2018
Enterprise Software
Sectorwatch
The global enterprise software market has vast potential for growth which should carry over into 2019. Spending on enterprise software is forecasted to increase by 9.5% this year to $389 billion, up from 8.9% growth last year, according to Gartner. Segments of the market that are doing well are analytics, performance management software, business process management and audit software.
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 exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants
