Austria Software Development Market - Forecast(2024 - 2030)
Austria Software Development Market Overview
The market for Austria Software Development is analyzed to be €1,875m in 2021 and is projected to grow at a CAGR of 4.82% during forecast period 2022-2027.Software and IT are rapidly expanding, and Austria is among the top three European research countries in terms of R&D. Traditional areas of expertise, such as software, managed services, and big data solutions, are now being supplemented by key roles in industries such as smartphones, airport systems, and smart energy. Moreover, the growing manufacturing sector in Austria is set to fuel its market growth. For instance, in 2020, Austria's manufacturing industry generated USD 250 billion and accounted for 18% of the country's GDP. Manufacturing employs approximately 670,000 people in approximately 29,000 companies, according to the Austrian Economic Chamber, with a particularly strong presence in the provinces of Upper Austria, Styria, and Lower Austria. Austrian manufacturers include several globally significant multinationals as well as an estimated 200 "hidden champions," global technology leaders in their respective segments with a high concentration of patent holders. To increase productivity and competitiveness, most Austrian manufacturers must adopt more cutting-edge innovative technologies. This effort relies heavily on advanced manufacturing solutions. According to a 2020 survey of 125 companies conducted by international institute OnePoll, many Austrian companies reinvest in their operations, including R&D, at an average annual level of 7% of revenue.
Report Coverage
The
report: “Austria Software Development
Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis
of the following segments in the Austria Software Development market.
By Language: Java, Python, C++, Javascript,Go,Scala,
Ruby,LISA, Perl,SQL,Android, Ios and others.
By Market Demand: In-House on Payroll, Hired
from Secondment Providers, Hired Freelancers and Fully Outsourced.
By Deployment Type: On-Premise and
Cloud.
By Business Size: Small and Medium Business, Enterprises and
Government.
By End-Use Industry: Banking and Financial Institution, Insurance Firms, Media and Entertainment,Government,Defense,Telecommunication,Automotive,Consumer Goods and Retail, Healthcare, Manufacturing, Energy & Utilities, Travel & Logistics, Fintech, eCommerce and others.
Key Takeaways
- The Cloud segment held the
highest share in 2021 owing to the wide usage of cloud services in various
businesses.
- The enterprise segment accounts for the dominant market share during
the forecast period owing to the growing enterprise sector in Austria.
- Favorable initiatives and
increasing support from the government is a vital factor fueling the
Austria Software Development Market.
Austria Software Development Market Segmentation Analysis –
By Deployment Type
Austria Software Development Market Segmentation Analysis - By
Business Size
In terms of business size, the enterprise segment accounts for the dominant market share during the forecast period owing to the growing enterprise sector in Austria. As a result, of the whole commercial economy in 2017, 337,800 firms, or 99.6 percent, were SMEs. About 2 million people were employed by SMEs in Austria, and 52,900 apprentices were trained. In 2017, SMEs produced gross value added at factor costs of €128 billion and net sales revenues of €482 billion. Additionally, a recent analysis estimates that global spending on telecom providers, data center systems, business apps, and IT solutions would total over USD 3.7 trillion in 2019, an increase of 4.5 percent from 2018. Growth in global IT spending is anticipated during the next ten years. However, the small and medium business segment is also analyzed to grow at a higher rate owing to the growing government support to strengthen the small and medium business sector. As a part of this, the Austrian government has introduced a comprehensive package of measures costing EUR 50.0 billion, many of which are focused at aiding SMEs, in order to prevent corporate insolvency and stimulate the economy. The programs seek to jump-start the economy's transition to a greener, more digital economy as well as to quickly assist failing enterprises and lessen the effects of the crisis.
Austria
Software Development Market – Business Size (%) for 2021
Austria Software Development Market Drivers
·
Favorable Initiatives and
Increasing Support from the Government
The second key
driver is favorable initiatives and increasing support from the government. For
instance, according to the Association of the Austrian Electrical and
Electronics Industry, the ICT sector as a whole employs over 290,000 people in
Austria. The Austrian ICT market is primarily driven by substantial investments
in R&D, which are typically backed by focused public-sector funding
initiatives. Regarding public funding, Austrian governments have placed a high
premium on digitalization. Since 2014, the Austrian Ministry of Transport,
Innovation, and Technology has allocated more than USD 400 million for projects
including broadband expansion. In order to improve digitization in the public
sector, the Austrian government has allocated EUR 44 M in 2018 and EUR 48 M in
2019.
Austria Software Development Market Challenges
·
Weakness in
Digital Adoption
The technological content, skilled personnel, high-quality products, and
product customization of Austrian companies in digitally intensive industries
provide them a competitive edge. The biggest obstacles to further
digitalization are unexpected changes in the market environment and operational
issues related to the implementation of digital technologies. Austria beats the
EU-28 average in a number of measures relating to the adoption of Industry
4.0-related technologies, although it is not among Europe's top performers. It
is possible to pinpoint weaknesses in the implementation of digitization in the
service sector. Information gaps are the key obstacles to digitization that
microenterprises and small firms must overcome. Entrepreneurs are concerned
about both the deployment of these digital solutions and the technology
solutions that are now available.
Factors like these are some of the major challenges that are restraining the
growth of the underlying market.
Austria Software Development Market Competitive Landscape
- Pimcore
- Elektrobit
- Erste Group
- Mopius
- CloudFaces
- ConSol
- Objectbay Software Gmbh
- Fusonic
- Diceus
- Trigo Gmbh
Recent Developments
·
In June 2022,An Austrian technology service firm with
a focus on the banking industry, Allgemeines Rechenzentrum GmbH (ARZ), was
acquired by Accenture. As a result of this acquisition, Accenture will increase
the scope of its cloud-based banking platform-as-a-service solutions, including
core banking services, online banking, and regulatory services for banking clients
in Europe.
·
In October 2020, Microsoft
Corp. announced its expansion into Austria, including plans to build the
nation's first datacenter area, which will give Austria's diverse ecosystem of
startups, SMBs, corporations, and the government access to Microsoft's trusted
worldwide cloud.
·
In December 2021,the only pan-European cloud
PBX supplier, NFON AG, has announced the opening of an Austrian branch and the
relocation to a larger office in the St. Pölten industrial park INNOWERK. The
action was required to facilitate the NFON Group's growth into Austria.
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