Applications market in APEJ to reach US$11 billion by 2012, says IDC
ConvergenceAsia staff
18/04/2008

According to IDC's latest study, "Asia/Pacific (Excluding Japan) Applications 2008-2012 Forecast and Analysis", the applications market in Asia Pacific excluding Japan (APEJ) region, valued at US$6.43 billion in 2007, is expected to grow steadily at a five-year compound annual growth rate (CAGR) of 11.6 per cent to reach US$11.16 billion by 2012.

"Compliance and risk management will drive demand in content management applications as enterprises in the region are deploying policies to improve corporate governance," says Sheila Lam, Senior Market Analyst of Asia/Pacific Enterprise Applications Research at IDC. "Meanwhile, manufacturing companies will be investing in manufacturing tools and improving their inventory management processes to better manage their resources and reduce production costs."

In 2007, China continued to lead by contributing 29.0 per cent to the regional Applications market. This is followed by Australia with approximately 23.7 per cent market share. Korea and India remain a distant third and fourth, India, however, with an aggressive CAGR of 20.9 per cent, is expected to overtake Korea within two years to become the third largest enterprise market in APEJ.

The APEJ applications market in 2007 was dominated by ERM, with 25.2 per cent market share and a value of US$ 1.6 billion. Followed closely is content applications market with 21.7 per cent of the market. Services industry applications market was the third largest with a value of US$1.1 billion.

The fastest growing market segment is product supply chain applications, with a five-year CAGR of 14.5 per cent, and the market size is expected to grow from US$690.4 million in 2007 to US$1.4 billion by 2012.

Looking ahead, Alan Tong, Senior Research Manager of Asia/Pacific Enterprise Applications Research at IDC comments, “We anticipate that the recent downturn in the US economy would slow down demand of the applications market in APEJ in 2008 with greater impact in countries such as Korea, Taiwan, New Zealand, and Singapore.”

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