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

The Cloud segment held the highest share in 2021 owing to the wide usage of cloud services in various businesses. According to Statistics Austria, 38% of Austrian firms use cloud services. The utilization of this IT infrastructure has thus increased when compared to 2014. Additionally, as time goes on, businesses are using an average of more services via the Internet. Additionally, by 2020, 32% of businesses will be using smart technology in at least one of their business areas, such as smart meters, intelligent maintenance sensors for equipment and vehicles, or sensors for the automation of transportation or production processes. Moreover, in the previous six years, Austrian enterprises have increased their use of cloud services (2014: 12%; 2020: 38%). More specifically, small enterprises are expanding quickly. Four out of 10 businesses (40%) with ten or more employees use cloud services. Access to services like storage space, software, or computing power housed by service providers and made available via the Internet is made possible by this IT infrastructure. However, the on-premise segment is also analyzed to grow at a higher rate due the growing popularity of on-premise in Austria. Industry insiders claim that Austria appears to be embracing new technologies, particularly cloud computing. Austrian firms have always been wary of the cloud, but they are starting to turn away from on-premises solutions and toward alternatives in the public cloud. Particularly in the cloud computing and software space, AWS has seen a surge in market share, mostly in the industrial sector.

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

·         Strong Economic Situation

Austria is a thriving market with the world's 14th highest per capita GDP and the 27th largest GDP overall. Its economy is varied and has a global reach. Economic and commercial relations between Austria and the United States are strong. The United States is Austria's second-largest export market and third-largest trading partner globally. Austria is now not just a desirable software development market for significant corporate groupings, but it is also a significant high-tech destination in Europe with top-notch competence centres. Austrian local governments are ready to work with high-tech foreign enterprises that can increase their connectivity for a minimal fee.With the help of their cutting-edge products, many Austrian suppliers have risen to the top of the global market. International corporate organisations like Infineon, Siemens, Philips, General Electric, and Microsoft are present in Austria, strengthening its position as a hub for ICT.

·         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

Product launches, acquisitions, market penetration and R&D activities are key strategies adopted by players in the Austria Software Development market. The top 10 Austria Software Development market companies are

1. Pimcore
2. Elektrobit
3. Erste Group
4. Mopius
5. CloudFaces
6. ConSol
7. Objectbay Software Gmbh
8. Fusonic
9. Diceus
10. 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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