The region's enterprise applications market could have a steady compound annual growth rate of 9.2 percent to reach US$9.4 billion in 2017 from US$6 billion in 2012, according to an IDC report.
The enterprise applications market's growth is driven by cloud computing, big data, business analytics and vertical-specific solutions, according to the Asia/Pacific Excluding Japan (APEJ) Semiannual EA (Enterprises Applications) Tracker.
"Although the economic environment has not been conducive, increased consumer demands and the emergence of the third platform convergence will leave Asian businesses few options but to embrace newer enterprise applications," said Sabharinath Bala, Research Manager of IDC's Asia/Pacific Enterprise Application Software Research.
"The integration of social, mobile, and embedded analytics features in applications will drive a completely new set of competitive dynamics, and the availability of such applications on the cloud/SaaS deployment model is an incentive for prospective buyers," said Bala.
The Tracker also identified SAP, Oracle, Yonyou, Infor, and Microsoft as the top five vendors by market share, and together they hold almost half of the overall EA market.
Other prominent global vendors that posted strong growth in 2012 include NetSuite, AspenTech, and Epicor. Regional vendors like Ramco Systems, Tally, and MYOB posted moderate to good growth.
Research from the report notes that although there is still a significant degree of wariness when it comes to the adoption of mission-critical applications on the public cloud, software-as-a-service (SaaS) customer relationship management (CRM) is gaining increased popularity in the region.
Meanwhile, due to the higher adoption of SaaS, analytics, and mobile applications, mature markets like Australia, Singapore, Korea, and Hong Kong will attract more EA investments owing to replacement cycles.
Industry-specific solutions are sought after in markets like Taiwan, Thailand, and India, especially in the retail, manufacturing, and transportation space, as there are several SMBs working closely with large OEMs and global vendors that IDC expects would want to automate a few of their processes.
And within the EA market, the subcategory of product supply chain had the highest growth, and there was strong demand for areas like human capital management, project and portfolio management and logistics applications in 2012.
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