Bangkok--14 Jun--IDC
Thailand’s Enterprise Applications market made a solid recovery in 2010, growing at 13.7% year-on-year (YOY) compared to -20.6% in 2009, according to results of IDC's Asia/Pacific Semiannual Enterprise Applications Tracker. The market is expected to reach US$ 187 million by 2015, reflecting a five-year compound annual growth rate (CAGR) of 12.5%.
"Demand for Enterprise Applications started showing positive signs from the early part of 2010 and continued to pick up throughout the year. The growth was mainly from the manufacturing sector as investments were gaining momentum due to strong exports," says Aishwarya Kapoor, Market Analyst at IDC's Software Research Group.
In 2010, as enterprises in Thailand allocated more budgets on core operational systems, the biggest recovery was seen in the Enterprise Resource Management (ERM) space. This was followed by Customer Relations Management (CRM) and Product Supply Chain Applications respectively.
Aishwarya adds, "Under ERM, IDC witnessed strongest growth from Enterprise Asset Management (EAM) software as most manufacturing companies prioritized on automation, optimization and maintenance of their assets, such as for machinery and equipments. Attention also revolved around sales automation processes, which was reflected in the high growth for CRM software. Improving business climate also boosted the growth of order management software to handle inventory planning for new customer orders."
Compared to emerging neighboring countries in ASEAN, Thailand is the third largest market for enterprise applications. It falls behind Singapore and Malaysia, holding 15% of the total market. Despite Thailand’s ongoing political instability and the impact of the recent global financial crisis on its economy, IDC notes that Thailand is one of the fastest emerging nations to pick up growth in this market.
The rebound of the Enterprise Applications market in Thailand and its neighboring countries is clear as the total market size of these countries in 2010 exceeded the total market size before the dip in 2009. ERM experienced considerable growth across Thailand and its neighboring countries in 2010 and captures the biggest share of the Enterprise Applications market in the sub-region.
"The sizeable incremental Enterprise Applications market size indicates that there is strong demand from the enterprises and hence, there is still room to continue growing throughout the region," notes Siew-Choon Liew, Market Analyst for Enterprise Applications. “With enterprises starting to ease budget for core operations coupled with their expansion either locally or regionally, IDC expects the Enterprise Applications market to grow at a promising rate going forward.”
In 2011, IDC expects the Enterprise Applications market in ASEAN to grow at 14.5%, for which CRM market will achieve the highest growth rate. Thailand is set to achieve a growth of 15.4% this year, with most business from CRM as well.
IDC's Enterprise Application Market Forecast in ASEAN, 2010-2015
Source: IDC's Asia/Pacific Semiannual Enterprise Applications Tracker, 2H2010
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