The business process applications (BPA) market in Asia Pacific is forecast to reach US$93.2 billion by 2023, at a compound annual growth rate (CAGR) of 6.4 per cent.
Representing the second largest revenue contributing region, behind only North America ($102.6 billion), findings from GlobalData cite “industry specific offerings” as a key driver for growth.
“The reduction in the overall lifecycle of both systems as well as products is forcing the enterprise to focus on different application categories as a part of their IT strategy to help them cater to the evolving business organisation requirements,” said Sunil Verma, lead analyst, GlobalData.
According to Verma, manufacturing, construction and energy will represent the three largest industry verticals, accounting for around 30 per cent of overall revenue in the region. Geographically speaking, China, Japan and India will collectively account for two-thirds of overall revenue during the next four years.
Furthermore, Verma said vertical-specific and packaged applications will “continue to dominate” the market with a share of 53 per cent by 2023.
“Industry specific offerings will enable enterprises to target specific end-user segments and provide them with enhanced customer experience offerings for recurring revenue generation,” he added.
On the flip side however, Verma said office productivity applications will witness the highest CAGR of 11.4 per cent, followed by commerce applications (10.4 per cent) during the forecast period.
“As a large number of enterprises migrate from traditional work environment to an agile workplace set-up, there will be an increasing thrust to enhance the scalability and interoperability,” he said. “This will further reduce the collaboration and communications barriers between the organisational workforce, resulting in increased adoption of employee office productivity applications.
“Enterprises will continue to focus on the enhancement of existing IT infrastructure, by leveraging cloud, artificial intelligence and other latest technology tools to transition to more complex and connected digital ecosystem.”