IDC Expects Business Process Management and Middleware Market in APEJ to Continue its Double-digit Growth in 2012 Amid the Uncertain Global Economy

Kuala Lumpur, January 17, 2012 – The Business Process Management (BPM) and Middleware market in the Asia/Pacific excluding Japan (APEJ) region grew 14.6% to US$1.03 billion in 2010. It is expected to grow 17.2% to US$1.2 billion in 2011 with a CAGR of 12.4% from 2011 to 2015, according to the latest IDC’s Asia/Pacific Semiannual Application Deployment Software Tracker.

"The double-digit growth in these two years can be explained by the desire for organizations to constantly optimize their business processes to support growth during expansion and similarly, to streamline operations and reduce costs during recession, making it almost 'recession-proof'," says Chris Zhang, Market Analyst for IDC’s Asia/Pacific Application Deployment Software Research.

Key factors for the market growth include strong IT spending and technology adoption in the emerging economies like the PRC and India, increased momentum in business transformation initiatives as enterprises strive to stay ahead in the hyper-competitive environment and lastly, larger IT budgets to support business growth and capacity expansion. "Particularly, we are seeing more and more strategic investments made around process efficiency, orchestration software and service-oriented architecture (SOA). The need to both modernize to accommodate growth and mitigate complexities in the IT environment has become an important growth factor too," she adds.

Figure 1

APEJ’s Business Process Management and Middleware Market Spending 2010 – 2015 (US$Million)

Source: IDC Asia/Pacific Semiannual Application Deployment Software Tracker, 1H 2011 (Nov 2011)

Key points from the study include:
1. The PRC, Australia and India will continue to be the key contributors to the BPM and Middleware market in APEJ. Within the SEA emerging markets, Vietnam and Philippines are expected to lead the growth in CY 11/12. However, due to the recent flood in Bangkok, Thailand is expected to take some time to recover their economy.
2. The Banking and Financial Services (including Insurance) vertical took the largest share in the spending on BPM and Middleware related technology, followed by Manufacturing, Government and Communication & Media.
3. BPM and Middleware solutions with industry-specific framework or template are one of the key factors for vendors to consider when selling their products in this region, given the pertinent importance of speed-to-market in many organizations.

Notes:
1. Countries included in IDC Asia/Pacific Semiannual Application Deployment Software Tracker are Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, the PRC, Singapore, Taiwan, Thailand, Vietnam and the Rest of Asia Pacific.
2. Software revenue consists of license, maintenance, and other software revenue.
3. Application Deployment Software includes Application Server Middleware and Integration & Process Automation Middleware.


For more information about the research or to purchase this data, please contact Juliana Lai at +603-2177-9255 or julianalai@idc.com.