What is driving the Dutch Software market?

Thanks to the positive economic situation in the past two years, the climate among Dutch companies has been optimistic and, as a consequence, the tendency to invest in software has increased. Thus, the Dutch total software market is accelerating, reaching growth rates of more than 5% for 2016 and 2017, according to PAC estimates. However, growth rates vary strongly between the different segments covered by PAC’s market research. The SaaS model, for instance, has particularly flourished in recent years, because of the numerous benefits it offers in terms of reduced up-front license costs, increased flexibility, and standardization.

As in many other countries, the software market in the Netherlands is facing a continuing process of change. Topics such as digital transformation, customer experience management, customer-centric IT, mobility, big data, the Internet of Things (IoT), and cyber security rank high on the investment agendas of Dutch companies.

Digitalization strategies based on the need to connect with the digital consumer are a major software market growth driver. Connecting modern front-office solutions and omni-channel platforms has become crucial with customers demanding user-friendly and capable digital interaction points and solutions. However, more and more Dutch companies are starting to realize that digital transformation additionally requires an increased focus on employees. This translates into software investments in digital workplace areas.

Although still in its infancy, IoT is one of the major opportunities on the market. Concepts like 'smart cities', for example, aim to benefit from cross-vertical synergies by connecting systems to one another and making use of data intelligence and analysis. Pioneering Dutch cities in the smart city movement include Amsterdam, Eindhoven, Rotterdam, and Breda. With this revolution advancing, companies and public sector institutions will need a large amount of software (security, administration, automation, etc.), as well as new modules and capabilities in existing software (embedded & industrial software, horizontal software, vertical software, etc.) in order to leverage the IoT infrastructure.

Speed, flexibility, and agility: highly recommended!

Dutch IT decision-makers are calling for a quicker and more measurable return on their software investments and are looking for more transparent and flexible pricing models. Thus, the software providers' focus clearly needs to be on speed, flexibility, and agility to meet the demands of businesses looking to become more digital and customer-oriented.

In addition, digitalization and the Internet of Things act as a catalyst for the already growing Dutch start-up scene. Software vendors addressing the Dutch market should consider these start-ups not only as competitors, but also as partners in their ecosystem.


For more detailed insights on the structure and transformation of the software market in the Netherlands and what that means in terms of opportunities and challenges for software market players, please have a look into the latest SITSI report “Software Market – InSight Analysis – Netherlands”.