The Spanish software market is highly competitive, yet affords significant opportunities for U.S. companies. The software market accounts for nearly 15 percent of the Spanish IT market.
In 2007, the market breakdown by type of software reflected strong growth over the previous year in the following categories: Multimedia applications (25.4 percent), vertical applications (21.4 percent) and development software tools (10.8 percent). Operation systems software represents about 27 percent of total sales, followed by horizontal software applications (18 percent) and communications software (17 percent). Consumer Spain has a relatively high level of software piracy, although enforcement is improving.
Demand for software is expected to be affected in 2009 by the Spanish economic spending on software will be impacted, although demand for multimedia software is likely to maintain growth. Government spending is fueled by the drive to increase available e-government services and by the health sector, and is likely to increase. In the business sector, the drivers for demand in major corporations are integrated IT security, business process management and document management. Small and medium-sized companies are more likely to limit their expenditures in this area. The use of on-demand software is expected to increase.
More than 70 percent of IT company headquarters are located in two autonomous regions, Madrid and Catalonia. The total number of IT companies in Spain is estimated at 13,800. Wholesalers and distributors play an important role in the market.
Under the Information Technology Agreement, to which the EU is a signatory, there is no tariff on computer equipment and software sourced from the United States. However, under the U.S.-Spain double-taxation treaty, an eight percent royalty tax applies to deliveries of U.S. software.
-Software focused on vertical applications
-IT security software
-Digital forensic solutions
-On-demand software will experience an expanded customer base
-Open source software for local and regional government entities
-Solutions for systems integration