Strong system: Continued technological developments will support revenue growth

The Software Development industry consists of businesses that write, modify and test systems and applications software, databases and web pages. The industry has made considerable progress over the past decade as businesses and individuals have become reliant on electronic devices in many areas of their lives. Online access to news, social media, video and other websites, in addition to automated client-relationship software and advertising software applications, are now an integral part of modern culture. Consistent developments in technology have helped the industry grow solidly over the past five years. Industry revenue is expected to grow at a compound annual rate of 10.1% over the five years through 2017-18. The industry is forecast to generate revenue of £28.8...read more.

Industry Statistics & Market Size
Revenue
$29bn
Annual Growth 13-18
10.1%
Forecast Growth 18-23
Profit
Employment
182,930
Businesses
26,345
Market Share of Companies

Industry Threats & Opportunities

  • Investment in business software has recovered over the past five years, supporting growth
  • The government has provided support to the industry as it contributes strongly to the economy
  • The rising importance of big data is likely to influence the industry over the coming five years
  • Industry Report - Starting a New Business Chapter

    Barriers to entry are typically low for the industry. Advanced programming and developing knowledge is hard to attain and keeping up with a rapidly changing service environment is difficult. However, the only basic necessity to carry the software development function is to have a computer and internet access. There exist some barriers to success in the industry, particularly for operators that create custom-built software for businesses, which requires gaining the trust of clients to build programs that ensure the day-to-day functioning of a business. In this area, it may be more difficult for small operators to succeed without an established reputation.Barriers to entry in the industry vary depending on the market segment. Sys...purchase to read more.

    Additional Insights for the Software Development Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Software Development Industry are

  • Development of new products
  • Ready access to investment funding
  • Highly trained workforce
  • IBISWorld analysts also discuss how external factors such as IT and telecommunications adoption and Demand from computer consultants in the Software Development industry impact industry performance..

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    What's in this report

    What is the Software Development Industry?

    Operators in this industry design and write computer code to implement systems software, software applications, databases and web pages. The industry includes companies that write, modify and test software. However, the industry does not include the design of systems that use hardware and software, or the installation or publishing of software.

    Industry Products
  • Maintenance and support
  • Application software
  • Systems software
  • Custom software
  • Leisure and entertainment software
  • Industry Activities
  • Systems software development
  • Application development
  • Database development
  • Testing and debugging
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • IT and telecommunications adoption
  • Demand from computer consultants
  • Demand from banks
  • Demand from software publishing
  • Demand from computer game publishing

  • Current Performance
  • Denting demand
  • Software as a Service
  • Supporting developers
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry consolidation
  • Major innovations
  • Pull the plug
  • Table: Software Development Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Software Development Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wired Telecommunications Carriers
  • Software Publishing
  • Computer Consultants

  • Key Selling Industries
  • Computer & Gaming Product Retailers
  • Market Research & Public Opinion Polling

  • Products & Services
  • Application software
  • Custom software
  • Systems software
  • Maintenance and support
  • Leisure and entertainment software
  • Other
  • Chart: Software Development Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other industries
  • Retailers and wholesalers
  • Information and technology firms
  • Manufacturing firms
  • Banking and finance industries
  • Professional services
  • Chart: Major Market Segmentation for the Software Development Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Software Development

  • Basis of Competition
  • Internal competition
  • External competition.

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Software Development Industry

  • Industry Globalization
    Oracle Corporation,
  • Table: Oracle Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Software Development Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Software Development Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • Using a network of remote servers hosted on the internet, rather than a local server, to store, manage and process data.
  • Debugging
  • When a programmer looks through existing code in an effort to recognise flaws in a program.
  • Internet Of Things
  • A proposed network of everyday objects that are connected using wireless connections, sensors and software to transmit data.
  • Middleware
  • Back-end software that links at least two systems together.
  • Programming Language
  • A language used by programmers to develop applications, scripts or other sets of instructions for computers to execute, such as JavaScript.
  • Saas
  • Software as a Service. A software licensing model through which software is centrally hosted and accessed on a subscription basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Software Development market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Software Development:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Software Development market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Software Development, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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