Softening up: Revenue is projected to expand, but slowing investment may restrict growth

Businesses operating in the Software Publishing industry publish ready-made, non-customised computer software. Industry firms may also translate or adapt software for a particular downstream market or a slightly different application. Operators in the industry provide a wide range of software, such as operating systems, applications and middleware, to businesses across a range of industries as well as software for household use.During the past five years, growth has been driven by advances in complementary industries and rising IT and telecommunications adoption. The industry has been characterised by acquisitions as larger operators have sought to remain on top of market trends and protect their competitive positions by acquiring smaller firms, particularly niche publishers...read more.

Industry Statistics & Market Size
Revenue
£2.3bn
Annual Growth 14-19
8.1%
Forecast Growth 19-24
Profit
Employment
13,340
Businesses
2,268

Industry Threats & Opportunities

  • Research and development is crucial, but many operators have also grown through acquisitions
  • Start-ups have continued to thrive, supporting growth in enterprise numbers despite acquisition activity
  • Long-term licences are expected to reduce the effects of delayed investment due to economic uncertainty
  • Industry Report - Industry Investment Chapter

    The industry has a low level of capital intensity. Applying wages as proxy for labour and depreciation as a proxy for capital investment, the industry has a capital-to-labour ratio of 1:12.42 in 2018-19. This indicates that for every £1.00 spent on capital, industry operators are expected to spend £12.42 on wages. Conversely, for every £1.00 spent on wages or labour, firms would spend 8p on capital. Hence, the Software Publishing industry is considered to be labour intensive. Software companies typically only need limited capital goods, namely office space, computers and some networking capacity. Industry operators are expected to spend approximately 24.8% of their revenue on wages in the current year, while depreciation is expected to represent just 2% of revenue. How...purchase to read more.

    Additional Insights for the Software Publishing Industry

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

  • Development of new products
  • Access to high quality inputs
  • Close monitoring of competition
  • IBISWorld analysts also discuss how external factors such as Business software investment and IT and telecommunications adoption in the Software Publishing industry impact industry performance..

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    What's in this report

    What is the Software Publishing Industry?

    This industry includes companies that publish ready-made non-customised software, engaging in activities such as marketing, translation, technical support and the design of packaging and documentation. The industry does not include the printing of software onto discs, which is done by downstream distributors, or the programming of software, which is usually performed by separate developing companies. Computer and video game publishing is also excluded (see IBISWorld report J58.210).

    Industry Products
  • Operating systems
  • Web- and cloud-based software
  • Desktop applications
  • Software adaptation
  • Embedded software
  • Industry Activities
  • Marketing software
  • Translating, localising and adapting software
  • Packaging software
  • Distributing software toers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business software investment
  • IT and telecommunications adoption
  • Business confidence index
  • Demand from computer and gaming product retailers
  • Number of businesses

  • Current Performance
  • Business development
  • Acquisition activity
  • Cloud computing
  • Chart: Revenue Growth

  • Industry Outlook
  • Lacking confidence
  • Licence agreements
  • Leaving the

    European Union

  • Table: Software Publishing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Computer & Gaming Product Retailers
  • Computer Consultants
  • Banks
  • Allied Health-Care Services

  • Key Selling Industries
  • Software Development

  • Products & Services
  • Desktop applications
  • Web- and cloud-based software
  • Operating systems
  • Embedded software
  • Software adaptation
  • Chart: Software Publishing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corporate businesses
  • Medium-size businesses
  • Small businesses
  • Public sector
  • Households
  • Other
  • Chart: Major Market Segmentation for the Software Publishing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Amortisation
  • Marketing
  • Depreciation, rent and utilities
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Software Publishing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Software Publishing Industry

  • Industry Globalization
    Oracle Corporation, IBM United Kingdom Ltd, SAP (UK) Limited, Microsoft Ltd,
  • Table: Oracle Corporation - financial performance
  • Table: IBM United Kingdom Ltd - financial performance
  • Table: SAP (UK) Limited - financial performance
  • Table: Microsoft Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Software Publishing 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 Publishing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • A type of program that can be accessed remotely. Storage and computing tasks are handled by networked machines.
  • Enterprise Software
  • Also known as enterprise application software (EAS). A type of software intended to solve an enterprise problem rather than a departmental problem.
  • Firmware
  • Software that remains in place in a device and is not intended to be deleted. Operating systems for mobile devices are examples of firmware.
  • Link-Up Technology
  • Technology that integrates separate computing systems.
  • Middleware
  • Computer software that provides support to applications beyond what is offered by the operating system.
  • Moore's Law
  • The observation that the performance and power of a computer doubles approximately every two years.
  • 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?

    The Software Publishing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Publishing:
    • 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 Publishing 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 Publishing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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