Design Editing and Rendering Software Publishing
Business for Sale Industry Economics
2002 - 2020
2020 - 2026
The Design Editing and Rendering Software Publishing industry comprise companies that create software programs for professionals in the fields of graphic design, architecture and video game production, among other applications.
Industry revenue is expected to increase at an annualized rate of 4.6% to $12.3 billion over the five years to 2020.
The adoption of new technology, such as 3D printers, by larger manufacturers and niche hobbyists, has spurred demand for computer-aided design (CAD) software during the period.
Furthermore, rapidly increasing private investment in software has benefited industry operators over the past five years.
However, industry revenue is expected to decline 1.9% in 2020, due to constrained private investment in computers and software amid the COVID-19 (coronavirus) pandemic this year.
The Design Editing and Rendering Software Publishing industry develop and distribute design, picture-editing, video-rendering, object-rendering, and audio-editing software.
These types of software programs are widely used in the fields of graphic design, architecture, video game development, manufacturing and media production.
The industry also includes companies that develop software add-ons.
The Design Editing and Rendering Software Publishing industry is expected to encounter reignited revenue growth over the five years to 2025, increasing at an annualized rate of 5.8% to $16.3 billion.
Growth will follow the continued adoption of emerging technologies, including 3D printers and virtual reality (VR).
These technologies increasingly rely on advanced design and rendering software. Continued improvements in 3D printing technology and the increasing demand for rapid prototyping will drive demand for CAD software.
Additionally, the rise of VR will also likely generate demand for new types of software to edit video content, movies, and games.
This industry develops and distributes design, picture-editing, video-rendering, object-rendering, and audio-editing software. These types of software are widely used in the fields of graphic design, architecture, video game development, manufacturing, and media production. The industry also includes companies that develop software add-ons and does not publish software for editing textual documents.
The capital intensity of the data processing and hosting business is low. An anticipated $0.07 per $1.00 in salaries is assigned in 2021, a modest increase compared to 2016, for capital expenditures.
The sector requires a lot of work, skills, and expertise but also computer and software. Labor expenditure is an expected 33.2 percent of the income for industrial operators in 2021.
This means a number of expensive technicians, including computer support experts, computer systems analysis, and software developers, are employed by the usual industry operators.
But the industry needs large computer equipment capital investment. Rapid technological developments have compelled operators to remain competitive in the last five years to make considerable expenditures on new computer equipment.
Since this tendency is projected to continue in the next five years, some corporations may try to compensate for new equipment capital expenditures. Operators can avoid significant depreciation costs associated with the short life cycles of technical items via leasing equipment.
The revenue volatility in the data processing and hosting sector is mild, mostly because of a volatile increase in the size of revenues, with the exception of a modest decrease owing to the impact of the COVID-19 Pandemic in 2020.
Typically, industrial clients subscribe to hosting services, so that revenue flows stay constant. Because the amount of data required continues to expand, cuts in industry prices are usually offset by greater client demand.
In addition, the need for industrial services has been boosted by new services, such as cloud and broader software as a service, which have increased revenues.
In the future, volatility is expected to decrease with industry revenues expected to expand consistently.