Video Game Software Publishing

The Video Game Software Publishing industry produces and distributes video game software for video game consoles, personal computers and mobile devices.

The popularity of smartphone video games and established console game franchises, such as Call of Duty and FIFA, stimulated industry revenue growth over the five years to 2020.

Moreover, mobile video games grew substantially as a portion of industry revenue over the past five years, alongside proliferating smartphone ownership.

According to Pew Research, smartphone ownership in the United States has risen from 59.0% in 2015 to 81.0% in 2019, bolstering access to and demand for mobile games.

Overall, industry revenue rose at an annualized rate of 9.1% to $28.5 billion over the five years to 2020, despite stunted growth of 1.5% in 2020 as the COVID-19 (coronavirus) pandemic reduced consumer spending and confidence.

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Video Games Software Developers

Operators in the Video Games Software Developers industry primarily develop video game software for use on computers, video game consoles and mobile devices.

Industry operators do not publish their software, which means industry software is developed independently or alongside a publisher.

First-party and independent developers are excluded, as these companies also handle publishing.

Most operators are second- or third-party developers, which means they are either part-owned or independent of larger industry publishers.

Operators may be contracted by a publisher to produce video game software, or they may sell the rights to their software to a publisher for distribution.

Industry revenue is heavily dependent on innovation within the broader Video Game Software Publishing industry (Research

report 51121e) in addition to consumer demand for video games.

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Website Creation Software Developers

The Website Creation Software Developers industry comprises companies that primarily develop and publish HTML editing software, which is used to design websites.

The industry has encountered significant growth over the five years to 2020, as digital content and delivery has become essential to consumers and businesses.

Rapid growth in the number of websites and how consumers interact has been fueled by a proliferating number of broadband connections, the advent of the smartphone and evolving consumer preferences.

Consequently, an opportunity has presented itself to web developers to create software enabling individuals and small businesses to easily create web pages for themselves or their businesses.

Moreover, expansion in the number of businesses in the United States has fueled demand for industry products and services during the period.

Altogether, industry revenue is estimated to have grown at an annualized rate of 7.7% to $10.9 billion over the five years to 2020.

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Online Computer Software Sales

Operators in the Online Computer Software Sales industry sell and distribute software for local installation and execution to customers via the internet.

Companies in this industry may also handle digital rights management for that software.

The broad array of available computer software programs used today enables a range of different retail channels to provide industry products to consumers and businesses alike.

Industry sales include unique download and subscription software sales, in addition to the sale of industry software in combination with computer hardware or accessories.

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Online Payment Processing Software Developers

The Online Payment Processing Software Developers industry has experienced rapid growth over the five years to 2019, primarily due to consumers’ retail preferences shifting from traditional brick-and-mortar stores to online retail outlets.

This shift in demand has been facilitated by the boom in the number of mobile internet connections during the current five-year period.

The ever-increasing percentage of services conducted online has bolstered demand for industry services, as online payment processing is directly tied to the use of online retail and auction sites.

Furthermore, growing per capita disposable income is expected to induce consumers to spend more online, spurring demand for industry services.

Overall, industry revenue is expected to increase an annualized 8.4% to $23.3 billion over the five years to 2019, including growth of 6.0% this year alone.

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Online Survey Software

The Online Survey Software industry develops software for use in market research, product testing and a variety of other customizable uses such as employee satisfaction or consumer preferences.

Industry operators offer clients a product that is less costly to run but also more time efficient, interactive and can be easily integrated with data analytics platforms.

As a result, many companies have reduced their use of traditional market research activities, which rely on physical results collection and often generate lower response rates as well as lower operational efficiency.

Instead, users are increasingly opting to extract feedback using services provided by online survey software companies, at a fraction of the cost.

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Operating Systems and Productivity Software Publishing

Operators in the Operating Systems and Productivity Software Publishing industry develop and publish operating systems and productivity software products that are necessary for computer usability.

Industry software often comes preinstalled on new computers and similar devices, so industry revenue correlates with new device sales.

As technology has become more intertwined with daily life over the five years to 2021, industry demand has grown.

Total revenue expanded as sales to both consumers and businesses increased during the period, driven by higher disposable income levels and extensive private investment in computers and software.

Altogether, industry revenue increased at an annualized rate of 9.5% to $130.2 billion over the five years to 2021.

The COVID-19 (coronavirus) pandemic affected key upstream industries and consumers in 2020 and 2021.

Consumer spending and private investment levels dropped last year, culminating in reduced industry revenue growth of 6.4% and 3.9% in 2020 and 2021, respectively.

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Personal Finance and Money Management Software Developers

The Personal Finance and Money Management Software Developers industry is composed of companies that create personal finance management software.

The industry has continued to grow by innovating the quality and scope of its services and attracting a larger user base.

While the industry experienced a temporary setback in 2020 as a result of the COVID-19 (coronavirus) pandemic, this is not expected to darken the industry’s prospects moving forward.

As a result, industry revenue has grown at an annualized rate of 6.5% to $527.6 million over the five years to 2021, including an increase of 5.2% in 2021 alone.

However, as more operators have entered the industry during the same period, competition has increased; as a result, despite climbing revenue, industry profit has marginally declined.

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Point of Sale Software Developers

The Point of Sale Software Developers industry, which facilitates sales of goods and services, has experienced strong growth over the five years to 2020.

During the period, total industry revenue is anticipated to increase at an annualized rate of 12.2% to reach $2.8 billion, including 9.8% growth in 2020 alone.

Industry operators have benefited from a growing reliance on computers in downstream markets, including retailers, wholesalers and hospitality and food service businesses, among others.

The emergence and adoption of new technologies and the changing retail landscape have also benefited revenue growth.

Trends such as near-field communications (NFC), self-checkout counters, sensors, data analytics and the integration of point of sale (POS) systems with back-end software systems have provided the industry with a platform for robust growth.

Furthermore, new software applications and hardware devices have enabled small operators to more easily afford POS systems that provide similar functionality to large and expensive terminals.

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