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.
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.
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.
The Security Software Publishing industry develops and distributes antivirus, anti-keylogger, spyware removal, encryption and firewall software.
The explosion of data, internet-enabled solutions and cloud services have all stimulated the industry’s expansion over the five years to 2020.
In addition, high-profile cyber-attacks targeting retailers, financial institutions, credit agencies and healthcare providers, among others, further stimulated demand for industry software.
Consequently, computer, tablet and smartphone users increasingly view security software as necessary, while companies are also investing in security software to avoid heavy financial losses and damaged reputations.
Altogether, industry revenue has increased at an annualized rate of 7.1% to $20.8 billion over the five years to 2020.
In 2020, however, private investment and consumer confidence levels have collapsed as a result of the COVID-19 (coronavirus) pandemic.
This is anticipated to temporarily reduce industry demand in 2020, with revenue projected to fall 1.4% this year.
The e-Discovery Software Publishing industry designs software to assist legal firms and corporations in producing evidence from electronically stored information (ESI), which includes e-mails, text documents, databases, audio and video files, social media and websites.
Over the five years to 2021, increasing regulations regarding the retention, modification and deletion of ESI have prompted many companies to seek e-discovery software to assure legal compliance and to provide the ability to produce electronic evidence when called upon.
Moreover, a steady expansion in the complexity and volume of data has bolstered demand for e-discovery software products, which sift through ESI to identify, collect and produce relevant information.
Due to these factors, the industry prospered for much of the period, despite a decline in 2020 due to the negative economic impact of the COVID-19 (coronavirus) pandemic.
Over the five years to 2021, revenue is estimated to increase at an annualized rate of 4.5% to $1.9 billion, including a 1.9% increase in 2021.
Strong profitability over the current five-year period also encouraged new companies to enter the market and expand workforces.
Electronic Design Automation (EDA) software is essential to the design and development of microchips, which are critical to numerous consumer and business applications involving computers and other electronic devices.
As microchip technology has continually improved over the past five years, industry software has been in increasingly high demand for researching new designs as well as reducing the costs associated with the chip design process.
Over the five years to 2020, Electronic Design Automation Software Developers industry revenue is expected to increase at an annualized rate of 7.1%, including expected growth of 1.6% in 2020, to $6.0 billion.
Rapid revenue growth is the result of rising investment in computers and software, as well as growth in relevant technology sectors.
Additionally, as the price of semiconductors and associated electronic components has decreased, microchips have been used in more applications, driving demand for EDA software.
Revenue for the e-Trading Software Developers industry, defined as companies that operate online securities trading websites and other software programs for the securities market, has increased at an annualized rate of 3.6% to $10.7 billion over the five years to 2020.
Industry profit has also increased in line with revenue gains.
Large companies in this industry, including the Charles Schwab Corporation and Fidelity Investments Inc.
recorded robust revenue growth during the period, as investors increased their use of online trading platforms.
However, the effect of the COVID-19 (coronavirus) pandemic and its economic consequences are expected to dampen revenue growth, resulting in revenue declining 2.5% in 2020 alone.
However, the online nature of the industry will likely ameliorate this decline somewhat, as industry services are still largely usable even with social distancing measures in place.
The Field Service Management Software industry develops software used by businesses to coordinate and dispatch field service personnel.
The largest buyers of field service management (FSM) software are manufacturers and telecommunications companies, and wholesalers and retailers.
Several research surveys suggest that the major buyers of FSM software are small- and medium-sized businesses (SMB) that find that the services provided by this software boost operational efficiency.
Although larger companies may be able to develop technology in-house, SMBs often rely on third-party industry operators.
Companies operating in the Fraud Detection Software Developers industry develop software to detect fraudulent activity, such as fraudulent mobile payments.
The industry has performed exceptionally well over the five years to 2020, with total revenue rising at an annualized rate of 19.3% to $10.0 billion, including anticipated growth of 15.4% in 2020.
The climbing number of services conducted online in recent years triggered an explosion of data tools and software, including software designed to ensure that sensitive personal information and payment information is safeguarded and protected.
This has largely come as a response to a rise in cybercrime and other fraudulent activities, prompting companies and consumers to demand industry software products as a way to ensure their data is not put at risk.
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