Security Software Publishing
Business for Sale Industry Economics
2002 - 2020
2020 - 2026
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 Security Software Publishing industry develops and distributes software programs, such as antivirus, anti-keylogger, spyware removal, encryption, and firewall software.
Industry operators may also provide consulting and technical support related to this software. As the number and types of wireless computing devices surged over the five years to 2020, the market for industry products grew.
Furthermore, the industry has benefited from customers’ changing perception of security software. Once thought of as an optional cost, security software is increasingly considered a necessity to safeguard sensitive data and information.
Consequently, industry revenue has expanded at an annualized rate of 7.1% to an estimated $20.8 billion over the five years to 2020.
Revenue for the Security Software Publishing industry is expected to grow at an annualized rate of 3.0% to $24.1 billion over the five years to 2025.
New opportunities offering software designed for mobile services will continue to stimulate revenue growth as consumers migrate to portable computing devices and use smartphones more freely.
With computing technology evolving rapidly, the prevalence and complexity of cyber-attacks will likely grow, incentivizing consumers and businesses to invest in security software.
Additionally, private investment in computers and software is expected to grow at an annualized rate of 6.7% over the five years to 2025, rebounding from the impact of the COVID-19 (coronavirus) pandemic.
Corporate profit levels are also anticipated to return to growth, rise at an annualized rate of 10.4% during the same period.
This industry develops and distributes antivirus, anti-keylogger, spyware removal, encryption, and firewall software. Operators in the industry may also provide consulting and technical support related to this software.
The capital intensity of the Security Software Publishing business is low. The research projects that in 2020, for every dollar spent on salaries, just $0.04 will be spent on capital, using salaries as a proxy for labor and depreciation as a proxy for capital.
Unlike a corporation in the manufacturing or retail industries, software is an intangible product that does not require considerable investment to launch. To build software goods, however, industry businesses must spend on computers, servers, and other gear.
Because the quality of software is solely dependent on the programmers who build it, labor accounts for a significant amount of industry expenditures.
Software development necessitates highly qualified workers, resulting in a high average industry pay of about $170,000 in 2020.
Employees must continually work to detect new dangers and install software to guard against them since computer risks are continuously developing.
Over the five years to 2020, the Security Software Publishing industry has been exhibiting a moderate-to-low level of revenue volatility. Many consumers and businesses view security products as nondiscretionary, ensuring the revenue stability of the industry.
Further, as consumers are increasingly using the internet (PCs and mobile devices) for financial-related reasons (such as online banking and mobile financial transaction) and as businesses accelerate their use of data in everyday business decisions, security concerns have grown.
These concerns have translated into consistent revenue gains for the industry as consumers and businesses are demanding more security software.
Year-to-year industry revenue growth rates have ranged from an increase of 13.2% in 2018 to a decline of 1.4% in 2020. This anticipated revenue decline is primarily a result of the COVID-19 (coronavirus) pandemic in 2020.