Software Publishers NAICS 513210

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Industry Summary
The 13,700 software publishers in the US produce and distribute computer software. Major product categories include application software publishing, system software publishing, and resale of merchandise. Firms are increasingly delivering software through cloud-based services (Software-as-a-Service or SaaS), in addition to on-premise products.
Technology Drives Constant Change And Investment
The information technology industry is characterized by rapid change and constant evolution.
Talent Shortage
Software developers are in short supply and many publishers are resource-constrained due to a shortage of skilled workers.
Recent Developments
May 15, 2025 - New AI Pricing Model Is Emerging
- AI and a new class of "reasoning" AI models that are computationally intensive and expensive to operate are pushing the Software-as-a-service (SaaS) industry from monthly "per seat" licenses to usage-based, pay-as-you-go pricing, according to Business Insider. It may be an economic necessity for some companies as they adjust to the cost of running AI-powered software services. A reasoning AI model is much more expensive because it doesn't just return simple responses. Reasoning models loop through steps, check their work, and do it all again — a process called inference-time compute. Every step generates new "tokens," which have to be processed. Companies are beginning to charge based on activity such as tokens consumed, queries run, automations executed, or models accessed instead of charging per user. This aligns revenue more closely with usage and ensures companies can cover their variable and rising infrastructure costs, according to Business Insider.
- Increasing use of artificial intelligence (AI) technologies, particularly generative AI, raises crucial questions regarding insurance for software publishers, according to Jean-Guibert Ciavaldini at the law firm Simmons & Simmons. Legal, contractual, and insurance challenges associated with the use of AI in sectors like marketing, process automation, and text analysis and processing differ across passive and active use of AI. Passive AIs exclusively analyze data and provide recommendations, while active AIs can make autonomous decisions based on these analyses. An active AI can lead to higher risks in terms of liability, requiring more robust coverage in professional liability insurance (PLI) and cyber risk insurance.
- Turmoil in the video games industry is likely to continue in 2025, games industry leaders have told GamesIndustry.biz. Publishing, development, and investment heads have said that high interest rates, oversaturated video game stores, and cautious investors will result in more restructures, layoffs, and closures. The fate of any particular company may depend on its size, according to Wired. Large companies like Microsoft, Unity, Electronic Arts, or Ubisoft can reduce staffing levels to cut costs but the company itself still exists. Independent game makers are often run by small teams of fewer than a few dozen people, however, so shutting down may be the only option.
- Software publishers increased prices moderately during 2024, according to the US Bureau of Labor Statistics (BLS). Software publishing industry employment and average wages for nonsupervisory employees increased slightly during the first three months of 2025, according to the BLS. Software publisher sales are forecast to grow at a 6.94% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
Industry Revenue
Software Publishers

Industry Structure
Industry size & Structure
The average software publisher employs 47 workers and generates about $31.5 million annually.
- The software publishing industry consists of about 13,700 firms with 17,400 establishments that employ over 645,700 workers and generate about $430.9 billion annually.
- The industry is concentrated at the top; the top 50 companies account for about 69% of industry revenue.
- Large companies include Microsoft, Oracle, IBM, and Symantec. Large firms may generate a substantial percentage of sales overseas.
- Companies that offer primarily cloud-based services may be classified under the Census as Data Processing, Hosting, and Related Services. Software publishers may offer hybrid products that combine on-premise, private cloud, and public cloud services.
Industry Forecast
Industry Forecast
Software Publishers Industry Growth

Source: Vertical IQ and Inforum
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