Software Publishers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 12,700 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.
Industry size & Structure
The average software publisher employs 52 workers and generates about $35 million annually.
- The software publishing industry consists of about 12,700 firms with 16,600 establishments that employ over 656,000 workers and generate about $446 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
Software Publishers Industry Growth
Recent Developments
Jul 18, 2024 - Labor Costs Increase
- Software publishing industry employment and average wages for nonsupervisory employees increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics (BLS). Software publishers increased prices slightly during the first five months of 2024, according to the BLS. Software publisher sales are forecast to grow at a 5.63% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
- Turmoil in the video games industry will continue through 2024 and likely into 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.
- The Biden administration has launched discussions with software publishers to create frameworks that would incentivize the private sector to ensure that their products don’t contain exploitable flaws, according to administration officials. Nick Leiserson, the Office of the National Cyber Director’s assistant director for cyber policy and programs, said that the goal is to craft legal clauses that shift software liability away from customers and onto manufacturers. Many legal experts argue that the software market isn’t incentivizing secure development, according to Nextgov/FCW, with major manufacturers weaving clauses into contracts that make users accept the software “as is” upon installation. This may cause customers to bear the entire risk of a product, including defects that could enable cyber exploitation, according to Nextgov/FCW.
- Industry leaders including Amazon, Google, Microsoft, and Meta Platforms have been cutting dozens or a few hundred employees at a time as executives keep tight controls on costs, according to The Wall Street Journal. There is a reallocation of resources from noncore areas to projects such as AI rather than hiring new people, said Adam Ward, a founding partner at recruiting advisory firm Growth by Design Talent. “There’s a second look at costs, at lines of business, and where investments are going to be next year. The output are these microcuts,” said Ward. “This will be a new normal.”
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.