Arrested development: New encryption and data protection laws have softened revenue growth

The Software Publishing industry has strongly grown over the past five years, driven by increased online connectivity and the emergence of new technology. Improving access to high-speed internet and greater mobile penetration have encouraged software developers to capitalise on the rising popularity of cloud computing platforms and mobile operating systems. Smartphone and tablet software development has strongly increased, with new products carrying out functions that were once done through PCs and gaming consoles. Industry revenue is expected to rise at an annualised 11.8% over the five years through 2018-19, to $4.2 billion. Revenue is expected to grow by 12.0% in the current year as more industry participants adopt the Software as a Service (SaaS) distribution more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Access to high-speed internet has encouraged the development of cloud computing software
  • The industry’s export revenue has increased, fuelled by Atlassian’s growth in overseas markets
  • Technological changes are projected to continue affecting the industry’s competitive landscape
  • Industry Report - Industry Investment Chapter

    Software publishing is characterised by low capital intensity. In 2018-19, the industry is expected to spend $0.09 on capital costs for every dollar spent on wages. The industry employs many skilled staff and has few capital expenses. Industry capital goods are mainly office space, computers and some networking capacity. Some operators rent these goods instead of investing in capital, minimising depreciation expenses. Several industry players have been outsourcing basic development functions to strengthen profit margins and constrain wage growth over the past five years. The large industry players, such as Atlassian, also maintain development teams in technology hubs such as the San Francisco Bay Area, enabling them to access a broader technical talent pool...purchase to read more.

    Additional Insights for the Software Publishing Industry

    IBISWorld has determined the most important Key Success Factors for the Software Publishing are:

  • Undertaking technical research and development
  • Protection of intellectual property/copyrighting of output
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on computer software and IT and telecommunications adoption in the Software Publishing industry impact industry performance..

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    What's in this report

    What is the Software Publishing Industry?

    Software publishers create and distribute ready-made (non-customised) computer software.

    Industry Products
  • Accounting software
  • Smartphone and tablet apps
  • Enterprise software
  • Industry Activities
  • Funding software development
  • Developing computer software for mass production
  • Distributing computer software
  • Software marketing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on computer software
  • IT and telecommunications adoption
  • Demand from computer and software retailing
  • Real household discretionary income

  • Current Performance
  • Import competition
  • Major player growth
  • Technological improvements
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulation
  • New markets
  • New business models
  • Funding sources
  • Table: Software Publishing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Software Publishing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Computer and Software Retailing
  • Consumers

  • Key Selling Industries
  • Advertising Services
  • Computer and Software Retailing
  • Legal Services

  • Products & Services
  • Enterprise software
  • Smartphone and tablet apps
  • Accounting software
  • Other
  • Chart: Software Publishing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Small-to-medium enterprises
  • Corporations
  • Households
  • Software retailers
  • Not-for-profit entities
  • Chart: Major Market Segmentation for the Software Publishing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Software Publishing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Software Publishing Industry

  • Industry Globalization
    Atlassian Australia 1 Pty Ltd, MYOB Group Limited, Xero Limited,
  • Table: Atlassian Australia 1 Pty Ltd - financial performance
  • Table: MYOB Group Limited - financial performance
  • Table: Xero Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Software Publishing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Software Publishing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • A type of program that allows users remote access. Storage and computing tasks are handled by networked machines.
  • Fintec
  • A class of companies that uses technology to make financial services more efficient.
  • Open-Source Software (Oss)
  • Computer software that is distributed under a licensing arrangement and that allows the computer code to be shared, viewed and modified by other users and organisations.
  • Operating System (Os)
  • A computer-software package that controls the management of its hardware and core system operations such as file management.
  • Software As A Service (Saas)
  • The sale of software on a subscription basis, with related customer support rather than the sale of standalone products.
  • What Our Customers Say

    Why buy this report?

    The Software Publishing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Software Publishing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Software Publishing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Software Publishing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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