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Software Development in the UK - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

UK-J6201 October 2024 Factsheet

Revenue

£41.8bn

2019-2024 5.5 %
2024-2029 X.X %

Employees

252k

2019-2024 5.1 %
2024-2029 X.X %

Businesses

27,306

2019-2024 3.7 %
2024-2029 X.X %

Wages

£XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

Software Development in the UK market size outlook

Total value and annual change from from 2014-2029. Includes 5-year outlook.

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About Factsheets

Industry Statistics and Rankings

How does this industry perform in United Kingdom compared to Europe?

Country Benchmarking

Industry Data United Kingdom

Ranking are out of 37 European countries for which IBISWorld provides country-level factsheets.

Revenue
#4 In Europe
Business
#6 In Europe
Employees
#2 In Europe
Wages
#2 In Europe

View industry report for Europe

European software developers' revenue is forecast to drop at a compound annual rate of 2.8% over the five years through 2024 to €374.1 billion due to challenging economic conditions. Software development revenue has been supported by rising digitisation and technological developments throughout the continent. The industry has been characterised by acquisitions, as global developers have sought to remain on top of market trends and protect their competitive positions by acquiring smaller businesses, particularly niche developers.

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Enterprises
Number of businesses in 2024

Biggest companies in the Software Development in the UK

Company
Market Share (%)
2024
Revenue (£m)
2024
Profit (£m)
2024
Profit Margin (%)
2024

There are no companies that hold a large enough market share in the Software Development in the UK industry for IBISWorld to include in this product.

Top Questions Answered in this Report

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What is the market size of the Software Development in the UK industry in United Kingdom in 2024?

The market size of the Software Development in the UK industry in United Kingdom is £41.8bn in 2024.

How many businesses are there in the Software Development in the UK industry in 2024?

There are 27,306 businesses in the Software Development in the UK industry in United Kingdom, which has grown at a CAGR of 3.7 % between 2019 and 2024.

Has the Software Development in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Software Development in the UK industry in United Kingdom has been growing at a CAGR of 5.5 % between 2019 and 2024.

What is the forecast growth of the Software Development in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Software Development in the UK industry in United Kingdom is expected to grow.

What does the Software Development in the UK in United Kingdom include?

Systems software and Application software are part of the Software Development in the UK industry.

How competitive is the Software Development in the UK industry in United Kingdom?

The level of competition is moderate and decreasing in the Software Development in the UK industry in United Kingdom.

Related Industries

This industry is covered in 37 countries

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Table of Contents

About this industry

Industry definition

Industry participants develop and adapt software, which includes writing, modifying and supporting computer code, databases and webpages. Developers also customise software so that it is functional within clients’ information system environment and offer select after-sale services.

Related Terms

Cloud ComputingSoftware As A Service (SAAS)Fintech

What's included in this industry?

Systems softwareApplication softwareSupport services

Companies

Industry Code

ISIC 2006

6201 - Computer programming activities in United Kingdom

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Performance

Revenue Highlights

Trends
  • Revenue
  • 2024 Revenue CAGR
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue
  • Employees
  • Business
  • Profit
Analysis

What's driving current industry performance in the Software Development in the UK industry?


Outlook

Analysis

What's driving the Software Development in the UK industry outlook?


Volatility

Analysis

What influences volatility in the Software Development in the UK industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Software Development in the UK industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

Custom-made software appeals to technical industries. Engineering and architectural businesses are heavily reliant on computer software to design, while scientific researchers use programs to measure processes and record data.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Software Development in the UK industry's products and services performing?

Analysis

What are innovations in the Software Development in the UK industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Software Development in the UK industry?


International Trade

Highlights

  • Total Imports into United Kingdom
  • Total Exports into United Kingdom
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2024)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

Low concentration is a product of a saturated market. Low market share concentration reflects the fragmented nature of the industry outside of the global software houses.

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Supply Chain

Charts

Buyer and supply industries

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Establishments by Region (2024)
Data Tables
  • Number of Establishments by Region (2024)
Charts
  • Share of Establishments vs. Population of Each Region
Analysis

What regions are businesses in the Software Development in the UK located?

Companies

Data Tables

Top 0 companies by market share:

  • Market share (2024)
  • Revenue (2024)
  • Profit (2024)
  • Profit margin (2024)

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Opportunities remain for small companies. Small software development businesses will flood the market in the coming years to take advantage of market niches, raising competitive pressures.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Software Development in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Labour costs are high. Software development companies require specialised staff to conduct highly skilled and labour-intensive coding and testing tasks. The majority of workers have advanced qualifications so take-home big salaries.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Software Development in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and boottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.