Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 6.0 % over the past five years, to reach an estimated $510.8bn in 2024.
Trends and Insights
Software development is diversifying, both in its input developers and output markets
- Due to digital transformation efforts in the US, software developers are entering non-traditional sectors such as agriculture, healthcare and manufacturing. Although less profitable than online businesses, these sectors remain relatively untapped, offering substantial opportunities for innovation and growth in the ever-evolving technological landscape.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Companies that prioritize integration capabilities will become more competitive
- As business needs evolve, industry players must maximize platform interoperability to remain competitive and retain clients. According to HubSpot, there are scenarios where it is seven times more expensive for publishers to acquire a new customer than to retain an existing one. To maximize cash flows, publishers must ensure that their software is compatible with various systems in the future.
Biggest companies in the Software Publishing in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Microsoft Corporation | 88,428.5 | 39,478.3 | 44.6 | |
Apple Inc. | 32,061.6 | 10,069.6 | 31.4 | |
Oracle Corporation | 24,393.5 | 7,071.5 | 29.0 |
To view the market share and analysis for all 34 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including System software publishing, Application software publishing and Custom application design and development . System software publishing is the largest segment of the Software Publishing in the US.
Trends and Insights
System software publishing anchors the tech world with essential backbone tools
- System software publishing focuses on developing and distributing essential computer software, such as operating systems and utilities. Developers are drawn to this field due to the consistent demand from hardware manufacturers and users seeking compatibility and performance improvements, ensuring a stable market for foundational system software solutions.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Software publishers disseminate licenses to customers for the right to execute software on their own computers. Operators in this industry market and distribute software products and may also design the software, produce support materials and provide support services.
What's included in this industry?
Developing softwarePublishing softwareDevelopment video games Publishing video games Publishing cellular phone softwarePublishing computer software Developing firmware softwareDevelopment middleware softwareCompanies
Microsoft CorporationApple Inc.Oracle CorporationPurchase this report to view all 34 major companies in this industry.
Related Terms
OPEN-SOURCE SOFTWARE (OSS)SOFTWARE AS A SERVICE (SAAS)ENTERPRISE SOFTWAREAPPLICATION SOFTWARECLOUD COMPUTINGIndustry Code
NAICS 51121 - Software Publishing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Cloud computing's paving the way for consistent revenue through SaaS models. These subscription services provide recurring income and allow clients to access and update softw...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Application software addresses diverse user needs across various sectors. By enhancing user experiences and offering solutions from productivity to entertainment, developers ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Business software development companies locate near business centers. However, the rise of remote work is enabling developers to move anywhere and lower their work costs.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Large software companies benefit from transforming global business around them. Colleges and education systems will focus on the most established software, encouraging compan...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Software creation has barriers to entry. Small operators often seek a buyout from a major player rather than total market control, as the major players push aggressively agai...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Microsoft Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Apple Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Oracle Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 31 additional companies
Detailed analysis
- Description and key data for Microsoft Corporation, and factors influencing its performance in the industry
- Description and key data for Apple Inc., and factors influencing its performance in the industry
- Description and key data for Oracle Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for 31 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Cybersecurity laws push firms to safeguard sensitive information. With CISA and FTC mandates, companies are urged to share threat intel and implement measures to protect pers...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Software's replicability reduces purchase and depreciation costs for producers. Business software producers have become some of the most profitable companies in the economy.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
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)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Software Publishing in the US industry in United States in 2024?
The market size of the Software Publishing in the US industry in United States is $510.8bn in 2024.
How many businesses are there in the Software Publishing in the US industry in 2024?
There are 15,878 businesses in the Software Publishing in the US industry in United States, which has grown at a CAGR of 7.4 % between 2019 and 2024.
Has the Software Publishing in the US industry in United States grown or declined over the past 5 years?
The market size of the Software Publishing in the US industry in United States has been growing at a CAGR of 6.0 % between 2019 and 2024.
What is the forecast growth of the Software Publishing in the US industry in United States over the next 5 years?
Over the next five years, the Software Publishing in the US industry in United States is expected to grow.
What are the biggest companies in the Software Publishing in the US market in United States?
The biggest companies operating in the Software Publishing market in United States are Microsoft Corporation, Apple Inc. and Oracle Corporation
What does the Software Publishing in the US in United States include?
Developing software and Publishing software are part of the Software Publishing in the US industry.
Which companies have the highest market share in the Software Publishing in the US in United States?
The company holding the most market share in United States is Microsoft Corporation.
How competitive is the Software Publishing in the US industry in United States?
The level of competition is high and increasing in the Software Publishing in the US industry in United States.
Related Industries
Widen your competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Recordable Media Manufacturing in the US
- Computer & Packaged Software Wholesaling in the US
- Computer Stores in the US
- Office Supply Stores in the US
- Data Processing & Hosting Services in the US
- IT Consulting in the US
International industries
- Software Publishing in Canada
- Software Publishing in Australia
- Software Publishing in the UK
- App Development in the UK
- Financial Technology in the UK
View all industries in United States
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
