Head in the cloud: Industry revenue is growing due to the increasing use of cloud computing

The Software Suppliers industry has expanded at a swift pace over the past five years, driven by growth in mobile usage and the proliferation of cloud computing among businesses. Cloud computing has helped enable industry operators to move from supplying software products outright to engaging in a Software as a Service (SaaS) business model, in which clients pay an annual or monthly subscription fee for software. This model has supported sales and reduced piracy concerns. Cloud computing also allows for more seamless updates and increasingly powerful software packages. Industry revenue is expected to increase at an annualised 3.9% over the five years through 2017-18, supported by greater demand for software and the move to subscription-based services...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The industry has shifted towards online sales as cloud computing has become widespread
  • Online platforms have allowed greater external competition from foreign software providers
  • The continuing rollout of the NBN is expected to help drive demand for software
  • Industry Report - Industry Key Buyers Chapter

    The Software Suppliers industry is subject to moderate market share concentration. The top four industry players are estimated to account for approximately 48% of industry revenue in 2017-18. Given the diverse nature of the software market, no single company dominates the industry as a whole, although concentration tends to vary by product segment. Concentration is high in the operating systems and productivity software segment due to Microsoft's dominance, but relatively low in the database, storage and backup segment. Furthermore, major companies like Oracle and SAP have a stronghold on the corporations market, but the wide variety of markets requiring software means that these companies do not dominate the overall industry. The...purchase to read more.

    Additional Insights for the Software Suppliers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Software Suppliers Industry are

  • Effective product promotion
  • Access to the latest available and most efficient technology and techniques
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on computer software and Business confidence index in the Software Suppliers industry impact industry performance..

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    What's in this report

    What is the Software Suppliers Industry?

    Industry operators are primarily engaged in wholesaling computer software and the provision of services related to computer software. The industry includes the distribution of physical software, digital downloads and related after-sales service, but excludes the provision of consulting services.

    Industry Products
  • Operating systems and productivity software
  • Database, storage and backup software
  • Business analytics and enterprise software
  • Video game software
  • Design, editing and rendering software
  • Security software
  • Industry Activities
  • Software wholesaling
  • Software retailing
  • Software support services
  • Cloud software services
  • 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
  • Business confidence index
  • IT and telecommunications adoption
  • Demand from video game, dvd and recorded music retailing

  • Current Performance
  • Online trends
  • Subscription models
  • Smartphone usage
  • Offshoring support services
  • Chart: Revenue Growth

  • Industry Outlook
  • Cloud computing
  • Service focus
  • Local development
  • Table: Software Suppliers Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Video Game, DVD and Recorded Music Retailing
  • Financial and Insurance Services
  • Education and Training
  • Professional Services
  • Computer and Software Retailing

  • Key Selling Industries
  • Data Processing and Web Hosting Services
  • Intellectual Property Leasing

  • Products & Services
  • Operating systems and productivity software
  • Database, storage and backup software
  • Business analytics and enterprise software
  • Video game software
  • Security software
  • Design, editing and rendering software
  • Chart: Software Suppliers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corporations
  • Retailers
  • Governments
  • Small and medium enterprises
  • Households
  • Chart: Major Market Segmentation for the Software Suppliers 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 Suppliers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Software Suppliers Industry

  • Industry Globalization
    Oracle Corporation Australia Pty Limited, Atlassian Australia 1 Pty Ltd, SAP Australia Pty Ltd, Microsoft Pty Limited,
  • Table: Oracle Corporation Australia Pty Limited - financial performance
  • Table: Atlassian Australia 1 Pty Ltd - financial performance
  • Table: SAP Australia Pty Ltd - financial performance
  • Table: Microsoft Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Software Suppliers 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 Suppliers Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • The use of remote servers hosted on the internet to manage, access and process data.
  • On-Premises Computing
  • Software installed and run on computers on the premises, rather than in the cloud.
  • Software As A Service (Saas)
  • A software delivery method where software is hosted in the cloud, with clients paying a subscription fee rather than purchasing software outright.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Software Suppliers market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Suppliers:
    • 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 Suppliers 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 Suppliers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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