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Software Publishing in the UK - Market Research Report (2014-2029)

Lawrence Thomas Lawrence Thomas London, United Kingdom Last Updated: October 2024 SIC J58.290

Revenue

£5.2bn

2024-25

£5.2bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

16,083

Businesses

3,283

Wages

£X.Xbn

Software Publishing in the UK industry analysis

Software publishers provide a wide range of software, including operating systems, applications and middleware, to businesses across a range of industries, as well as software for household use. Software publishers' revenue is forecast to climb at a compound annual rate of 3% over the five years through 2024-25 to reach £5.2 billion. Heightened IT and telecommunications adoption and technological developments have driven software growth. Acquisitions have characterised the industry, as larger publishers have sought to keep up with market trends and protect their competitive positions by taking in smaller businesses, particularly niche publishers. The focus on patent portfolios as strategic assets has played a critical role in deterring competition while facilitating innovation.

Trends and Insights

  • Software sales continue to surge. More and more businesses — especially SMEs — are realising the money it can save and the value it adds to operations, keeping publishers’ sales strong.
  • Desktop apps continue to dominate. Given their foundational role in the industry, they’ve long been software publishers’ biggest revenue stream, but other services are gaining ground, especially with cloud computing becoming more commonplace.
  • London offers lots of potential workers. A lot of tech staff tend to live in the capital, so it’s the best place for publishers to go if they want to find talented employees.
  • Publishers need to innovate to stay competitive. Technology evolves quickly and new software is constantly coming into the market. Publishers risk being left behind if they don’t stay ahead of the curve.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 3.0 % over the past five years, to reach an estimated £5.2bn in 2024.

Trends and Insights

Software publishing surges as more businesses realise its money-saving and value-added potential

  • Embedded and application software has become more popular as businesses seek solutions to enhance operational efficiency. With employees increasingly working across multiple devices and locations, these software types enable flexible restructuring and improved workflows. This shifting dynamic has boosted the need for innovative software solutions that facilitate seamless integration and data access across diverse platforms.
  • Additional trends and insights available with purchase
Software Publishing in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Cloud computing makes it tricky to tell the difference between publishers and internet companies

  • Cloud computing provides access to software through the internet and uses hosting programmes on remote servers, offering alternative routes to traditional software.

Biggest companies in the Software Publishing in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Microsoft Ltd
1,512.0
Oracle Corporation
353.8
SAP (UK) Ltd
280.4

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Software Publishing in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Operating systems, Web- and cloud-based software and Desktop applications. Operating systems is the largest segment of the Software Publishing in the UK.

Trends and Insights

Desktop applications remain the traditional base of the industry

  • This includes off-the-shelf software applications like Microsoft Office productivity software, Adobe Creative Suite and Argus Valuation software for commercial estate agents.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry includes companies that publish ready-made non-customised software and engage in activities like marketing, translation, technical support and packaging and documentation design.

What's included in this industry?

Operating systemsWeb- and cloud-based softwareDesktop applicationsSoftware adaptationEmbedded software

Companies

Microsoft LtdOracle CorporationSAP (UK) Ltd

Purchase this report to view all 5 major companies in this industry.

Related Terms

CLOUD COMPUTINGENTERPRISE SOFTWAREMIDDLEWAREFIRMWARESOFTWARE AS A SERVICE

Industry Code

SIC 2007

SIC 58.29 - Software Publishing in the UK

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

Software sales continue to surge. More and more businesses — especially SMEs — are realising the money it can save and the value it adds to operations, keeping publishers’ sa...

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

Desktop apps continue to dominate. Given their foundational role in the industry, they’ve long been software publishers’ biggest revenue stream, but other services are gainin...

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

London offers lots of potential workers. A lot of tech staff tend to live in the capital, so it’s the best place for publishers to go if they want to find talented employees.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, 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

Publishers need to innovate to stay competitive. Technology evolves quickly and new software is constantly coming into the market. Publishers risk being left behind if they d...

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

Microsoft is by far the industry’s largest player. Its dominance is mostly the result of its development of Windows, which is installed on most of the world’s computers. Regu...

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 Ltd'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 SAP (UK) Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Microsoft Ltd, and factors influencing its performance in the industry
  • Description and key data for Oracle Corporation, and factors influencing its performance in the industry
  • Description and key data for SAP (UK) Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Publishers have to pay close attention to data protection laws. They often have access to confidential consumer data, which means abiding by the Data Protection Act and GDPR ...

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

The industry’s profit potential is huge. This is because software is protected under intellectual property laws and investment in software development is front-loaded. Online...

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

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • 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 UK industry in United Kingdom in 2024?

The market size of the Software Publishing in the UK industry in United Kingdom is £5.2bn in 2024.

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

There are 3,283 businesses in the Software Publishing in the UK industry in United Kingdom, which has grown at a CAGR of 3.7 % between 2019 and 2024.

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

The market size of the Software Publishing in the UK industry in United Kingdom has been growing at a CAGR of 3.0 % between 2019 and 2024.

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

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

What are the biggest companies in the Software Publishing in the UK market in United Kingdom?

The biggest companies operating in the Software Publishing market in United Kingdom are Microsoft Ltd, Oracle Corporation and SAP (UK) Ltd

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

Operating systems and Web- and cloud-based software are part of the Software Publishing in the UK industry.

Which companies have the highest market share in the Software Publishing in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Microsoft Ltd.

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

The level of competition is moderate and increasing in the Software Publishing in the UK industry in United Kingdom.

Related Industries

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Competitors

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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 UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

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.