Business Analytics & Enterprise Software Publishing in the US Industry Market Research Report Now Available from IBISWorld

Share Article

The industry will continue to grow over the next five years as businesses utilize new technologies in business analytics software. Large and small businesses alike will look to the industry for customer relationship management and point-of-service software and applications. At the same time, the largest software companies have been acquiring smaller companies in order to expand portfolio offerings and offer complete solutions to clients. Industry consolidation is expected to continue and increase concentration. As the capabilities of analytics tools increase over the next five years, businesses will continue to take advantage of IT infrastructure software, which will drive future demand. For these reasons, industry research firm IBISWorld has added a report on the Business Analytics & Enterprise Software Publishing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Cloud computing will threaten growth, but demand from corporations will remain strong

The Business Analytics and Enterprise Software Publishing industry is expected to continue solid growth due to favorable demand conditions caused by high business profit. In 2012, industry revenue is expected to rise 9.0% to $26.1 billion as businesses take advantage of record-high profit, low interest rates and one-time tax incentives to upgrade their information technology (IT) infrastructure. During the five years to 2012, industry revenue rose about 1.8% annually on average, driven by businesses' increasing technological sophistication and eagerness to adopt efficiency-enhancing software. Customer relationship management (CRM) and enterprise resource planning (ERP) software systems have become basic tools in the management of Fortune 500 companies.

The world's largest software companies spent the last five years acquiring high-performing enterprise software vendors. As a result, the number of establishments in the Business Analytics and Enterprise Software Publishing industry is expected to contract over the five years to 2012. Software vendors accurately anticipated the growth potential of this industry. Revenue per establishment has increased over the past five years and is expected to continue climbing through 2017. Some examples of the aggressive acquisition spree include Oracle's purchases of Hyperion Solutions, PeopleSoft and Siebel Systems; IBM's purchase of Cognos and SPSS; and SAP's purchase of Business Objects and Crystal Decisions. IBISWorld industry analyst Dale Schmidt says these acquisitions allow large software vendors to pursue a portfolio approach, leveraging existing clients by offering software suites to meet all of their needs.

The competitive characteristics of this industry, and IT in general, tend to favor a higher level of concentration, says Schmidt. The four largest players include International Business Machines Corporation, Microsoft Corporation, SAP AG and Oracle Corporation. Software has significant upfront costs (i.e. research and development) but almost zero marginal costs; once produced, the software is infinitely reproducible. As a result, fewer products being developed means higher profit across the industry. Furthermore, the wide array of products and licensing requirements that currently exist tend to lead consumers toward brands rather than individual products, a trend that favors further consolidation. Concentration within this industry will continue to increase as the largest software vendors acquire small software companies. The industry is just beginning to tap into its growth potential. During the next five years, increasingly powerful predictive analytics tools will unlock business insights, driving revenue up. Predictive analytics tools can automatically forecast trends in business statistics (e.g. per-store revenue by individual store) when combined with existing data mining technologies. Because businesses increasingly use IT infrastructure to record and store business data, the potential for these technologies will only continue to grow. For more information, visit IBISWorld’s Business Analytics & Enterprise Software Publishing report in the US industry page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Companies in this industry develop and distribute business analytics, customer relationship management (CRM), business intelligence (BI) and other enterprise-oriented software. Operators may also provide consulting and technical support related to this software. This industry does not include publishers of productivity or database software or manufacturers of computer hardware.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website