Increasing online shopping and services have kept revenue growing for software developers.
Los Angeles, CA (PRWEB) July 19, 2012
IBISWorld estimates that revenue for the E-commerce Shopping Cart Software Developers industry will increase at an annualized rate of 2.8% to $345.4 million in the five years to 2012. Industry growth slowed during the recession; however, the industry has continued to grow thanks to the proliferation of e-commerce. Small and medium-size businesses have increasingly opened e-commerce websites that require shopping cart software. Furthermore, a greater proportion of services are conducted online now more than ever. These two factors, coupled with an expanding number of broadband connections, have made this industry's products necessary for many aspects of an increasingly digital world, says IBISWorld industry analyst Kevin Culbert.
Industry revenue is expected to grow 4.5% in 2012, boosted by continued improvement in the economy and growth in downstream markets. In spite of this growth, the number of firms operating in the industry is expected to decline during the year. While a large number of enterprises entered the industry during the early to mid-2000s, industry operators have started to consolidate, evidenced by Web.com Group Inc.'s acquisition of Network Solutions in October 2011, continues Culbert. As a result of such acquisitions, the number of firms operating in the industry has increased just 0.7% annually on average to 119 in the five years to 2012. The E-commerce Shopping Cart Software Developers industry has a low level of concentration and no major players. The industry is expected to continue consolidating over the next five years.
Many of the industry's products have little product differentiation, which has led to price competition over the past five years. Although price competition softened profit margins, industry consolidation is expected to bring profit to a normalized level. In the next five years, the industry will continue to benefit from factors that have driven growth during the past decade. An increasing percentage of services conducted online and growth in the E-Commerce and Online Auctions industry – the primary sources of downstream demand – will contribute to strong industry growth over the five years to 2017. During that time, IBISWorld estimates that industry revenue will increase 5.6% annually on average to $453.5 million. For more information, visit IBISWorld’s E-commerce Shopping Cart Software Developers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that primarily develop software for e-commerce shopping carts. Shopping cart software is designed to perform various functions, including easing the buying process; storing confidential credit card, address and shopping history information; up- and cross-selling; allowing feedback and reviews; and monitoring customer behavior in the cart.
Key External Drivers
Industry Life Cycle
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Products & Services
Globalization & Trade
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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.