Business closures during the recession led to falling revenue for industry firms in 2009
Los Angeles, CA (PRWEB) September 19, 2012
In the five years to 2012, IBISWorld expects revenue for the Point of Sale Software Developers industry to increase at an average rate of 1.8% per year to $1.2 billion, including growth of 4.7% in 2012. During that time, the industry has benefitted from increased reliance on computers in its downstream markets, including retailers, wholesalers and hospitality businesses. According to IBISWorld industry analyst Kevin Culbert, “Private investment in computers and software has risen steadily during the past five years, with the exception of 2009, when it fell 3.8%.” This decline, coupled with a decline in the number of businesses caused by the recession, contributed to a 4.0% revenue drop during the year. Nevertheless, the industry has exhibited overall growth, bolstered by new technologies and the changing retail landscape. Trends like near field communications (NFC) and self-checkout counters have provided the industry with a platform for growth.
In spite of overall growth, the industry has experienced a period of consolidation. For example, major player NCR acquired Radiant Systems Inc. in August 2011. The declining number of firms operating in the Point of Sale Software Developers industry has followed the broader trend of the software sector. “Large competitors have consistently acquired smaller players to gain a foothold in niche markets or new locales,” says Culbert. Consequently, IBISWorld estimates that the number of firms operating in this industry has declined at an average rate of 1.9% per year to 50 in the five years to 2012. However, industry consolidation has boosted profit margins.
IBISWorld estimates that industry revenue will increase in the five years to 2017. During that time, the industry will benefit from a slowly growing number of businesses operating in the United States. Furthermore, industry growth will be boosted by rising corporate profit, which is expected to cause private investment in computers and software to increase strongly in the next five years. POS software developers will continue to follow broader trends in the software sector, including the move to software as a service (SaaS) business models and mobile computing. For more information, visit IBISWorld’s Point of Sale Software Developers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry develops point of sale (POS) software, which manages and facilitates sales at the physical location goods are sold. POS software varies significantly depending on the type of business using it and can provide extended features such as sales analysis and history, appointment scheduling and inventory management.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.