Online Computer Software Sales in Australia Industry Market Research Report Now Updated by IBISWorld

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The strong growth in the Online Computer Software Sales industry over the past five years is set to moderate as overseas-based digital downloads gain more market share. For this reason, industry research firm IBISWorld has updated its report on the Online Computer Software Sales industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The sophistication of the internet and rising internet connection speeds is expected to boost competition for the industry.

Over the five years through 2013-14, the Online Computer Software Sales industry in Australia has grown strongly. The continual uptake of online shopping has been one of the key drivers of the industry, with consumers taking to the internet to purchase a growing range of software products. Rapid technological change has made computers more sophisticated than ever before, and as a result software developers have developed an increasingly broad range of software for multiple purposes. According to IBISWorld industry analyst Ryan Lin, “over the past five years, the low-cost, convenience model of operation and the ability to stock a large range of products have helped industry players weather the effects of the financial crisis and outperform their bricks-and-mortar counterparts”. These factors have led to the industry growing at an annualised 12.0% over the five years through 2013-14 to total $169.5 million.

However, while the industry has grown strongly, it underperforms many other online industries. “Online sales of software are relatively susceptible to competition such as offshore digital downloads from large multinational software companies, and pre-installed software that is purchased along with computers,” says Lin. This has eradicated the need of many consumers to purchase software from Australian online retailers. IBISWorld anticipates that in recent years, industry operators have attempted to fight back by purchasing digital distribution licences from key software developers. This has allowed industry players to sell digital downloads through their websites. As a result, in 2013-14 the industry is forecast to grow by 11.5%. The industry exhibits a low level of concentration. Significant operators include Harvey Norman Holdings Ltd, Dick Smith Holdings Pty Ltd and JB Hi-Fi Limited.

Over the coming five years, the Online Computer Software Sales industry is expected to continue its growth, though at a slower rate. Competitive pressures from foreign developers and computer retailers are expected to weigh heavily against the industry. Technological advancement is expected to be a double-edged sword for the industry. While an increasingly large range of products are developed for the industry, the sophistication of the internet and rising internet connection speeds is expected to boost competition for the industry. As a result, the online ordering system is expected to decline as digital downloads (which are primarily overseas-based) take over.

For more information, visit IBISWorld’s Online Computer Software Sales report in Australia industry page.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics

This industry sells and distributes software for local installation and execution to customers via the internet. Companies in this industry may also handle digital rights management for that software.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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Gavin Smith
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