Urban Planning Software in the US Industry Market Research Report Now Available from IBISWorld

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Although product innovation and premium prices have allowed industry players to boost their profit margins, external competition from free software provided by universities and other software developers is limiting operators' potential growth; nevertheless, downstream demand from public and private urban developers will underpin industry growth in the next five years, as the adoption of urban planning software continues and even becomes mandated by government bodies involved in urban projects. For these reasons, industry research firm IBISWorld has added a report on the Urban Planning Software industry to its growing industry report collection.

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Product innovation will thrive and continue to push revenue and profit growth

The Urban Planning Software industry has enjoyed strong growth over the past five years, despite a recessionary slowdown. Operators in this space offer software that helps public and private investors in expansion planning by providing geographic, traffic flow and population density information. According to IBISWorld industry analyst Nikoleta Panteva, software developers have benefited from rising investment in nonresidential construction, a growing urban population and ongoing product innovation over the period. Although government spending on urban expansion remains weak, private investment is recovering from its recessionary drops. IBISWorld estimates that industry revenue has grown at an average annual rate of 11.6% over the five years to 2013, including a 15.9% jump in 2013 alone, to $764.8 million.

Product innovation has allowed industry players to boost their profit margins during the period. Software upgrades do not require much, if any, additional labor costs. This factor, coupled with the price premiums placed on new products, has aided in profit growth. External competition from free software providers can stifle industry revenue and profitability, however. Universities and other software developers have already introduced such options to the market, limiting operators' potential growth, continues Panteva. The Urban Planning Software industry has a low level of market share concentration. In 2013, the major players are Esri, Autodesk Inc., Trimble Navigation Limited and International Business Machines Corporation. Software development has relatively low startup costs and is highly competitive, making it difficult for any single firm to dominate this industry. In particular, industry operators face competition from free open source software, such as the Urban Network Analysis toolbox developed by the Massachusetts Institute of Technology (MIT). Additionally, steady demand growth has stimulated a wave of new entrants to this industry. Over the past five years, the number of enterprises has grown at an average annual rate of 6.9%. As a result, market share concentration has decreased.

The industry is projected to realize even stronger revenue and profit increases over the five years to 2018. Downstream demand from public and private urban developers will underpin industry growth. The value of private investment in nonresidential construction is forecast to grow, and state and local government spending will turn around and increase during the next five years. As a result, product innovation will thrive, pushing industry revenue up, as the adoption of urban planning software continues and even becomes mandated by government bodies involved in urban projects. For more information, visit IBISWorld’s Urban Planning Software in the US industry report page.

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IBISWorld industry Report Key Topics

This industry publishes software for urban planning professionals and municipal land use agencies. Types of software include geographic information system (GIS), computer-aided design and drafting (CADD), and data processing and analytics.

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.

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Gavin Smith
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