Cloud computing and mobile technology to drive industry revenue
Melbourne, Australia (PRWEB) June 20, 2013
Over the past five years, the Software Publishing industry in Australia has had to go through some remodelling. The global financial crisis fostered cautiousness related to household and business capital expenditure. Businesses and households prioritised saving over spending due to the general economic conditions. According to IBISWorld analyst Craig Shulman, “the drop in spending caused a mass exodus of smaller firms from the industry and some downsizing and consolidation at the peak of the crisis.”
However, this uncertainty was counterbalanced by the emergence of new technology. Smartphones, tablets and high-speed internet access have led to the development of new software that substantially enhances the use of the new hardware. Smartphones can now hold games, banking applications, and software with a variety of purposes, ranging from social media to transport concerns. Music streaming services have also grown in accessibility and popularity. “Along with the need to replace older machines with new, software purchases have been able to bounce back from their sudden decline,” says Shulman.
Consequently, IBISWorld estimates that revenue over the past five years grew at an annualised rate of 1.5% to reach $1.3 billion in 2012-13. For 2012-13, revenue is expected to grow 3.5%. The Software Publishing industry in Australia has a low level of market share concentration. There are only two major companies in this industry: MYOB Holdings Pty Ltd and Reckon Limited.
As the economy continues to recover, the influence of this new technology is expected to strengthen. Greater interest will be paid towards new types of software as consumers and businesses gain greater confidence in their spending. This increased demand is expected to aid the smaller players in the industry and to lead to greater industry fragmentation. The new technologies will also encourage the facilitation of new types of business models, as stand-alone software titles become harder to achieve client loyalty with. IBISWorld expects a greater reliance on auxiliary services, such as training and customer support, for more complex software titles, while many new cloud-based software solutions will be relying on monthly subscription pricing to maintain consistent revenue streams. This competition is expected to encourage further industry growth.
For more information, visit IBISWorld’s Software Publishing report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry creates and distributes ready-made (non-customised) computer software.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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 http://www.ibisworld.com.au or call (03) 9655 3886.