Computer Software

Home >
Information Technology and Media >
Software >
Computer Software

Report price : $ 828
Publication date : January 2008

Computer Software

In 2007, the UK market for computer software was worth an estimated £9.75bn — a 7.7% rise in value over the previous year. Computer software has been a growth market since 2003, increasing at an average annual rate of 4.7% and outperforming other business-services sectors.

The market for packaged computer software can be divided into two principal sectors: business software, and leisure and entertainment software. This report subdivides business software into application software and systems software. Leisure and entertainment software refers mainly to games, played on PCs and consoles. While business software experienced steady growth over the period from 2003 to 2007, leisure and entertainment software saw a more erratic rise in sales, with a particular boost in 2007.

The UK computer-software industry is characterised by both global corporations and smaller firms, supported by strong trade associations and an educational environment that produces highly skilled staff. Demand for computer software has been encouraged by a period of sound economic growth, with low unemployment, low inflation and a government that has invested heavily in its pursuit of technological development.

The market is changing, with a large number of acquisitions, mergers and partnerships taking place in recent years. This has enabled the larger software producers to expand horizontally and offer a broader portfolio of products and services. It has presented challenges for smaller producers, which may also be targets for acquisition in the future.

The UK market for computer software will continue to grow in the near future, although at a slower pace than in recent years, mainly as a result of the slowdown in the UK economy. Higher growth rates for business software are likely towards the end of the forecast period. Ongoing projects in industry and government will help to maintain steady growth in investment.

Growing sales of entertainment and leisure software will help to sustain overall growth in the software market. Growth will be higher in the first part of the 5-year period, then will decline as the market matures and third-generation games consoles reach the end of their natural life cycles.

Executive Summary

1. Market Definition

REPORT COVERAGE

Software Licensing

MARKET SECTORS

Business Software

Systems Software

Application Software

Leisure and Entertainment Software

MARKET TRENDS

E-Business

Activity by Trade Associations

Grid Computing and Virtualisation

Software as a Service

Open-Source Software

ECONOMIC TRENDS

Gross Domestic Product

Table 1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2003-2007

Population

Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007

Inflation

Table 3: UK Rate of Inflation (%), 2003-2007

Unemployment

Table 4: Actual Number of Unemployed Persons in the UK (million), 2003-2007

Household Disposable Income

Table 5: UK Household Disposable Income per Capita (£), 2003-2007

MARKET POSITION

The UK

Table 6: Computer Software's Share of UK Expenditure on Information and Communication Technology (%), 2003-2007

Overseas

2. Market Size

THE TOTAL MARKET

Table 7: The Total UK Market for Computer Software by Value at Final Selling Prices (£m), 2003-2007

Figure 1: The Total UK Market for Computer Software by Value at Final Selling Prices (£m), 2003-2007

BY MARKET SECTOR

Business Software

Table 8: The UK Market for Business Software by Sector by Value at Final Selling Prices (£m and %), 2003-2007

Market Shares

Leisure and Entertainment Software

Table 9: The UK Market for Leisure and Entertainment Software by Value at Final Selling Prices (£m and %), 2003-2007

Market Shares

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

Table 10: Number of UK VAT-Based Enterprises Engaged in the Publishing of Software by Turnover Sizeband (£000, number and %), 2007

Table 11: Number of UK VAT-Based Enterprises Engaged in the Publishing of Software by Age of Business (years, number and %), 2007

EMPLOYMENT

Table 12: Number of UK VAT-Based Local Units Engaged in the Publishing of Software by Employment Sizeband (number and %), 2007

Table 13: Employment in the UK Computer Market and Related Industries† by Sex and Type of Contract (000 and %), December 2006 and 2007

Table 14: Employment in the UK Computer Market and Related Industries† (000), December 2003-2007

REGIONAL VARIATIONS IN THE MARKETPLACE

Table 15: Number of UK VAT-Based Enterprises Engaged in the Publishing of Software by Government Office Region (number and %), 2007

DISTRIBUTION

Business Software

Leisure and Entertainment Software

HOW ROBUST IS THE MARKET?

LEGISLATION

IT Standards and Codes of Practice

AccredIT UK

Compliance Legislation

KEY TRADE ASSOCIATIONS

British Computer Society

Business Application Software Developers Association

Business Software Alliance

EICTA

ELSPA

Federation Against Software Theft

Intellect

Interactive Gaming UK

National Computing Centre

Society of Information Technology Management

Tiga

Other Organisations

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

Business Software

BMC Software Ltd

Company Structure