Security Software Publishing

Business for Sale Industry Economics

$20,781,000,000

Revenue

7.39%

Projected CAGR

2002 - 2020

Historical

2020 - 2026

Projection

11.54%

CAGR

$5,902,000,000

Profit

Quick Scroll

Summary

The Security Software Publishing industry develops and distributes antivirus, anti-keylogger, spyware removal, encryption and firewall software.

The explosion of data, internet-enabled solutions and cloud services have all stimulated the industry’s expansion over the five years to 2020.

In addition, high-profile cyber-attacks targeting retailers, financial institutions, credit agencies and healthcare providers, among others, further stimulated demand for industry software.

Consequently, computer, tablet and smartphone users increasingly view security software as necessary, while companies are also investing in security software to avoid heavy financial losses and damaged reputations.

Altogether, industry revenue has increased at an annualized rate of 7.1% to $20.8 billion over the five years to 2020.

In 2020, however, private investment and consumer confidence levels have collapsed as a result of the COVID-19 (coronavirus) pandemic.

This is anticipated to temporarily reduce industry demand in 2020, with revenue projected to fall 1.4% this year.

Performance

The Security Software Publishing industry develops and distributes software programs, such as antivirus, anti-keylogger, spyware removal, encryption, and firewall software.

Industry operators may also provide consulting and technical support related to this software. As the number and types of wireless computing devices surged over the five years to 2020, the market for industry products grew.

Furthermore, the industry has benefited from customers’ changing perception of security software. Once thought of as an optional cost, security software is increasingly considered a necessity to safeguard sensitive data and information.

Consequently, industry revenue has expanded at an annualized rate of 7.1% to an estimated $20.8 billion over the five years to 2020.

Outlook

Revenue for the Security Software Publishing industry is expected to grow at an annualized rate of 3.0% to $24.1 billion over the five years to 2025.

New opportunities offering software designed for mobile services will continue to stimulate revenue growth as consumers migrate to portable computing devices and use smartphones more freely.

With computing technology evolving rapidly, the prevalence and complexity of cyber-attacks will likely grow, incentivizing consumers and businesses to invest in security software.

Additionally, private investment in computers and software is expected to grow at an annualized rate of 6.7% over the five years to 2025, rebounding from the impact of the COVID-19 (coronavirus) pandemic.

Corporate profit levels are also anticipated to return to growth, rise at an annualized rate of 10.4% during the same period.

cso nw application security data protection lock code by thinkstock 491619538 1200x800 100817353 large

Industry

This industry develops and distributes antivirus, anti-keylogger, spyware removal, encryption, and firewall software. Operators in the industry may also provide consulting and technical support related to this software.

Investment

The capital intensity of the Security Software Publishing business is low. The research projects that in 2020, for every dollar spent on salaries, just $0.04 will be spent on capital, using salaries as a proxy for labor and depreciation as a proxy for capital.

Unlike a corporation in the manufacturing or retail industries, software is an intangible product that does not require considerable investment to launch. To build software goods, however, industry businesses must spend on computers, servers, and other gear.

Because the quality of software is solely dependent on the programmers who build it, labor accounts for a significant amount of industry expenditures.

Software development necessitates highly qualified workers, resulting in a high average industry pay of about $170,000 in 2020.

Employees must continually work to detect new dangers and install software to guard against them since computer risks are continuously developing.

Volatility

Over the five years to 2020, the Security Software Publishing industry has been exhibiting a moderate-to-low level of revenue volatility. Many consumers and businesses view security products as nondiscretionary, ensuring the revenue stability of the industry.

Further, as consumers are increasingly using the internet (PCs and mobile devices) for financial-related reasons (such as online banking and mobile financial transaction) and as businesses accelerate their use of data in everyday business decisions, security concerns have grown.

These concerns have translated into consistent revenue gains for the industry as consumers and businesses are demanding more security software.

Year-to-year industry revenue growth rates have ranged from an increase of 13.2% in 2018 to a decline of 1.4% in 2020. This anticipated revenue decline is primarily a result of the COVID-19 (coronavirus) pandemic in 2020.

Stay Up to Date With The Latest News & Updates

Income Statement

Here is how to Sign up and DOWNLOAD our free weekly tools that can help get you a small business working capital loan.

 

Subscribe to our Blog

Please, we'd love for you to subcribe to our blog, because we really want to build a community. But if not that's fine too.

Follow Us

We are committed to providing you with content you can actively use to make your small business better and if you're interested in how to get a loan or need an alternative source of funding fast, then please follow us, link to us, share this post, because it would allow us to continue providing you great resources. Now is the time, cheers.