|Last Quarterly Update:||1/16/2017|
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Companies in this industry design and publish development tools, operating systems, and utilities software. Major companies include Apple, Google, Hewlett-Packard, IBM, Intel, Microsoft, Red Hat, and Symantec (all based in the US), as well as AVG Technologies (the Netherlands) and Trend Micro (Japan).
Although the US dominates the global operating systems market, underserved markets outside of North America, Japan, and Western Europe hold the greatest potential for software sales growth. Globally, operating system software generates more than $30 billion in annual revenue, according to Gartner. The development tool and utilities market segments are much smaller.
Companies that make development tools, operating systems, and utilities software are a subset of the overall software industry, which is covered in a separate profile. Antivirus tools, part of utilities software, are covered in the Security Software profile.
Demand is driven by sales of computing devices, including desktop and notebook PCs, tablets, and smart phones, which are tied to personal income levels and business profits. The profitability of individual companies depends on technical expertise and effective marketing. Large companies have advantages in development, marketing, and distribution resources. Small software companies compete by focusing on niche applications or emerging technologies. The US software industry is concentrated: the 50 largest companies generate about 70% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include operating systems used on computers and mobile devices, utility programs such as backup software, and development tools used by ...
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