2021
9
UK Software Market Report 2021
2021-07-17T04:15:31+01:00
OX1050257
1800
140337
[{"name":"Technology","url":"https:\/\/store.mintel.com\/industries\/technology"}]
Report
en_GB
“Digital transformation programmes across business and public sectors were rapidly advanced during 2020 with the COVID-19 pandemic. However, the twinned forces of the continued trend towards software as a service…

UK Software Market Report 2021

 1,800 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Software market, including the behaviours, preferences and habits of the consumer.

Despite the considerable advances in digital transformation programmes across both industry and the public sector as a result of COVID-19, the growth in software revenues in 2020 was restricted to 2.1%. In part this reflects end-user business disruption, and there were major differences in growth by sector, and in part the impacts of the twin software-driven forces of selling software as a service and the greater ease (and capability) of cost-effective of adapting packaged products.

During 2020 companies faced unprecedented challenges to remain operative but advancing digitisation of processes was the fundamental tool used, and as the conditions change there is strong evidence of a change in emphasis from one of resilience and recovery to one of how to capture growth. Increasing technological investment and moving to the cloud are highlighted as the most important developments. Along with the growth in digitisation, security issues remain at the fore of corporate strategies. The challenges are increased not only by the rapid development of fragmented workplaces and the speed of the technological advances but also as a result of the growing attraction to miscreants of that data.

Increasingly software is adopting artificial intelligence and machine learning to analyse the huge volumes of data being generated. The challenge is to utilise that data to provide timecritical insight to management, made more complex by the variety of digital channels containing that data, increasingly in unstructured databases.

Read on to discover more details or take a look at all of our UK Technology and Telecoms market research.

Quickly understand

  • How COVID-19 has propelled an irreversible digital transformation and the consequent implications for the software sector.
  • The technological developments that ae fuelling the further expansion of the digital economy.
  • How the move to cloud computing has influenced demand, and how future prospects for edge computing will shape that demand.
  • A quantification of sales by industry sector, and how packaged and proprietary software demand is changing within the markets.
  • How globally M&A trends are moving to ever-larger deals but niche software demand and skills continues to support a vibrant SME software business sector in the UK.

Covered in this report

Brands: Refinitiv, Slack (Slack Connect), Oracle, SAP, IBM, Cisco, Intel, MuleSoft, Tableau, Salesforce, Cloudera, Hortonworks, Facebook,  Progress Software, HPE, Microsoft, Verizon, Intuit, Google (Google Cloud), Applan, Micro Focus International, Zoom Video Communications.

Expert analysis from a specialist in the field

Written by Terry Leggett, a leading analyst in the Food & Drink sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Digital transformation programmes across business and public sectors were rapidly advanced during 2020 with the COVID-19 pandemic. However, the twinned forces of the continued trend towards software as a service and the increased capability and ease of personalisation of packaged software conspired to restrict growth in the value of software sales. Nevertheless, the accelerated development of cloud computing and growth in the volume of connected devices as the internet of things is increasingly adopted, is creating demand for edge computing, so further influencing the location, development and use of software.

Terry Leggett
Senior Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Impact of the January 2021 lockdown and the vaccination rollout
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on software
      • Figure 1: Short, medium and long term impact of COVID-19 on software, 2020 (prepared on 25 June 2021)
    • The market
    • Market size and forecast
      • Figure 2: Market size for software, 2015-25 (prepared on 25 June 2021)
      • Figure 3: Software market segmentation, by industry sector, 2020
    • The key drivers
      • Figure 4: Market size for cloud computing, 2015-25 (prepared on 5 November 2020)
      • Figure 5: Development of proprietary and packaged software, 2015-20
    • Companies and brands
    • A vibrant UK sector
    • Continued M&A activity
      • Figure 6: Global M&A software deals, 2010-20
  3. Issues and Insights

    • How COVID-19 has changed demand
      • Figure 7: Changes in software sales, by sector, 2020
    • Software M&A attractive to such a wide range of companies
      • Figure 8: Global M&A software deals, 2010-20
      • Figure 9: Development of M&A software deals, 2010-20
  4. The Market – Key Takeaways

    • COVID-19 accelerates digital transformation
    • Market growth
    • The fundamental software trends
  5. Market Size and Forecast

    • Market growth irrespective of COVID-19
      • Figure 10: Short, medium and long term impact of COVID-19 on software, 2020 (prepared on 25 June 2021)
    • The market
      • Figure 11: Market size for software, 2015-25 (prepared on 25 June 2021)
    • Market drivers and assumptions
      • Figure 12: Planned major corporate activities in the EMEA for 2021 (% of respondents)
      • Figure 13: Key drivers affecting MBD’s market forecast, 2015-25 (prepared on 5 March 2021)
    • Learnings from the last recession
      • Figure 14: Value sales of software, 2007-12
    • Forecast methodology
  6. Market Segmentation

    • Types of software
      • Figure 15: Segmentation of software by type, 2020 (%)
    • Enterprise software
    • Systems infrastructure software
    • Application development software
    • Productivity software
    • Packaged and proprietary software
      • Figure 16: Segmentation between proprietary and packaged software, 2020 (%)
      • Figure 17: Development of proprietary and packaged software, 2015-20
  7. Sales by Industry Sector

    • Overview
      • Figure 18: Software market segmentation, by industry sector, 2020
      • Figure 19: Packaged software market segmentation, by industry sector, 2020
      • Figure 20: Proprietary software market segmentation, by industry sector, 2020
    • Agriculture/forestry
      • Figure 21: Trends in software sales to the agriculture and forestry sector, 2015-20
    • Mining/quarrying
      • Figure 22: Trends in software sales to the mining sector, 2015-20
    • Manufacturing
      • Figure 23: Trends in software sales to the manufacturing sector, 2015-20
    • Electricity and gas
      • Figure 24: Trends in software sales to the electricity and gas sector, 2015-20
    • Water
      • Figure 25: Trends in software sales to the water sector, 2015-20
    • Construction
      • Figure 26: Trends in software sales to the construction sector, 2015-20
    • Retail/wholesale
      • Figure 27: Trends in software sales to the retail and wholesale sector, 2015-20
    • Transport/storage
      • Figure 28: Trends in software sales to the transport and storage sector, 2015-20
    • Accommodation/foodservice
      • Figure 29: Trends in software sales to the accommodation and foodservice sector, 2015-20
    • Information, communications/broadcasting and publishing
      • Figure 30: Trends in software sales to the information, communications and publishing sector, 2015-20
    • Insurance, finance and banking
      • Figure 31: Trends in software sales to the insurance, finance and banking sector, 2015-20
    • Real estate
      • Figure 32: Trends in software sales to the real estate sector, 2015-20
    • Professions
      • Figure 33: Trends in software sales to the profession sector, 2015-20
    • Administration
      • Figure 34: Trends in software sales to the administration sector, 2015-20
    • Public administration
      • Figure 35: Trends in software sales to the public administration sector, 2015-20
    • Education
      • Figure 36: Trends in software sales to the education sector, 2015-20
    • Health
      • Figure 37: Trends in software sales to the health sector, 2015-20
    • Arts and entertainment
      • Figure 38: Trends in software sales to the arts and entertainment sector, 2015-20
    • Other services
      • Figure 39: Trends in software sales to the other services sector, 2015-20
  8. Market Drivers

    • Introduction
    • Digitisation
    • The key to productivity
      • Figure 40: Labour productivity in the UK compared with other major economies, 2010-19
    • The COVID-19 impact
      • Figure 41: UK labour productivity, output per hour and per worker, Q1 2017-Q3 2020
    • The internet has changed demand
      • Figure 42: Worldwide internet usage, by region, 2000 and 2020 (millions and %)
      • Figure 43: Proportion of UK businesses with internet access in the UK, by size of company, 2014-19 (%)
      • Figure 44: Residential fixed-line broadband coverage across the UK, by nation, March 2020
      • Figure 45: Proportion of employees using computers and the internet for their business, by size of company, 2019
      • Figure 46: Segmentation of employees with work internet access, by size of company, 2019 (million by number of employees)
    • COVID-19 changes remote working
      • Figure 47: Number of people mainly working from home, 2015-19
    • Cloud computing boosted by COVID-19
      • Figure 48: Market size for cloud computing, 2015-25 (prepared on 5 November 2020)
    • Edge computing changing demand
    • Computer security
      • Figure 49: Market size for computer security, 2015-25 prepared on 24 February 2021
    • Internet of things
  9. Companies and Brands – Key Takeaways

    • COVID-19 disrupts demand
    • COVID-19 has little impact on M&A activity
    • The industry structure
  10. Industry Structure

    • Overview
    • Business and domestic software
      • Figure 50: Development of the business and domestic software publishing industry, 2016-20
      • Figure 51: Composition of the business and domestic software publishing industry, by company size, 2020
    • The customisation sector
      • Figure 52: Development of the computer consultancy industry, 2016-20
      • Figure 53: Composition of the computer consultancy industry, by company size, 2020
    • Other software publishing
      • Figure 54: Development of the other software publishing industry, 2016-20
      • Figure 55: Composition of the other software publishing industry, by company size, 2020
  11. Competitive Strategies

    • Mega-scale acquisitions
    • M&A activity continues
    • Targeting “prosumers”
  12. Company Profiles

    • IBM
    • Activity
    • Performance
      • Figure 56: Financial performance of IBM United Kingdom, 2015-19 (£ million)
    • Strategy
    • Micro Focus International
    • Activity
    • Performance
      • Figure 57: Financial performance of Micro Focus International, 2016-20 (US$ million)
      • Figure 58: Revenue segmentation of Micro Focus International, 2020
    • Strategy
    • Microsoft Corporation
    • Activity
    • Performance
      • Figure 59: Product and service segmentation of Microsoft, 2020 (US$ million)
      • Figure 60: Financial performance of Microsoft Ltd (£ million)
    • Strategy
    • Oracle Corporation
    • Activity
    • Performance
      • Figure 61: Revenue segmentation of Oracle Corporation, 2021
      • Figure 62: Financial performance of Oracle Corporation UK, 2016-20 (£ million)
    • Strategy
    • SAP (UK)
    • Activity
    • Performance
      • Figure 63: Revenue segmentation of SAP, 2020 (€ millions)
      • Figure 64: Financial performance of SAP UK, 2015-19 (£ million)
    • Strategy
    • Salesforce.com
    • Activity
    • Performance
      • Figure 65: Revenue development of Salesforce.com, 2016-21
      • Figure 66: Segmentation of Salesforce.com subscription and support revenues, by service offering, 2021 (US$ million)
      • Figure 67: Financial performance of Salesforce UK, 2016-20 (£ million)
    • Strategy
    • Zoom Video Communications
    • Activity
    • Performance
      • Figure 68: Revenue development of Zoom Video Communications, 2018-21
    • Strategy
  13. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations

Why Mintel?

Gain access to high quality market research with every purchase of Mintel’s B2B industry reports. Here's what else you can expect when buying from us:

Mintel’s Clients Portal

After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal which provides instant access to supplementary insights from Mintel’s industry experts.

Multiple Report Formats

Mintel’s reports are available in PDF and PPT formats, and arrive in your inbox alongside as soon as your purchase is completed, so you can share Mintel’s market intelligence with ease.

Readymade Presentations...

Whether you want to present a quick market summary, or an in-depth exploration. Every report comes with keynote and a full-written presentations, ready to download or present online.

...or Create One Yourself

Using Mintel’s custom presentation tool, you can easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.

Browse our sample PDF report below:

Click to show report
B2B Sample Report Cover

Please Note: All of the figures, graphs, and tables have been redacted.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch