The software industry has literally transformed the way businesses, organizations and entire industries works. Its impact on the global economy can be seen and gauged through the increase in technical progress and innovations across various fields. We are currently in the midst of the Digital Age and it is no surprise to see the global software industry emerge to make its mark in all areas of our lives.
The United States software market is the largest in the global arena that is totally worth 369 billion USD. 49% of the global sales in the year 2013 came from North America alone. The US software market however is a very competitive landscape and as the market grows, the levels of competition are expected to rise as innovations are continually introduced. After all, the United States is considered to be the most innovative country in the world due to its highly conducive IT environment.
Software Industry in the United States
The U.S. Software industry has an estimated worth of 181 billion US Dollars and as mentioned previously, it accounts for almost half the global software market. Till the year 2018, this booming industry is projected to grow by about 5.8%. A large percent of the U.S. budget allotted for IT is for new innovations in the IT solutions segments, such as cloud computing and virtualization.
Since it is the largest software industry in the world, the U.S. software market is a very fertile source which presents remarkable opportunities for businesses of any type and size. However due to tight competition, the US Software market is hard to penetrate. Big domestic companies already have the upper hand in the market, while some startup companies have captured the fresh and innovative ideas segment in software solutions. The trend of large companies merging is squeezing the smaller ones out of the race!
Although the regulations governing the industry are lax, the software industry in the U.S. is heavily protected by quality control and copyright infringement. This can sometimes pose to be a matter of concern for some foreign entrants. End users are also concerned with data privacy, data ownership, and a company’s information ethics.
USA Software Market Business Opportunities
The Operating systems and storage industry make up for about 10% of the software market in the United States. It remains to be a steady market but again, developments and innovations make even this related industry difficult to keep up with.
The U.S. Business Software industry is a mature one, giving it the experience and freedom to continue growing and expanding into newer genres. Enterprise Resource Planning (ERP) and Supply Chain Management are two of the most attractive of those segments.
Demand in the US Software Market is currently related to Cloud Computing and software-as-a-service or SAAS solutions. The US is a hub for emerging cloud solutions. This niche genre is estimated to make up about half of the public global cloud spending over the next five years.
The software market of the United States holds many opportunities for businesses and services of various kinds, However, entering the marking won’t be an easy task due to the competition, copyright and quality issues, especially for a foreign player. Before entering this huge and dynamic industry, it is imperative to carry out market research and brush up on the customs and tariffs of the land.