Global software industry Status

1. Industry Status

(1) The World software industry growth rate since 1991 has been maintained in the 10%~20%,2000 year software and information services will become the world's largest industry, the output value will be close to 500 billion U.S. dollars.

(2) Industrial scale, the global software practitioners have reached 3 million people, software enterprises have tens of thousands of. The employment growth rate of the entire U.S. economy in 1996 was 1.6%, while the software industry sector grew by 11.4%. In recent years, with the rapid development of global informatization, the shortage of software personnel especially high-level software talents is more outstanding.

(3) In the industrial structure, the international computer industry structure gradually from the hardware as the core to the direction of software-oriented transition.

2. Market overview

The global software and information services market was $500 billion in 2000, with total sales of software products at $175 billion, up 13.6% from 1999.

In the global software market, the U.S. software market is the most mature market, the Asia-Pacific market is the most promising market, has maintained more than 20% annual growth rate. The Chinese market plays an important role in the Asia-Pacific market.

3. Software market

The world software market has maintained a good growth momentum, with an average annual growth rate of 14.3% per cent, despite the Asian economic crisis from 1994 to 1998. The global software market is expected to grow at an average annual rate of 13%~15% over the next 5 years.

The following 3 features can be seen through the analysis of the Global Software market:

• The concentration of the software industry is on the upward trend.
• The United States is a world software power, its software products occupy more than 60% of the global market share. Of the world's 10 largest software manufacturers, 7 are U.S. companies and 2 are Japanese companies.
• The enterprise application software market is broad, the increase is bigger.

(1) System software market
The global system software market reached $41 billion in 1998, with a growth rate of 14.9%. The annual average growth rate for the next 5 years is expected to exceed 14% per cent, up to $79 billion by 2003.

(2) Supporting the software market
The global support software market reached $31.2 billion in 1998, a growth rate of 8.4%, and is expected to reach $52.5 billion by 2003. In the supporting software market, the market share of relational database management system occupies the first place.

(3) Application software market
The global application software market in 1998 became the fastest growing market with a 15.4% growth rate and set a market record of $63 billion. In the next 5 years, the annual growth rate of 14%~15% is expected to continue, reaching a market size of $124 billion by 2003.

4. Information Service Market

International information Service market has been accompanied by the development of the software market and growth, in general, the information services market in the software and information services market share in the 65%~75% fluctuations. The proportion of system integration market and Network Service market in total market is increasing trend.