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Software Publishing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Heydon Thomas Heydon Thomas London, United Kingdom Last Updated: June 2025 SIC UK-J582

Revenue

£70.6bn

2025-26

£76.6bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

253k

Businesses

34,844

Wages

£XX.Xbn

Software Publishing in the UK industry analysis

European software publishers' revenue is forecast to swell at a compound annual rate of 5% over the five years through 2025 to reach €70.6 billion. Software sales have been driven up by hiking digitalisation and technological developments across the continent. The software publishing market has been characterised by acquisitions, with global publishers looking to remain on top of market trends and protect their competitive positions by acquiring smaller, niche publishers. While internal research and development remain crucial, acquisitions have become the go-to method for many large software companies to find new products.

Trends and Insights

  • Software sales continue to surge. More and more businesses, especially European SMEs, are realising the money it can save and the value it adds to operations, keeping publishers’ sales strong.
  • Desktop applications stay on top. They’ve long been software publishers’ largest source of revenue, given they’re the foundation of the industry, but other services are gaining ground, especially with cloud computing becoming more commonplace.
  • A saturated market keeps concentration low. This reflects the fragmented nature of the software market outside of the global powerhouses. However, concentration does vary depending on the type of software.
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Top Questions Answered in this Report

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What is the market size of the Software Publishing industry in the United Kingdom in 2025?

The market size of the Software Publishing industry in the United Kingdom is £70.6bn in 2025.

How many businesses are there in the Software Publishing industry in the United Kingdom in 2025?

There are 34,844 businesses in the Software Publishing industry in the United Kingdom, which has grown at a CAGR of 5.0 % between 2020 and 2025.

Has the Software Publishing industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Software Publishing industry in the United Kingdom has been growing at a CAGR of 6.2 % between 2020 and 2025.

What is the forecast growth of the Software Publishing industry in the United Kingdom over the next 5 years?

Over the next five years, the Software Publishing industry in the United Kingdom is expected to grow.

What does the Software Publishing industry in the United Kingdom include?

Operating systems and Web- and cloud-based software are part of the Software Publishing industry in the United Kingdom.

How competitive is the Software Publishing industry in the United Kingdom?

The level of competition is moderate and increasing in the Software Publishing industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Data protection laws rule the market. Software publishers are privy to a huge amount of confidential data, so they have to ensure tight compliance with the General Data Protection Regulation.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Software Publishing in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Software publishers’ profit potential is huge. This is because software is protected under intellectual property laws and investment in software publishing is front-loaded. Online delivery of software also inflates profitability.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Software Publishing in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

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