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November 2018
Software Product Development
Sectorwatch
The growth of new technologies have strengthened the software development sector more than ever before. The market is constantly changing as more technology is introduced such as AI, blockchain, progressive web apps etc., which are gaining momentum and will dominate the software development market throughout 2019. Gartner believes by 2022, 40% of new application development will involve AI co-developers.
Industry Trends:
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants
