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June 2018
Software Product Development
Sectorwatch
Digital transformation has been causing disruption in various sectors, especially in software development. Being driven by digitization and new mobilization techniques, the increasingly growing software development industry is keeping up with the fast pace by adapting to new emerging changes. The software development industry is expected to generate $900 billion in 2018, up 7.5% from 2017 according to IBISWorld.
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 is less than the average of the last 3 years EBITDA margins, which may signal further consolidation
