Data obtained by Buyshares.co.uk shows that the global spending on enterprise software for 2020 will reach $426 billion, the first drop in 10 years. The drop breaks an upward trajectory that began in 2009.
The spending reached an all-time high of $458 billion in 2019, translating to a drop of about 6.98% when compared to the projected figures for 2020. Between 2009 and the estimates of 2020, the spending stands at $3.94 trillion. The lowest spending in the sector was in 2009 when the figure stood at $225.51 billion.
In 2018, the spending was $419 billion, an increase of 13.55% from 2017’s figure of $369 billion. Between 2014 and 2015, the spending stagnated at $310 billion before a slight increase to $316 billion in 2016.
The Buyshares.co.uk research attributes the projected decline in spending to Coronavirus. According to the report:
“The Coronavirus crisis has forced many sectors of the economy to prioritize important aspects of their operations, explaining the drop in enterprise software spending. Many businesses in the IT sector are keen on implementing measures that can keep their entities running during this pandemic. This strategy is replicated across the various business for 2020.”
Buyshares.co.uk’s research also overviewed the estimated revenue of U.S. software publishers between 2005 and 2019. Last year had the highest revenue at $284.66 billion, a growth of 144.05% from 2005 when the amount stood at $116.64 billion. During the period under review, the total revenue was $2.6 trillion.
The revenue has been growing steadily but there was a slight drop in 2009 when the figure stood at $138.98 billion, a decline of about 2.62% from the previous year. The growth has been fuelled by increasing investment in the IT sector alongside the popularity of mobile devices.