UK IT INDUSTRY TRENDS

At Clear intelligence, we make it our business to monitor trends across all industry sectors. Here’s a snapshot of what’s happening in the UK IT industry:

15% of total software and IT services sector de-listed since 2007
According to Close Brothers, the number of London-listed IT companies has dipped by one tenth and over £2.5 billion of equity has been de-listed since March 2007.

Spending growth slowing
Mintel reported that the market for information processing equipment stands at 5.4 billion – up 17% between 2003 and 2007. In recent years, growth has slowed due to rapid price deflation, which has not been offset by growth in volume sales.

Market is forecast to grow by 12% between 2007 and 2012
New technology will continue to drive demand and computers look set to win share in the consumers’ entertainment pound as they take on the roles of TV, DVD/CD player.

No growth for PC software market since 2001
Market value dropped to £464 million in 2006 due to declining prices. Increasing numbers of home PCs and the growth of digital lifestyles are acting as a major driver for volume sales which have grown 10% since 2001.

Competition from games consoles, mobile gaming and online gaming
These are a major threat to gaming software and the performance of the wider PC software market.

Rising demand for application/utility and Internet security software
This has acted as a major market driver for the sector – securing growth of 66% since 2001.

Downloads are on the up
The growth in digital downloading of software is having a major impact on the market. Software specialist retailers, such as those offering games or PC/peripherals, dominate value sales.

The majority of consumers pay nothing for software
Six out of ten admit to looking for a free version before they part with money for a program.

Software sales are expected to fall by 4% at current prices by 2011
To an estimated £445.2 million. Increased confidence with PCs is spelling trouble for the software industry as internet users are exploiting the web to source software at a lower cost, or for free.