How Much is the Software Industry’s Market Cap Expected to Grow by 2023?
As supply and demand increase, so does market cap. Global businesses and consumers are becoming more and more dependant on software as time progresses. The Internet of Things and Machine Learning are trending, and developers are exceedingly interested. The future of software seems quite bright as the industry has had a steady market cap increase, definitely since 2009.
What is the future market cap growth prediction for 2023?
According to Crystal Capital Partners, in 2023, the software industry is expected to grow 14.8% Compound Annual Growth Rate (CAGR) to $13.5 Trillion. Currently, according to companiesmarketcap.com, the software industry’s market cap is sitting at $8.084 trillion.
The three software companies with the highest market cap are Apple ($2.44 T), Microsoft ($1.966 T), and Alphabet (Google) ($1.544 T).
How much has the software industry grown since 2009?
According to Crystal Capital Partners, in 2009, the software industry had a market cap of $1.8 trillion. In 2016, the market cap increased to $5.1 trillion at 15.9% CAGR.
What are the biggest tech trends from 2009 - 2021, and what is up and coming in 2021 - 2023 in the tech industry?
- 2009 - Netbooks, and mobile app stores - https://www.popularmechanics.com/technology/gadgets/a6394/4340454/
- 2010 - Watching the web on TV, and the release of the iPad - https://www.pcmag.com/news/the-most-iconic-tech-innovations-of-the-2010s
- 2011 - Mobile money and social commerce, and mobile marketplace - https://tech.co/news/tech-year-in-review-2011-12
- 2012 - 3D printing and Big Data goes mainstream.
- 2013 - Cloud computing and The Internet of Things - https://www.middlemarketcenter.org/expert-perspectives/10-top-technology-trends-in-business-in-2013
- 2014 - Web-Scale IT and personal cloud - https://www.pcmag.com/news/gartners-top-10-strategic-technology-trends-for-2014
- 2015 - Hybrid clouds and The Internet of Things - https://www.idr-inc.com/5-biggest-technology-trends-2015/
- 2016 - Apache Spark’s open-source technology - https://www.synotive.com/blog/top-5-software-development-trends-of-2016
- 2017 - Blockchain, and augmented reality - https://www.techradar.com/news/top-10-technology-trends-for-2017
- 2018 - Blockchain in business, and CARTA (Continuous Adaptive Risk and Trust Assessment) - https://www.bbva.com/en/top-10-technology-trends-2018/
- 2019 - Electric vehicles and drone delivery - https://www.thomasnet.com/insights/8-top-technology-trends-of-2019/
- 2020 - Edge computing and data science - https://www.upgrad.com/blog/trending-technologies-in-2020/
- 2021 - Machine Learning and robotic process operations - https://www.simplilearn.com/top-technology-trends-and-jobs-article
- 2022 - Quantum computing and multicore - https://www.computer.org/publications/tech-news/trends/2022-report
- 2023 - The Intelligence of Everything and engineered empathy - https://www.netimperative.com/2018/08/09/future-tech-the-10-technology-trends-for-2023/
As the Internet of Things made a significant impact in 2015 and Machine learning in 2021, there were and are other aspects that constitute the growth of the software industry that investors should know. In 2015, Hybrid CLouds trended along with the Internet of Things. Currently, in 2021, robotic process operations trend along with Machine Learning.
What are popular Internet of Things devices
(all examples will take you to my Amazon affiliate link)
- Smart home security systems - click here for an example
- Wearable health monitors - click here for an example
- Wifi routers - click here for an example
- Thermostats - click here for an example
- Smart printers - click here for an example
What are the most common ways Machine Learning is being used
- Image recognition
- Medical diagnosis
- Speech recognition
Click here for further details.
What is the market size value of the software industry in 2021?
The market size value of the software industry is expected to reach $429.59 billion by the end of 2021, according to grandviewresearch.com.
What is the difference between market capitalization and market value (often misunderstood)
- Market cap - is the number of outstanding shares traded multiplied by the stock price.
- Market value - is determined using various methods - price-to-earnings, price-to-sales, and return-on-equity, according to Investopedia.
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Top 5 software companies in the world
According to Investopedia, the following five software companies top the list. The following rankings are based on the trailing twelve months.
- Microsoft - $143.0 billion in sales
- Oracle - $39.1 billion in sales
- Systems, Applications & Products in Data Processing (SAP) - $31.1 billion in sales
- Salesforce - $18.2 billion in sales
- Adobe Inc. - $12.1 billion in sales
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Who was the first person to write software for a computer?
In 1843, a computer programmer named Ada Lovelace was the first person to write software for a computer.
As the software industry’s market cap is expected to grow 14.8% CAGR, can we expect the largest software companies to gain investors a guaranteed profit? Surely seems like a safe bet. The Internet of Things in homes and business are on the rise and life for consumers should get a bit easier, convenient and fun. Software developers will ensure that their products are on par with the increasing demand of the Internet of Things technology worldwide.