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Market size of software: How much money is paid to software engineers/developers globally every year?
Hello, and thanks for your question about the market size of software. I have found that the global software engineering market was valued at $19.98 billion in 2014, and that in the US around $112.2 billion is paid to software engineers/developers each year. Below you will find a deep dive into my research, along with all the details as to how I came to this conclusion.
OVERVIEW/METHODOLOGY
In order to answer your question thoroughly I have looked for reports and statistics relating to the size of the software engineering market in the USA as well as worldwide. I have looked for how much money is being paid annually in USD to software engineers and developers globally and in the USA. Where statistics were not freely available online I have made some calculations to make estimates, as described below.
FINDINGS
- Global Software Engineering Market Size:
According to Globe Newswire, the global software engineering market was valued at $19.98 billion in 2014 and is expected to grow at a CAGR of 12.4% from 2015 to 2022. The main drivers for this growth are identified as being the increase in consumer electronics, mainly smartphones and tablets entering the market, as well as the modern lifestyle that has made it easier for engineers to stay in touch with technology and use the tools they desire. By 2022, this market is expected to be valued at $50.34 billion.
- US Software Engineering Market Size
After a thorough search I can conclude that there is no published single figure available for free online which tells us the current and predicted size of the US software engineering market. However I did find a report available for purchase which provides details on each segment of the global market (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
I have however found some statistics which illustrate current activity within the US software engineering market. According to the US Census Bureau (2012 is the most recent date I could find this information for) there were 64,314 custom computer programming service providers in the US, generating $121 billion in total value of sales, shipments, receipts, revenue, or business done in 2012. However these figures do not exclusively relate to software engineering/development, as they are categorised under NAICS code 541511, along with web design also.
According to the Bureau of Labor Statistics there were 1,114,000 people employed as software developers in 2014, received on average $100,690 per year. This equates to $112.2 billion being paid out each year to software developers in the US.
CONCLUSION
Overall I have found that the global software engineering market is valued at $19.98 billion, and is set to grow rapidly over the coming years to reach a valuation of $50.34 billion by 2022. Further to this I have found that around $112.2 billion being paid out each year to software developers in the US.
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