Patent Search - Market Size
In order to fulfill the client's request, we defined the Patents Search software market in two different ways in order to establish multiple approaches to a market size valuation. Initially, we focused on IP Management Software, and given the information gathered, we used a present value calculator to estimate the market size of said market in 2018 to be approximately USD $2.32 billion. In our second approach, we defined the Enterprise IP Management Software as the market to evaluate, and by using a future value calculator we determined its market size in 2018 to be approximately USD $6.86 billion. The detailed methodology of our approach for each calculation can be found below.
Approach 1: IP Management Software market size — Present Value
For our first approach to calculating market size, we defined our scope as IP Management Software (IPMS), which includes patent search software and its market. The importance for this type of service continues to rise alongside the demand to protect intellectual property and keep track of patents within companies and for individuals. We found a list of key players within this market, which include Anaqua, Clarivate Analytics, Dennemeyer, Evalueserve Netherlands, among others. This market is expected to grow to reach USD $6,758.4 million by 2025, with an expected CAGR of 14.3%. Most of the market share will be retained by the North American region, which in 2017 reached a market share of USD $797.61 million.
With the information obtained from our initial sources, we used a present value calculator to obtain the current market size for IPMS. The inputs used in the calculator are as follows:
Future Value: 6,758.4 (expected size of IPMS market in 2025 in USD millions)
Years: 8 (2025 – 2018)
Discount Rate: 14.3 % (we assume the rate will remain stable throughout the evaluated period)
After inputting the required data, the calculator generated a present value of the IPMS market at the beginning of 2018 of USD $2,319.93 million, or USD $2.32 billion.
Approach 2: Enterprise IP Management Software market size — Future Value
Enterprise IP Management Software (or EIPMS) — which also takes into account the market for patent search software market — is a software system to facilitate corporations' tracking of patents, trademarks, copyrights and IP. It allows for a paperless, advanced IT-focused system of IP oversight. Some key players in this market include the following companies: Cardinal IP, CPA Global Limited, FlexTrac, Gridlogics. EIPMS market is expected to grow to USD $16.51 billion by 2024, from USD $4.12 billion in 2016. The EIPMS market is set to grow at a CAGR of +29% during the forecast period.
With the information obtained from our main sources, we then future value calculator to obtain the EIPMS market size in 2018. The inputs used in the calculator are the following:
Interest Rate per time period: 29% (we assume a stable CAGR rate throughout the evaluated period)
Number of Time periods: 2 (2018-2016)
Present value: 4.12 (billions of USD in 2016)
The calculation generates an approximate EIPSM market size at the beginning of 2018 of USD$6.86 billion
Software is used in relation to patent search in many ways, which allows for a plurality of scope definitions about relevant markets. Because of this, we dove into the evaluation of two possible markets and came up with significantly different valuations for them, yet equally valid.