This Market Intelligence Report focuses on the application software marketplace in the United States from a supply chain sourcing perspective. Application software includes systems and application software products ranging from enterprise applications to product engineering application. Primarily a fragmented industry, application software has a well developed supplier base and is growing at a high rate. The application software category has high product segmentation and serves industrial, commercial, government and consumer markets. The demand for application software is generated by various downstream industries with primary drivers including economic activity, corporate IT spending and technological advancements. Key costs around the application software category include labor (personnel costs), product development cost (R&D) and selling and distribution costs (advertising). The major trends in this industry include growth in niche markets, development of such products as Software as a Service and web services, among others. Import activity in this sector is low and is exhibiting an increasing trend. The risk outlook for the application software industry is deteriorating based on the macroeconomic environment. Category management best practices around the application software industry include strategic sourcing practices.
Starting with detailed background information to provide category context, this report provides insight into the market drivers around demand and key costs, including both historical and forecasted commodity pricing. The supply base section covers the top suppliers, including high-level overviews and market news. The report presents the NAICS category cost structure and historical, current and future pricing curves. The trend section reports new and emerging industry directions. Regulatory considerations include developing governmental initiatives. Risk outlooks offer a view into upstream drivers that could adversely affect the industry and category. Insights and Best Practices share winning strategies around the management and sourcing of this category.