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Apr. 23, 2007

Embedded is among several "hotspot" software development markets, along with open source, network security, digital content, and outsourcing, according to a new report from CCID Consulting. The market for device software is growing, becoming globalized, and developing specialized supply lines, the Hong Kong-based Chinese market research firm said.

CCID's report, "2006-2007 annual report on the development of the global software industry," suggests that device software was part of a general global growth trend for software. The global software industry reached $875.4 billion in 2006, up 6.3 percent year-on-year, compared to 5.3 percent year-on-year growth the year before. The U.S., the E.U., and Japan remained the top producers.

Size and Growth Rate of the Global Software Industry, 2001-2006
(Click to enlarge; source: CCID)
CCID identified ongoing globalization as a key trend in the overall software market, with companies looking to outsource not only sales/support, but also R&D. India remained "unique" in the outsourcing field, while South Korea and China also formed "software industry development models" of their own, CCID said. Software quality remained a challenge, with all involved parties studying ways to reliably deliver software quality.

Particularly within the embedded software market, "mergers and acquisitions and alliances creating industry chain integration" led to more defined supply chains, and greater company specialization. In particular, hardware equipment manufacturers sought to leverage software alliances and partnerships capable of delivering high-end software technology, the firm suggested.

CCID forecasts continued steady growth through the next five years, with the U.S., E.U., and Japan continuing to "dominate" the global software market. Additional summary findings can be found on the company's website, here.

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