Keeping Tabs on the Software Market’s Expansion
The Economist Intelligence Unit (EIU) was recently commissioned by Software.org to carry out a comprehensive research project to evaluate the increasing economic impact of software on the United States. The results of the study revealed that software has contributed over USD 1.14 trillion to the US value-added GDP, representing a growth of 6.4% in just two years. This demonstrates the considerable economic benefits that software has had on the US economy.
The software industry has had an undeniable and far-reaching impact on people and organisations across the world, yet its monetary value has been hard to quantify. With the advancement of technologies such as Artificial Intelligence, cloud computing and the Internet of Things, it has now become possible to measure the economic worth of these innovations. This research was conducted with three main aims: to establish a numerical value for the software industry’s influence; to trace the industry’s economic development over time; and to document the increasing number of sectors that benefit from software development.
For the research, a range of data was compiled and analysed, including that of IMPLAN, the National Science Foundation, the US Bureau of Economic Analysis, the US Bureau of Labor Statistics, the US Census Bureau, and the Economist Intelligence Unit (EIU).
Insights on Software’s Growing $1 Trillion Economic Impact
Among the study’s most important conclusions are:
Annually, the software sector contributes around $1.4 trillion to the US economy. The total value created for the United States economy in the period from 2023 to 2023 was $564.4 billion, with an additional $575.5 billion coming from indirect and induced effects. Direct contributions to the US economy rose by 18.7 percent over the same period.
A total of over 10 million employments in the United States may be directly attributed to the software sector. The software industry plays a key role in the UK economy, employing an estimated 2.9 million people directly in the sector, with a further 2.6 million people employed to support these roles. This is an increase of almost 350,000 employees since 2023, with a total of 2.5 million people employed directly in the software industry at the end of that year. These roles include designers, project managers, administrative assistants, and many more.
Advantages exist for every US state. All fifty states in the US experienced growth due to software, resulting in a 10% rise in direct value-added Gross Domestic Product (GDP) in almost all of them. In particular, Idaho and North Carolina experienced an impressive increase in value-added GDP of more than forty percent.
Greater money means more creativity.. More than half of the increase in the US economy after World War II can be traced back to innovations, making R&D spending all the more important.
This research was limited to the USA and the impact of the software industry on a global scale is likely to be much greater. The findings of this study suggest that the software industry has a positive effect on national economies, creating a wide range of new employment prospects. Moreover, research and development in software may lead to the introduction of life-saving solutions that can improve the quality of life of people everywhere.
The aim of this investigation is to illustrate to decision-makers the substantial effect that the software industry has on the economy. Taking into account both its direct and indirect contributions, it is prudent for authorities to nurture the progress of software research and development.
It is clear that the use of smartphones, applications and other forms of software can have a positive impact on our everyday lives. Furthermore, it is evident that this technology can be a powerful aid to businesses, helping them to make more informed decisions in a variety of sectors, including healthcare, banking and manufacturing. As such, it is important for business leaders and decision makers to be aware of the results of research into the benefits of investing in software. This investment can have a dramatic and far-reaching effect, and it is essential that it remains at the forefront of their minds.