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Business software investment in the UK - Data and Analysis (2001-2032)
Business software investment takes two main forms. UK businesses can either purchase new software, which may be of the off-the-shelf packaged form or customised business software or develop software on their own account. The former is more easily measured whereas the latter requires an investment of resources. For the majority of the time, investment in both types of software moves in tandem with prevailing economic conditions and in particular business profitability and confidence. Technological advancements and changes in the applications of current technology are also likely to generate a period of high investment in software. Over the long term, software prices have declined steadily due to intensifying competition between developers.IBISWorld estimates that total business software investment will increase at a compound annual rate of 4.9% over the five years through 2025-26. While fluctuations in own account software investment tend to be relatively tamed, the value of purchased software is more volatile year-on-year. This is because many developers may choose to price their products in their domestic currency, making these purchases dependent on exchange rate fluctuations. Amazon Web Services, for example, prices its services and software in US dollars. Although some companies allow customers to pay their bills in pounds, the fees may still be determined according to the US dollar exchange rate at the end of each billing month.
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Business software investment
2001-2032
Estimated Value in 2026
XX
2021-26 CAGR XX%
2025-26 Change XX%
Forecast Value in 2032
XX
2026-32 CAGR XX%
2026-27 Change XX%
This report analyses business software investment in the United Kingdom. The date is sourced from the Office for National Statistics (ONS) in addition to estimates by IBISWorld. The data represents total investment including own purchases and own-account software. Software is accounted as investment rather than operating expenditure if it has a useful life greater than two years. Figures are in current prices and represent totals over each financial year.
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| Industry | Country | Last 5-yr CAGR | Forecast 5-year CAGR | Revenue |
|---|---|---|---|---|
| Software Publishing in the UK |
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XX% | XX% | $XX |
| Software Testing Services in the UK |
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XX% | XX% | $XX |
| Speech & Voice Recognition Software Developers in the UK |
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XX% | XX% | $XX |
| Cyber Security Software Development in the UK |
|
XX% | XX% | $XX |
| HR & Payroll Software Publishing in the UK |
|
XX% | XX% | $XX |
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Frequently Asked Questions
What was the business software investment in the UK in 2026?
The business software investment in the UK in 2026 was 53,139.6 £ million.
How has the business software investment in the UK changed in 2026?
The business software investment in the UK grew by 4.86% in 2026.
What was the forecast growth rate of business software investment in the UK over the next five years?
IBISWorld’s data and analysis on business software investment in the UK includes forecasted growth rates over the next five years.
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