Computer Software

Revenue in the U.S. software industry is expected to grow from $363.40 billion in 2024 to $444.62 billion by 2029, according to Statista.com. The data analytics firms says that "demand for software in the United States has been growing at a rapid pace in recent years, driven by various factors such as the increasing adoption of cloud computing, the rise of mobile devices, and the growing importance of data analytics."

As the nation’s reliance on information technology grows ever stronger, particularly information available on the Internet and through devices such as iPads, GPS devices, and tablet PCs, software professionals will be needed to develop robust applications to meet these information needs. The growing popularity of handheld computing on wireless devices such as the iPhone and Android will also spur the need for more software applications for these specific platforms.

Morningstar Equity Research also predicts a strong outlook for the software industry. "We expect revenue and margin expansion for software players to continue to skew favorably overall," according to its December 2023 report, Software: Makes Everything Easier. Morningstar Equity Research cites the following factors for the positive outlook:

• the emergence of generative AI, which will increase productivity by software professionals and help create a wide range of new products, as well as improve existing ones
• the exponential growth in data and the need to store it
• the increasing popularity of the public cloud, which Morningstar says "has driven heavy software investment across industries"
• an increasing emphasis by companies and other organizations on digital transformation (including the use of software for supply chain management, customer relationship management platforms, business intelligence, and enterprise resource planning systems); the pandemic prompted many organizations to improve existing or implement new digital workflows

Factors that may slow growth in the software industry include increasing government regulation, cybersecurity concerns, a shortage of the highest-skilled workers, and higher interest rates [which Morningstar says makes it "more expensive to fund growth as a software firm (via debt and private equity funding) and can also lead to leaner budgets for customers]." The outsourcing of IT jobs to countries in which wages are lower may also lead to a slowdown in the overall growth of the U.S. software industry and demand for employees.

In recent years, computer software applications have grown in a wide range of emerging categories. These included the "Internet of Things" (IoT, the growing constellation of Internet-connected items that encompasses everything from security cameras and household appliances to windmills and industrial machinery); aerial drones; autonomous vehicles; smart homes; artificial intelligence (especially generative AI); and more.

The U.S. Department of Labor (DOL) predicts that employment in the computer and technology industry, including the software industry, will grow much faster than the average through 2033, resulting in the addition of 356,700 new jobs. The research firm IBISWorld reports that 963,000 workers were employed at 49,866 software publishing business in the U.S. in 2023.

Each career in the software field has a slightly different outlook. For example, software developers will continue to see a high growth rate, 17 percent, through 2033, primarily due to the continued expansion of software development for artificial intelligence, robotics, IoT, and other automation applications, as well as the need for improve software security measures. Employment of computer systems analysts will grow by 11 percent, and 33 percent growth is expected for information and security analysts.

The DOL also reports that computer and information systems managers will see 17 percent growth in jobs through 2033. "As businesses across industries ramp up their IT infrastructure, such as cloud computing, cybersecurity, digital platforms, and AI, computer and information systems managers will be critical to ensuring solid IT implementation," according to the DOL. The health care industry is also expected to add more jobs for computer and information systems managers. Employment is expected to grow by 14.8 percent from 2023 through 2033. Job opportunities are also expected to be strong in the insurance and finance sectors, where employment for these managers is expected to increase by 15.9 percent during this time span.

Career opportunities should also be good for information technology consultants. The global software consulting market size is expected to grow at a compound annual growth rate of 12.1 percent from 2023 to 2030, according to Grand View Research. The data analytics firm says that "the growing preference for the digitalization of business processes across industries and verticals is driving market growth, primarily for the efficient implementation of software into the IT setup of an enterprise."

The employment outlook is much less positive in a few information technology occupations. For example, job opportunities for computer programmers are expected to decline by 10 percent from 2023 through 2033. "To save time and money, many companies are leveraging technologies, including AI, to automate repetitive programming tasks," according to the DOL. "In addition, some higher-skilled programming tasks are increasingly done by other workers, such as software developers." Employment of network and computer systems administrators is projected to decrease 3 percent from 2023 to 2033. These workers will continue to maintain and upgrade networks and other computer systems, but the DOL says that "some of their tasks are increasingly being done by software developers focused on DevOps (development operations), and some tasks are being outsourced to companies who provide Networks-as-a-Service. Additionally, systems administrators are increasingly automating routine tasks."

When it comes to salaries, software professionals receive higher than average earnings. The DOL reported the median annual wage for computer and information technology professionals was $104,420 in May 2023. The median salary for all workers was $48,060.

Staying current with new or upgraded products is extremely important for software professionals to improve their chances of getting a job and being promoted. The software industry changes quickly, and professionals must keep up with new technology.

Women continue to be underrepresented in the software industry. For example, in 2023, the DOL reported that only 20.2 percent of software developers were women despite comprising about 47 percent of the workforce. And 19.3 percent of information security analysts and 19.4 percent of web developers were female. Industry organizations—such as the Association for Women in Computing, National Center for Women & Information Technology, and Women in Technology—are working to encourage more women to enter the field.