Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: February 2007
Product Code: R560-2510Description This report examines the retail market for PC software in the UK. It focuses on the use of software for leisure use as well as by the home office user. It reports on trends within this market this being supported by exclusively commissioned research on the purchase and use of PC software by consumers.
The PC software market is currently passing through a transitionary stage in its development. The important games sector of the market is suffering from increased competition from console and mobile gaming with the result being an overall decline in software value and volumes. Other sectors within the market are proving more resilient with the growth of the multi-media home helping to drive demand for software aimed at improving security on the Internet, while also enhancing the uses to which PCs are now being put.
Nevertheless the market remains a challenge for all those who compete within in with consolidation and price competition a feature. With digital downloading of software becoming increasing popular, especially amongst the young, the future is one of further pressure.
Table of Contents - Issues in the Market
- Key Trends
- Definitions
- Market in Brief
- Software running but slowly
- A drive from applications
- Downloads on the up
- NPD takes a byte out of adspend
- Peripherals central to market
- Men mean business
- The drive for the future
- Internal Market Environment
- PC ownership
- Figure 1: Household ownership of PCs, 2002-06
- Number of PCs influencing software ownership
- Multimedia ownership
- Figure 2: Ownership of selected electronic items, 2002-06
- Mobile phones
- Figure 3: Features have and features used on mobile phones, 2002-06
- Internet penetration
- Figure 4: Used Internet at home in the last 12 months, 2002-06
- PC-illiterate driving sales
- Working at home
- Figure 5: Self-employed and homeworking, 2002-06
- Broader Market Environment
- Demographics
- Figure 6: Total UK population, by age group, 2001-11
- Attractive returns on affluence
- Figure 7: Trends and projections in total UK population, by socio-economic group, 2001-11
- Competitive Context
- Alternatives to the PC
- Games consoles
- Figure 8: Sales of console hardware and console and PC game software, 2001-05
- Mobile phones and PDAs
- Alternatives to software purchase
- Massively Multiplayer Online Games (MMOGs)
- Figure 9: Top ten games, by subscriber numbers, June 2006
- Digital downloads and web-based tools
- Freeware/shareware
- Bundling
- Impact of piracy
- New entrants and lower prices
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size and Forecast
- Value sales register decline
- Figure 10: UK value sales of software, 2001-11
- Developments in unit retail sales highlight impact of price erosion
- Figure 11: UK volume sales of software, 2001-11
- Future for market will remain a challenge
- Vista offers short-term reprieve
- Security oftware stays strong
- Literacy shutting book on growth?
- Segment Performance
- Downplaying value on games
- Figure 12: UK retail value sales of software, by type, 2002-06
- Application for growth
- Figure 13: UK retail volume sales of software, by type, 2002-06
- Segment performance
- Games
- Applications/utilities
- Figure 14: Segmentation of the applications software market, by volume, 2004 and 2006
- Education/leisure
- Operating systems
- Price erosion
- Figure 15: Average unit prices of PC software, by type, 2002-06
- Market Share
- Microsoft et al
- Games
- Figure 16: Leading PC games titles, 2005
- Applications/utilities
- Education/leisure
- Operating systems
- Companies and Products
- Adobe
- Electronics Arts
- GSP
- McAfee
- Microsoft
- Serif
- Sierra Entertainment/Vivendi Universal Games
- Symantec
- Ubisoft
- Brand Communication and Promotion
- Adspend linked to NPD
- Figure 17: Main monitored media advertising spend on software, 2002-06*
- Microsoft coughs and the market sneezes
- Figure 18: Main monitored media advertising spend on software, by advertiser, 2002-06*
- Press expenditure dominates the market
- Figure 19: Main monitored media advertising spend on software, by media type, 2002-06*
- Channels to Market
- Not so special(ist)
- Figure 20: Retail distribution of software, 2002-06
- Electronic stores lose power
- Downloads on the up
- Figure 21: PC software sales via the Internet, 2002-06
- Hard-drive out software
- Consumer - Ownership and Acquisition
- Security top priority
- Figure 22: Topline ownership of software for personal computers and laptops, October 2006
- PC protection
- Software reflects multimedia world
- Hard sell for software
- Learning to adapt
- Specialist software tops wish-list
- Software expenditure
- Figure 23: Expenditure on additional software, 2002-06
- Playing on the slide
- Software acquisition
- Figure 24: Topline acquisition of software on home computers and laptops, October 2006
- PC package bytes into sales
- Digital downloads not quite up and running
- Soft spot for hard copies
- Installation behaviour
- Figure 25: Topline software purchased/added to home computer/laptop in the last year, October 2006
- Women less interested
- Young are carefree
- Consumer Attitudes and Experiences
- Young interest feeding growth
- Figure 26: Agreement with lifestyle statements on computers/technology, 2002-06
- Attitudes towards software, purchase and installation
- Figure 27: Topline attitudes towards software installation, October 2006
- Perceptions on price
- Working out
- Protecting assets
- Appendix
- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Internal market environment
- PC and laptop ownership
- Figure 29: Household ownership of PCs, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel’s Special Groups, 2006
- Figure 30: Computer ownership, by number of laptop PCs, by gender, age, social grade, region, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children in household, and homeworking, October 2006
- Ownership of electrical items - detailed demographics
- Figure 31: Ownership of selected electronic items, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel’s Special Groups, 2006
- Internet usage - detailed demographics
- Figure 32: Used Internet at home in the last 12 months, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel’s Special Groups, 2006
- Figure 33: Internet use, by level of software ownership, by gender, age, social grade, region, lifestage, working status, household income, commercial TV viewing, household size, daily Internet usage, age of children in household, newspaper readership, supermarket usage and homeworking, October 2006
- Broader market environment
- Self-employed and working from home
- Figure 34: Self-employed and homeworking, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel’s Special Groups, 2006
- Demographics
- Figure 35: Trends and projections in UK population (‘000s), by age and gender, 2001-11
- Channels to market
- Figure 36: Examples of retailers active in the PC software market, 2006
- Consumer ownership and acquisition
- Figure 37: Ownership of software on home PC, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Music and video
- Graphics and photo
- Instant Messenger
- Business and office
- Games
- Internet software
- Utilities
- Shareware
- Educational and reference
- Lifestyle and hobbies
- Children’s fun and learning
- Web development and programming
- Figure 38: Attitudes towards software on home PC, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Figure 39: Acquisition of software on home PC, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Educational and reference
- Security and privacy
- Children’s fun and learning
- Games
- Lifestyle and hobbies
- Music and video
- Graphics and photo
- Web development and programming
- Utilities
- Internet software
- Internet messenger
- Shareware
- Consumer attitudes and experiences
- Figure 40: Agreement with lifestyle statements on computers/technology, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel’s Special Groups, 2006
- Figure 41: Most common agreement with attitudes towards software, installation and purchase, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership , supermarket usage and homeworking, October 2006
- Figure 42: Commonly agreed with attitudes towards software, installation and purchase, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Figure 43: Other commonly agreed with attitudes towards software, installation and purchase, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Figure 44: Less commonly agreed with attitudes towards software, installation and purchase, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Figure 45: Other commonly agreed with attitudes towards software, installation and purchase, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Figure 46: Agreement with attitudes towards software, installation and purchase, by gender, age, social grade, region, lifestage, working status, household income, household size, commercial TV viewing, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Consumer repertoire and typologies
- Repertoire
- Figure 47: Software ownership, by ownership of PCs in the home, October 2006
- Figure 48: Attitudes, by level of usage and degree of software ownership, October 2006
- Typologies
- Figure 49: Consumer typologies, by gender, age, social grade, ITV region, lifestage, working status, household income, commercial TV viewing, household size, daily Internet usage, age of children, newspaper readership, supermarket usage and homeworking, October 2006
- Figure 50: Mean numbers of sources, by typologies, October 2006
- Figure 51: Agreement with statements on ownership/use of PC software, by typologies, October 2006
- Figure 52: Analysis of software usage levels, by typologies, October 2006
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