NAICS 513211Canadian industry · 6-digitinternational market

Software publishers (except video game publishers)

This Canadian industry comprises establishments primarily engaged in software publishing, not including video games. These establishments carry out operations necessary for producing and distributing computer software, such as designing, providing documentation, assisting in installation and providing support services to software purchasers. — Statistics Canada, NAICS 2022A

Establishments · CanadaA
1,688
with employees
Under 10 employeesA
60%
most common size: 1–4
01

Size and shape

How many businesses there are and how small they are. Fragmentation is the first thing an entrant — or anyone selling software into this industry — needs to know, and it is one of the few things that is actually measured.

Canadian establishments by number of employeesA

1–477246%
5–924615%
10–1922313%
20–4921613%
50–991217%
100–199543%
200–499422%
500+141%

Of 1,688 Canadian establishments with employees, 60% have fewer than ten — mostly small operators.

Where they areA

Ontario87752%
British Columbia29718%
Quebec27416%
Alberta1438%

Largest four provinces by establishment count. Establishments with employees only — sole operators with no payroll are not in this table, so in trades and personal services the true number of businesses is higher.

How many new establishments are still tradingA
Information, US · opened 2020
79.6%
1 year
59%
3 years
45.7%
5 years
30%
10 years
opened 2015

Measured, not forecast: the share of US establishments opening in one year that were still active later. It counts good operators and bad ones together, which is exactly why it is the honest answer to “what are the odds”. It is for the whole sector rather than this market, and the ten-year figure comes from an older cohort because no younger one has reached ten years.

No US figure is shown. County Business Patterns is coded to the 2017 US edition of NAICS; this code either does not exist there, names a different industry, or is outside the programme's coverage (most of agriculture, rail, postal and public administration are). A figure is attached only where both the code and the title agree.

02

How businesses here compete

The structural profile of subsector 513, which every industry beneath it inherits. This is analyst judgment from how the subsector is organised — not research into this industry, and not a measurement.

international competitionlow capitalUNVERIFIEDinherited from 513 Publishing industries

Software publishing is where most venture-backed entry happens. Traditional publishing has declining print economics and a reader who has to be found again online.

Who sets the price
Platforms and marketplaces for software; advertisers and subscribers for publishing.
The software it runs on
This subsector includes software publishers themselves; publishers run editorial, rights and subscription systems.
03

Market screens and studies

Market-entry records filed along this branch of the hierarchy. A record at or beneath this code is about this industry; one above it is about something wider that contains it.

Screened one level up. Nothing is filed at this exact code; the screen for 5132 Software publishers covers it.

Operating businessScreenedfiled at 5132
Packaged Software CompanyExecution decides
binding constraint: distribution

This is the code software companies themselves file under, and by the numbers it is the most attractive group in its sector. Statistics Canada reports software publishers at $27.9B of operating revenue in 2024, up 15.6%, with 68.8% of sales to clients outside Canada [A]. No plant, no licence, a global market from the first day, and 1,076 of the 1,808 establishments employ fewer than ten people [A]. The screen does not find a clean cut at this level, and says so. The nearest thing to one is in the same release: on $27.9B of revenue the industry carried $26.6B of expenses — an operating margin of 4.7% [A], with salaries the largest cost. An industry growing at 15% and keeping under five cents on the dollar is one where the product is cheap to make and the customer is expensive to reach; growth is being bought with payroll. That points at distribution as the binding constraint, and it is the factor recorded here. But distribution is not a property of 'software publishing'. It is a property of the buyer: selling to dental practices, to carriers and to game players are three unrelated problems with different incumbents, sales cycles and prices, and an average over them has no referent. That is why this research screens software by the industry it is sold into — the /software lens holds those records — rather than as one market here. A full study at this level would have nothing to test; the test belongs to each vertical. Video game publishing (513212) has hit-driven economics of its own and was not examined.

NAICS 51324 vendors named10 sourced figuresOpen →
04

Software serving this industry

The vertical software markets filed along the same branch — who sells to these businesses and who they would have to displace — and then the generic categories every business buys whatever it does.

Sold across the wider branch

05

Who works here

The occupations employed in Information and cultural industries, most concentrated in it first. The share is measured against the whole sector, not this industry — the published cross-tabulation stops there.

Concentrated in this sectorA

These jobs are mostly done here. An operator in this industry is competing for them against others in the same industry, not against the whole economy.

And the jobs every business has

Found across at least fourteen of the twenty sectors. In a small establishment several of these are usually one person, or an outside provider.

All 162 occupations →

06

Alongside this industry

This is the most specific level NAICS defines. The other industries under 51321 are its nearest neighbours.

CodeIndustryEstablishments · CAWhat is known
513212Video game publishers120screened at 5132