Software Dominates Deloitte’s 2020 Tech Fast 500 With 71% Of All Companies
- Software companies continue to deliver the highest growth rates for the 25th straight year, representing 71% of the entire list, the highest-ever percentage in the history of the rankings.
- 353 of the 500 fastest-growing companies in North America are in the software industry according to Deloitte’s 2020 Tech Fast 500, the most ever in the history of their rankings and a 3% increase over last year.
- Two of the ten fastest-growing companies over the last three years specialize in cybersecurity, OneTrust and Transmit Security.
- Notable software companies ranked in Deloitte’s 2020 Tech Fast 500 include Bolt, Illumio, LogicMonitor and Seeq.
- Biotechnology/pharmaceutical companies are the second most prevalent sector, comprising 14% of all companies, followed by digital content/media/entertainment (5%) and medical devices (4%).
It’s fascinating to look at the emerging trends in Deloitte’s 2020 North America Technology Fast 500 Rankings as leading predictors of innovation. This year’s report is a quick read and provides a glimpse into the fastest-growing companies between 2016 and 2019. Deloitte chooses Technology Fast 500 awardees based on percentage fiscal year revenue growth from 2016 to 2019. Overall, the 2020 Technology Fast 500 companies achieved revenue growth ranging from 175% to 106,508% over the three-year time frame, with a median growth rate of 450%.
Key insights from the rankings include the following:
- Five of the top ten winners are software companies, including Branch Metrics, OneTrust, Transmit Security, Drift and CharterUP. It’s noteworthy that cybersecurity is well-represented in the top ten fastest-growing companies between 2016 and 2019. OneTrust and Transmit Security is in the top five fastest-growing companies between 2016 and 2019, accentuating how critical cybersecurity is becoming in all businesses. The following graphic lists the top ten Deloitte 2020 North America Technology Fast 500 winners.
- Digital platform and enterprise infrastructure & productivity dominate software companies are dominating software sub-sectors with 56% of all companies. Deloitte’s ranking reflects the increasing urgency all organizations have to launch, scale and excel at new digital selling channels. The pandemic accelerated the urgency faster than the most compelling business case ever could. Having over 50% of all software companies in these categories quantifies the cloud as the platform of choice across enterprises.
- Electronic devices/hardware, energy tech and software & SaaS are the three sectors generating the fastest growing businesses over the last three years. Edge computing and the quick pace of innovation in intelligent sensor development and adoption for the Internet of Things (IoT) and Industrial Internet of Things (IIoT) use cases are catalysts driving the 683% growth rate. Sustainability’s bottom-line benefits, including its positive impact on lean manufacturing, help drive to 525% growth rate in energy tech. Software and SaaS median growth rate of 465% shows enterprise software’s evolution is nascent and just getting started.
- 62% of the fastest-growing companies of the last three years say the Covid-19 pandemic has a low- to moderate impact on their business. It’s understandable how most high-growth companies are seeing a moderate impact of the pandemic as entire industries rely on their software, services and products to survive. Take software, for example. Manufacturers producing Personal Protective Equipment (PPE) need ERP and MES systems to get healthcare workers much-needed supplies. Retailers need e-commerce software to drive sales online. Bolt’s success with its Checkout Experience Platform and it now being the platform of choice for Authentic Brands Group’s Forever 21 e-commerce relaunch are a case in point.
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