Open source software is now a multi-billion dollar industry

(Image credit: Shutterstock / Elle Aon)

Open source software is now worth an estimated $7.7 billion annually
Median organizational spend stands are more than half a million
Most investments are in the form of human labor, not cash

The continued rise in popularity for open source software (OSS) has made it a multi-billion dollar industry attracting investments from companies all over the world, new reseach has claimed.

The 2024 Open Source Software Funding Survey found organizations across the world are contributing an estimated $7.7 billion to open source projects every year.

The research, which came from Github, the Linux Foundation and Harvard University, noted a clear split, with most (86%) investments coming in the form of workers' time. Only 14% revolved around direct financial contributions.

Businesses are backing open source

The research used data from 501 survey respondents, who together contribute a combined $1.7 billion to OSS annually. Median organizational spend on OSS was valued at more than $520,0000 – $345,000 to labor and $175,000 for direct financial contributions.

More than half (57%) of direct financial contributions went to contractors, with less than a fifth each going to specific projects (17%) and foundations (16%). Communities (4%), maintainers (4%) and bounty platforms (1%) also received cash injections.

However it also raised so-called blind spots in investments. More than two in three (68%) failed to answer how much financial support they gave different OSS targets, and nearly four in five (78%) didn’t (or couldn’t) share how much of their organization’s budget is destined for OSS.

Despite best efforts to quantify the market, the figures come from a handful of organizations, and are a mere estimation, or best guess. Consequentially, the researchers are calling for employees to self-report contributions and for contribution tracking to be incorporated into organizational workflows.

That said, there is a clear understanding that open-source software helps drive innovation, and GitHub, the Linux Foundation and Harvard want to encourage better monitoring and transparency to ensure OSS sustainability looking ahead.

We’ve listed the best laptops for programming
Here are the best mobile workstations for on-the-go working
Going open source could be the key to helping companies get the most out of AI

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!