- Open source software is currently worth an estimated $7.7 billion annually
- Median organizational spending exceeds $500,000
- Most investments are in the form of people rather than cash
Popularity continues to rise Open source software OSS has made it a multi-billion dollar industry, attracting investment from companies around the world, new research says.
this 2024 Open Source Software Funding Survey Research has found that organizations around the world contribute approximately $7.7 billion to open source projects each year.
The study from Github, the Linux Foundation, and Harvard University points out that there is a clear divide, with the majority (86%) of investments being made in the form of employee time. Only 14% involved direct financial contributions.
Businesses are embracing open source
The study used data from 501 survey respondents who collectively contribute $1.7 billion to OSS annually. Organizations spend a median of more than $520,000 on OSS, with $345,000 spent on labor and $175,000 on direct financial contributions.
More than half (57%) of direct financial contributions go to contractors, with less than a fifth going to specific projects (17%) and foundations (16%). The community (4%), maintainers (4%), and bounty platforms (1%) also received cash infusions.
However, this also gives rise to so-called investment blind spots. More than two-thirds (68%) failed to answer how much financial support they provide for different OSS goals, and nearly four-fifths (78%) did not (or could not) share how much of their organization’s budget was devoted to open source software.
Despite best efforts to quantify the market, these data come from a small number of organizations and are only estimates or best guesses. As a result, researchers are calling on employees to self-report contributions and to integrate contribution tracking into organizational workflows.
That said, there is a clear understanding that open source software can help drive innovation, and GitHub, the Linux Foundation, and Harvard want to encourage better monitoring and transparency to ensure the sustainability of OSS.