Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 9.4 % over the past five years, to reach an estimated $316.8bn in 2025.
Trends and Insights
AI chatbots have threatened the dominance leading search engines
- The rise of AI chatbots like ChatGPT and Perplexity has begun to shift how US users seek information, eroding the dominance of traditional search engines. Rather than typing keywords into Google, users, especially younger ones, are increasingly turning to conversational tools that provide direct and personalized answers. According to Datos, AI-powered large language models captured 5.6% of US desktop search traffic in June of 2025, increasing from 2.5% in June of 2024. Google and Bing maintain a 94% share of this traffic; however, the Wall Street Journal notes that the usage of AI for search has grown faster than previously anticipated.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Search activity is expected to fragment across ecosystems
- Over the outlook period, user search activity is expected to continue fragmenting across an increasingly diverse digital ecosystem, threatening the long-term dominance of traditional engines like Google and Bing. Search habits will shift toward vertical platforms for specific intent. For example, users will identify Amazon for product discovery, TikTok and Instagram for trend searches and ChatGPT or Perplexity for direct informational answers. Beginning during the current period, this behavioral shift is expected to intensify, ultimately reducing query volumes and ad revenue for traditional engines, as advertisers follow audiences into closed, app-based environments.
Biggest companies in the Search Engines in the US
| Company | Market Share (%)
2025 | Revenue ($m)
2025 | Profit ($m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Alphabet Inc. | 144,929.0 | 47,388.9 | 32.7 | |
Microsoft Corporation | 35,855.7 | 16,067.0 | 44.8 | |
Verizon Communications Inc. | 2,736.2 | 696.9 | 25.5 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Paid placement: banner ads, Paid placement: video ads and Paid placement: other ads. Paid placement: banner ads is the largest segment of the Search Engines in the US.
Trends and Insights
Paid placement dominates space on search pages and sidebars
- Paid placement ads account for the majority of industry revenue and consist of advertisers that seek to get their ads displayed at the top, side or bottom of a page's search results. These ads are marked as advertisements or sponsored results and are usually paid for under the pay-per-click model, in which the search engine is only paid for hosting ads when a user clicks them.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry includes enterprises that operate search engines and other types of search-based websites that display advertisements. These search engines typically provide search services for free and earn income when a user clicks on an advertising link, known as a paid click. Websites may attract users to their search engines by offering a range of additional free services, such as email, news, social networking, entertainment and other information.
What's included in this industry?
Products and services covered in the Search Engines industry in the United States include Banner Advertisements, Video Advertisements, Paid Search and Text Advertisements.Companies
Companies covered in the Search Engines industry in the United States include Alphabet Inc., Microsoft Corporation and Verizon Communications Inc.Purchase this report to view all 5 major companies in this industry.
Related Terms
Related terms covered in the Search Engines industry in the United States include keyword queries, cost per click, click-through rate, vertical search and click fraud.Industry Code
NAICS 519130 - Search Engines in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Search engine advertising is booming. Businesses funnel more marketing dollars into targeted ads thanks to high ROI and precise audience segmentation.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Paid placement ads are a signifier of the overall growth in digital advertising. They are the main revenue drivers for search engines, ensuring ads appear prominently and are...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Silicon Valley's tech ecosystem fuels search engine success. With a wealth of talent, venture capital and innovative startups, California's Silicon Valley remains a hotspot f...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Google dominates the search engine market. Google controls nearly half of industry revenue, making it an unrivaled leader, with smaller engines like Bing, Yahoo and DuckDuckG...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Google dominates the rest of the search industry, representing the majority of all searches. The company’s ad suite is also the largest, with ads displaying on Search, YouTub...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of Alphabet Inc.'s performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Microsoft Corporation's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Verizon Communications Inc.'s performance by revenue, market share and profit margin from 2019 through 2025
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Alphabet Inc., and factors influencing its performance in the industry
- Description and key data for Microsoft Corporation, and factors influencing its performance in the industry
- Description and key data for Verizon Communications Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
E-commerce is boosting search engine demand. With more people shopping online, businesses are increasing their spending on targeted ads, driving higher traffic and revenue fo...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Search engines are heavily investing in patents and AI technologies. Companies like Google’s parent, Alphabet and tech giants Microsoft and Apple have spent billions acquirin...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Search Engines industry in the United States in 2025?
The market size of the Search Engines industry in the United States is $316.8bn in 2025.
How many businesses are there in the Search Engines industry in the United States in 2025?
There are 6,346 businesses in the Search Engines industry in the United States, which has grown at a CAGR of 4.7 % between 2020 and 2025.
How may import tariffs affect the Search Engines industry in the United States?
The Search Engines industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Search Engines industry in the United States?
The Search Engines industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Search Engines industry in the United States grown or declined over the past 5 years?
The market size of the Search Engines industry in the United States has been growing at a CAGR of 9.4 % between 2020 and 2025.
What is the forecast growth of the Search Engines industry in the United States over the next 5 years?
Over the next five years, the Search Engines industry in the United States is expected to grow.
What are the biggest companies in the Search Engines industry in the United States?
The biggest companies operating in the Search Engines industry in the United States are Alphabet Inc., Microsoft Corporation and Verizon Communications Inc.
What does the Search Engines industry in the United States include?
Banner Advertisements and Video Advertisements are part of the Search Engines industry in the United States.
Which companies have the highest market share in the Search Engines industry in the United States?
The company holding the most market share in the Search Engines industry in the United States is Alphabet Inc..
How competitive is the Search Engines industry in the United States?
The level of competition is high and increasing in the Search Engines industry in the United States.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
