Although the United States is the undisputed leader when it comes to technological innovation, a number of Australian companies are certainly making their mark in the world of technology.
Three exciting tech companies that I think are definitely worth considering as long-term investments are listed below. Here's why I like them:
Altium Limited (ASX: ALU)
Altium is an award-winning printed circuit board (PCB) design software provider which has over 30 years of continuous research and development in PCB design. It is aiming to use this experience to achieve market leadership in PCB design by 2020. I feel confident that the company will achieve this, putting it in a strong position to generate above-average earnings growth over the next few years. In addition to this, I think the company's Octopart business has the potential to contribute strongly to its earnings growth over the next decade. Octopart is a search engine for electronic and industrial parts and has a significant market opportunity.
Appen Ltd (ASX: APX)
Another tech share which I think has outstanding long-term growth potential is Appen. It is a global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. Management estimates that the AI market will grow to be worth between US$169 billion and US$191 billion per annum by 2025. As around 10% of this market is estimated to be related to data labelling that Appen is a leader in, it means the company's target market is expected to grow materially to between US$17 billion and US$19 billion over the next six years. If the company can maintain its leadership position then I expect it to lead to above-average profit growth for a long time to come.
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a leading provider of software products and services to the wealth management and funds administration industries. The lead product in its portfolio is the Sonata wealth management platform. Demand for Sonata has been growing at a very strong rate over the last few years and has underpinned strong earnings growth. Due to the quality of the product and its large market opportunity, I expect this to remain the case for many more years to come. This could make Bravura Solutions a great long-term investment.
