USD 215.1 billion
Report ID:
SQMIG45B2028 |
Region:
Global |
Published Date: August, 2024
Pages:
157
|Tables:
96
|Figures:
76
The Global Software as A Service (SaaS) Market size was valued at USD 261.15 Billion in 2022 and is poised to grow from USD 296.93 Billion in 2023 to USD 829.34 Billion by 2031, at a CAGR of 13.7% over the forecast period (2024–2031).
The Software as a Service (SaaS) market is developing due to several factors, such as the increasing need for public and hybrid cloud-based solutions, integration with other tools, and centralized data-driven analytics. The use of cloud services by end-user companies is predicted to propel growth in the SaaS market in the upcoming years. A few of the key industry players emphasize the extra investment they are making to expand their product portfolio. A rising adoption of software solutions, such as virtualization, containerization, and Edge computing, by several industries is complementing the consumption of SaaS services. Furthermore, as large companies build corporate strategies through alliances and collaborative efforts for business development, there will be ample opportunities for market expansion.
Global Market Size
USD 215.1 billion
Largest Segment
Public cloud
Fastest Growth
Private cloud
Growth Rate
19.7% CAGR
To get more reports on the above market click here to Buy The Report
The Global Software as A Service (SaaS) Market is segmented into component, deployment mode, application, enterprise size, and region. By component, the market is bifurcated into software and services. Depending on deployment mode, it is classified into private cloud and hybrid cloud. According to the application, it is categorized into CRM and ERP. As for enterprise-size, the market is divided into small & medium enterprises and large enterprises. Region wise, it is analyzed across North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.
Analysis By Deployment Mode
The private cloud segment has maintained the position of being the largest, with a share of more than 43% in the market in the year 2023. Enterprises can use low latency and high performance by integrating private clouds with network edge SaaS apps, along with increased data sovereignty and security. Private cloud solutions help an organization avoid data breaches, allow for compliance with regulations, and provide better control where their data resides. In general, edge computing and private cloud work together to guarantee the dependability of the platform that provides SaaS applications to contemporary businesses.
The hybrid cloud segment is expected to grow at a high CAGR during the forecast period. There's an increasing trend in the creation of SaaS apps that are industry-specific, such healthcare, banking, and education, because businesses require industry-specific functionality and need to adhere to industry-specific regulatory standards. Companies in these sectors need SaaS that is tailored to their needs and industry-specific specifications, such as hybrid cloud.
Analysis By Component
In 2023, the software segment is the largest one, with over 84% of the market share. SaaS solutions are deployed with strengthening speed, especially in applications enhanced with AI to ensure better business process improvements and analytical data delivery. Businesses' ongoing adoption of digital transformation across all verticals and their emphasis on the efficient use of data for operational efficiency and customer/user comprehension are driving the need for analytical SaaS solutions.
The services segment is expected to grow at the fastest rate throughout the projection period. SaaS service trends are progressively surrounded by security, compliance, and customer experience. Much attention is being paid by SaaS providers to self-service and customer support technologies, including things such as chatbots and online knowledge bases, to be sure of the ability to answer customers in real-time as rapidly as possible.
To get detailed analysis on other segments, Request For Free Sample Report
North America was the first region to adopt artificial intelligence (AI), robotics, cloud computing, and the Internet of Things (IoT), which helped them maintain a sizable global market share for software as a service market. The presence of major SaaS platform suppliers, such as Microsoft Corporation, IBM Corporation, and Oracle Corporation, facilitates the adoption of software as a service application in the region. The market's integration of artificial intelligence (AI) and machine learning (ML) is transforming consumer services in North America.
Asia Pacific is predicted to develop at an exponential rate due to the requirement for better agility and resilience among organizations that are likely to employ cloud solutions. Developed and developing countries in this region, such as China, Japan, and India, have truly contributed to the regional adoption of cloud-driven technology. For instance, in June 2022, Aqua Security Software Ltd., a provider of cloud-based security, announced that most parts of the Asia Pacific region would receive cloud security software as a service. With this introduction, governments, banks, financial services, and other regulated companies in the region would benefit from an integrated compliance solution.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Drivers
Businesses Boosting Market Growth with Hybrid and Public Cloud-based Solutions
System reliability is increasing as public and hybrid cloud-based solutions are employed more frequently in businesses, advancing the new realities brought about by the pandemic. In addition, an increasing number of companies are utilizing hybrid cloud, which mixes on-premises and public cloud services. Many significant companies are supporting and encouraging the usage of cloud-based technologies to drive future market expansion.
Increasing Interest in Smart Device Applications
Growing use of email, instant messaging, and video calls has led to an increase in end-user demand for smart devices and better software-as-a-service (SaaS) industry. In line with the global trend of working from home, SaaS apps facilitate communication from any location. This trend is anticipated to be a key factor in the SaaS market's future growth.
Restraints
Lack of Security for Sensitive Data will Restrain Market Growth
Platforms built on software as a service are used by professionals to store sensitive and secret company data. Business executives have therefore had grave security concerns for a long time. Many companies in the industry have seen that improperly setup software is a serious problem.
Privacy Concerns
Privacy concerns are becoming a major obstacle for the market as more individuals rely on cloud services to store sensitive personal and corporate data. Issues such as data loss, application vulnerabilities, data breaches, unforeseen emergencies, and cyberattacks on the internet are predicted to impede the market's progress.
Request Free Customization of this report to help us to meet your business objectives.
In the fiercely competitive global SaaS market, the leading businesses are fighting for the largest market share. With these resources in place, the companies ensure that their range of products is diverse to protect their competitive position and that they have a sound base from where they can expand. A huge inflow of new businesses is entering the market, altering the scenario and bringing new ideas. Acquisitions, alliances, and strategic partnering are well understood as prominent business growth strategies that can assist organizations in growing their market share and services.
Top Player’s Company Profiles
Google LLC
Alibaba Cloud
Adobe Inc.
IBM
Microsoft
Oracle
Amazon.com, Inc.
Cisco Systems, Inc.
ServiceNow, Inc.
SAP SE
Adaptavist
Tencent Cloud
Equinix
SONATA SOFTWARE LTD
IONOS Cloud Inc.
Recent Developments
In February 2023, Oracle, the globe’s largest cloud provider, revealed financial cloud services. These are a fresh set of integrated and disassembled financial services. Corporate and retail banks can now modernize their banking applications to satisfy customer needs due to Oracle's cloud-based software as a service solution.
In November 2022, IBM Corporation announced the general availability of IBM Z and a new Cloud Modernization Center to rapidly grow its choice of hybrid clouds. This offer shall be used for modernization onto an enterprise-open hybrid cloud architecture by customers looking to bring their applications, processes, and data into the modern age.
In June 2022, HPE GreenLake, the company's flagship product, received platform enhancements and new cloud services from Hewlett Packard Enterprise. It consists of a modern private cloud that has been altered to provide a cloud-native experience to facilitate the hybrid approach of a company. This change should help businesses since their data and applications should get better.
Integrating SaaS Solutions with AI and ML to Fasten Market Development
The integration of technologies such as artificial intelligence (AI) and machine learning (ML) to improve operational intelligence and knowledge across companies has led to a rapid transformation in SaaS solutions. Autonomous technologies in numerous industries help companies enhance products and services by deepening target market insights with data-driven content analysis. Machine learning adds intelligence and operational ability to these systems. As this becomes integral to more and more AI-based solutions, businesses will want to take more control over the training of software. With the increased application of AI and ML, the industry is going to change drastically in terms of updating the essential parts of different software systems. AI/ML capabilities and software as a service solution will achieve security improvement, improvement of human capability, and solution customization and automation.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest Analysis, the growing necessity across various industries is one of the factors behind the growth of the Software as A Service (SaaS) market. SaaS allows enterprises to establish relatively easy and inexpensive models of software program utilization based merely on the internet connection, without the need to build and create specialized infrastructure. Furthermore, new partnerships and joint ventures with IT companies in many industries broaden the market overall and improve the usefulness and allure of SaaS providers' products.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 261.15 Billion |
Market size value in 2031 | USD 829.34 Billion |
Growth Rate | 13.7% |
Base year | 2023 |
Forecast period | 2024–2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
|
Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered | ’s Company Profiles
|
Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Software as a Service (SaaS) Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Software as a Service (SaaS) Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Software as a Service (SaaS) Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Software as a Service (SaaS) Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Our industry expert will work with you to provide you with customized data in a short amount of time.
REQUEST FREE CUSTOMIZATIONGlobal Software as a Service (SaaS) Market size was valued at USD 231.6 billion in 2022 and is poised to grow from USD 286.16 billion in 2023 to USD 1164.76 billion by 2031, growing at a CAGR of 19.18% in the forecast period (2024-2031).
The global market for SaaS is competitive, with the leading players fighting for the largest market share. By using such resources, these companies ensure that they have a strong foundation to base their operations on and that their product offering is diverse to ensure they retain their competitive advantage. Third, there are many emerging players and start-ups entering the market, which brings some new solutions and changes the situation in the market. Strategic partnerships, associations, and acquisitions are regarded as major business models for companies to increase their market share and the range of their services. 'Adobe Inc. (USA) ', 'Microsoft (USA) ', 'Alibaba Cloud (China) ', 'IBM (USA) ', 'Google LLC (USA) ', 'Salesforce, Inc. (USA) ', 'Oracle (USA) ', 'SAP SE (Germany) ', 'Rackspace Technology, Inc. (USA) ', 'IONOS Cloud Inc. (Germany) ', 'Cisco Systems, Inc. (USA) ', 'Adaptavist (UK) ', 'ServiceNow (USA) ', 'Amazon Web Services (AWS) (US) ', 'Tencent Cloud (China) ', 'Hewlett Packard Enterprise (HPE) (USA) ', 'DigitalOcean (USA) ', 'Equinix (USA) ', 'OVHcloud (France) ', 'SONATA SOFTWARE LTD (India)'
The adoption of cloud services by end-use businesses is likely to drive growth in the SaaS industry over the next few years. Some big market players are emphasizing the increase in their investment for a better product portfolio.Additionally, the increasing usage of software solutions like Edge computing, virtualization and containerization across various industries is also contributing to the adoption of SaaS services. This growing trend in the acceptance of new technologies is therefore opening several markets for industry players. AI like cloud computing or big data are other technologies that are also showing growth and are likely to further support the growth of the SaaS industry in the future.
Increasing Demand for Comprehensive Solutions: The growth in the market space is due to the increasing need for an all-encompassing software application for businesses that are facing an array of problems. Today, companies implement SaaS Platform software solutions, which unite various applications, such as customer relationship management (CRM), business intelligence, supply management, and e-Commerce systems. All these solutions can be made as per the requirement of the business where they can be used across a corporate network on different cloud technologies. With the growth of businesses, there is a need to get business-oriented SaaS platforms that suit their official policies, regulations, and procedures. As the usage of mobiles gets escalated in work environments these applications help the employees to attain a higher productivity level. Furthermore, they facilitate interaction, support organizational improvement, and help determine a new market with a potential for capturing value.
In 2023, North America is expected to lead the way with a market share of over 44% of the global market, especially with the U.S. The demand in the market and well-established market players are a significant force driving market growth in the region. Moreover, the availability of developed IT infrastructure also helps in the easy implementation of cloud-based virtual service that also boost North America’s large share in the global SaaS market. The prominent and secure internet servers of the region along with greater investment in cloud infrastructure also keep it in the forefront for the market.
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Report ID: SQMIG45B2028