The Global Software as a Service Market size is expected to grow from USD 95.28 billion in 2022 to USD 363.03 billion by 2030, at a CAGR of 18.2% during the forecast period (2023-2030).
SaaS is a method of distributing software in which a cloud service provider hosts the applications and makes them accessible to customers online. In this model, an independent software vendor (ISV) can make a deal with a different cloud service provider to host the application. Larger companies like Microsoft may also be the software vendor in addition to being the cloud provider. SaaS, along with platform as a service and infrastructure as a service (IaaS), is one of the three main cloud computing categories (PaaS). Numerous IT experts, business users, and regular users all use SaaS applications. Products range from consumer electronics to cutting-edge IT tools like Netflix. SaaS products are frequently marketed to both B2B and B2C users, unlike IaaS and PaaS. SaaS applications use multitenant architecture to separate customer data.
Top Key Players Covered In The Software as a Service Market:
- Avaya Inc. (U.S.)
- Hewlett Packard Enterprise Development LP (U.S.)
- IBM Corporation (U.S.)
- Epicor Software Corporation (U.S.)
- SAP SE (Germany)
- Microsoft Corporation (U.S.)
- Accenture Plc. (Ireland)
- Google LLC (U.S.)
- Infor (U.S.)
- Tata Consultancy Services (India)
- SYSPRO (South Africa)
- GitLab, Inc. (U.S.)
- Oracle Corporation (U.S.)
- Cisco Systems Inc (U.S.)
- Salesforce.com Inc. (U.S.) and Other Major Players.
Market Dynamics and Factors:
An Increase in the adoption by large SMEs to streamline business processes is driving the Software as a Service Market. This is attributed to the increase in the adoption of SaaS platforms by enterprises to gain strategic and a competitive advantage over their competitors. Customers use the SaaS Platform to discover new insights on large-scale diverse data, including historical and recent data. This technology is suitable for running algorithms and analysis across a large set of data to find relevant relationships, entities, and insights. Furthermore, the SaaS platform continues to become mainstream as more large enterprises are considering the extraction capabilities for getting valuable insights from big data, which is opportunistic for the SaaS market growth.
Adoption of AI and ML across most of the industry verticals is expected to drive the Software as a Service Market in the future. Through the use of AI and machine learning, companies gather data on how customers perceive their brand. This might include using AI to scan through social media posts, reviews, and ratings that mention the brand. The insights gained from this analysis allow companies to identify opportunities for improvement.
Software as a Service Market Report Highlight:
- By deployment, the hybrid cloud segment is anticipated to lead the growth of the Software as a Service Market in the forecasted timeframe. Due to the rising adoption of hybrid cloud across governments, public sector organizations, banking and financial institutions, and others.
- By Applications, the Customer Relationship Management segment is expected to have the highest share of the Software as a Service Market over the projected period. Due to increasing demand in the market by allowing different organizations to manage their contacts, streamline processes, manage teams, develop sales pipelines, keep an eye on agreements, and cultivate relationships with both current and potential customers.
- By end-use Industry, the retail segment is set to develop at the highest CAGR during the forecasted timeframe. Increasing adoption of various marketing tools such as online advertising, search engine optimization (SEO), and social media marketing by using public cloud services driving the market
- The North American region is expected to have the highest share of the Software as a Service Market over the projected period. Due to the presence of key players in the region owing to early adoption of technologies such as AI, IoT, robotics, and cloud. The presence of key SaaS platform providers, such as IBM Corporation, Oracle Corporation, and Microsoft Corporation.
Key Industry Development:
- In February 2022, In order to assist clients in adopting a hybrid cloud strategy and moving mission-critical workloads from SAP® solutions to the cloud in both regulated and unregulated industries, IBM and SAP announced a partnership.
Software as a Service Market Segmentation:
By Deployment
- Public Cloud
- Private Cloud
- Hybrid Cloud
By Applications
- Customer Relationship Management
- Web conferencing
- Supply Chain Management
- Business Intelligence
- Enterprise Resource Planning
- Others
By End Use Industry
- BFSI
- Retail
- Government
- Telecom
- Manufacturing
- Others
For this report, Introspective Market Research has segmented the Software as a Service Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2022-2028)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
