USD 215.1 billion
Software as a Service (SaaS) Market Size, Share, Growth Analysis, By Component(Software, Service), By Enterprise size(Small & Medium Enterprises, Large Enterprises), By Deployment(Public Cloud, Private Cloud, Hybrid Cloud), By Application(CRM and ERP), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45B2028 |
Region:
Global |
Published Date: August, 2024
Pages:
157
|Tables:
96
|Figures:
76
Software as a Service (SaaS) Market Insights
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.
Market Snapshot - 2024–2031
Global Market Size
Largest Segment
Public cloud
Fastest Growth
Private cloud
Growth Rate
19.7% CAGR
Global Software As A Service (SaaS) Market ($ Bn)
Country Share for North America Region (%)
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Software as a Service (SaaS) Market Segmental Analysis
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.
Global Software As A Service (SaaS) Market Size By Deployment Mode
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Software as a Service (SaaS) Market Regional Insights
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.
Global Software As A Service (SaaS) Market Size By Geography
- Largest
- Fastest
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Software as a Service (SaaS) Market Dynamics
Drivers
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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.
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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
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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.
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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.
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Software as a Service (SaaS) Market Competitive Landscape
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
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Google LLC
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Alibaba Cloud
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Adobe Inc.
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IBM
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Microsoft
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Oracle
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Amazon.com, Inc.
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Cisco Systems, Inc.
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ServiceNow, Inc.
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SAP SE
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Adaptavist
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Tencent Cloud
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Equinix
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SONATA SOFTWARE LTD
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IONOS Cloud Inc.
Recent Developments
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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.
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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.
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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.
Software as a Service (SaaS) Key Market Trends
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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.
Software as a Service (SaaS) Market SkyQuest Analysis
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.
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Software as a Service (SaaS) Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Software as a Service (SaaS) Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
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.
Analyst Support
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.
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