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

Global 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.