Everything as a Service Market Size, Share & Industry Analysis, By Type (Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), Security as a Service (SECaaS), Device as a Service (DaaS), UCaaS, StaaS, Technology as a Service, and Others), By Enterprise Size, By End-user (Banking, Financial Services and Insurance (BFSI), Retail & Consumer Goods, Healthcare, IT and Telecommunication, Manufacturing, Travel & Hospitality, and Others) and Regional Forecast, 2022-2029

The global Everything as a Service market size was valued at USD 436.82 billion in 2021 and is projected to grow from USD 545.35 billion in 2022 to USD 2,378.07 billion by 2029, exhibiting a CAGR of 23.4% during the forecast period. Based on our analysis, the global XaaS market exhibited a higher growth rate of 7.4% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with everything as a service experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

The scope of the report includes various everything as a services delivered by market players such as Cisco Systems, Inc., IBM Corporation, Oracle Corporation, Salesforce, Alphabet, Inc. and others. These players offer several services, such as Salesforce and Zoho, as the software as a service platform. Platform as a Service (PaaS) software includes Heroku, Openshift, Google App’s Engine, and others. Infrastructure as a service includes Microsoft Azure, Digital Ocean, Google Compute Engine, and AWS.

The increasing investment in digital transformations to improve business agility and enhance business operational efficiency is expected to witness potential Everything as a Service market growth. According to the IDC report, in 2021, businesses and organizations' global digital transformation spending reached USD 1.49 trillion and is expected to reach USD 1.8 trillion by 2022, increasing by 17.6% compared to 2021. 

Further, the rising adoption of subscription-based platforms to utilize the services and products as per requirement is a driving factor of the global market growth. The demand for subscription-based platforms, such as Netflix, Amazon Prime, and others, has increased astoundingly amid the COVID-19 pandemic. As of 2021, Netflix streaming platform’s subscribers reached around 221.8 million, increasing by 9.9% compared to 2020. Such an increase in the adoption of the SaaS platform subscribers around the globe has propelled the market growth.

COVID-19 IMPACT

Rising Adoption of Digital Technologies During COVID-19 Pandemic to Drive the XaaS Market Growth

COVID-19 pandemic accelerated the demand to adopt advanced technologies such as cloud computing, AI, machine learning, and others. Organizations around the globe have planned to adopt these technologies to meet their digital technology demand. According to the Deloitte Insights report in 2020, the U.S. organizations spent around USD 20 million on everything as a service. Based on our analysis, the global market exhibited a higher growth of 7.4% in 2020 as compared to 2019. In terms of revenue, the market witnessed an increase of USD 349.32 billion in 2020.

Several enterprises around the globe have adopted the XaaS model to digitize their business processes during the COVID-19 pandemic. According to the Deloitte Insights Survey in 2021, around 55% of the respondents in the IT sector have invested in one or more types of XaaS model during the pandemic. Also, around 81% of the professionals have accelerated the adoption of several everything as a service advanced technologies models.

Organizations adopted cloud-based services, such as communication as a services tools, including project management, video conferencing, and various messaging applications. Amid the pandemic, XaaS model option helped the organizations boost business productivity and improve the employee experience.

LATEST TRENDS

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Rising Adoption of IoT as a Service and Artificial Intelligence as a Service is Expected to Augment Market Growth

IoT as a service and artificial intelligence as a service are gaining popularity due to the rising adoption of AI technology and IoT devices. According to the World Economic Forum Organization, in 2020, the IoT connected devices sale reached 26.66 billion and is expected to reach 43.00 billion by 2023. Such an increase in the adoption and sale of IoT devices has created a massive demand for XaaS solutions to manage the data generated through these devices.

Further, enterprises are developing AI-driven and cloud-based services for gaining data-driven valuable insights using natural language processing and machine learning. For instance,

• In May 2021: Alphabet Inc. (Google) launched AI-based, fully managed Vertex AI cloud services. Google launched this Vertex AI, managed AI and cloud-driven platform. This platform service is designed to help companies accelerate the maintenance and deployment of AI models.

Also, AI as a services-based chatbots and virtual assistant to respond to customer queries improves customer service and satisfaction. The rising adoption of AI-based chatbots among organizations is expected to drive the AI as a service market growth.

Further, the rising adoption of intelligent multi-cloud and edge computing services drives the market growth. Enterprises are implementing and investing in these advanced technologies. For instance,

• In July 2021, Lanner, a manufacturer of edge computing products, partnered with Microsoft Corporation to introduce Edge computing to cloud AI-based services and solutions. The partnership aimed to implement the Azure IoT edge computing module in the Lanner AI-based edge appliances.

Such increase in collaborations and partnerships is expected to witness potential demand for these services.

DRIVING FACTORS

Increased Demand for Improved Business Operations and to Enhance Operational Efficiency Drives the Market Growth

Organizations around the globe are rapidly shifting their workloads into cloud-based platforms from the traditional infrastructure. Cloud-based services and solutions help enterprises improve customer engagement and enhance business operations. Cloud-based services, such as software and platform, provide enterprises to improve workforce efficiency, reduce overall costs, and offer better support and maintenance. For instance,

• In August 2021, Baxter International Inc., a medical devices manufacturer, collaborated with Amazon Web Services to drive the digital transformation using cloud technology solutions. The company shifted its traditional data centers to the AWS cloud to modernize its business for customers, clinicians, patients, and employees. Further, the company leveraged the AWS cloud services to provide digital healthcare solutions and services for its patients and customers.

Such rising shifting and adoption of various cloud-based services for improving customer experience and modernizing the business operations are driving the global Everything as a Service market growth.

Increasing Adoption of the Subscription-Based Pricing Model to Boost Market Growth

Consumers prefer to pay for subscription-based services as they can be used as per the requirement for owning advanced technologies and solutions. The subscription-based service's pricing offers flexibility to users in selecting proper technologies and services. Subscription-based services allow customers to invest in several IT funds as operational expenditures.

Everything as a service is used to reduce operational costs by purchasing on-demand subscription-based services. This service helps to monitor customers' usage and enhances the customer experience. Enterprises, such as Amazon.com., Netflix, Inc., Apple, Inc., and Spotify, offer SaaS platforms on a subscription basis. This platform improves customer’s loyalty and engagement.

RESTRAINING FACTORS

Increasing Data Security Concerns is Likely to Hamper the Market Growth

The increasing creation of large amounts of data has resulted in cyber-attacks, data breaches, data loss, and several thefts. The number of cyberattacks on cloud-based services more than quadrupled in 2019, according to the Trustwave Global Security Report in 2020. Further, according to Cybertech Europe 2022, the global cyber-attack cost reached USD 6 trillion in 2021. As a result of the rise in cybercrime in cloud services, the market's development is anticipated to be hindered.

Increasing data breaches and data loss activities caused by a lack of qualified professionals to handle these threats across companies hindered the market growth. Furthermore, a lack of understanding among employees about data security and safety leads to data loss and theft, which is projected to limit the market growth.

SEGMENTATION

By Type Analysis

Rising Adoption of the SaaS Platforms by the Leading Banks Drives the Market Growth

The report scope includes Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), Cybersecurity as a Service, Hardware as a Service (HaaS), Technologies as a Service (AI as a Service, Edge Computing as a Service, IoT as a Service), and others based on type.

Software as a service has the largest share owing to the surge in the adoption of these platforms among IT, telecom, and BFSI sector enterprises. For instance,

• In January 2022, Union Bank of the Philippines adopted a SaaS-based digital banking platform by partnering with Infosys and AWS for Finacle Digital Banking Suite.

Storage as a service is expected to grow with the highest CAGR during the forecast period. This is primarily attributed to the surge in the number of internet user traffic, rapid adoption of cloud services, and rising volumes of data generation among enterprises. According to the IDC Report, in 2020, the global overall data volume generation reached 64 zettabytes and is expected to reach 175 zettabyte by 2025. Such an increase in the data volume is primarily attributed to the rising number of internet users surge in the use of social media and entertainment platforms such as Facebook, Twitter, Netflix, and others.

Further, in technologies as a service, AI as a service is expected to grow with the highest CAGR during the forecast period. This is owing to the rising adoption of AI technology and rising demand for AI-based services and application programming interfaces across small & medium enterprises.

By Enterprise Size Analysis

Rising Cloud Services Investment by Large Enterprises Globally is Expected to Drive the Market Growth

The Everything as a Service market scope includes small and medium-sized enterprise and large enterprise based on enterprise size. Large enterprises are expected to have the largest global market share. This is owing to the rising adoption of cloud-based SaaS, PaaS, and IaaS platforms by the leading players. Large enterprises have the highest spending on cloud services adoption owing to its benefits such as storage availability and easy access to remote workers. According to RightScale's Cloud Report in 2019, around 91% of large-scale businesses have used public cloud services globally, whereas around 72% of enterprises have used private cloud services. The cloud services include software as a service, platform as a service, and infrastructure as a service.

According to the Startup Rankings, the U.S. has more than 71,153 digital startups, owing to rising IT industry development. These small and medium startups use XaaS for cost savings to improve productivity and to build a stronger relationship with their customers.

By End-user Analysis

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Rising Adoption and Investment in SaaS Platforms by Banks for Digital Transformation Aids the Market Growth

Based on end-user, the market is classified into banking and financial services and insurance (BFSI), retail & consumer goods, healthcare, IT and telecommunication, manufacturing, travel & hospitality, and others (education, government, energy & utilities).

Banking, financial services and insurance companies adopt advanced digital technologies to acquire new customers and provide better banking services. These advanced technologies include SaaS, PaaS, and many other services that help to generate higher revenues and increase productivity. For instance, in January 2022, Union Bank of the Philippines adopted a SaaS-based digital banking platform by partnering with Infosys and AWS for Finacle Digital Banking Suite. UnionBank collaborated with Amazon Web Services (AWS) Partner Infosys Finacle. The bank has shifted its key banking platform from on-premises to the Finacle Digital Banking Solution Suite on Cloud, a Software as a Service offering (SaaS).

Healthcare end-users are expected to grow with the highest CAGR during 2022-2029. This is primarily attributed to the rising adoption of XaaS in the healthcare sector for remote patient monitoring, treatment, and diagnosis. For instance, in 2020, Huawei Cloud offered everything as services, such as the SaaS platform, to Argentina-based Sociedad Argentina de Emergencias (SAE), the healthcare organization. SAE shifted its core digital systems, such as remote treatment & diagnosis of patients’, drug management, medical data, and ambulance scheduling, through Huawei Cloud.

REGIONAL INSIGHTS

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In terms of geography, the Everything as a Service market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is expected to have a significant global market share during the forecast period. This is primarily attributed to the rising early deployment of SaaS-based software and increasing investment in cloud services by the key players. Key players, such as Amazon Web Services, Alphabet, Inc., IBM Corporation, Microsoft Corporation, and others, in this region are investing in cloud computing.  

Further, increasing deployment and rising adoption of cloud services among the enterprises in the U.S. have propelled the global market growth. According to Deloitte’s Everything as a Service Study in the U.S., 2021, 55% of the IT professionals reported that COVID-19 pandemic caused the organizations to invest in more than one everything as a service than previously planned. Such adoption of XaaS services by the enterprises in the U.S. has propelled the market growth.

Europe is increasing with moderate CAGR during the forecast period. This is primarily attributed to rising cloud computing adoption and surging adoption of advanced technologies in Europe. According to the European Commission Organization, in 2021, around 41% of enterprises adopted cloud computing services for storing various files.

Further, Spain, the U.K., and Germany are growing with moderate CAGR during the forecast period. This is primarily attributed to rising cloud investment by leading players, such as Microsoft Corporation, IBM Corporation, and others, in cloud-based data centers in Europe.

Asia Pacific is expected to grow with a remarkable CAGR during the forecast period. This is primarily attributed to rising cloud infrastructure investment by prominent players in this region that drives the market growth. For instance, in June 2021, Alibaba Group invested around USD 1 billion for cloud infrastructure deployment in Asia Pacific. The Alibaba Cloud aimed to establish new data centers across Malaysia and the Philippines.

Such rising investment by prominent players with a surge in the adoption of cloud services across this region drives the market growth.

The Middle East & Africa is expected to grow moderately during the forecast period. This is primarily attributed to the rising adoption of everything as a service platform across the BFSI sectors in MEA. For instance,

• In July 2021: Temenos banking software firm launched its cloud-native Transact SaaS platform for the Orange Bank Africa. This core banking platform supports the bank in launching and providing financial services. This Temenos cloud computing technology provides long-term, sustainable growth for Orange Bank Africa. It helps to reduce IT operational costs, remove the complexity, and deliver an improved cost.

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South America is expected to witness steady growth during the forecast period. Rising investment for the digital transformation across South American countries, such as Brazil and Argentina, is driving the global XaaS market size. For instance, in April 2021, the Inter-American Development Bank (IDB) provided around USD 1 billion of funding to Brazil to adopt the digital transformation strategy. The investment is made to adopt advanced technologies such as cloud computing, AI, and machine learning.

KEY INDUSTRY PLAYERS

Market Players are Involved in Strategic Partnerships and Collaborations to Expand Business 

The leading players in the market are focusing on collaborations, partnerships, product innovation, and expansion of the market presence globally. The key players in the market include IBM Corporation, Microsoft Corporation, Avaya Inc., Oracle Corporation, McAfee LLC., Cisco Systems Inc., Alphabet, Inc, and others developing SaaS-based innovative applications. For instance,

December 2021: AWS Cloud WAN was launched by Amazon Inc. It is a wide area network (WAN) service that enables enterprises to manage a combined global network. Additionally, AWS Cloud WAN connects on-premises branch offices, data centers, and Amazon Virtual Private Clouds, providing a unified dashboard for the organizations through the AWS global network.

October 2021: Avaya Inc., made a partnership with Infoline, Oman Telecommunication provider, to improve customer experience with the help of Avaya’s OneCloud Contact Center as a Service (CCaaS). The partnership provided a cloud-based solution to help customers with various applications into a single platform for developing personalized experiences for Infoline.

August 2020: Arista Networks introduced a SaaS-based cloud vision platform. The company aimed to expand this CloudVision platform on the on-premises and cloud deployments. The company’s CloudVision software as a service platform helps automate network spanning in the cloud to facilitate a continuous customer network.

List of Key Companies Profiled:

• SAP SE (Germany)


• Microsoft Corporation (U.S.)


• Oracle Corporation (U.S.)


• Salesforce Inc. (U.S.)


• Adobe, Inc. (U.S.)


• IBM Corporation (U.S.)


• Cisco Systems, Inc. (U.S.)


• Alphabet Inc. (U.S.)


• Amazon.com, Inc. (U.S.)


• Alibaba Group Holding Limited (China)

KEY INDUSTRY DEVELOPMENTS:

• April 2022: Cisco Systems, Inc. and Telenor Group, a telecommunications company, signed a joint purpose agreement for delivering secure and flexible services. This agreement consists of a cybersecurity as a service solution for enterprises, clients, and users. It helps to address privacy concerns such as cyber security, data breaches for businesses, and digital transformation.


• April 2022: Amazon Inc. launched an updated version, Amazon Aurora Serverless v2. It can support enterprises with numerous applications that have to manage capacity across their entire databases as well as software as a service vendor. It offers to pay as you use services and has no additional costs.


• April 2022: Adobe Inc. introduced Frame.io for Adobe Creative Cloud (SaaS platform) and updated it to After Effects and Premiere Pro. Frame.io is a video collaboration platform that allows video editors and key project stakeholders to collaborate seamlessly in the cloud, including clients, agencies, and producers.


• September 2021: Oracle Corporation launched a SaaS payroll service for Intergovernmental and Non-Governmental Organizations (IGOs and NGOs). This navigates complex pay rules and policies to efficiently pay any employee anywhere in any currency. This payroll service is a part of Oracle Fusion Cloud Human Capital Management (HCM).

REPORT COVERAGE

An Infographic Representation of Everything-as-a-Service (XaaS) Market

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The Everything as a Service market report highlights the leading regions worldwide to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge of the market.

REPORT SCOPE & SEGMENTATION