Everything as a Service Market Size, Share & COVID-19 Impact Analysis, By Type (Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service, Security as a Service (SECaaS), Device as a Service (DaaS), Unified Communications as a Service, Storage as a Service, Technology as a Service, and Others), By Enterprise Type (Small and Mid-sized Enterprises (SMEs) and Large Enterprises), By Industry (BFSI, Retail & Consumer Goods, Healthcare, IT and Telecommunication, Manufacturing & Hospitality, and Others) and Regional Forecast, 2023-2030

The global Everything as a Service Market size was valued at USD 559.14 billion in 2022 and is projected to grow from USD 699.79 billion in 2023 to USD 3,221.96 billion by 2030, exhibiting a CAGR of 24.4% during the forecast period.

The scope of the report includes various everything as a service (XaaS) platforms 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 transformation to improve business agility and enhance business operational efficiency is expected to aid 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.

Furthermore, the rising adoption of subscription-based platforms to utilize the services and products as per requirement is a driving factor of the global Everything as a Service 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 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.

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 AI as a Service to Augment Everything as a Service Market Share

Due to the rising use of artificial intelligence (AI) technology and IoT devices, IoT as a service and AI as a service are gaining popularity. The World Economic Forum estimates that the sale of IoT-connected devices will reach USD 75 billion by 2025, up from USD 43 billion in 2022. Thus, the demand for XaaS solutions to manage the data generated by IoT devices has skyrocketed as a result of this surge in their adoption and sale.

Furthermore, 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.

Furthermore, 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

Increasing Demand for Improved Business Operations and Better 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 rapid adoption of various cloud-based services for modernizing business operations and improving customer experience are driving global market growth.

RESTRAINING FACTORS

Increasing Data Security Concerns to Hamper Market Growth

The increasing creation of large amounts of data has resulted in cyber-attacks, data breaches, data loss, and several thefts. The global cost of cyber-attacks reached USD 6 trillion in 2021, according to Cybertech Europe 2022. Thus, the market growth is anticipated to be hindered, as a result of the rise in cybercrime in cloud services.

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 market growth.

SEGMENTATION

By Type Analysis

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

The report scope includes Software as a Service (SaaS), Infrastructure as a Service (IaaS), Platform as a Service (PaaS), 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 (Analytics as a Service, etc.) 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 internet user traffic, rapid adoption of cloud services, and rising volumes of data generation among enterprises. IDC’s Global DataSphere Report, in 2022, expects that the data volume will grow at a compound annual growth rate (CAGR) of 21.2% to reach more than 221,000 exabytes (an exabyte is 1,000 petabytes) by 2026. 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.

Furthermore, 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 & mid-sized enterprises.

By Enterprise Type Analysis

Rising Cloud Services Investment by Large Enterprises Globally to Drive Segment Growth

The market scope includes small and mid-sized enterprises (SMEs) and large enterprises, based on enterprise type. 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. The cloud services include software as a service, platform as a service, and infrastructure as a service.

Due to the expanding IT industry, U.S. has more than 71,153 digital startups, according to the Startup Rankings. These small and medium-sized startups use XaaS to save money, increase productivity, and strengthen their relationships with customers.

By Industry Analysis

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

Based on industry, 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, etc.).

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 sector for this market is 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 June 2022, OutPatientPro and HiTech Health Solutions, a healthcare software company based in Alabama, have announced the formal launch of a joint venture. This will provide the office-based lab, acute care, and ambulatory surgical markets, with a cloud-based SaaS applications designed to address the healthcare industry's current challenges.  

REGIONAL ANALYSIS

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The global market scope is classified across five regions, namely North America, South America, Europe, Middle East & Africa, and Asia Pacific.

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. 

Furthermore, rising deployment and increasing adoption of cloud services among the enterprises in the U.S. have propelled the global XaaS market growth

Many industry experts suggest that, over 50% of the IT professionals had invested in more than one everything as a service, as compared to their organizations’ pre-pandemic plans. Such adoption of XaaS services by the enterprises in the U.S. has propelled the market growth.

Europe market 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. Furthermore, Spain, e 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 market is anticipated to expand at a remarkable CAGR between 2023 and 2030. The market's expansion is fueled by rising investments in cloud infrastructure made by prominent players in this region. For instance, Alibaba Group invested nearly USD 1 billion for cloud infrastructure deployment in Asia Pacific, in June 2021. 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,

• October 2022: Oracle Corporation introduced Oracle Alloy, a cloud infrastructure platform that lets businesses use their own data centers and hardware to build and deploy custom cloud services. Oracle Cloud Infrastructure (OCI), the vendor's portfolio of SaaS, PaaS, IaaS and other cloud services, serves as the foundation for the Alloy platform.


• 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.

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

• March 2023 – Fulcrum IT Partners, a global provider of technology services and sales, acquired Advizex, a technology solutions company. The acquisition was intended to expand Fulcrum IT Partners’ business in North America, with everything as a service portfolio.


• February 2023 – Akamai Technologies, Inc. announced the launch of Akamai Connected Cloud, which is a hugely distributed cloud and edge platform for security, content delivery, and cloud computing. Developers can now run, secure, and build highly efficient workloads closer to where businesses and users connect online with the help of new strategic cloud computing services from Akamai.


• September 2022 – NVIDIA launched OmniverseTM Cloud, an infrastructure- and software-as-a-service offering. With this wide-ranging suite of cloud services, developers and business teams can publish, design, and operate metaverse applications from anywhere.


• 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 – 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 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