"Smart Strategies, Giving Speed to your Growth Trajectory"
The 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%. North America dominated the global market with a share of 50.45% in 2022.
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.
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.
Request a Free sample to learn more about this report.
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,
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,
Such increase in collaborations and partnerships is expected to witness potential demand for these services.
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,
Such rapid adoption of various cloud-based services for modernizing business operations and improving customer experience are driving global market growth.
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.
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,
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.
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.
To know how our report can help streamline your business, Speak to Analyst
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.
North America Everything as a Service Market Size, 2022 (USD billion)
To get more information on the regional analysis of this market, Request a Free sample
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,
To know how our report can help streamline your business, Speak to Analyst
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.
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,
An Infographic Representation of Everything-as-a-Service (XaaS) Market
To get information on various segments, share your queries with us
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.
CAGR of 24.4% from 2023 to 2030
Value (USD billion)
Type, Enterprise Type, Industry, and Region
By Enterprise Type
Fortune Business Insights says that the market was valued at USD 559.14 billion in 2022.
Fortune Business Insights says that the market is expected to reach USD 3,221.96 billion in 2030.
Growth of 24.4% CAGR will be observed in the market during the forecast period (2023-2030)
Software as a Service (SaaS) is likely to lead in the market.
Increased demand for improved operational efficiency and business agility is the key factor driving the market growth.
Some of the top players in the market are Amazon.com Inc., Oracle Corporation, Alphabet Inc., SAP SE, Microsoft Corporation, among others.
Asia Pacific is expected to grow with a remarkable CAGR.
Increasing Data Security Concerns is Likely to Hamper the Market Growth.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry