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Software as a Service (SaaS) Market Size, Share & COVID-19 Impact Analysis, By Deployment Type (Public Cloud, Private Cloud, and Hybrid Cloud), By Application (Customer Relationship Management, Enterprise Resource Planning, Content, Collaboration & Communication, Business Intelligence & Analytics, Human Capital Management, and Others), By Industry (BFSI, Retail & Consumer Goods, Healthcare, Education, Manufacturing, Travel & Hospitality, and Others) and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI102222



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The global software as a service (SaaS) market size was USD 113.82 billion in 2020. The market is expected to grow from USD 130.69 billion in 2021 to USD 716.52 billion in 2028 at a CAGR of 27.5% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. In the scope of the study, we have included solutions offered by Microsoft Azure by Microsoft Corporation, AWS SaaS by Amazon.com, Inc., SaaS Cloud Solutions by Logicworks, Cloud Solutions by Micro Focus, Google Cloud by Google LLC, and others. The impact of COVID-19 in the market has declined, with cloud services witnessing a weakening demand across the region during the pandemic. Based on our research, the global market exhibited a substantial growth of 11.0% in 2020, as compared to the average year-on-year growth during 2017-2019.

Software as a Service is considered as one of the key components of cloud computing. Organizations deploy the SaaS model across various applications such as conferencing, salesforce automation, customer relationship management (CRM), web content management, and others. With the rising demand for software as a service across these applications, the market is expected to grow at a substantial growth rate. For instance,

  • In June 2021, Kylas launched an Enterprise-Grade SaaS CRM Product for the Indian market.

Additionally, the key players in the market are focused on completing various business strategies such as partnership and collaboration, to advance their cloud services and expand their business geography globally. For instance,

  • In June 2021, Salesforce.com, Inc. and Amazon Web Services, Inc. (AWS) completed a strategic partnership. This partnership assists to deploy an advanced business application that accelerates digital transformation and growth in the SaaS cloud services.

COVID-19 Impact

Increasing Demand for Cloud-based Solutions during Pandemic Aid Market Growth

Considering various preliminary indicators from the post-covid-19, a slight drop is witnessed in the overall demand for software as a service services across various industries. Government and enterprises across numerous sectors are widely dependent on IT-related solutions and services. Public cloud demand increased during pandemics owing to change in the work strategy of organizations worldwide. Also, with the rising number of startups across industries such as healthcare, retail, and others, the demand for public cloud increased during the pandemic. For Instance,

  • In April 2020, According to Gartner, the public cloud revenue would grow from USD 116.00 billion in 2020 to reach USD 133.00 billion in 2021, at a growth rate of 17%.

  • In March 2020, in Italy, Microsoft Corporation observed an increase of around 775% in applications such as Microsoft team, windows virtual desktop, Power BI, and others. These applications are based on a cloud service platform. The company also reported a significant increase of around 44 million users in Teams on daily basis.

Governments and private enterprises have adopted the ‘work from home strategy’ in many countries. This has resulted in an escalated the demand for SaaS-based collaboration tools such as conferencing SaaS, cloud telephony, and others. For instance,

  • According to a report by Spiceworks Ziff Davis, almost 64% of enterprises allowed remote work and more than half of corporations plan to retain their setup even after the pandemic; thus cloud and management service spending are expected to rise in 2021.

The increasing demand for software as a service application has created various market opportunities for cloud vendors to expand their business amid pandemics.


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Integration of Artificial Intelligence (AI) Aid to Advance Productivity and Security

The rising adoption of artificial intelligence (AI) across industries such as healthcare, BFSI, and others, is considered as one of the emerging trends. Major players across the software as a service market are integrating AI technology with the cloud to assist users to manage work by offering advanced security services.

The advancement of big data diagnostics techniques, integrated with AI and cloud services across the healthcare system, is driving the demand for SaaS. Integration of AI in SaaS would help the organization to improve database management, data security, and overall productivity.

AI-powered SaaS tools provide customized and automated services through live chatbot, which is anticipated to help in communication and understand the customer's services. Key players in the market are focused on launching advanced SaaS offerings based on AI platforms, to expand its business worldwide. For Instance,

  • In January 2021, Easy To Pitch Networks Pvt. Ltd. launched an AI-backed SaaS platform. This platform is enabled with the dashboard where entrepreneurs from all around the world may log in and find the guidance they need with their investment demands.


Rising Investment in Cloud Services by Key Players Aid Market Growth

The increasing investment by end-use enterprises on the cloud-based solution is likely to augment the growth of the software as a service market in the upcoming years. According to a report by Gartner, end uses spending for cloud application services is expected to reach around USD 102.80 billion in 2020. Key players in this market are focused on increasing their investment to advanced their product portfolio. For Instance,

  • In September 2020, Accenture Plc invested around USD 3.00 billion and launched “Cloud First”. This investment assisted users to gain access to Cloud-First across various industries and accelerate their digital transformation to generate greater value at speed and scale.

Additionally, the emerging technologies such as containerization, virtualization, edge computing, and others, are increasingly adopted across end-use industries. The rising adoption of these technologies will drive the demand for SaaS services and create various market opportunities for players.

Moreover, the growing advancement in technologies such as AI, cloud, big data, and others, is predictable to boost the demand and bolster the software as a service market growth.


Data Privacy and Information Security Might Hamper Growth

Users deploy cloud services to save confidential information and data about their business and personal activities. However, privacy and security apprehensions related to data loss, application vulnerabilities, data breaches, unforeseen emergencies, and internet cyber-attacks are expected to hamper the growth of the market. Security is a major concern for numerous small and medium enterprises.

  • For Instance, In July 2021, "colossal" ransomware attack damaged almost 1,500 organizations around the world businesses. The majority of the impacted enterprises are small and medium companies, such as dental offices, car dealers, libraries, schools, and grocery stores


By Deployment Type Analysis

Increasing Demand for SaaS Across SME’s to Boost Public Cloud Growth

Based on the deployment type, the market has been bifurcated into public cloud, private cloud, and hybrid cloud.

Amongst them, the public cloud is predicted to capture the key share during the forecast period. The market growth in the public cloud is owing to the increasing adoption of cloud services across SME’s. The rising number of startups will boost the demand for customized public cloud services. According to the Cardconnect report, in 2020, around 15,529 companies are operating in the SaaS market worldwide.

The hybrid cloud is expected to grow at the highest compound annual growth rate during the forecast period (2021-2028). Industries such as healthcare, BFSI, and government, that prioritize compliance, security, and user experience, mostly deploy the hybrid cloud services. Prominent players in the market are working on expanding their hybrid cloud services.

By Application Analysis

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Rising Demand for Customer Relationship Management to Boost Segment Growth

Based on the application, the market has been bifurcated into customer relationship management (CRM), enterprise resource planning (ERP), content, collaboration & communication, BI & analytics, human capital management, and others.

The CRM is expected to grow at a considerable growth rate during the prediction period (2021-2028). According to Nasscom's 2020 study, CRM is one of the fastest-growing application in India. SaaS CRM is deployed across organizations to manage their contacts (leads, prospects, and customers), team management, simplify processes, monitor agreements, develop sales pipelines, build relationships with potential and current customers, and others.

  • For Instance, In June 2021, According to kapture, organizations are adopting CRM SaaS at a faster rate since they are spending extensively on intelligent support automation rather than just seeking customer care systems.

By Industry Analysis

Adoption of Marketing Tools across Industries such as BFSI and Retail to Boost Growth

Based on the industry, the market has been bifurcated into BFSI, retail and consumer goods, healthcare, education, manufacturing, travel & hospitality, and others.

Among the segments, BFSI is estimated to hold the major share during the study period. Retail and consumer goods accounted for a considerable market share, owing to the increasing adoption of marketing tools based on this platform. The increasing number of marketing tools such as online advertising, social media, search engine optimization (SEO), and others, will boost the adoption of public cloud services. According to ProfitWell, 2020, there are around 8,500 marketing tools based on this platform.

Healthcare is among the highest growing industry during the anticipated period. The growth in healthcare is mainly owing to the adoption of cloud-based applications in healthcare such as EMR (electronic medical record), telehealth, EHR (electronic health record), and others.


North America Software as a service (SaaS) Market Size, 2020 (USD billion)

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Geographically, the market is segmented across five major regions: North America, South America, the Middle East & Africa, Asia Pacific, and Europe.

North America is predicted to grow with a substantial CAGR during the projection period (2021-2028). End-users across industries such as healthcare, retail & consumer goods, and others, in the region are highly investing to adopt cloud-based SaaS. Also, countries such as the United States and Canada have major providers such as IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce, Inc., and others. Players in the market are involved in mergers and partnerships with technology providers to strengthen their product offerings and escalate the client base. For instance,

  •  In June 2021, Microsoft Corporation and Morgan Stanley announced a strategic cloud partnership. This partnership focused on digital transformation and influencing the future of financial services innovation. Also, the teams will collaborate on improving the subsequent adoption of a fully integrated cloud SaaS-based environment.

Asia Pacific is expected to have the highest CAGR during the forecast period (2021-2028). Large enterprises in nations such as China, India, Japan, Australia, and others are growing their venture capital investments to adopt these service platforms.

Europe is expected to grow with a substantial growth rate. The growth in the region is owing to the increasing adoption of cloud tools such as project management, inventory management, office collaboration, and sales tracking. The U.K. and Germany are amongst the leading countries in adopting the SaaS.

The South American market is expected to grow at a significant CARG during the study period. The growth in the market is owing to increasing investment by local governments and players in the market. The major players are seeking to expand their footprint across developing nations such as Caribbean countries, Argentina, and others.

The market size and forecast in the Middle East and Africa is in the developing phase, owing to an increasing number of start-ups and domestic players in developing countries such as South Africa, Israel, GCC, and others. These countries are investing in the advancement of SaaS-based cloud services.


Prominence towards Innovative SaaS Solutions by Key Players to Strengthen Competition

Microsoft Corporation, Adobe Inc., Oracle Corporation, IBM Corporation, Salesforce.com Inc., SAP SE, Amazon, and others are the prominent players in this market, globally. They collectively control more than half of the market. The analysis of key market share for these companies is owed to their expansion in the field of cloud technologies integrated with artificial intelligence (AI), IoT, and others. Market players are concentrated on completing various business approaches to advance SaaS offerings. For Instance,

  • In May 2021, IBM Corporation launched the Software as a Service version, Cloud Pak for Security. This platform is launched to make deploying a zero-trust architecture throughout the workplace easier. In addition, the firm announced a partnership with Zscaler, a cloud, and network security provider, as well as blueprints for typical zero trust use cases.

List of the Key Companies Profiled:


  • July 2021: Tata Consultancy Services (TCS) launched Jile 5.0, an updated version of SaaS-based corporate agile application. This solution helps businesses to cater to large-scale development needs across numerous remote teams.

  • May 2021: SAP SE and IBM Corporation completed strategic partnership to develop SaaS architecture. This transition assists users and organizations to operate their business much at ease, more cost-effective, and flexible.


An Infographic Representation of Software as a Service (SaaS) Market

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The global software as a service market research report includes a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading product applications. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope and Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD billion)


Deployment Type, Application, Industry and Region

By Deployment Type

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

By Application

  • Customer Relationship Management (CRM)

  • Enterprise Resource planning (ERP)

  • Content, Collaboration & Communication

  • BI & Analytics

  • Human Capital Management

  • Others

By Industry

  • Banking, Financial Services and Insurance (BFSI)

  • Retail and Consumer goods

  • Healthcare

  • Education

  • Manufacturing

  • Travel & Hospitality

  • Others

By Region

  • North America (Deployment Type, Application, Industry and Country)  

    • U.S.

    • Canada

    • Mexico

  • South America (Deployment Type, Application, Industry and Country)

    • Brazil

    • Argentina

    • Rest of South America

  • Europe (Deployment Type, Application, Industry and Country)

    • U.K.

    • Germany

    • France

    • Italy

    • Russia

    • Benelux

    • Nordics

    • Spain

    • Rest of Europe

  • Middle East & Africa (Deployment Type, Application, Industry and Country)

    • Turkey

    • Israel

    • GCC

    • North Africa

    • South Africa

    • Rest of MEA

  • Asia Pacific (Deployment Type, Application, Industry and Country)

    • China

    • India

    • Japan

    • South Korea

    • ASEAN

    • Oceania

    • Rest of Asia Pacific

Frequently Asked Questions

Fortune Business Insights says that the global market value stood at USD 113.82 billion in 2020

By 2028, the market size is expected to reach USD 716.52 billion

The market is expected to grow at a CAGR of 27.5% during the forecast period (2021-2028).

By Industry, the BFSI is expected to lead the global market share during the forecast period.

The increasing adoption cloud based applications and growing advancement in technologies such as AI, big data and others, is expected to drive the growth the market

Microsoft Corporation, Adobe Inc., Oracle Corporation, IBM Corporation, Salesforce.com Inc., SAP SE, Amazon, and others are the prominent players in the global market.

The public cloud holds the major market share.

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Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem 

This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share. 

Software-as-a-Service Market

  1. Cisco Systems, Inc.
  2. Nokia
  3. Adverity
  4. Proceedix
  5. Enhancv
  6. TalentLyft
  7. Omilia
  8. Smartlook
  9. Templafy
  10. Dashbird
  11. MeetingPackage
  12. Welcome to the Jungle
  13. FinCompare
  14. Hosthub
  15. Talentuno
  16. 50Skills
  17. SailPoint Technologies
  18. Cloudmore
  19. 10Pearls
  20. Salesforce
  21. Microsoft
  22. Adobe Creative Cloud
  23. FreshBooks
  24. Paychex
  25. Xero
  26. Zendesk
  27. RingCentral
  28. ServiceNow
  29. Workday
  30. Twilio
  • Jan, 2022
  • 2020
  • 2017-2019
  • 140


  • $4850

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