Software as a Service (SaaS) Market Size, Share & Industry Analysis, By Cloud Deployment (Public, Private, Hybrid), By Application (Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Management (HRM), Supply Chain Management (SCM), Other), By Industry Verticals (BFSI, Information Technology (IT) and Telecommunication, Manufacturing, Retail, Healthcare) Others and Regional Forecast, 2021-2028

Software as a service (SaaS), also known as on-demand or hosted or web-based software, is a distribution model in which third-party provider hosts applications over the Internet and makes them available for the customers. SaaS up-gradation is done automatically without any customer intervention as well as the availability of a subscription-based SaaS model makes it more cost-effective for customers. SaaS improves data access through any networked device, which makes it easier to manage and monitor data use as well as ensures data availability for everyone at the same time. Furthermore, customers can implement SaaS without installing any additional hardware that makes it more convenient and reliable, leading to an increase in the adoption of SaaS solutions. Application of SaaS in customer relationship management (CRM), document management, accounting, human resource (HR) management, service desk management, content management and collaboration, is expected to create lucrative opportunities for software as a service (SaaS) market.

Key Market Driver -

Growing adoption of SaaS among organizations

Key Market Restraint -

Increasing security and privacy concerns due to increasing cyber attacks

The primary factor that is expected to drive the software as a service (SaaS) market is the increasing adoption of SaaS solutions among organizations, owing to the number of associated benefits, including multi-tenant software architecture, fast investment, shared license,  high manageability, cost-effective, and easy customization. Additionally, the pay-as-you-go payment model of SaaS enables enterprises to shift costs to an ongoing operating expense for easier-to-manage budgeting. The rising trend of SaaS integration and the growing need for application programming interface (API) connections will also create lucrative opportunities for the growth of the software as a service (SaaS) market. Additionally, the growing implementation of cutting-edge technologies, such as artificial intelligence (AI), machine learning,  cloud computing, and the internet of things (IoT) in the SaaS solutions, is fuelling the growth of the software as a service (SaaS)market.

However, the increasing security and privacy concerns of storing data on a third-party cloud, along with a lack of awareness regarding the software as a service (SaaS) benefits are factors limiting the market growth of the software as a service (SaaS).

Market Segmentation:

By cloud deployment, the market is segmented into public, private and hybrid. Based on application, the market is divided into enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), human resource management (HRM) and others. By industry verticals, the market is fragmented into BFSI, information technology (IT) and telecommunication, manufacturing, retail, healthcare, education, and others.

From a geographical standpoint, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Key Players Covered:

The major companies in the global software as a service (SaaS)market report include Salesforce.com Inc., SAP SE, Adobe, ServiceNow, Inc., Workday, Inc., Microsoft Corporation, Cisco Systems, Inc., IBM Corporation, Google LLC. and Splunk Inc.

Regional Analysis:

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The global software as a service (SaaS)market has been segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America followed by Europe, dominated the global software as a service (SaaS) market in 2018, due to the presence of a large number of IT enterprises, adoption of advanced cloud infrastructure, and the availability of proficient technical expertise across the region. Furthermore, the growing adoption of cloud-based services across developing countries such as China, India, and Japan is anticipated to fuel the demand for SaaS solutions in Asia-Pacific. Additionally, the increased application of SaaS owing to the rising awareness of associated benefits among organizations is driving the software as a service (SaaS) market growth in Asia-Pacific. Latin America and Middle East & Africa are projected to register a comparatively higher CAGR by the end of the forecast period.

Segmentation

Software as a Service (SaaS) Industry Developments

• In September 2019, Microsoft acquired Movere, Washington-based SaaS startup, to help its customers to unlock cloud innovation with seamless migration tools


• In May 2019, ServiceNow, a cloud computing company, entered into strategic partnership with Google Cloud to provide native support for Google Cloud to its IT operations management service


• In April 2018, SAP SE acquired Callidus Software Inc., an enterprise software company to strengthen its intelligent customer experience suite of solutions