"Smart Strategies, Giving Speed to your Growth Trajectory"
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,
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,
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,
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,
The increasing demand for software as a service application has created various market opportunities for cloud vendors to expand their business amid pandemics.
Request a Free sample to learn more about this report.
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,
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,
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.
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.
To know how our report can help streamline your business, Speak to Analyst
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.
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)
To get more information on the regional analysis of this market, Request a Free sample
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,
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,
An Infographic Representation of Software as a Service (SaaS) Market
To get information on various segments, share your queries with us
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.
ATTRIBUTE | DETAILS |
Study Period | 2017-2028 |
Base Year | 2020 |
Estimated Year | 2021 |
Forecast Period | 2021-2028 |
Historical Period | 2017-2019 |
Unit | Value (USD billion) |
Segmentation | Deployment Type, Application, Industry and Region |
By Deployment Type |
|
By Application |
|
By Industry |
|
By Region |
|
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.
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