Software as a Service (SaaS) Market size was valued at USD 238.2 billion in 2022 and is expected to grow to USD 412.34 billion by 2030 and grow at a CAGR of 7.1% over the forecast period of 2023-2030.
Using the software as a service (SaaS) paradigm, a cloud provider hosts programmers and makes them accessible to customers online. The program will be hosted by a third-party cloud provider under this arrangement, which an independent software vendor (ISV) may agree to. Or the cloud provider may double as the software vendor for larger organizations like Microsoft. One of the three primary types of cloud computing, along with platform as a service (PaaS) and infrastructure as a service (IaaS), is software as a service. Applications offered as a service are used by a variety of IT specialists, commercial users, and private users. From consumer electronics like Netflix to cutting-edge IT tools, a wide selection of products is available. SaaS products usually target both B2B and B2C users, in contrast to IaaS and PaaS.
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Drivers
Enterprises Using Public and Hybrid Cloud-Based Tools to Promote Market Growth
The usage of email, instant messaging, and video calls has significantly increased, which stimulates end-user demand for smart gadgets is drive the market.
Public and hybrid cloud-based solutions are increasingly being adopted by businesses, increasing system resilience and advancing the new realities imposed by the epidemic. Additionally, more businesses are converting to hybrid clouds, which combine on-premises and public cloud solutions. For the sake of future market expansion, some major companies are encouraging and promoting the use of cloud-based solutions.
Restrains
SaaS applications are frequently described as facing severe difficulty with cloud security.
Sensitive data not secure enough to support market expansion
Professionals use SaaS-based platforms to store both their personal and business-sensitive data. Security has thus always been a top priority for security experts. Misconfigured SaaS is the main issue, according to several businesses in the sector.
The setup of internal applications is also turning into a significant difficulty for security personnel. Misconfigurations cause sensitive data to be lost and hesitant application programming interfaces cause sensitive data to be disclosed without authorization.
Opportunities
Increased availability of secure internet servers in China, Japan, and India during the forecast period contributed to the market's expansion.
Challenges
Inappropriate pricing strategies for free trial visitors who never become regular paying customers.
Lack of modern technological advances.
Businesses all across the world have been severely impacted by the global COVID-19 outbreak. The lockdown imposed by governments of many nations has positively impacted the growth of SaaS-based services. After COVID-19, businesses are focusing on cutting-edge technology to perform contactless operations across industries like BFSI, healthcare, IT & telecom, and artificial intelligence (AI), machine learning (ML), the internet of things (IoT), and analytics. This factor is expected to boost demand for software or services that are offered as a service, which encourages the growth of the SaaS business on a global scale. In the market for SaaS platforms, the major players are investing more. In order to handle the post-COVID-19 pandemic, Cisco Systems, Inc. launched the next-generation networking suite in March 2021. Customers have simple and flexible purchase options thanks to this new product's three key components: increased secure access service edge architecture, software as a service option, and full-stack visibility of network applications.
The conflict between Russia and Ukraine has also created technological challenges for SaaS providers. The war has led to an increase in cyber-attacks and data breaches, which has forced SaaS companies to invest more in cybersecurity measures to protect their customers' data. In conclusion, the Russia-Ukraine war has had a significant impact on the SaaS market. The disruption of supply chains, political uncertainty, and technological challenges have all contributed to a slowdown in the growth of the industry. However, SaaS providers have adapted to these challenges by investing in cybersecurity measures and exploring new markets to maintain their growth and profitability.
Impact of Ongoing Recession
The global recession has had a significant impact on the software as a service (SaaS) market. As businesses struggle to cut costs and streamline operations, many are turning to SaaS solutions as a way to reduce IT expenses and improve efficiency.
However, the recession has also led to a decrease in overall IT spending, which has affected the growth of the SaaS market. Many companies are hesitant to invest in new technology during uncertain economic times, which has slowed the adoption of SaaS solutions. Despite these challenges, the SaaS market has continued to grow, albeit at a slower pace. As businesses look for ways to reduce costs and improve productivity, SaaS providers are offering more flexible pricing models and expanding their product offerings to meet the changing needs of their customers. In addition, the recession has highlighted the benefits of cloud-based solutions, which offer greater scalability, flexibility, and cost-effectiveness than traditional on-premise software. As a result, many businesses are now considering SaaS solutions as a long-term strategy for their IT needs. Overall, while the recession has presented challenges for the SaaS market, it has also created opportunities for providers to innovate and adapt to changing market conditions
The Software as a Service Market is segmented into four types on the basis of by Deployment Type, by Enterprise-size, by Application, and by Industry.
by Deployment Type:
Public
Private
Hybrid
by Enterprise-size:
Small & Medium Enterprises
Large Enterprises
by Application:
Customer Relationship Management (CRM)
Enterprise Resource Planning (ERP)
Content
Collaboration & Communication
BI & Analytics
Human Capital Management
Others
by Industry:
IT & Telecom
BFSI
Retail & Consumer Goods
Healthcare
Education
Manufacturing
Others
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North America will lead the market. The U.S. is helping the market revenue to increase in a favorable way. One of the elements promoting market expansion is the existence of established industry players. Additionally, the region's well-developed IT infrastructure facilitates the quick deployment of cloud-based virtual services, further boosting its sizeable share of the world's software as a service (SaaS) market. The large market share was also aided by the massive investment in cloud infrastructure and the availability of numerous secure internet servers. In the future period, Asia Pacific is expected to have the fastest CAGR. Due to the increased demand for outsourcing cloud-based software and the increasing number of small and medium-sized businesses outsourcing throughout the region, China and India are positively influencing the market's growth. To lower the cost of deploying software on-premises, SMEs heavily outsource cloud-based software platforms. Furthermore, it is anticipated that the market will have plenty of opportunities due to the IT sector's significant growth. In the regional analysis study of the regions of North America, Europe, Asia Pacific middle east, and Africa.
REGIONAL COVERAGE:
North America
USA
Canada
Mexico
Europe
Germany
UK
France
Italy
Spain
The Netherlands
Rest of Europe
Asia-Pacific
Japan
South Korea
China
India
Australia
Rest of Asia-Pacific
The Middle East & Africa
Israel
UAE
South Africa
Rest of the Middle East & Africa
Latin America
Brazil
Argentina
Rest of Latin America
The major players in Market are IBM, Alphabet Inc., Google LLC, Salesforce, Inc., Adobe Inc, Oracle, Alibaba Cloud, SAP SE, Rackspace Technology, Inc., ServiceNow, Inc, VMware Inc., Cisco Systems, Inc., IONOS Cloud Inc. Atlassian, Microsoft Corporation, Hewlett Packard Enterprise Company. And others in the final report.
Hewlett Packard Enterprise announced platform updates and additional cloud services for HPE GreenLake, its flagship product, in June 2022. This aids businesses in improving their data and applications. This comprises a modern private cloud that has been revamped and offers a cloud-native experience to support the hybrid approach of the company.
May 2022 saw Google Cloud team up with retail technology provider TD Tawandang to support the nation's micro-retailers. Google Cloud provided a cutting-edge retail-as-a-service solution to assist mom-and-pop shops in modernizing their business practices and overcoming obstacles.
| Report Attributes | Details |
| Market Size in 2022 | US$ 238.2 Bn |
| Market Size by 2030 | US$ 412.34 Bn |
| CAGR | CAGR of 7.1% From 2023 to 2030 |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2020-2021 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Deployment Type (Public, Private, Hybrid) • By Enterprise-size (Small & Medium Enterprises, Large Enterprises) • By Application (Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Content, Collaboration & Communication, BI & Analytics, Human Capital Management, Others) • By Industry (IT & Telecom, BFSI, Retail & Consumer Goods, Healthcare, Education, Manufacturing, Others) |
| Regional Analysis/Coverage | North America (USA, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Netherlands, Rest of Europe), Asia-Pacific (Japan, South Korea, China, India, Australia, Rest of Asia-Pacific), The Middle East & Africa (Israel, UAE, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America) |
| Company Profiles | IBM, Alphabet Inc., Google LLC, Salesforce, Inc., Adobe Inc, Oracle, Alibaba Cloud, SAP SE, Rackspace Technology, Inc., ServiceNow, Inc, VMware Inc., Cisco Systems, Inc., IONOS Cloud Inc. Atlassian, Microsoft Corporation, Hewlett Packard Enterprise Company |
| Key Drivers | • Enterprises Using Public and Hybrid Cloud-Based Tools to Promote Market Growth • The usage of email, instant messaging, and video calls has significantly increased, which stimulates end-user demand for smart gadgets is drive the market. |
| Market Opportunities | • Increased availability of secure internet servers in China, Japan, and India during the forecast period contributed to the market's expansion. |
The CAGR of the Software as a Service Market for the forecast period 2022-2030 is 7.1 %.
The market is expected to grow to USD 412.34 billion by the forecast period of 2030.
The major worldwide key players in the Software as a Service Market are IBM, Alphabet Inc., Google LLC, Salesforce, Inc., Adobe Inc, Oracle, Alibaba Cloud, SAP SE, Rackspace Technology, Inc., ServiceNow, Inc, VMware Inc., Cisco Systems, Inc., IONOS Cloud Inc. Atlassian, Microsoft Corporation, Hewlett Packard Enterprise Company. And others in final report.
USD 238.2 billion in 2022 is the market share of the Software as a Service Market.
The forecast period for the Software as a Service Market is 2022-2030.
Table of Contents
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4. Impact Analysis
4.1 COVID-19 Impact Analysis
4.2 Impact of Russia-Ukraine War
4.3 Impact of Ongoing Recession
4.3.1 Introduction
4.3.2 Impact on major economies
4.3.2.1 US
4.3.2.2 Canada
4.3.2.3 Germany
4.3.2.4 France
4.3.2.5 United Kingdom
4.3.2.6 China
4.3.2.7 japan
4.3.2.8 South Korea
4.3.2.9 Rest of the World
5. Value Chain Analysis
6. Porter’s 5 forces model
7. PEST Analysis
8. Software as a Service Market Segmentation, by Deployment Type
8.1 Public
8.2 Private
8.3 Hybrid
9. Software as a Service Market Segmentation, by Enterprise-size
9.1 Large Enterprise
9.2 SMEs
10. Software as a Service Market Segmentation, by Application
10.1 Customer Relationship Management (CRM)
10.2 Enterprise Resource Planning (ERP)
10.3 Content
10.4 Collaboration & Communication
10.5 BI & Analytics
10.6 Human Capital Management
10.7 Others
11. Software as a Service Market Segmentation, by Industry
11.1 IT & Telecom
11.2 BFSI
11.3 Retail & Consumer Goods
11.4 Healthcare
11.5 Education
11.6 Manufacturing
11.7 Others
12. Regional Analysis
12.1 Introduction
12.2 North America
12.2.1 North America Software as a Service Market by Country
12.2.2 North America Software as a Service Market by Deployment Type
12.2.3 North America Software as a Service Market by Enterprise-size
12.2.4 North America Software as a Service Market by Application
12.2.5 North America Software as a Service Market by Industry
12.2.6 USA
12.2.6.1 USA Software as a Service Market by Deployment Type
12.2.6.2 USA Software as a Service Market by Enterprise-size
12.2.6.3 USA Software as a Service Market by Application
12.2.6.4 USA Software as a Service Market by Industry
12.2.7 Canada
12.2.7.1 Canada Software as a Service Market by Deployment Type
12.2.7.2 Canada Software as a Service Market by Enterprise-size
12.2.7.3 Canada Software as a Service Market by Application
12.2.7.4 Canada Software as a Service Market by Industry
12.2.8 Mexico
12.2.8.1 Mexico Software as a Service Market by Deployment Type
12.2.8.2 Mexico Software as a Service Market by Enterprise-size
12.2.8.3 Mexico Software as a Service Market by Application
12.2.8.4 Mexico Software as a Service Market by Industry
12.3 Europe
12.3.1 Europe Software as a Service Market by Country
12.3.2 Europe Software as a Service Market by Deployment Type
12.3.3 Europe Software as a Service Market by Enterprise-size
12.3.4 Europe Software as a Service Market by Application
12.3.5 Europe Software as a Service Market by Industry
12.3.6 Germany
12.3.6.1 Germany Software as a Service Market by Deployment Type
12.3.6.2 Germany Software as a Service Market by Enterprise-size
12.3.6.3 Germany Software as a Service Market by Application
12.3.6.4 Germany Software as a Service Market by Industry
12.3.7 UK
12.3.7.1 UK Software as a Service Market by Deployment Type
12.3.7.2 UK Software as a Service Market by Enterprise-size
12.3.7.3 UK Software as a Service Market by Application
12.3.7.4 UK Software as a Service Market by Industry
12.3.8 France
12.3.8.1 France Software as a Service Market by Deployment Type
12.3.8.2 France Software as a Service Market by Enterprise-size
12.3.8.3 France Software as a Service Market by Application
12.3.8.4 France Software as a Service Market by Industry
12.3.9 Italy
12.3.9.1 Italy Software as a Service Market by Deployment Type
12.3.9.2 Italy Software as a Service Market by Enterprise-size
12.3.9.3 Italy Software as a Service Market by Application
12.3.9.4 Italy Software as a Service Market by Industry
12.3.10 Spain
12.3.10.1 Spain Software as a Service Market by Deployment Type
12.3.10.2 Spain Software as a Service Market by Enterprise-size
12.3.10.3 Spain Software as a Service Market by Application
12.3.10.4 Spain Software as a Service Market by Industry
12.3.11 The Netherlands
12.3.11.1 Netherlands Software as a Service Market by Deployment Type
12.3.11.2 Netherlands Software as a Service Market by Enterprise-size
12.3.11.3 Netherlands Software as a Service Market by Application
12.3.11.4 Netherlands Software as a Service Market by Industry
12.3.12 Rest of Europe
12.3.12.1 Rest of Europe Software as a Service Market by Deployment Type
12.3.12.2 Rest of Europe Software as a Service Market by Enterprise-size
12.3.12.3 Rest of Europe Software as a Service Market by Application
12.3.12.4 Rest of Europe Software as a Service Market by Industry
12.4 Asia-Pacific
12.4.1 Asia Pacific Software as a Service Market by Country
12.4.2 Asia Pacific Software as a Service Market by Deployment Type
12.4.3 Asia Pacific Software as a Service Market by Enterprise-size
12.4.4Asia Pacific Software as a Service Market by Application
12.4.5Asia Pacific Software as a Service Market by Industry
12.4.6 Japan
12.4.6.1 Japan Software as a Service Market by Deployment Type
12.4.6.2 Japan Software as a Service Market by Enterprise-size
12.4.6.3 Japan Software as a Service Market by Application
12.4.6.4 Japan Software as a Service Market by Industry
12.4.7 South Korea
12.4.7.1 South Korea Software as a Service Market by Deployment Type
12.4.7.2 South Korea Software as a Service Market by Enterprise-size
12.4.7.3 South Korea Software as a Service Market by Application
12.4.7.4 South Korea Software as a Service Market by Industry
12.4.8 China
12.4.8.1 China Software as a Service Market by Deployment Type
12.4.8.2 China Software as a Service Market by Enterprise-size
12.4.8.3 China Software as a Service Market by Application
12.4.8.4 China Software as a Service Market by Industry
12.4.9 India
12.4.9.1 India Software as a Service Market by Deployment Type
12.4.9.2 India Software as a Service Market by Enterprise-size
12.4.9.3 India Software as a Service Market by Application
12.4.9.4 India Software as a Service Market by Industry
12.4.11 Australia
12.4.10.1 Australia Software as a Service Market by Deployment Type
12.4.10.2 Australia Software as a Service Market by Enterprise-size
12.4.10.3 Australia Software as a Service Market by Application
12.4.10.4 Australia Software as a Service Market by Industry
12.4.11 Rest of Asia-Pacific
12.4.11.1 APAC Software as a Service Market by Deployment Type
12.4.11.2 APAC Software as a Service Market by Enterprise-size
12.4.11.3 APAC Software as a Service Market by Application
12.4.11.4 APAC Software as a Service Market by Industry
12.5 The Middle East & Africa
12.5.1 The Middle East & Africa Software as a Service Market by Country
12.5.2 The Middle East & Africa Software as a Service Market by Deployment Type
12.5.3 The Middle East & Africa Software as a Service Market by Enterprise-size
12.5.4The Middle East & Africa Software as a Service Market by Application
12.5.5 The Middle East & Africa Software as a Service Market by Industry
12.5.6 Israel
12.5.6.1 Israel Software as a Service Market by Deployment Type
12.5.6.2 Israel Software as a Service Market by Enterprise-size
12.5.6.3 Israel Software as a Service Market by Application
12.5.6.4 Israel Software as a Service Market by Industry
12.5.7 UAE
12.5.7.1 UAE Software as a Service Market by Deployment Type
12.5.7.2 UAE Software as a Service Market by Enterprise-size
12.5.7.3 UAE Software as a Service Market by Application
12.5.7.4 UAE Software as a Service Market by Industry
12.5.8South Africa
12.5.8.1 South Africa Software as a Service Market by Deployment Type
12.5.8.2 South Africa Software as a Service Market by Enterprise-size
12.5.8.3 South Africa Software as a Service Market by Application
12.5.8.4 South Africa Software as a Service Market by Industry
12.5.9 Rest of Middle East & Africa
12.5.9.1 Rest of Middle East & Asia Software as a Service Market by Deployment Type
12.5.9.2 Rest of Middle East & Asia Software as a Service Market by Enterprise-size
12.5.9.3 Rest of Middle East & Asia Software as a Service Market by Application
12.5.9.4 Rest of Middle East & Asia Software as a Service Market by Industry
12.6 Latin America
12.6.1 Latin America Software as a Service Market by Country
12.6.2 Latin America Software as a Service Market by Deployment Type
12.6.3 Latin America Software as a Service Market by Enterprise-size
12.6.4 Latin America Software as a Service Market by Application
12.6.5 Latin America Software as a Service Market by Industry
12.6.6 Brazil
12.6.6.1 Brazil Software as a Service Market by Deployment Type
12.6.6.2 Brazil Africa Software as a Service Market by Enterprise-size
12.6.6.3 Brazil Software as a Service Market by Application
12.6.6.4 Brazil Software as a Service Market by Industry
12.6.7 Argentina
12.6.7.1 Argentina Software as a Service Market by Deployment Type
12.6.7.2 Argentina Software as a Service Market by Enterprise-size
12.6.7.3 Argentina Software as a Service Market by Application
12.6.7.4 Argentina Software as a Service Market by Industry
12.6.8 Rest of Latin America
12.6.8.1 Rest of Latin America Software as a Service Market by Deployment Type
12.6.8.2 Rest of Latin America Software as a Service Market by Enterprise-size
12.6.8.3 Rest of Latin America Software as a Service Market by Application
12.6.8.4Rest of Latin America Software as a Service Market by Industry
13. Company Profile
13.1 IBM
13.1.1 Market Overview
13.1.2 Financials
13.1.3 Product/Services/Offerings
13.1.4 SWOT Analysis
13.1.5 The SNS View
13.2 Alphabet Inc.
13.2.1 Market Overview
13.2.2 Financials
13.2.3 Product/Services/Offerings
13.2.4 SWOT Analysis
13.2.5 The SNS View
13.3 Google LLC.
13.3.1 Market Overview
13.3.2 Financials
13.3.3 Product/Services/Offerings
13.3.4 SWOT Analysis
13.3.5 The SNS View
13.4 Salesforce, Inc.
13.4.1 Market Overview
13.4.2 Financials
13.4.3 Product/Services/Offerings
13.4.4 SWOT Analysis
13.4.5 The SNS View
13.5 Adobe Inc.
13.5.1 Market Overview
13.5.2 Financials
13.5.3 Product/Services/Offerings
13.5.4 SWOT Analysis
13.5.5 The SNS View
13.6 Oracle.
13.6.1 Market Overview
13.6.2 Financials
13.6.3 Product/Services/Offerings
13.6.4 SWOT Analysis
13.6.5 The SNS View
13.7 Alibaba Cloud.
13.7.1 Market Overview
13.7.2 Financials
13.7.3 Product/Services/Offerings
13.7.4 SWOT Analysis
13.7.5 The SNS View
13.8 SAP SE.
13.8.1 Market Overview
13.8.2 Financials
13.8.3 Product/Services/Offerings
13.8.4 SWOT Analysis
13.8.5 The SNS View
13.9 Rackspace Technology, Inc.
13.9.1 Market Overview
13.9.2 Financials
13.9.3 Product/Services/Offerings
13.9.4 SWOT Analysis
13.9.5 The SNS View
13.10 Cisco Systems, Inc.
13.10.1 Market Overview
13.10.2 Financials
13.10.3 Product/Services/Offerings
13.10.4 SWOT Analysis
13.10.5 The SNS View
14. Competitive Landscape
14.1 Competitive Benchmarking
14.2 Market Share Analysis
14.3 Recent Developments
15. USE Cases and Best Practices
16. Conclusion
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