Software as a Service (Saas) Market Statistics: 2030
The global SaaS market size was valued at $121.33 billion in 2020, and is projected to reach $702.19 billion by 2030, growing at a CAGR of 18.82% from 2021 to 2030.
Growing demand among businesses for a single solution to help them solve business problems propels growth of the SaaS market. Companies use SaaS Platform software, which integrates a variety of applications such as customer relationship management (CRM), business intelligence, supply chain management, and e-commerce systems and can be customized for specific business needs and deployed across corporate networks on a variety of cloud platforms. As firms grow, companies demand business-oriented SaaS platforms that encode corporate policies, rules, and processes and are built in compliance with specific business requirements. With rise in number of mobile users in offices, these apps can help employees perform better. This also aids in improvement of communication, increases corporate efficiency, and allows them to uncover new revenue-generating software as a service market opportunities.
SaaS is delivered using the cloud delivery model. A software provider hosts programmer and associated data on its own networking, servers, databases, and computing resources. The SaaS platform is highly correlated to application service providers and on-demand computing software delivery models in which the provider hosts client's software and distributes it to authorized end users via the internet. SaaS eliminates the requirement for businesses to install and run software on their own PCs or data centers. Hardware procurement, provisioning, and maintenance, as well as software license, installation, and support, are no longer necessary.
On the basis of organization size, the large-scale enterprise segment dominated the overall SaaS industry in 2020, and is expected to continue this trend throughout the forecast period. This is attributed to increase in adoption of SaaS platform by enterprises to gain strategic and a competitive advantage over their competitors. Customers use SaaS Platform to discover new insights on large-scale diverse data, including historical and recent data. This technology is suitable for running algorithms and analysis across a large set of data to find relevant relationships, entities, and insights. Furthermore, SaaS platform continues to become mainstream as more large enterprises are considering the extraction capabilities for getting valuable insights from big data, which is opportunistic for the SaaS market growth. However, the small and medium scale enterprise segment is expected to grow the most, and this trend is expected to continue during the forecast period. The small and medium scale businesses are shifting their business to a digital platform, small scale businesses are using SaaS platform solutions for a number of uses and it is helping them to become more productive, smarter, and efficient.
Depending on the deployment model, the public cloud segment captured the largest SaaS market share in 2020 and is expected to continue this trend during the forecast period. This is attributed to numerous advantages offered by public cloud deployment such as a low cost and easy maintenance. As compared to private cloud, public cloud is less costly, as support and setup for private cloud is more costly and time-consuming compared to public cloud service. However, the hybrid cloud segment is expected to witness highest growth in the upcoming years. Due to increasing adoption of advanced technologies, companies are adopting hybrid cloud services to integrate those solutions into existing applications, without installing new on-premises infrastructure, which drives growth of the market.
The report focuses on growth prospects, restraints, and SaaS market analysis. The study uses Porter’s five forces analysis of the SaaS industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the SaaS market trends.
Small and Medium Size enterprise segment is projected as one of the most lucrative segments.
The SaaS market is segmented on the basis of deployment mode, solution type, organization size, industry vertical, and region. By deployment mode, it is segregated into public cloud, hybrid cloud, and private cloud. By solution type, it is segregated into customer relationship management, enterprise resource planning (ERP), operation management, human resource management (HRM), supply chain management, and others. By industry vertical, it is segregated into BFSI, manufacturing, IT & telecom, retail and e-commerce, energy & utility, healthcare, media & entertainment, and others. By enterprise size it is categorized into small to medium enterprise and large-scale enterprise. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Deployment Mode
Hybrid segment is projected as one of the most lucrative segments.
Top Impacting Factors
Factors such as increase in use of smart phones and app-based services drive growth of the software as a service market. In addition, rise in adoption of public and hybrid cloud propel growth of the SaaS market. Furthermore, rise in trend of business outsourcing in the global economy as well as adoption of artificial intelligence (AI) and machine learning (ML) across industries such as BFSI, healthcare, and IT & telecom provide lucrative opportunities for the market growth in the future. However, lack of security of data over cloud platform and high cost associated with implementation and maintenance of SaaS platform solutions hamper growth of the software as a service market.
Rise In Adoption of Smart Phones and App-based Services
SaaS is an emerging technology, which allows enterprises access and storage of data online. Agility, scalability, reliability, and flexibility are some of the major characteristics associated with SaaS technology. Software as service (SaaS) reduces IT infrastructure cost of a company to some extent. This is the prime reason behind increased adoption of SaaS applications among companies. With smart phones becoming an integral part of individuals, enterprises are spending more on mobile SaaS and app-based applications for easy accessibility to information anytime and anywhere. In addition, smart phones and app-based SaaS allow individuals to synchronize, update, and control documents. Adoption of SaaS for smart phones and app-based services is expected to increase in the future.
Asia-Pacific is projected as one of the most significant region.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the SaaS market share along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the SaaS market size is provided.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the SaaS market.
- The quantitative analysis of the SaaS market share from 2020 to 2030 is provided to determine the software as a service market potential.
Software as a Service Report Highlights
By SOLUTION TYPE
By DEPLOYMENT MODEL
By ORGANIZATION SIZE
By INDUSTRY VERTICAL
Key Market Players
Cisco Systems, Inc., Google LLC, SAP SE, ServiceNow, Microsoft Corporation, Adobe Inc, IBM Corporation, Salesforce.com, Inc., Oracle Corporation, Accenture plc.
According to the top executive of the key players of SaaS platform providers. The artificial intelligence is becoming increasingly popular in the SaaS industry. Artificial Intelligence (AI) is a branch of computer science that focuses on machines simulating human intelligence processes. AI in SaaS empowers businesses to keep up-to-date with the latest data, improve customer experience through predictive analytics, and automate areas where manual processes were previously required, and personalize user-interface capabilities. For instance, on January 2020; Adobe Inc. launched the part of Adobe Experience Cloud, “Adobe Experience Manager” as a cloud service. Due to this development, it will provide the digital experience management powered with SaaS capabilities for marketers and developers.
Moreover, the demand rising for big data, due to the transition of businesses from profit-focus to customer-focus. Big data provides business information based on real-time and historical data. It requires extensive storage capabilities and access to information databases among various commercial units of the industries. These platforms hosted by the servers can provide lower costs, better scalability, and excellent resource utilization than traditional big data deployments driving the demand of the private cloud server market. The development of hybrid cloud’s technology is anticipated to create profitable market opportunities. The hybrid platforms combine the public and private clouds to enable effective and efficient workload movement. It is individually valuable for highly changeable or dynamic work environments and businesses requiring high access to big data for enhanced SaaS Market growth.
Nevertheless, prominent market players are exploring new technologies and applications to meet the increase in customer demands. Product launches, collaborations, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. Emerging economies provide lucrative opportunities to market players for growth and expansion.