Software As A Service Industry Overview
The global software as a service (SaaS) market size was valued at USD 261.15 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.7% from 2023 to 2030.
SaaS is a cloud service that provides software applications virtually through Internet. Rising adoption of public cloud services across enterprises is one of the major factors that propel the market growth. The growing shift of enterprises towards SaaS from an on-premises model owing to high cost of on-premises software deployment is further projected to propel the market growth. However, concerns related to data privacy and security related to public cloud is projected to hinder market growth.
Gather more insights about the market drivers, restrains and growth of the Software As A Service Market
Significant increase in the adoption of emails, instant messaging applications, and video calls encourages demand for smart devices among end-users and is projected to contribute to the growth of SaaS market. Furthermore, adoption of CRM SaaS solutions continues to rise as businesses seek to reduce their IT costs and improve scalability. Customization and configuration of CRM SaaS solutions are becoming easier and more accessible, allowing businesses to tailor their CRM systems to their specific needs, such as security. For instance, in December 2022, AppOmni announced a partnership with Veeva Systems to provide enhanced security for Veeva CRM and Veeva Vault. With this new offering, life sciences customers can access AppOmni's comprehensive threat detection and configuration management capabilities. Joint customers can operationalize best practices to protect sensitive data while ensuring regulatory compliance with AppOmni's Veeva integration.
COVID-19 outbreak further positively impacted SaaS market as many of the enterprises opted for cloud software platforms during lockdown. The lockdown imposed by government worldwide has led to substantial growth in adoption of cloud software platform services such as SaaS across various enterprises. Increased use of public cloud services during work from home has reinforced SaaS adoption for virtual management of work in enterprises. Therefore, significant increase in adoption of third-party software services globally during pandemic further augmented market growth.
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- The global public cloud market size was valued at USD 211.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.6% from 2020 to 2027.
- The global software market size was valued at USD 583.47 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.5% from 2023 to 2030.
Software As A Service Market Segmentation
Grand View Research has segmented the global software as a service market based on component, deployment, enterprise-size, application, industry, and region:
SaaS Component Outlook (Revenue, USD Billion, 2017 - 2030)
- Software
- Services
SaaS Deployment Outlook (Revenue, USD Billion, 2017 - 2030)
- Public Cloud
- Private Cloud
- Hybrid Cloud
SaaS Enterprise-size Outlook (Revenue, USD Billion, 2017 - 2030)
- Small & Medium Enterprises
- Large Enterprises
SaaS Application Outlook (Revenue, USD Billion, 2017 - 2030)
- Customer Relationship Management (CRM)
- Enterprise Resource Planning (ERP)
- Human Capital Management
- Content, Collaboration & Communication
- BI & Analytics
- Others
SaaS Industry Outlook (Revenue, USD Billion, 2017 - 2030)
- Banking, Financial Services & Insurance (BFSI)
- Retail & Consumer Goods
- Healthcare
- Education
- Manufacturing
- Travel & Hospitality
- Others
SaaS Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Asia Pacific
- China
- Japan
- India
- Singapore
- South Korea
- Malaysia
- Australia
- Central & South America
- Brazil
- Middle East & Africa
Key Companies profiled:
- Adobe Inc.
- Microsoft
- Alibaba Cloud
- IBM
- Google LLC
- Salesforce, Inc.
- Oracle
- SAP SE
- Rackspace Technology, Inc.
- VMware Inc.
- IONOS Cloud Inc.
- Cisco Systems, Inc.
- Atlassian
- ServiceNow
Key Software As A Service Company Insights
The market is characterized by the presence of established as well as new players. Major players are actively focusing on mergers & acquisitions to capitalize on their industry positions. In addition, emerging and innovative companies are involved in upgrading existing software offerings, as well as establishing partnerships to increase their industry share. For instance, in January 2023, Microsoft partnered with HDFC Bank Ltd., an Indian banking and financial services company, to create business value and advance its digital transformation journey. The partnership aims to help the bank improve its digital capabilities and enhance the customer experience. The bank will use Microsoft Azure to modernize and simplify its company's data landscape through a Federated Data Lake, enabling it to grow its information management capabilities across advanced analytics and enterprise reporting using artificial intelligence.
Recent Developments
- In June 2023, IBM announced to acquire Apptio Inc, a financial and operational management software to advance its IT automation capabilities, and ensure the capability to deliver business value
- In October 2022, Oracle announced the introduction of Oracle Alloy, a new cloud platform to provide cloud services to its customers, and provide full control on operations to address regulatory needs
- In September 2022, NortonLifeLock announced a merger with Avast to redefine and reimagine cyber safety for businesses around the world
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