Global SaaS market Size USD 456.39 billion by 2032 | CAGR of 10.08%

Introduction

the global SaaS market size was valued at USD 190.21 billion in 2023. It is projected to reach from USD 207.27 billion in 2024 to USD 456.39 billion by 2032, registering a CAGR of 10.38% during the forecast period (2024-2032).

Cloud-based software as a service (SaaS) is a cloud service that virtually delivers software applications over the internet. The cloud delivery model is employed to deliver SaaS. A software provider maintains its own networking, servers, databases, and computing resources to host programmer and associated data. The SaaS platform is highly correlated with application service providers and on-demand computing software delivery models in which the provider hosts the client's software and distributes it over the internet to authorised end users. SaaS eliminates the need for businesses to install and operate the software on their own PCs or in their own data centres. No longer required are hardware acquisition, provisioning, and maintenance, as well as software licence, installation, and support.

Market Dynamics

A rise in acceptance of smart devices and their applications is driving the market

End-user demand for intelligent devices is bolstered by the rapid expansion of email, instant messaging applications, and video calls. It is expected that this will contribute to the expansion of the SaaS market. Through SaaS applications, people can connect from anywhere besides offices; consequently, the growing trend toward working from home across the globe is anticipated to provide ample opportunities for the SaaS market's growth in the near future. In addition, the rising demand for business outsourcing among corporations will contribute to the market's growth over the period of the forecast.

Moreover, during the lockdown, many businesses opted for cloud-based software platforms in response to the COVID-19 outbreak, which had a positive effect on the SaaS market. The government-imposed lockdown has resulted in a significant increase in the adoption of cloud software platform services, such as SaaS, by numerous businesses. SaaS adoption for the virtual management of work in enterprises has been bolstered by the increased use of public cloud services during remote work. Consequently, the significant rise in the global adoption of third-party software services during the pandemic contributed to the expansion of the SaaS market.

Simplicity of the technology drives the market

The increasing use of small-scale SaaS is another factor that will drive market expansion during the forecast period. SaaS is a product appropriation model that provides businesses with a great deal of flexibility and cost-effectiveness, making it a highly viable option for a variety of action plans and businesses. In addition, it is well-known among businesses for its ease of use, client accessibility, security, and extensive network. Thus, the phase of programming-as-a-service results in the greatest productivity under all conditions.

A variety of applications will bring in new opportunities for the market

The growth of the SaaS market is fueled by the increasing demand for a single solution to assist businesses in resolving business problems. Companies utilise 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 tailored to meet specific business requirements and deployed across corporate networks on a number of cloud platforms. Companies require business-oriented SaaS platforms that encode corporate policies, rules, and processes and are built in accordance with specific business requirements as their businesses expand. As the number of mobile users in the workplace increases, these applications can assist employees in achieving higher levels of productivity. This also helps to improve communication, boosts corporate efficiency, and enables them to identify new revenue-generating market opportunities.

Regional analysis

From 2022 to 2030, the Asia-Pacific SaaS market is anticipated to grow at the fastest rate, 12.1% annually. China and India contribute positively to the growth of the market due to the rising demand for cloud-based software outsourcing and the increase in the number of small and medium-sized businesses outsourcing in the region. To reduce the cost of on-premises software deployment, SMBs outsource cloud-based software platforms to a significant degree. In addition, the market is anticipated to benefit greatly from the IT industry's rapid expansion. In addition, the increasing number of secured internet servers in China, Japan, and India contributed to the expansion of the SaaS market over the forecast period.

In 2021, it was anticipated that North America would account for approximately 50.0% of the market. Contributing positively to the expansion of market revenue in the United States. The presence of well-established market participants, such as Salesforce, Microsoft Corp., Google LLC, and IBM Corp., is one of the factors driving the market growth. In addition, the developed IT infrastructure facilitates the deployment of cloud-based virtual services in the region, thereby contributing to the region's dominant market share in the SaaS industry. In addition, substantial expenditures on cloud infrastructure and the availability of a large number of secure internet servers contributed to the largest market share. In addition, the dominance of the regional market can be attributed to the development of mobile applications and the introduction of numerous smart devices.

Key highlights

• The global SaaS market size was valued at USD 190.21 billion in 2023 and is projected to reach USD 456.39 billion by 2032, registering a CAGR of 10.38% during the forecast period (2024-2032).
• Acceptance for the smart devices, their applications and the simplicity of the technology are some of the driving factors of the market.
• This market can be segmented on the basis of type, region and competitors.
• By 2030, North America is anticipated to have the largest market share, with the Asia Pacific emerging as the fastest-growing market.

Competitive Players

1. Adobe Inc.
2. Microsoft Corp.
3. Alibaba Cloud
4. IBM Corp.
5. Google LLC
6. Salesforce
7. Oracle Corp.
8. SAP SE
9. Rackspace Technology Inc.
10. VMware Inc.
11. IONOS Cloud Inc.
12. Cisco Systems Inc.
13. Atlassian
14. ServiceNow

Recent Developments

• In November 2022, the ModelScope Platform and New Solutions were Launched by Alibaba Cloud to Lower the Bar for Business Innovation Materialization.
• In January 2023, In collaboration with Google Cloud, Revionics created a data-driven pricing platform with BigQuery, Looker, and other tools for speed, scale, and automation.
• In December 2022, Mediobanca and Oracle will modernize the CIB core banking system.

Segmentation

1. By Type
   1. Enterprise Software
   2. Productivity Software
2. By Deployment Type
   1. Public
   2. Private
   3. Hybrid
3. By Enterprise-size
   1. Small & Medium Enterprises
   2. Large Enterprises
4. By Application
   1. Customer Relationship Management (CRM)
   2. Enterprise Resource Planning (ERP)
   3. Content, Collaboration & Communication
   4. BI & Analytics
   5. Human Capital Management
   6. Others (HRM, Operation Management)
5. By End-User Industry
   1. Banking, Financial Services & Insurance (BFSI)
   2. Healthcare
   3. Retail & Consumer Goods
   4. Manufacturing
   5. Education
   6. Travel & Hospitality
   7. Others