NEW
YORK, June 27, 2024 /PRNewswire/ -- The global
software as a service (SaaS) market size is estimated to grow
by USD 423.2 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 21.21% during the forecast
period. augmenting use of mobile apps is driving
market growth, with a trend towards increasing use of
vertical SaaS. However, issues associated with system
integration poses a challenge. Key market players include
Accenture Plc, Adobe Inc., Alphabet Inc., Amazon.com Inc.,
BetterCloud Inc., Box Inc., Cisco Systems Inc., Convedo Ltd.,
Fujitsu Ltd., Hewlett Packard Enterprise Co., Infosys Ltd.,
International Business Machines Corp., Intuit Inc., Microsoft
Corp., Oracle Corp., Salesforce Inc., SAP SE, ServiceNow Inc.,
Shopify Inc., and Zendesk Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Deployment (Public
cloud, Private cloud, and Hybrid cloud), End-user (Large
enterprises and SMEs), and Geography (North America, Europe, APAC,
South America, and Middle East and Africa)
|
Region
Covered
|
North America, Europe,
APAC, South America, and Middle East and Africa
|
Key companies
profiled
|
Accenture Plc, Adobe
Inc., Alphabet Inc., Amazon.com Inc., BetterCloud Inc., Box Inc.,
Cisco Systems Inc., Convedo Ltd., Fujitsu Ltd., Hewlett Packard
Enterprise Co., Infosys Ltd., International Business Machines
Corp., Intuit Inc., Microsoft Corp., Oracle Corp., Salesforce Inc.,
SAP SE, ServiceNow Inc., Shopify Inc., and Zendesk Inc.
|
Key Market Trends Fueling Growth
Vertical Software as a Service (SaaS) refers to cloud computing
solutions designed for specific industries, such as retail,
healthcare, or automotive manufacturing. These solutions offer
customizable features tailored to clients within these industries
and supply chains. Examples include retail analytics software and
healthcare business intelligence tools. Enterprises benefit from
vertical SaaS due to its industry-specific focus, enabling the
generation of valuable customer data and insights. In May 2021, Honeywell International Inc. Launched a
cloud-based SaaS solution for building owners and managers,
combining operational and business data for improved
decision-making and efficiency. Vendors are increasingly offering
vertical SaaS to address client demands and expand their customer
base. IBM's Genelco SaaS, designed for the insurance industry, is
an example of this trend. The use of vertical SaaS solutions
provides significant business value, contributing to the growth of
the global SaaS market.
The Software as a Service (SaaS) market is experiencing
significant growth across various application areas like Human
Resource Management, Media and Entertainment, and more. Leads and
prospects for SaaS are abundant among startups and businesses
seeking flexible solutions. Trends include integration with 3D
printing technologies and mobile devices. Investment in SaaS is
ongoing, with companies like Alphabet's Google Cloud Marketplace
and Microsoft Cloud leading the charge. Business models include
Cloud Software, Cloud Consulting Services, and IBM Cloud
Integration. Digital transformation brings challenges such as data
breaches and cyber-attacks, necessitating focus on data security
concerns. Employee well-being and operational efficiency are key
considerations. The competitive environment is intense, with
Communication Service Providers and IT companies implementing
remote work policies. Cloud computing technologies continue to
evolve, with hybrid cloud and public cloud offerings from the Cloud
Security Alliance. Augmenting company capabilities is a primary
goal. However, ongoing costs, including hosting data, electricity,
employee fees, and downtime issues, must be managed
carefully.
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Market Challenges
- Enterprises are increasingly turning to Software as a Service
(SaaS) solutions due to their cost-effectiveness and flexibility
compared to traditional IT deployments. However, integrating new
software systems and IT infrastructure into existing monolithic
architectures poses challenges. Monolithic applications, which
combine UI and data access code into a single program, make it
difficult to integrate new software. Furthermore, data stored in
various formats across different business units can create
interoperability issues when migrating to cloud-based software.
Lastly, selecting the appropriate integration tool from numerous
vendors offering SaaS solutions for various applications, while
ensuring hybrid integration capabilities, is a complex task. These
integration challenges may hinder the growth of the global SaaS
market during the forecast period.
- The Software as a Service (SaaS) market is experiencing
significant growth, with key industries like private cloud, human
capital management, operations management, large enterprises in IT
and telecom, healthcare, education, B2B and B2C enterprises
adopting this model. Challenges include VAT regulations, quarterly
earnings reports, and expert opinions on relevant segments. Main
drivers are digitization levels, current exchange rates, and
country-specific needs. SaaS leaders like AppOmni and Veeva Systems
offer Enterprise Resource Planning (ERP) and Customer Relationship
Management (CRM) solutions using Artificial Intelligence (AI),
Internet of Things (IoT), and Platform as a Service (PaaS). SMEs
and small businesses benefit from mobile SaaS growth, allowing
access to information, devices, and team partnerships via laptops,
tablets, and web browsers on a subscription basis for official
purposes. Time and space efficiency are major attributing factors.
Deployment is typically cloud-based, ensuring flexibility and
ease.
For more insights on driver and
challenges - Download a Sample Report
Segment Overview
This software as a service (saas) market report extensively
covers market segmentation by
- Deployment
- 1.1 Public cloud
- 1.2 Private cloud
- 1.3 Hybrid cloud
- End-user
- 2.1 Large enterprises
- 2.2 SMEs
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Public cloud- The Software as a Service
(SaaS) market continues to grow, with businesses increasingly
relying on cloud-based solutions for their software needs. SaaS
offers several advantages, including cost savings, flexibility, and
ease of use. Companies can access software applications through the
internet, eliminating the need for expensive hardware and
maintenance. SaaS providers offer regular updates and improvements,
ensuring that businesses have access to the latest features. This
model allows businesses to focus on their core competencies while
leaving the software management to the experts. Overall, the SaaS
market is a cost-effective and efficient solution for businesses of
all sizes
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2018 - 2022) - Download a Sample Report
Research Analysis
The Software as a Service (SaaS) market continues to grow at an
unprecedented rate, driven by the increasing level of digitization
and the shift towards remote work policies. Communication service
providers and B2C enterprises are major contributors to this
market, with SaaS products becoming essential for time, space, and
information management. Cloud Software, including Google Cloud
Marketplace and Microsoft Cloud, dominates the scene, offering a
wide range of solutions for businesses of all sizes. IT companies
are also leveraging SaaS to provide cloud consulting services and
integrate various systems using IBM Cloud Integration. The main
drivers of this market include ease of use, cost savings, and
flexibility. Current exchange rates and quarterly earnings of key
players are closely watched by experts in the relevant segment.
SaaS enables team partnerships through laptops, tablets, and other
devices, making collaboration more efficient than ever before. VAT
and other regulatory considerations are important factors for
businesses adopting SaaS solutions.
Market Research Overview
The Software as a Service (SaaS) market is a significant segment
of the cloud computing industry, enabling businesses to access and
use software applications over the internet on a subscription
basis. SaaS offers flexibility, scalability, and cost savings for
businesses of all sizes, from SMEs to large enterprises in various
industries such as IT and telecom, healthcare, education, B2B, and
B2C. Key drivers for SaaS market growth include the level of
digitization, remote work policies, and the increasing adoption of
cloud computing technologies. Communication Service Providers and
IT companies offer SaaS products in areas like Human Capital
Management, Operations Management, and Customer Relationship
Management. SaaS covers various application areas like Enterprise
Resource Planning, Artificial Intelligence, Internet of Things,
Robotic Process Automation, and more. The market is shaped by
ongoing costs, including hosting data, electricity, and employee
fees, as well as downtime issues and the competitive environment.
Main drivers for SaaS growth include flexibility, investment, and
the shift towards mobile SaaS and cloud-based software services.
Relevant segments include public cloud, private cloud, and hybrid
cloud solutions. Current exchange rates and country-specific levels
of digitization also impact the market. SaaS market statistics show
steady growth, with major attributing factors like time, space,
information, devices, team partnerships, and official purposes. Key
trends include the integration of PaaS, SME adoption, and the
impact of net neutrality and VAT on quarterly earnings. Expert
opinions and industry reports provide insights into the current
state and future prospects of the SaaS market.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Deployment
-
- Public Cloud
- Private Cloud
- Hybrid Cloud
- End-user
-
- Geography
-
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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