The Global Software as a Service (SaaS) Market Size accounted for USD 155.2 Billion in 2022 and is projected to achieve a market size of USD 968.1 Billion by 2032 growing at a CAGR of 18.1% from 2023 to 2032.
Software as a Service Market Report Key Highlights
Software as a Service (SaaS) is a cloud-based software delivery model in which software applications are hosted by a third-party provider and made available to customers over the internet. This model allows users to access software applications on demand and pay for them on a subscription basis, rather than having to purchase and install software on their own devices. SaaS applications are typically accessed through a web browser, which means they can be used on any device with an internet connection.
The SaaS market has experienced significant growth in recent years and is expected to continue to grow in the coming years. This growth can be attributed to the increasing adoption of cloud computing, the growing popularity of subscription-based models, and the need for cost-effective and flexible software solutions. Additionally, the COVID-19 pandemic has further accelerated the adoption of SaaS as more organizations are shifting to remote work and relying on cloud-based tools to support their operations.
Global Software as a Service Market Trends
Software as a Service Market Report Coverage
|Software as a Service Market
|Software as a Service Market Size 2022
|USD 155.2 Billion
|Software as a Service Market Forecast 2032
|USD 968.1 Billion
|Software as a Service Market CAGR During 2023 - 2032
|Software as a Service Market Analysis Period
|2020 - 2032
|Software as a Service Market Base Year
|Software as a Service Market Forecast Data
|2023 - 2032
|By Deployment Type, By Application, By Industry, And By Geography
|North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
|Key Companies Profiled
|Adobe Inc., Amazon Web Services, Atlassian, Dropbox, Google Cloud, HubSpot, Microsoft Corporation, Salesforce, SAP SE, ServiceNow, and Slack Technologies.
|Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis
The software as a service (SaaS) market has reaped huge profits owing to the rise in software development outsourcing and ancillary services over the past few years. The vast number of service and software providers has started looking out for new avenues of growth due to the economic sluggishness and the low expansion rates. In emerging nations, the most preferred service comes across as business outsourcing. Also, owing to the continuing transition in requirements of business due to the recent IT trends, organizations are focusing on SaaS solutions so that they can provide an efficient approach for deployment. This is resulting in the rapid growth of the SaaS market value.
Software as a Service Market Segmentation
The global software as a service market segmentation is based on deployment type, application, industry, and geography.
Software as a Service Market By Deployment Type
According to the software as a service industry analysis, the public cloud segment accounted for the largest market share in 2022. The public cloud segment in the Software as a Service (SaaS) market is experiencing significant growth as more organizations shift from on-premise software solutions to cloud-based services. Public cloud SaaS solutions are provided by third-party vendors and can be accessed over the internet through a subscription-based model. This segment of the SaaS market is attractive to organizations because it offers scalability, flexibility, and cost-effective solutions without requiring the upfront investment in infrastructure and maintenance costs associated with on-premise software.
Software as a Service Market By Application
In terms of application, the customer relationship management segment is one of the largest and fastest-growing segments in the Software as a Service (SaaS) market. CRM software is designed to help organizations manage customer interactions and data, automate sales and marketing processes, and improve customer satisfaction. SaaS-based CRM solutions are particularly attractive to organizations because they offer scalability, flexibility, and ease of use without requiring large upfront investments in hardware and software. Another factor contributing to the growth of the CRM segment in the SaaS market is the increasing adoption of mobile devices by sales teams. SaaS-based CRM solutions allow sales professionals to manage customer contacts and sales processes while on the move from any device with an internet connection.
Software as a Service Market By Industry
According to the software as a service market forecast, the IT and telecom sector is a significant and rapidly growing segment in the coming years. SaaS solutions in this segment offer a wide range of services, including network management, data storage, collaboration tools, and customer support. The availability of these solutions has made it easier for IT and telecom organizations to manage their operations more efficiently, while also reducing costs associated with maintaining on-premise hardware and software. One of the key drivers of growth in the IT and telecom segment of the SaaS market is the increasing adoption of cloud-based technologies by organizations in this industry. Cloud-based solutions offer greater flexibility, scalability, and cost-effectiveness compared to traditional on-premise solutions, making them an attractive option for IT and telecom companies looking to modernize their infrastructure.
Software as a Service Market Regional Outlook
The Middle East & Africa
Software as a Service Market Regional Analysis
Geographically, North America is the dominant region in the Software as a Service market. This region accounts for a significant share of the global SaaS market and is expected to continue growing in the coming years. Some of the factors driving the growth of the SaaS market in North America include the increasing adoption of cloud-based technologies by organizations across industries, the presence of a large number of SaaS vendors, and the high level of technology adoption among consumers.
One of the key drivers of growth in the North American SaaS market is the increasing adoption of cloud-based technologies by small and medium-sized businesses (SMBs). These organizations are turning to SaaS solutions as a way to reduce costs, increase productivity, and improve collaboration among employees. Additionally, the availability of a wide range of SaaS solutions for various business functions, such as customer relationship management (CRM), enterprise resource planning (ERP), and human resources management, has also fueled growth in the SaaS market in North America.
Software as a Service Market Player
Some of the top software as a service market companies offered in the professional report include Adobe Inc., Amazon Web Services, Atlassian, Dropbox, Google Cloud, HubSpot, Microsoft Corporation, Salesforce, SAP SE, ServiceNow, and Slack Technologies.
The market size of software as a service was USD 155.2 Billion in 2022.
The CAGR of software as a service market is 18.1% during the analysis period of 2023 to 2032.
The key players operating in the global software as a service market are Adobe Inc., Amazon Web Services, Atlassian, Dropbox, Google Cloud, HubSpot, Microsoft Corporation, Salesforce, SAP SE, ServiceNow, and Slack Technologies.
North America held the dominating position in software as a service market during the analysis period of 2023 to 2032.
Asia-Pacific region exhibited fastest growing CAGR for software as a service market during the analysis period of 2023 to 2032.
The current trends and dynamics in the software as a service industry include the growing adoption of cloud-based technologies, as well as expansion of e-commerce and mobile commerce industries.
The public cloud deployment type held the maximum share of the software as a service market.