Software as a Service Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

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

• Global Software as a Service market revenue is expected to increase by USD 968.1 Billion by 2032, with a 18.1% CAGR from 2023 to 2032
• North America region led with more than 39% of Software as a Service market share in 2022
• According to a BetterCloud survey, 73% of organizations plan to run almost entirely on SaaS by 2021.
• According to research, the average organization uses 16 SaaS applications, and this number is expected to grow in the coming years.
• According to the study, the top five SaaS vendors by revenue in 2022 were Microsoft, Salesforce, Adobe, Oracle, and SAP.
• Growing adoption of cloud-based technologies, drives the Software as a Service market size

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      

Market Drivers

• Increasing demand for cost-effective and scalable software solutions
• Growing adoption of cloud-based technologies
• Rapidly evolving digital transformation initiatives in organizations
• Expansion of e-commerce and mobile commerce industries

Market Restraints

• Concerns over data security and privacy
• Lack of skilled personnel to manage and maintain SaaS applications

Market Opportunities

• Growing demand for hybrid cloud solutions that combine on-premise and cloud-based applications
• Emergence of AI and machine learning technologies to enhance SaaS applications

Software as a Service Market Report Coverage

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

• Private cloud
• Hybrid cloud
• Public cloud

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

• Customer relationship management (CRM)
• Enterprise resource planning (ERP)
• Operations and manufacturing
• Supply chain management
• Human capital management (HCM)
• Content management systems
• Others

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

• IT & Telecom
• BFSI
• Retail & Consumer Goods
• Healthcare
• Education
• Manufacturing
• Other

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

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)