Global Software as a Service (SaaS) market generated a revenue of USD 153.4 Billion in 2020 and is estimated to witness a CAGR of 16.5% over the period, 2021-2028, reaching a value of USD 521 Billion in 2028, due to the increasing adoption of public cloud services across organizations.

To have the edge over the competition by knowing the market dynamics and current trends of “Software as a Service Market,” request for Sample Report here

Key Drivers

Increasing adoption of business outsourcing models in enterprises is forecast to augment the software as a service market growth. In addition, a drastic shift towards SaaS from an on-premise model aided by the costlier deployment of the on-premises software will expand the SaaS market growth. SaaS reduces the license costs of hardware and software as well as installation and upgradation time and offers scalability, compatibility, accessibility, and easy installation and upgradation features, which propels the market growth. The growing deployment of artificial intelligence across several end-use industry verticals such as BFSI, healthcare, among others has strengthened the market size. AI-driven SaaS tools offer personalized and automated services through live chatbot which helps to communicate and acknowledge customer demand, driving the market growth.

The growing demand for a single solution to help businesses resolve business problems is driving the market. Increasing adoption of SaaS Platform software, which integrates various applications such as business intelligence, customer relationship management (CRM), supply chain management, and e-commerce systems and can be tailored to cater to the growing demand for business will boost the market size. With the rising number of mobile users in the workplace, the adoption of SaaS solution has increased to help employees achieve higher productivity, improve communication, and allow them to identify new revenue-generating market opportunities, driving the market growth. For example, in 2021, Easy To Pitch Networks Pvt. Ltd. designed an AI-backed SaaS platform featured with the dashboard where organizations can log in and find the guidance they need with their investment demands. However, growing concerns pertaining data safety and privacy related to the public cloud might impede the SaaS market size over the upcoming years.

Do you want to know more about the Research process and detailed Methodology, Request Research Methodology of this report

Application Segment Analysis

Based on the application, the human resources management segment is projected to grow at a higher CAGR during the forecast period owing to the growing penetration of SaaS-based HR management software among SMEs driven by its lower cost and easy to upgrade feature. It also enables remote access and increases the profitability of an enterprises. SaaS-based HR management applications help to improve employee productivity as user can quickly adapt to the additional features in minimum time and effort. The SaaS-based human resource application offers a systematic management of all the HR related activities such as employees attendance management, notices & announcements, employee tracking, recruitment, and other activities.

End-User Segment Analysis

Retail and consumer goods segment is forecast to witness a promising CAGR over the upcoming years, because of the augmenting adoption of marketing tools based on the SaaS platform. Rising number marketing tool platforms such as online advertising, social media, search engine optimization (SEO), and others, have encouraged the adoption of public cloud services. For example, according to ProfitWell, 2020, there are around 8,500 marketing tools based on this platform.
Healthcare is estimated to lead the market over the forecast timeframe, due to the growing adoption of cloud-based applications in healthcare such as EMR (electronic medical record), telehealth, EHR (electronic health record).

Deployment Type Segment Analysis

Based on the deployment type, the public cloud segment is expected to grow at a higher CAGR in the Software as a Service market during the forecast period due to its higher elasticity and scalability, which are best suited for IT-enabled services. Public cloud software offers various benefits such as cost-effectiveness, easy and quick to integrate, eliminates the maintenance cost, and enhances the overall security.

Organization Size Segment Analysis

Based on the organization size, the small and medium-sized enterprises is expected to grow at a higher CAGR over the forecast period. SaaS offers various benefits to SMEs, such as it reduces hardware and software costs and eliminates the licensing and maintenance cost. SaaS-based solutions are easy to use and offer high scalability and flexibility, which is encouraging the demand for SaaS among SMEs to enhance the customer experience.

In case, any of your pain points areas are not covered in the current scope of this report, Request for Customization here

Based on the region, North America is projected to grow at a higher CAGR over the forecast period. The increasing adoption of SaaS across the sectors, especially BFSI in this region. The rising demand for cloud computing services across the U.S., coupled with growing adoption of SaaS among government organisation of North America, also fuels the growth of the market.

Asia Pacific is expected to dominate the market, due to the growing demand to outsource cloud-based software. Increasing number of small and medium enterprises outsourcing cloud-based software platforms to minimize the cost of on-premises software deployment, will strengthen the market growth Moreover, the expansion of the IT industry and rising number of secured internet servers in China, Japan, and India have augmented the market growth.

Various notable players operating in the global Software as a Service market include IBM Corporation, Microsoft Corporation, SAP SE, Oracle Corporation, Salesforce.com, Inc., Cisco Systems, Inc., Amazon Web Services Inc., Hewlett Packard Enterprise Development LP, Infor, Inc., VMware, Inc., SolutionsDots Systems ltd. Symantec Corporation, among others.

Key Developments:

• • In 2021: Tata Consultancy Services (TCS) introduced Jile 5.0, an updated version of SaaS-based corporate agile application to help businesses fulfil the large-scale development needs across remote teams.
  • In 2021: SAP SE entered into a partnership with IBM Corporation to establish SaaS architecture. This transition help users and organizations to run their business easily, flexibly, and cost efficiently.
  • In 2021, Microsoft Corporation collaborated with Morgan Stanley. This collaboration is intended to emphasize on digital transformation and transform the future of financial services innovation.
  • In 2021, Microsoft entered into strategic partnership with Morgan Stanley for expanding cloud business. Through this partnership, both the companies planned to focus on digital transformation and to improve the SaaS based environment.
  • In 2021, IBM expanded its SaaS portfolio by launching Cloud Pak for Security. This platform will help in deploying a zero trust architecture across workplace.
  • In Oct 2019, SAP entered into three-year cloud partnership with Microsoft called “Embrace” to help their customer to run operations hosted at remote servers supported by SAP’s flagship S/4HANA database.
  • In Jul 2019, Microsoft Corporation entered into a partnership with ServiceNow, an American cloud computing company, to enhance the integration and optimization of the companies’ products, platform and cloud capabilities. This partnership enables their private and government sector customer to accelerate their digital transformation and drive new levels of insights and innovation.

The Global Software as a Service market has been segmented based on end-user, application, deployment type, organization size, and key region. Based on end-user, the market is segmented into Manufacturing, Healthcare, IT & Telecom, Retail, Education, Government, BFSI, and Oil & Gas. Based on the application, the market is segmented into Customer Relationship Management (CRM), Human Resource Management (HRM), Financial Management, Sales Management, Enterprise Resource Planning (ERP), and Supply Chain Management. Based on the deployment type, the market is segmented into Public Cloud, Private Cloud, and Hybrid Cloud. Based on the organization size, the market is categorized as Small and Medium Enterprises and Large Enterprises.

For detailed scope of the “Software as a Service Market” report request a Sample Copy of the report

Key questions answered in this research report:

• • At what pace is the Global Software as a Service market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the Global Software as a Service market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenue and forecast breakdowns? Which are the major regional revenue pockets for growth in the Global Software as a Service market?
  • Who are the various end-users of the Global Software as a Service market, and how are they poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Software as a Service Market by End-User

• • Manufacturing
  • Healthcare
  • IT & Telecom
  • Retail
  • Education
  • Government
  • BFSI
  • Oil & Gas

Global Software as a Service Market by Application

• • Customer Relationship Management (CRM)
  • Human Resource Management (HRM)
  • Financial Management
  • Sales Management
  • Enterprise Resource Planning (ERP)
  • Supply Chain Management

Global Software as a Service Market by Deployment Type

• • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Global Software as a Service Market by Organisation Size

• • Small and Medium Enterprises
  • Large Enterprises

Global Software as a Service Market by Region

• North America Software as a Service Market Option 1: As a part of the free 25% customization

• • • By End-User
    • By Application
    • By Deployment Type
    • By Organisation Size
    • United States of America (US) Market All-Up
    • Canada Market All-Up

• Europe Software as a Service Market Option 2: As a part of the free 25% customization
  • • By End-User
    • By Application
    • By Deployment Type
    • By Organisation Size
    • United Kingdom (UK) Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

• Asia-Pacific Software as a Service Market Option 3: As a part of the free 25% customization
  • • By End-User
    • By Application
    • By Deployment Type
    • By Organisation Size
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

• ROW Software as a Service Market
  Option 4: As a part of the free 25% customization
  • • By End-User
    • By Application
    • By Deployment Type
    • By Organisation Size
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Leading market players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • IBM Corporation
  • Microsoft Corporation
  • SAP SE
  • Oracle Corporation
  • Salesforce.com, Inc.
  • Cisco Systems, Inc.
  • Amazon Web Services, Inc.
  • Hewlett Packard Enterprise Development LP
  • Infor, Inc.
  • VMware, Inc.
  • SolutionsDots Systems ltd.
  • Symantec Corporation