Software as a Service Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

Coverage: Software as a Service Market covers analysis By Deployment Model (Private Cloud, Public Cloud, and Hybrid Cloud), Applications [Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Planning (HRP), Supply Chain Management (SCM), and Others], and End User [Small & Medium Enterprises (SMEs) and Large Enterprises], and Geography (North America, Europe, Asia Pacific, and South and Central America)

  • Report Code : TIPTE100000113
  • Category : Technology, Media and Telecommunications
  • No. of Pages : 233

Software as a Service Market Scope and Size by 2031

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The software as a service market is expected to grow from US$ 167.53 billion in 2022 to US$ 462.94 billion by 2031; it is anticipated to grow at a CAGR of 18.5% from 2022 to 2031.

SaaS applications have the potential to cater services to small, medium, and large enterprises efficiently. Organizations today are growing rapidly, and they require operations to scale up as per the demand. With the ease in scalability feature offered by the SaaS model, many organizations seem to adopt the SaaS model for their various operations, be it managing their IT infrastructure, financial management, human capital management, asset monitoring, or any other useful domain. Adopting such a modular structure that can scale up the IT infrastructure, storage, computing, fabric, and virtualization in a single architecture is being rapidly adopted across the globe, offering lucrative business opportunities to the global software as a service market players. The flexibility offered by SaaS models gives a competitive advantage to companies by quickly adjusting to customers' demands and making the necessary changes in operations efficiently. High efficiency has become a prerequisite for leading companies today, and the deployment of SaaS models gives them the power to be flexible and efficient. The tools utilized by SaaS vendors are typically more robust and up-to-date than those available to most local organizations. These factors are influencing the software as a service market growth.

Also, SaaS vendors make use of redundant servers to back up data. Thus, in case of any malfunction in the cloud, users are automatically redirected to a backup server without any performance issues. Furthermore, SaaS vendors perform regular data backups. Since there is a single version of the software, more vendor resources are typically directed to identifying issues/bugs and the related patches/fixes required to address those concerns. These factors are further propelling the software as a service market growth.

SaaS is an advanced technology transforming traditional on-premise software systems into a modern cloud-based solution globally. Along with reduced efforts of running a process and installing and purchasing software, it also helps an organization minimize costs and maximize revenue. Consequently, private organizations worldwide have understood the potential behind these services and come up with cloud-based services. These factors are boosting the growth of the market.

Strategic Insights

With the growing concerns for security and privacy of data, private cloud deployment model was developed but that proved to be very costly. All the data of organizations cannot be mission critical and sensitive. Various type of data demands for varying levels of security. The flexibility of storing less critical data over public cloud while mission critical data over hybrid cloud makes it highly attractive for organizations to adopt. Banking sector that has to store large amounts of sensitive data is the most benefitted business segment due to the introduction of hybrid cloud deployment model. Hybrid cloud model is thus expected to grow at a rapid pace during the forecast period, offering lucrative growth opportunities to the hybrid software as a service market share.

Regional Analysis of Software as a Service Market

From the regional perspective, North America held the largest share of the global software as a service market in 2021. With the increasing customer demand for high-quality products and services, North American companies are constantly innovating to serve their customers in the best possible way. This is increasing the demand for solutions such as CRM and ERP. Additionally, the presence of SaaS vendors such as Microsoft Corporation, Amazon Web Services, Symantec Corporation, IBM, ORACLE, ADP LLC, Workday, and Google across the region is further contributing to the rapid growth of the market.

Market Insights – Software as a Service Market

Application-Based Insights

Based on application, the software as a service market is segmented into customer relationship management (CRM), enterprise resource planning (ERP), human resource planning (HRP), supply chain management (SCM), and others. The CRM segment accounted for the largest share of the global software as a service market in 2021. With its numerous advantages, SaaS CRM has successfully changed organizations' perceptions about how front-office software systems are used and controlled. Particularly for CRM, the SaaS applications provide various benefits like best-in-place infrastructure without the need for capital expenditure, lesser implementation and integration times with existing systems, software upgrades without any significant bottleneck, consistent system uptime, and 24/7 staffing. It actively tracks and manages customer information, captures customer emails, simplifies repetitive tasks, and delivers instant insights and recommendations. As the business grows, CRM helps in customizing functions. According to Salesforce—one of the prominent CRM providers—the solutions on an average help their clients enhance their sales by 30%, and there is a 40% increase in customer satisfaction. These factors are further contributing to the growth of the segment.

Players operating in the software as a service market are mainly focused on developing advanced and efficient products.

  • In December 2022, Microsoft Corporation announced its 10-year partnership with LSEG to offer data analytics and cloud infrastructure solutions.
  • In November 2022, shadow announced the launch of its new cloud storage service named shadow drive.

The software as a service market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South America. In 2021, North America led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the software as a service market from 2022 to 2031.

The key global software as a service market players include ADP LLC, Amazon.com Inc, Google Inc, IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc, SAP SE, Fujitsu Limited, and Workday Inc.

REGIONAL FRAMEWORK

Software as a Service Market Report Analysis

Software as a Service Market
  • CAGR
    CAGR (2023 - 2031)
    18.50%
  • Market Size 2023
    US$ 198.52 Billion
  • Market Size 2031
    US$ 771.89 Billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • Google Inc
  • Oracle Corporation
  • Amazon com Inc
  • Salesforce com Inc
  • Fujitsu Ltd
  • Workday Inc
  • ADP LLC
  • IBM Corporation
  • SAP SE

Regional Overview

Regional Overview
  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Market Segment By Deployment Model
  • Private Cloud
  • Public Cloud
  • Hybrid Cloud
Market Segment By Applications
  • Customer Relationship Management
  • Enterprise Resource Planning
  • Human Resource Planning
  • Supply Chain Management
Market Segment By End User
  • Small & Medium Enterprises and Large Enterprises
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
MARKET PLAYERS

Software as a Service Market Report Scope

Report Attribute Details
Market size in 2023 US$ 198.52 Billion
Market Size by 2031 US$ 771.89 Billion
Global CAGR (2023 - 2031) 18.50%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Deployment Model
  • Private Cloud
  • Public Cloud
  • Hybrid Cloud
By Applications
  • Customer Relationship Management
  • Enterprise Resource Planning
  • Human Resource Planning
  • Supply Chain Management
By End User
  • Small & Medium Enterprises and Large Enterprises
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Google Inc
  • Oracle Corporation
  • Amazon com Inc
  • Salesforce com Inc
  • Fujitsu Ltd
  • Workday Inc
  • ADP LLC
  • IBM Corporation
  • SAP SE
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Coverage

Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered

Segment Covered

Deployment Model, Application, and End User

Regional Scope

Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope

Country Scope

This text is related
to country scope.

The List of Companies - Software as a Service (SaaS) Market

  1. Google, Inc.
  2. Oracle Corporation
  3. Amazon.com, Inc.
  4. Salesforce.com, Inc.
  5. Fujitsu Ltd.
  6. Workday, Inc.
  7. ADP, LLC
  8. IBM Corporation
  9. SAP SE
  10. Microsoft Corporation

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