Global Software as a Service Market Outlook 2031
The global software as a service market size was USD 84.54 billion in 2022 and is anticipated to reach USD 225.18 billion by 2031 expand at a CAGR of 11.5% during the forecast period, between 2023 to 2031. Software as a service (SaaS) is a software solution that can be purchased on a subscription or pay-per-use basis to use an application for organizational purposes, and customers can access this application through the Internet, primarily a web browser.
The use of services to eliminate the need for integrated software as an application on their individual servers, resulting in low deployment costs, and high adoption due to the deployment with unique customized offerings. These are the key aspects that helps in the expansion of the market globally.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for SaaS across multiple industries to ensure a smooth service to customers as well as effective business productions present key factors driving the market growth.
- Rapid digitization and growing needs to access to high-level software system across various industries to prevent from malware and cyber-attacks are key factors projected to fuel the market expansion in the coming years.
- Increase in the use of mobile phones and wide access to Internet among consumers is a key factor propelling the market revenue.
- Problems related to security breach and high cost of infrastructure are key restraining factors expected to limit the market growth in the coming years.
- Increasing demand for miniature SaaS and rapid development of the IT industry are paving ways for lucrative opportunities of the market in the long run.
Scope of Software as a Service Market Report
The report on the global software as a service market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Software as a Service Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Deployment Models (Private Cloud, Public Cloud, and Hybrid Cloud), Applications (Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Management (HRM), Supply Chain Management (SCM), and Others [Business Intelligence, Compliance, Messaging & Collaboration, and Web Conferencing Platforms]), End-Users (Small & Medium Enterprises (SMEs) and Large Enterprises)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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ADP, LLC; Amazon.com, Inc.; Google LLC; IBM Corporation; Microsoft Corporation; Oracle Corporation; Salesforce.com, Inc.; SAP SE; Fujitsu Limited; and Workday, Inc.
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Software as a Service Market Segment Insights
Public cloud segment to hold substantial market share
On the basis of development models, the software as a service market is segmented into private cloud, public cloud, and hybrid cloud. The private cloud segment is expected to account for large market share during the forecast period owing to its certain advantages such as high security networking system and high reliability for data safety.
However, it is relatively costlier than the other models available in the market. The public cloud segment, however, is projected to hold substantial market share in the coming years due to high adoption of SaaS as it is less costly and preferred by small and medium enterprises (SMEs) worldwide.
Human resource management (HRM) segment to hold significant market share
In terms of applications, the market is segregated into customer relationship management (CRM), enterprise resource planning (ERP), human resource management (HRM), supply chain management (SCM), and others. The others segment is split into business intelligence, compliance, messaging and collaboration, web conferencing platforms.
The HRM segment is projected to grow due to high adoption of SaaS, as it significantly increases staff productivity, as many functions that would normally require input from HR professionals can be automated or performed through self-service web interfaces. SaaS human resources applications offer significant cost savings as opposed to most on-premise HR software applications that are typically integrated with ERP systems.
SMEs segment to expand at a robust growth rate
Based on end-users, the software as a service market is bifurcated into small & medium enterprises (SMEs) and large enterprises. The SMEs segment is anticipated to expand at a robust growth rate due to rise in number of these small and medium companies in using SaaS to reduce overall cost of production.
Asia Pacific to dominate the global market
In terms of regions, the market can be classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is anticipated to dominate the market in the coming years owing to growing awareness regarding the benefits of SaaS and significantly increasing the acceptance of SaaS in various organizations in the region.
Moreover, rising government support for digitization of economy in developing countries is a key river expected to fuel the market growth in the region. Additionally, these developing economies are home to a large number of SMEs, who are the major companies adopting SaaS models in their business setups.
Segments
By Deployment Models
- Private Cloud
- Public Cloud
- Hybrid Cloud
By Applications
- Customer Relationship Management (CRM)
- Enterprise Resource Planning (ERP)
- Human Resource Management (HRM)
- Supply Chain Management (SCM)
- Others
- Business Intelligence
- Compliance
- Messaging & Collaboration
- Web Conferencing Platforms
By End-Users
- Small & Medium Enterprises (SMEs)
- Large Enterprises
By Regions
- North America
- Europe
- Latin America
- Asia Pacific
- Middle East & Africa
By Key Players
- ADP, LLC
- Amazon.com, Inc.
- Google LLC
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- Salesforce.com, Inc.
- SAP SE
- Fujitsu Limited
- Workday, Inc.
Competitive Landscape
Key players in the global software as a service market are ADP, LLC; Amazon.com, Inc.; Google LLC; IBM Corporation; Microsoft Corporation; Oracle Corporation; Salesforce.com, Inc.; SAP SE; Fujitsu Limited; and Workday, Inc. These players have adopted several business development strategies such as mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.
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