Software As A Service Market To Reach $819.23 Billion By 2030

Software As A Service Market Growth & Trends

The global software as a service market size is expected to reach USD 819.23 billion by 2030, registering a CAGR of 12.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. The major growth factors of the market include the growing adoption of outsourcing business models in enterprises coupled with the growing number of small and medium enterprises (SMEs) and startups across the globe. Moreover, the rising trend towards mobile applications such as emails, video calls, and instant messaging further increases the usage of smart devices which further encourages the demand for software as a service (SaaS) during the forecast period.

Cloud-based software solutions have become increasingly popular due to their scalability, cost-effectiveness, and ease of use. Companies increasingly turn to cloud-based SaaS solutions for their business needs, including customer relationship management (CRM), human resources management, and accounting. Further, SaaS providers are increasingly integrating their software with other platforms to offer a more comprehensive suite of services. This includes integrations with other SaaS providers and on-premises software and legacy systems. For instance, in November 2022, IBM Corporation launched a managed cloud service solution for VMware, Inc., an American cloud computing and virtualization technology company. The new offering provides a secured, operated, and managed service by IBM Cloud to assist enterprises in deploying the cloud with the IBM Cloud infrastructure and VMware software stack.

SaaS providers increasingly incorporate artificial intelligence (AI) and automation into their software solutions to improve efficiency, accuracy, and productivity. This includes features such as chatbots, predictive analytics, and automated workflows. Furthermore, the COVID-19 pandemic has boosted the adoption of remote work and cloud-based software, which could lead to increased demand for SaaS solutions worldwide. This trend will continue even as the pandemic subsides, as many companies have discovered the benefits of cloud-based tools and are likely to continue using them. For instance, in November 2022, OutSystems launched a cloud-native development solution OutSystems Developer developing cloud applications. ODC combines a cutting-edge architecture developed on Linux containers, AWS, Kubernetes, enterprise-grade security, and micro services with DORA high-performance CD/CI and the unrivaled efficiency of visual, model-based development.

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Software As A Service Market Report Highlights

• The software segment led the market in 2024, accounting for over 84% share of the global revenue. This high share is driven by increasing adoption across industries, fueled by its scalability, cost efficiency, and rapid deployment capabilities.

• The customer relationship management (CRM) segment accounted for the largest revenue share in 2024. CRM solutions offer advanced capabilities such as AI-powered analytics, personalized marketing automation, and seamless omnichannel communication, enabling organizations to enhance customer experiences and loyalty.

• The private cloud segment accounted for the largest revenue share of the SaaS industry in 2024. Combining the deployment of SaaS applications at the network's edge with a private cloud infrastructure can provide organizations with greater control and security over their data while improving performance and reducing latency.

• The large enterprises segment accounted for the largest revenue share in 2024. SaaS solutions offer large enterprises several benefits, including cost-effectiveness, scalability, and flexibility.

• The BFSI segment accounted for the largest revenue share of the Software as a Services (SaaS) industry in 2024. SaaS solutions offer scalable platforms for core functions such as customer relationship management, risk assessment, fraud detection, and regulatory compliance.

• North America software as a service market dominated with a revenue share of over 43% in 2024. The U.S. is positively contributing to the growth of market revenue. The presence of well-established market players is one of the driving factors for market growth.

Software As A Service Market Segmentation

Grand View Research has segmented the global software as a service market on the basis of on component, application, deployment, enterprise size, industry, and region:

Software As A Service Component Outlook (Revenue, USD Million, 2017 - 2030)

• Software

• Services

Software As A Service Application Outlook (Revenue, USD Million, 2017 - 2030)

• Customer Relationship Management (CRM)

• Enterprise Resource planning (ERP)

• Human Capital Management

• Content, Collaboration & Communication

• BI & Analytics

• Others

Software As A Service Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• Public

• Private

• Hybrid

Software As A Service Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

• Large Enterprises

• SMEs

Software As A Service Industry Outlook (Revenue, USD Million, 2017 - 2030)

• BFSI

• Retail And Consumer Goods

• Healthcare

• Education

• Manufacturing

• Travel & Hospitality

• Others

Software As A Service Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

• Latin America

  • Brazil

• MEA

  • UAE

  • South Africa

  • KSA

List of Key Players in the Software As A Service Market

• Adobe Inc.

• Microsoft

• Alibaba Cloud International

• IBM Corporation

• Google LLC

• Salesforce, Inc.

• Oracle

• SAP SE

• Rackspace Technology, Inc.

• VMware Inc.

• IONOS Cloud Inc.

• Cisco Systems, Inc.

• Atlassian

• ServiceNow