Software As A Service Market Size To Reach $819.23Bn 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, growing at a CAGR of 13.7% from 2023 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 2022, accounting for over 84% share of the global revenue owing to a rise in the demand for cloud-based software outsourcing and an increase in the number of SMEs outsourcing

• The private cloud segment held the largest revenue share of over 44% in 2022. Private clouds combine many advantages of cloud computing, such as ease of service delivery, scalability, security, elasticity, and resource personalization of on-premises infrastructure

• The large enterprises segment led the market in 2022, accounting for over 60% share of the global revenue. SaaS gives enterprises greater visibility and control over their cloud environments, allowing them to manage risk and compliance requirements better

• The others segment held the largest revenue share of over 42% in 2022. The emergence of new technologies like robotic process automation (RPA), cloud computing, and artificial intelligence (AI) has the potential to revolutionize the supply chain software market

• North America accounted for the largest share of over 44% of the global SaaS market. Software as a Service (SaaS) is a rapidly growing industry in North America, with many developments emerging in recent years. Cloud-based software solutions have become increasingly popular in North America due to their scalability, cost-effectiveness, and ease of use

Software As A Service Market Segmentation

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

SaaS Component Outlook (Revenue, USD Billion, 2017 - 2030)

• Software

• Services

SaaS Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

• Public Cloud

• Private Cloud

• Hybrid Cloud

SaaS Enterprise-size Outlook (Revenue, USD Billion, 2017 - 2030)

• Small & Medium Enterprises

• Large Enterprises

SaaS Application Outlook (Revenue, USD Billion, 2017 - 2030)

• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)

• Human Capital Management

• Content, Collaboration & Communication

• BI & Analytics

• Others

SaaS Industry Outlook (Revenue, USD Billion, 2017 - 2030)

• Banking, Financial Services & Insurance (BFSI)

• Retail & Consumer Goods

• Healthcare

• Education

• Manufacturing

• Travel & Hospitality

• Others

SaaS Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • U.K.

• Asia Pacific

  • China

  • Japan

  • India

  • Singapore

  • South Korea

  • Malaysia

  • Australia

• Central & South America

  • Brazil

• Middle East & Africa

List of Key Players of Software As A Service Market

• Adobe Inc.

• Microsoft

• Alibaba Cloud

• IBM

• Google LLC

• Salesforce, Inc.

• Oracle

• SAP SE

• Rackspace Technology, Inc.

• VMware Inc.

• IONOS Cloud Inc.

• Cisco Systems, Inc.

• Atlassian

• ServiceNow