SAN FRANCISCO, April 25, 2023 /PRNewswire/ -- 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.
Key Industry Insights & Findings from the report:
- 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.
Read 128 page market research report, "Software As A Service (SaaS) Market Size, Share & Trends Analysis Report By Component, By Deployment, By Enterprise-size, By Application (CRM, ERP, Content), By Industry (BFSI, Retail, Healthcare), And Segment Forecasts, 2023 - 2030", published by Grand View Research.
Software As A Service Market Growth & Trends
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.
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 Market - Component Outlook (Revenue, USD Billion, 2017 - 2030)
SaaS Market - Deployment Outlook (Revenue, USD Billion, 2017 - 2030)
- Public Cloud
- Private Cloud
- Hybrid Cloud
SaaS Market - Enterprise-size Outlook (Revenue, USD Billion, 2017 - 2030)
- Small & Medium Enterprises
- Large Enterprises
SaaS Market - Application Outlook (Revenue, USD Billion, 2017 - 2030)
- Customer Relationship Management (CRM)
- Enterprise Resource Planning (ERP)
- Human Capital Management
- Content, Collaboration & Communication
- BI & Analytics
SaaS Industry Outlook (Revenue, USD Billion, 2017 - 2030)
- Banking, Financial Services & Insurance (BFSI)
- Retail & Consumer Goods
- Travel & Hospitality
SaaS Market - Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- Asia Pacific
- South Korea
- Central & South America
- Middle East & Africa
List of Key Players of Software As A Service Market
- Adobe Inc.
- Alibaba Cloud
- Google LLC
- Salesforce, Inc.
- SAP SE
- Rackspace Technology, Inc.
- VMware Inc.
- IONOS Cloud Inc.
- Cisco Systems, Inc.
Check out more related studies published by Grand View Research:
- Everything As A Service Market - The global everything as a service market size is anticipated to reach USD 1,208.5 billion by 2030, registering a CAGR of 22.3% during the forecast period, according to a new study by Grand View Research, Inc. Industry players are poised to emphasize XaaS platforms for increased scalability, security and cost savings. Organizations can reduce costs through the purchase of services on a subscription basis. Furthermore, the rising penetration of cloud computing and the high number of offerings provided by the cloud will bode well for the industry's growth. With a host of companies adopting the XaaS model by way of cloud-based monitoring, industry participants will continue to invest in the business vertical.
- Open Source Services Market - The global open source services market size is expected to reach USD 83.87 billion by 2030, growing at a CAGR of 16.9% from 2023 to 2030, according to a new report by Grand View Research, Inc. The trend of DevOps, which emphasizes collaboration, automation, and continuous delivery of software, is driving growth. DevOps teams often use open source tools and platforms to streamline development workflows and improve efficiency, leading to increased demand for open source services. In addition, the growth of the Internet of Things (IoT) has created new opportunities for open source providers, as IoT devices and applications rely heavily on open source software for connectivity and interoperability.
- Public Cloud Market - The global public cloud market size is expected to reach USD 596.0 billion by 2027, expanding at a CAGR of 14.6% from 2020 to 2027, according to a new study conducted by Grand View Research, Inc. Owing to the high scalability and reduced operational costs offered by cloud services in the wake of digital transformation of industries, the market is witnessing rapid growth. Moreover, enterprises across the globe are gradually adopting public cloud technology to rapidly build, test, and release quality software products.
Browse through Grand View Research's Next Generation Technologies Industry Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Corporate Sales Specialist, USA
Grand View Research, Inc.
Toll Free: 1-888-202-9519
Grand View Compass | Astra ESG Solutions
Follow Us: LinkedIn | Twitter