DUBLIN--(BUSINESS WIRE)--The "Software as a service (SaaS) Global Market Report 2022, By Application, Deployment Model, Enterprise Size, End User" report has been added to ResearchAndMarkets.com's offering.
The global software as a service (saas) market is expected to grow from $212.20 billion in 2021 to $240.61 billion in 2022 at a compound annual growth rate (CAGR) of 13.4%. The market is expected to reach $374.48 billion in 2026 at a CAGR of 11.7%.
Major players in the Software as a Service (SaaS) market are Salesforce, ServiceNow, Microsoft, Google, Cisco, Slack, Adobe, Oracle, Amazon AWS, DocuSign, Zendesk, Dropbox, ADP, Atlassian Confluence, Shopify, Workday, Hubspot, SAP, IBM, Box, Concur, JIRA, GitHub, GoToMeeting, Twilio, CoupaSoftware, Xero and Zuora.
The Software as a Service (SaaS) market consists of sales of cloud-based software services. SaaS is a software solution which can be purchased on a subscription or pay per use basis to use an application for organizational purposes and customers can access this application over internet, mainly through a web browser. All the applications data and software are located in the services provider's data center. SaaS allows an organization to run an application at minimal upfront cost and speeds up overall functionality of the organization.
The main deployment types of software as a service (SaaS) are public cloud and private cloud. The public cloud is an IT model in which on-demand computing services and infrastructure are managed by a third party and shared by multiple organizations via the public Internet. The software is used by small and medium enterprises (SMEs), large enterprises for customer relationship management (CRM), enterprise resource planning (ERP), human resource management (HRM), manufacturing and operations and supply chain management (SCM). The various end users of the software include manufacturing, retail, education, healthcare, IT and telecom, BFSI and others.
North America was the largest region in the Software as a Service (SaaS) market in 2021. Western Europe was the second largest region in the Software as a Service (SaaS) market. The regions covered in the Software as a Service (SaaS) market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Rapid changes in business dynamics in the market are expected to benefit the software as a service (SaaS) market in the forecast period as cloud-based solutions support business operations in changing conditions. Dynamic market conditions include economic uncertainty, competitive rivalry and the increasing adoption of mobile, changing regulations, internet usage and applications.
These conditions along with the increasing number of infrastructures and established networks have forced organizations to pursue scalable and flexible solutions such as SaaS and other cloud enabled services to run and supervise their operations in a cost-effective and efficient way. These factors have also compelled companies to outsource applications and prefer cloud computing services like SaaS to reduce their cost burden on infrastructure.
Companies that seek services from a third-party vendor are more likely to get better performance, compliance and customer satisfaction at a low cost. For example, Sony Communications aims at delivering innovative products and better experience to its customers using automation and Infosys SaaS solutions. Infosys helped Sony to attain customer loyalty and win competition by providing robust IT solution and design thinking at a low cost which helped Sony to have a competitive edge in the market.
Increasing threats on data security especially on cloud platforms are expected to limit the growth of companies in the software as a service market during the forecast period. The threats on data security include industrial espionage and hacking which resulted in multiple breaches of data security involving public cloud environments.
These breaches are mainly because of the negligence the cloud service providers. In addition, many companies lack trust in data security when outsourcing from a third-party vendor. As vendor has access to organization's data, companies fear the misuse of data which might affect organization's reputation.
The introduction of artificial intelligence is gaining popularity in the SaaS market. Artificial Intelligence (AI) is an area of computer science which focus on the simulation of human intelligence processes by machines. AI in SaaS helps companies to upgrade themselves from time to time with the latest data, create better user experience through predictive analytics, automate the areas where manual functions were required previously and personalize user interface features. This indicates that AI and machine learning would be differentiating factors for the growth of SaaS market.
The General Data Protection Regulation (GDPR) break the split of regulations for the security of personal data in the European Union. It makes provisions to protect personal data and privacy of EU citizens for transactions that happen within EU member states. It also regulates the export of personal data outside the EU.
There could be data-subjects that patronize the subscriber that are located in the EU, even if a single SaaS subscriber is based in a non-EU location and the SaaS application is based in a non-EU location. This may cause the subscriber to follow the GDPR regulations. For instance, Intercom, a US-based SaaS provider is shortening its time of storing data on visitors to customers' sites by deleting the visitor data if a visitor has not been seen for nine months to comply with the GDPR.
Key Topics Covered:
1. Executive Summary
2. Software as a service (SaaS) Market Characteristics
3. Software as a service (SaaS) Market Trends And Strategies
4. Impact Of COVID-19 On Software as a service (SaaS)
5. Software as a service (SaaS) Market Size And Growth
5.1. Global Software as a service (SaaS) Historic Market, 2016-2021, $ Billion
5.1.1. Drivers Of The Market
5.1.2. Restraints On The Market
5.2. Global Software as a service (SaaS) Forecast Market, 2021-2026F, 2031F, $ Billion
5.2.1. Drivers Of The Market
5.2.2. Restraints On the Market
6. Software as a service (SaaS) Market Segmentation
6.1. Global Software as a service (SaaS) Market, Segmentation By Application, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
- Customer Relationship Management (CRM)
- Enterprise Resource Planning (ERP)
- Human Resource Management (HRM)
- Manufacturing and Operations
- Supply Chain Management (SCM)
6.2. Global Software as a service (SaaS) Market, Segmentation By Deployment Model, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
- Public Cloud
- Private Cloud
- Hybrid Cloud
6.3. Global Software as a service (SaaS) Market, Segmentation By Enterprise Size, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
- Small & Medium Enterprises (SMEs)
- Large Enterprises
6.4. Global Software as a service (SaaS) Market, Segmentation By End User, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
- Manufacturing
- Retail
- Education
- Healthcare
- IT & Telecom
- BFSI
- Others
7. Software as a service (SaaS) Market Regional And Country Analysis
7.1. Global Software as a service (SaaS) Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
7.2. Global Software as a service (SaaS) Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Companies Mentioned
- Salesforce
- ServiceNow
- Microsoft
- Cisco
- Slack
- Adobe
- Oracle
- Amazon AWS
- DocuSign
- Zendesk
- Dropbox
- ADP
- Atlassian Confluence
- Shopify
- Workday
- Hubspot
- SAP
- IBM
- Box
- Concur
- JIRA
- GitHub
- GoToMeeting
- Twilio
- CoupaSoftware
- Xero
- Zuora
For more information about this report visit https://www.researchandmarkets.com/r/bf4j9d
