GVR Report cover SaaS Market Size, Share & Trends Report

SaaS Market Size, Share & Trends Analysis Report By Type (Enterprise Software, Productivity Software), By Region (North America, Europe, APAC, Central & South America, MEA), And Segment Forecasts, 2022 - 2028

  • Report ID: GVR-4-68039-940-5
  • Number of Pages: 72
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global SaaS market size was valued at USD 165.9 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 11.0% from 2022 to 2028. Software as a Service (SaaS) is a cloud service that provides software applications virtually through the internet. The rising adoption of public cloud services across enterprises is one of the major factors that propel the market growth during the forecast period. The growing shift of enterprises towards SaaS from an on-premises model owing to the high cost of the on-premises software deployment is further projected to propel the growth of the market for SaaS over the forecast period. However, the concern related to data privacy and security related to the public cloud is projected to hinder the market growth.

U.S. SaaS market size, by type, 2019 - 2028 (USD Billion)

The significant increase in the adoption of emails, instant messaging applications, and video calls encourages the demand for smart devices among end-users. This, in turn, is projected to contribute to the growth of the market for SaaS. Through SaaS applications, people can connect from everywhere apart from offices therefore, the growing trend towards work from home across the globe is further projected to provide ample opportunities for the growth of the market for SaaS in the near future. Additionally, the growing demand for business outsourcing in enterprises further propels market growth over the forecast period.  

The COVID-19 outbreak further positively impacted the market for SaaS as many of the enterprises opted for cloud software platforms during the lockdown. The lockdown imposed by the government has led to substantial growth in the adoption of cloud software platform services such as SaaS across various enterprises. The increased use of public cloud services during work from home has reinforced SaaS adoption for the virtual management of the work in enterprises. Therefore, the significant increase in the adoption of third-party software services across the globe during the pandemic further augmented the growth of the market for SaaS.

Type Insights

The enterprise software segment dominated the market for SaaS and accounted for a revenue share of over 70.0% in 2021. The growth of the market is attributed to the rising trend toward the deployment of cloud software applications in small and medium enterprises. Various major players such as IBM Corp., Microsoft Corp. Salesforce, and others are providing advanced enterprise SaaS to the companies and further contributed significantly to the market share. Additionally, the high expenditure toward business outsourcing in enterprises further contributed to the highest market share of the segment.

Global SaaS market share, by type, 2021 (%)

The productivity software segment is forecast to grow with a significant CAGR of 10.6% over the forecast period. The market for SaaS is mainly driven due to the growing demand for productivity software in small organizations as this software service allows enterprises to become office less. Moreover, the significant availability of productivity applications for mobile applications such as calendar functions, emails, and note-taking, further contributes to the growth of the market for SaaS over the forecast period. Additionally, the growing adoption of productivity SaaS for data analytics among enterprises provides ample growth to the market for SaaS during the forecast period.     

Regional Insights

In Asia Pacific, the market for SaaS is expected to witness the highest CAGR of 12.1% from 2022 to 2028. China and India are positively contributing to the growth of the market owing to the growing demand for outsourcing of cloud-based software coupled with the rising number of small and medium enterprises outsourcing across the region. The SMEs significantly outsource cloud-based software platforms for reducing the cost of on-premises software deployment. Moreover, the significant growth in the IT industry is further expected to offer ample opportunity to the market. Moreover, the growing number of secured internet servers in China, Japan, and India further augmented the growth of the market for SaaS during the forecast period. 

North America is projected to hold a major market share of around 50.0% in 2021. The U.S. is positively contributing to the growth of market revenue. The presence of well-established market players such as Salesforce, Microsoft Corp., Google LLC, IBM Corp., and others is one of the driving factors for market growth. Moreover, the developed IT infrastructure increases the easy deployment of cloud-based virtual services in the region, thereby contributing to the major share in the SaaS market. Moreover, the significant expenditure on the cloud infrastructure coupled with the availability of a high number of secured internet servers further contributed to the highest market share. Furthermore, innovations in mobile applications and the introduction of various smart devices can be attributed to the market dominance in the region.       

Key Companies & Market Share Insights

The SaaS industry is always changing and updating. The key market players tend to launch new strategies more frequently to stay head-on in the market for SaaS. Moreover, the companies are focusing on increasing investments in the advancement of cloud services to increase the customer base in the market. Moreover, major players are targeting new regions and geographies to increase the revenue from the industry, by either entering the new market solely or by collaborating with local companies across the globe. Some of the prominent players in the SaaS market include:

  • Adobe Inc.

  • Microsoft Corp.

  • Alibaba Cloud

  • IBM Corp.

  • Google LLC

  • Salesforce

  • Oracle Corp.

  • SAP SE

  • Rackspace Technology, Inc.

  • VMware Inc.

  • IONOS Cloud Inc.

  • Cisco Systems, Inc.

  • Atlassian

  • ServiceNow 

SaaS Market Report Scope

Report Attribute

Details

Market size value in 2022

USD  186.6 billion

Revenue forecast in 2028

USD  344.3 billion

Growth rate

CAGR of 11.0% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD million and CAGR from 2022 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; France, U.K.; China; India; Japan; Brazil; South Africa

Key companies profiled

Adobe Inc., Microsoft Corp., Alibaba Cloud, IBM Corp., Google LLC, Salesforce, Oracle Corp., SAP SE, Rackspace Technology, Inc., VMware Inc., IONOS Cloud Inc., Cisco Systems, Inc., Atlassian, and ServiceNow.

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global SaaS market report based on type and region:

  • Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Enterprise Software

    • Productivity Software

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

    • Europe

      • Germany

      • France

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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