Software as a Service Market Exhibits 19.7% CAGR to Hit USD 883.34 Billion by 2029
Fortune Business Insights
Updated 6 min read
Fortune Business Insights
According to Fortune Business Insights, the global software as a service market size is projected to reach USD 883.34 Billion in 2029, at a CAGR of 19.7% during the forecast period, 2022-2029
Pune, India, Feb. 15, 2023 (GLOBE NEWSWIRE) -- The global software as a service (SaaS) market size was USD 215.10 billion in 2021. The market is projected to grow from USD 251.17 billion in 2022 to USD 883.34 billion by 2029, exhibiting a CAGR of 19.7% during the 2022-2029 period. Early adoption of technologies such as AI, IoT, robotics, and cloud drives the market growth. Fortune Business Insights, provide this information in its report titled, “Software as a Service Market Forecast, 2023-2029.”
February 2022: Salesforce unveiled an advanced sales cloud feature, which combines CRM analytics with Sales Cloud, thus providing users with a unified revenue management command center. The feature also includes intelligence cloud services for manufacturing, consumer goods, finance, and communications.
Report Scope & Segmentation
Report Coverage
Details
Forecast Period
2022 to 2029
Forecast Period 2022 to 2029 CAGR
19.7%
2029 Value Projection
USD 883.34 Billion
Base Year
2021
Software as a Service Market Size in 2021
USD 215.10 Billion
Historical Data for
2018 to 2020
No. of Pages
134
Segments covered
Deployment Type, Application, Industry and Geography
Key Takeaways:
Software as a Service Market Size in North America was USD 57.30 billion in 2020
Major driving factors include integration of advanced technologies such as AI and machine learning
By Deployment type, hybrid segment has the largest share in the global market.
Global demand is driven by BFSI and IT & telecom industry
Healthcare end-users will drive the market in the forecast period, 2022-2029
Increasing Adoption of Hybrid Cloud-based Tools by Enterprises to Propel the Market
Increasing adoption of hybrid and public cloud-based solutions enhances system reliability. Furthermore, several enterprises offered hybrid cloud services and cloud-based solutions after the pandemic as people became accustomed to working remotely. This shift toward working remotely is also aiding the Software as a Service (SaaS) market growth.
On the other hand, concerns regarding data security and Software as a Service (SaaS) misconfiguration will pose as challenges for businesses operating in this domain.
Segments:
Hybrid Segment to Lead Due to Increasing Adoption of Cloud in Public Sector
As per deployment type, the market is divided into public, hybrid, and private. Among these, the hybrid segment is slated to register significant growth owing to increasing adoption of hybrid cloud by banking and financial institutions, public sector organizations, and others.
Preference for SaaS in Content, Collaboration & Communication to Boost the Market
Based on application, the global market is split into Customer Relationship Management (CRM), ERP, content, collaboration & communication, BI & analytics, human capital management, and others (HRM, operation management. Among these, the content collaboration & communication segment is predicted to grow at 21.8% CAGR over the forecast timeframe. Software as a Service deployment in content collaboration tools will streamline data flow for organizations, which will aid market expansion.
Adoption of SaaS in Healthcare Sector to Facilitate Market Augmentation
According to industry, the global market is arrayed into IT & telecom, BFSI, retail & consumer goods, healthcare, education, manufacturing, and others. Among these, the healthcare segment is projected to register the highest CAGR over the forecast period as cloud services help gain real-time data insights and reduce storage problems.
Geographically, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Presence of Leading Companies to Elevate Market Proliferation in North America
North America held majority of the Software as a Service (SaaS) market share in the recent past. Presence of prominent players and early adoption of technologies such as robotics, IoT, AI, and cloud are the factors credited for this growth. The region is expected to grow further by focusing on innovations in the SaaS market.
Europe is slated to capture a large share owing to rising efforts and investments by governments and private corporations to increase cloud adoption.
Competitive Landscape:
New Launches Initiated by Key Companies to Propel the Market
The leading players in the market constantly opt for efficient strategies to maximize profits and boost product sales. One such efficient strategy is launching new products or advanced features to increase brand value and meet ever increasing consumer needs.
List of Key Players Mentioned in the Report:
Alphabet Inc. (U.S.)
Amazon.com, Inc. (U.S.)
Microsoft Corporation (U.S.)
IBM Corporation (U.S.)
Salesforce Inc. (U.S.)
SAP SE (Germany)
Oracle Corporation (U.S.)
Cisco Systems, Inc. (U.S.)
Hewlett Packard Enterprise Company (U.S.)
ServiceNow, Inc. (U.S.)
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