Global Software as a Service Market Report and Forecast 2024-2032

Global Software as a Service Market Outlook

The global software as a service market size reached approximately USD 294.20 billion in 2023. The market is projected to grow at a CAGR of 17.9% between 2024 and 2032, reaching a value of around USD 1292.33 billion by 2032.

Key Trends in the Market

Software as a service (SaaS) is a cloud-based software service that allows the end-user to access software applications over the internet, usually on a subscription basis. In the SaaS model, the service provider hosts and manages the software on a remote server and then provides access to users via web browsers or dedicated applications.

• Organisations around the world are increasingly adopting IoT and cloud services to digitise their operations and adapt to changing market conditions, which is likely to boost the adoption of SaaS. The software as a service market growth has further accelerated with the rising adoption of remote work, pushing organisations to invest in cloud-based SaaS solutions for collaboration, communication, and productivity.

• Enterprises across diverse sectors are harnessing the power of autonomous innovations to elevate their services and products. The integration of advanced technologies such as artificial intelligence and machine learning is one of the key global software as a service market trends as it has enabled SaaS solutions to evolve rapidly while enhancing operational efficiency and intelligence across various business domains.

• There has been a noticeable increase in the adoption of hybrid cloud-based solutions within organisations, aiding the software as a service market demand. Moreover, an increasing number of enterprises are opting for hybrid cloud setups, which involve a combination of on-premises solutions and public cloud services to increase data security.

Market Analysis

Based on deployment, the market is segmented into public cloud, private cloud, and hybrid. The global software as a service market segmentation, on the basis of solution, includes customer relationship management (CRM), operations and manufacturing, enterprise resource planning (ERP), content management systems, human capital management (HCM), and supply chain management, among others.

The market, based on organisation size, is categorised into small and medium-sized enterprises and large enterprises. Based on end-use, the market is divided into IT and telecom, manufacturing, BFSI, healthcare, retail, education, and government, among others. The major regional markets for software as a service are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global software as a service market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments and expansion plans.

• Microsoft Corporation

• Oracle Corporation

• Salesforce, Inc. 

• Google LLC

• SAP SE

• Adobe Inc. 

• Cisco Systems, Inc. 

• IBM Corporation 

• Accenture plc

• Infosys Limited

• Others

Market Share by Deployment

Private cloud is likely to represent a significant global software as a service market share in the coming years. This type of cloud deployment offers a substantial advantage as it combines the use of SaaS applications at the network's edge with a private cloud infrastructure. Furthermore, by adopting a private cloud infrastructure, organisations gain the ability to maintain a higher level of control over their data. Companies are increasingly investing in private cloud systems as it is vital to adhere to regulatory requirements and mitigate the risk of data breaches.

Market Share by Organisation Size

According to the global software as a service market analysis, large enterprises are expected to contribute significantly to the expansion of the market. The development can be attributed to the numerous advantages provided by SaaS solutions to large enterprises. These include cost-effectiveness, scalability, and flexibility, which are crucial for carrying out operations efficiently in large organisations.

Competitive Landscape

Infosys Limited is a major Indian multinational corporation that specialises in delivering a range of services related to information technology (IT). Their offerings encompass IT consulting, software development, and business process outsourcing. This company holds a prominent position in India's IT services sector and has its headquarters situated in Bengaluru, Karnataka, India.

Accenture plc is a prominent multinational professional services company. It offers a broad spectrum of services spanning management consulting, technology solutions, digital services, and outsourcing. The company is recognised for its global presence and serves clients across various sectors. Its headquarters is located in Dublin, Ireland. Over the operational years, Accenture has grown into one of the largest and most influential consulting and technology firms around the world.

IBM Corporation is a renowned American multinational technology and IT services company. Established in 1911, IBM has a rich history of innovation and has played a pivotal role in shaping the modern technology landscape. The company offers a diverse range of products and services, including hardware, software, cloud computing solutions, artificial intelligence, data analytics, and consulting services.

Other software as a service market players include Microsoft Corporation, Oracle Corporation, Salesforce, Inc., Google LLC, SAP SE, Adobe Inc., and Cisco Systems, Inc., among others.

Key Highlights of the Report