Software as a Service - APAC | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$40.42bn in 2024.
0.0 dominates the market with a projected market volume of 0.0 in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.87%, resulting in a market volume of US$104.30bn by 2029.
In global comparison, most revenue will be generated United States (US$187.20bn in 2024).

Definition:

Software as a Service (SaaS) refers to the type of public cloud service that delivers software applications over the internet on a subscription basis. Users can access and use the software through web browsers without having to install or maintain it locally. SaaS eliminates the need for purchasing, installing, and updating software, thus offering convenience and automatic updates while allowing users to focus on using the software to meet their requirements. The SaaS market includes the companies that provide these types of cloud-based software resources and services to individuals, businesses, and organizations. A typical example of this type of service is Microsoft Office 365, an SaaS suite of applications (e.g., Word, Excel, and PowerPoint) available for purchase by subscription and accessible via a web browser.

Additional Information:

The Software as a Service (SaaS) market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the SaaS market include companies such as Microsoft (Office 365), Salesforce (Customer 360), Oracle (Cloud applications), and IBM (Cloud).

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Enterprise software, such as SAP ERP, Oracle ERP Cloud, Salesforce CRM, and Microsoft Dynamics365
Productivity software, such as Microsoft 365, Google Workspace, and Adobe Creative Cloud

System infrastructure software, such as Microsoft Windows Operating System and Linux Operating System
On-premises software, such as on-premises versions of Microsoft Office, SAP ERP, and Oracle Database
Business-Process-as-a-Service (BPaaS), such as payroll management and accounting solutions via ADP Workforce Now, Intuit QuickBooks Online, Workday, and Oracle NetSuite

The APAC Public Cloud SaaS market is witnessing mild growth, propelled by the growing demand for digital solutions, increasing health awareness, and the convenience of online services. Various factors such as technological advancements and government initiatives are impacting this growth rate.

Customer preferences: The APAC region is experiencing a rapid growth in the Software as a Service Market within the Public Cloud Market due to the increasing demand for remote work solutions. This is driven by the rising popularity of flexible work arrangements and the need for collaboration tools that can support remote teams. Additionally, there is a growing preference for subscription-based models, as businesses look for cost-efficient options to access software and applications. This trend is also influenced by the cultural value of frugality and resource optimization in the region.

Trends in the market: In APAC, the Software as a Service market within the Public Cloud market is experiencing a surge in demand due to the increasing adoption of cloud-based solutions. This trend is driven by the need for cost-effective and scalable software solutions, particularly in emerging economies such as India and China. Additionally, there is a growing trend of SaaS providers partnering with local companies to better understand and cater to the needs of the APAC market. This trend not only allows for better customization of services but also opens up new revenue streams for both parties. As a result, industry stakeholders must keep a close eye on the evolving needs and preferences of the APAC market to stay ahead of the curve and capitalize on this growing trend.

Local special circumstances: In China, the Software as a Service Market within the Public Cloud Market is experiencing rapid growth due to the country's large population and government policies promoting digital transformation. The market is also driven by the need for cost-effective and efficient solutions in the fast-paced business environment. In Japan, the market is influenced by strict data privacy regulations and the emphasis on quality and reliability in software services. Additionally, the cultural preference for long-term partnerships and customized solutions has shaped the market dynamics in Japan.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in APAC is strongly influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investments in cloud technology are experiencing faster market growth, while those with regulatory challenges and limited digital infrastructure are facing slower growth. Additionally, the increasing demand for efficient and cost-effective solutions in the business sector is driving the adoption of SaaS in the public cloud, especially in developing economies. This trend is further supported by the growth of the overall public cloud market in APAC, which is driven by the region's strong economic growth, increasing investments in technology, and rising adoption of digital transformation strategies by businesses.

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing. It allows businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. Currently, the most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.