Software as a Service - ASEAN | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$2.80bn in 2024.
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Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 21.89%, resulting in a market volume of US$7.52bn 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

In the Public Cloud Market in ASEAN, the Software as a Service sector is experiencing mild growth due to factors such as increasing adoption of SaaS solutions, growing awareness of the benefits of cloud computing, and the convenience of on-demand software delivery. This growth rate is impacted by the region's developing digital infrastructure and the increasing demand for cost-effective and scalable software solutions.

Customer preferences: The increasing adoption of cloud-based solutions in the ASEAN region has led to a growing demand for Software as a Service (SaaS) in the Public Cloud Market. This trend is driven by a shift towards digital transformation and the need for more efficient and cost-effective business operations. Additionally, there is a growing preference for subscription-based models and on-demand access to software, reflecting the changing lifestyle and work culture in the region.

Trends in the market: In the ASEAN region, there is a rising trend of adopting Software as a Service (SaaS) solutions within the Public Cloud market. This is driven by the increasing demand for cost-effective and scalable software solutions from businesses of all sizes. Moreover, with the rapid growth of e-commerce and digitalization, there is a growing need for efficient and secure cloud-based software to support online transactions and operations. This trend is expected to continue in the coming years, as more organizations in the region shift towards cloud-based solutions to streamline their business processes and improve their overall efficiency. These developments have significant implications for industry stakeholders, as it presents a lucrative market opportunity for SaaS providers and also drives the demand for cloud infrastructure and services. However, it also poses challenges for traditional software vendors, who may struggle to compete with the flexibility and cost-effectiveness of SaaS solutions. Therefore, it is crucial for industry players to stay ahead of these trends and adapt their offerings to meet the evolving needs of the market.

Local special circumstances: In ASEAN, the Software as a Service Market within the Public Cloud Market is influenced by the region's diverse cultural and regulatory landscape. Countries like Singapore and Malaysia have well-developed tech industries and are home to many tech startups, while other countries like Indonesia and the Philippines are seeing a growing demand for cloud-based software solutions. Additionally, data privacy laws and internet connectivity infrastructure vary across the region, impacting the adoption and growth of SaaS platforms.

Underlying macroeconomic factors: The growth of the Software as a Service Market within the Public Cloud Market is influenced by macroeconomic factors such as the increasing adoption of cloud computing, government initiatives promoting digital transformation, and the rise in demand for cost-effective and scalable software solutions. Countries with strong investment in digital infrastructure and supportive policies are experiencing rapid market growth, while those with limited resources and regulatory challenges are facing slower growth. Moreover, the ongoing digitalization of businesses and the need for remote collaboration due to the COVID-19 pandemic are also contributing to the growth of the market.

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.