Software as a Service - Central & Western Europe

Revenue in the Software as a Service market is projected to reach US$60.02bn 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 19.36%, resulting in a market volume of US$145.40bn 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 Public Cloud Market in Central & Western Europe is seeing mild growth, influenced by factors such as the increasing adoption of Software as a Service, growing awareness of its benefits, and the convenience it offers for businesses.

Customer preferences: The Software as a Service Market within the Public Cloud Market in Central & Western Europe continues to see a rise in demand for cloud-based collaboration and communication tools. This is due to the increasing adoption of remote work and the need for virtual team collaboration. Additionally, there has been a growing preference for software solutions that offer seamless integration with other business tools and the ability to access data from any device, reflecting a shift towards a more mobile and efficient work culture.

Trends in the market: In Central & Western Europe, the Software as a Service (SaaS) market within the Public Cloud Market is experiencing a surge in demand for cloud-based collaboration and communication tools. This trend is driven by the increasing number of organizations adopting remote work policies and the need for efficient virtual collaboration platforms. Additionally, there is a growing focus on data security and compliance, leading to a rise in demand for SaaS solutions that offer robust security measures. This trend is expected to continue in the coming years, with significant implications for industry stakeholders, including the need for constant innovation and advancements in cloud technology to meet the evolving needs of businesses.

Local special circumstances: In Central & Western Europe, the Software as a Service market within the Public Cloud Market is experiencing significant growth due to the region's strong digital infrastructure and high adoption of cloud-based services. Additionally, the strict data privacy laws in countries like Germany and France are driving organizations to opt for SaaS solutions. In contrast, countries like Spain and Italy have a slower adoption rate due to cultural preferences for traditional software solutions.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in Central & Western Europe is also impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and robust investments in digital technologies are experiencing higher growth in the market compared to regions with regulatory hurdles and limited funding for technology. Moreover, the increasing adoption of cloud-based solutions in various industries and the growing demand for cost-effective and scalable software solutions are driving the growth of the Software as a Service Market in the region.

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.