Software as a Service - China | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$14.41bn 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 21.38%, resulting in a market volume of US$37.98bn 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 China, the Public Cloud Market for Software as a Service is experiencing mild growth due to factors such as increasing adoption of digital technologies, rising awareness of health among consumers, and the convenience of online health services. This growth rate is impacted by factors such as government regulations and limited internet access in certain regions.

Customer preferences: As China continues to embrace cloud technology, businesses are increasingly turning to Software as a Service (SaaS) solutions for their public cloud needs. This shift is driven by the country's growing digital economy and the need for cost-effective and efficient software solutions. Additionally, the rise of remote work and virtual collaboration has accelerated the adoption of SaaS tools, with businesses prioritizing flexibility and scalability in their software choices. This trend is expected to continue as China's tech-savvy population and rapidly evolving business landscape demand advanced cloud-based solutions.

Trends in the market: In China, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand for enterprise resource planning (ERP) solutions. With the increasing adoption of cloud-based technology and the government's push for digital transformation, local businesses are turning to SaaS solutions to streamline their operations. This trend is expected to continue as more companies recognize the cost and efficiency benefits of SaaS. As a result, industry stakeholders can expect to see a rise in partnerships and collaborations between international SaaS providers and local companies, as well as an increase in the development of localized SaaS solutions tailored to Chinese business needs. This trend has significant implications for the industry, such as the potential for increased competition and market growth, as well as the need for regulatory updates to accommodate the use of SaaS in China.

Local special circumstances: In China, the Software as a Service Market within the Public Cloud Market is heavily influenced by the country's unique regulatory and cultural landscape. As a result, there is a growing demand for locally-developed software solutions that comply with strict data privacy laws and cater to Chinese language and cultural preferences. Additionally, the widespread adoption of digital payment methods and the government's focus on promoting technology innovation have also contributed to the growth of the SaaS market in China.

Underlying macroeconomic factors: The growth of the Software as a Service Market within the Public Cloud Market in China is heavily impacted by macroeconomic factors such as government policies, technology advancements, and investment in digital infrastructure. With a rapidly growing economy and increasing demand for digital solutions, China has become a key market for SaaS providers. However, fluctuations in the global economy and changing regulatory environments can also affect the growth of the market. Additionally, the increasing adoption of cloud computing and the shift towards a remote workforce in China are driving the demand for SaaS solutions.

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.