Software as a Service - CIS | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$2.26bn 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 17.78%, resulting in a market volume of US$5.11bn 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 Software as a Service market in the Public Cloud Market in CIS nan is experiencing slower growth due to factors such as limited infrastructure in the region and lower awareness of digital technologies. Despite this, increasing demand for cloud-based solutions is driving market expansion.

Customer preferences: With the widespread adoption of remote work and virtual collaboration, the Software as a Service Market within the Public Cloud Market has seen a rise in demand for cloud-based project management and communication tools. This trend is driven by the need for efficient and streamlined workflows, as well as the increasing popularity of flexible work arrangements. Additionally, the shift towards SaaS solutions allows businesses to save costs on IT infrastructure and maintenance, making it a more attractive option for budget-conscious organizations.

Trends in the market: In the Software as a Service Market within the Public Cloud Market, there is a noticeable trend towards the integration of artificial intelligence (AI) and machine learning (ML) technologies. This is evidenced by the increasing number of SaaS companies incorporating AI and ML capabilities into their offerings, such as automated data analysis and predictive analytics. This trend is significant as it allows organizations to streamline processes, improve decision-making, and enhance overall efficiency. Industry stakeholders should pay attention to the trajectory of this trend, as it has the potential to significantly impact the market and drive further growth and innovation in the public cloud space.

Local special circumstances: In countries like China and South Korea, the Software as a Service market within the Public Cloud Market is thriving due to the high adoption rates of new technology and the government's favorable policies towards cloud computing. In contrast, in countries like Germany and France, strict data privacy regulations have slowed down the growth of this market. Additionally, in countries like Brazil and Mexico, the Software as a Service market is driven by the need for cost-effective solutions and the growing trend of digital transformation among businesses.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market is heavily affected by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with a strong focus on promoting digital transformation and a favorable regulatory environment are experiencing rapid growth in the market. On the other hand, regions with regulatory challenges and limited investment in digital technologies are facing slower market growth. The rise in demand for cost-effective and scalable solutions, coupled with the increasing adoption of cloud-based services, is also driving the growth of the market. Furthermore, the growing need for remote work and collaboration due to the COVID-19 pandemic is expected to further boost the demand for Software as a Service solutions in the public cloud 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.