Software as a Service - D-A-CH

D-A-CH

Revenue in the Software as a Service market is projected to reach US$23.90bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.81%, resulting in a market volume of US$56.57bn by 2029.
The average spend per employee in the Software as a Service market is projected to reach US$430.00 in 2024.
In global comparison, most revenue will be generated in the United States (US$190.10bn in 2024).

Key regions: Japan, United Kingdom, United States, Italy, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Software as a Service market in D-A-CH, comprising Germany, Austria, and Switzerland, is experiencing significant growth and development. Customer preferences in the D-A-CH region are driving the expansion of the Software as a Service market. Businesses in this region are increasingly seeking flexible and scalable solutions that can be easily integrated into their existing systems. They value the convenience and cost-effectiveness of cloud-based software, which allows them to access applications and data from any location and device. Additionally, the focus on data security and compliance is pushing companies to adopt Software as a Service solutions that offer robust security measures and comply with local regulations. Trends in the Software as a Service market in D-A-CH reflect the global shift towards cloud-based solutions. One prominent trend is the rise of industry-specific Software as a Service offerings. As businesses in D-A-CH become more specialized and niche-focused, they require software solutions tailored to their specific needs. This trend is driving the development of vertical-specific Software as a Service providers that offer industry-specific functionalities and customization options. Another trend in the D-A-CH market is the increasing adoption of Software as a Service by small and medium-sized enterprises (SMEs). SMEs in this region are recognizing the benefits of cloud-based software, such as lower upfront costs, scalability, and ease of implementation. As a result, they are transitioning from traditional on-premises software to Software as a Service solutions to streamline their operations and improve efficiency. Local special circumstances in the D-A-CH region also contribute to the growth of the Software as a Service market. Germany, Austria, and Switzerland have well-developed IT infrastructures and a high level of digitalization, providing a strong foundation for the adoption of cloud-based solutions. Additionally, the region has a large number of innovative startups and technology hubs, fostering a culture of entrepreneurship and driving the demand for Software as a Service solutions. Underlying macroeconomic factors further support the development of the Software as a Service market in D-A-CH. The region has a stable and prosperous economy, with a strong focus on technology and innovation. Businesses in D-A-CH are willing to invest in Software as a Service solutions to gain a competitive edge and improve their operational efficiency. Furthermore, the increasing digitization of industries and the growing demand for remote work solutions in the wake of the COVID-19 pandemic are driving the adoption of cloud-based software in the region. In conclusion, the Software as a Service market in D-A-CH is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for flexible and scalable solutions, the rise of industry-specific offerings, the adoption by SMEs, the region's favorable IT infrastructure and digitalization, and the stable economy all contribute to the expansion of the Software as a Service market in D-A-CH.

Methodology

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.