Software as a Service - Egypt

Egypt

Revenue in the Software as a Service market is projected to reach US$121.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 28.34%, resulting in a market volume of US$423.10m by 2029.
The average spend per employee in the Software as a Service market is projected to reach US$3.67 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

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Analyst Opinion

The Software as a Service market in Egypt is experiencing significant growth and development, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Egypt, customers are increasingly opting for Software as a Service (SaaS) solutions due to their cost-effectiveness, scalability, and flexibility. SaaS allows businesses to access software applications and services through the internet, eliminating the need for expensive hardware installations and maintenance. This is particularly appealing to small and medium-sized enterprises (SMEs) in Egypt, as it allows them to access advanced software solutions without a large upfront investment.

Trends in the market: One of the key trends in the SaaS market in Egypt is the adoption of cloud-based solutions across various industries. With the increasing availability of reliable internet connectivity and the growing acceptance of cloud technology, businesses in Egypt are embracing SaaS solutions for their software needs. This trend is further fueled by the rise of remote work and the need for collaboration tools that can be accessed from anywhere. Another trend in the SaaS market in Egypt is the focus on localized solutions. Egyptian businesses have unique requirements and preferences, and there is a growing demand for SaaS providers that can cater to these specific needs. Local SaaS providers are emerging to fill this gap, offering customized solutions that are tailored to the local market.

Local special circumstances: Egypt has a large and young population, with a high percentage of tech-savvy individuals. This provides a strong talent pool for the development and implementation of SaaS solutions. Additionally, the government of Egypt has been actively promoting digital transformation and entrepreneurship, creating a favorable environment for SaaS providers to thrive.

Underlying macroeconomic factors: The economic growth in Egypt has been driving the demand for SaaS solutions. As the country's economy continues to expand, businesses are looking for ways to streamline their operations and improve efficiency. SaaS offers a cost-effective solution for software needs, allowing businesses to allocate resources to other areas of growth. Furthermore, the COVID-19 pandemic has accelerated the adoption of SaaS solutions in Egypt. With the need for remote work and digital collaboration, businesses have turned to SaaS applications to enable seamless communication and collaboration among their employees. In conclusion, the Software as a Service market in Egypt is witnessing significant growth and development due to customer preferences for cost-effective and flexible solutions, market trends such as the adoption of cloud-based solutions and localized offerings, local special circumstances including a young and tech-savvy population, and underlying macroeconomic factors such as economic growth and the impact of the COVID-19 pandemic. This presents a promising opportunity for SaaS providers in Egypt to capitalize on the growing demand for their services.

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.