Software as a Service - EMEA | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$86.02bn in 2024.
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Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.24%, resulting in a market volume of US$207.40bn 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 Software as a Service market in the Public Cloud market in EMEA is experiencing mild growth, driven by factors like increasing digital adoption, heightened health awareness, and the convenience of online health services. This growth is impacted by various factors, such as competition, government regulations, and technological advancements.

Customer preferences: The Software as a Service Market within the Public Cloud Market is experiencing a growing demand for cloud-based collaboration tools and virtual communication solutions, as more businesses embrace remote working models. This trend is further accelerated by the cultural shift towards flexible work arrangements and the need for seamless digital communication in a globalized world.

Trends in the market: In EMEA, the Software as a Service Market within the Public Cloud Market is experiencing an increase in adoption, driven by the need for flexible and cost-effective solutions. This trend is expected to continue, with a projected market growth of 20% by 2025. This shift towards SaaS is significant as it allows organizations to focus on their core business functions, while also providing scalability and accessibility. Additionally, the rise of data privacy regulations in the region is further driving the demand for SaaS solutions, as they offer enhanced security and compliance. Industry stakeholders, including SaaS providers and cloud infrastructure providers, must adapt to this trend and continuously innovate to remain competitive. Failure to do so may result in losing market share to more agile players in the market.

Local special circumstances: In Europe, the Software as a Service market is growing rapidly due to the region's strong focus on digital transformation. Countries like Germany and the UK have strict data privacy laws, which have led to the development of secure and compliant SaaS solutions. In contrast, in the Middle East, the SaaS market is driven by the region's growing business landscape and a demand for flexible and cost-effective cloud solutions. Additionally, in Africa, limited IT infrastructure has accelerated the adoption of SaaS, particularly in the public sector, where it offers a cost-effective way to modernize and streamline operations.

Underlying macroeconomic factors: The growth of the Software as a Service Market within the Public Cloud Market is also influenced by macroeconomic factors such as technological advancements, government support for digital transformation, and investment in cloud infrastructure. Countries with favorable regulatory environments and strong investment in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited financial resources. Additionally, the increasing adoption of cloud-based solutions in various industries and the growing trend of remote work are driving the demand for SaaS solutions to improve business efficiency and agility.

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.