Software as a Service - EMEA

EMEA

Revenue in the Software as a Service market is projected to reach US$89.44bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.20%, resulting in a market volume of US$215.20bn by 2029.
The average spend per employee in the Software as a Service market is projected to reach US$85.41 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 EMEA Public Cloud Market for Software as a Service is experiencing mild growth, driven by factors such as increasing digital adoption, growing awareness of health, and the convenience of online services. This growth rate is impacted by various factors, such as government regulations, data privacy concerns, and security risks.

Customer preferences: As the demand for remote work and collaboration continues to grow, the Software as a Service Market within the Public Cloud Market in EMEA is experiencing a surge in demand for virtual meeting and communication tools. This trend is driven by cultural shifts towards flexible work arrangements and the need for efficient and seamless communication among globally dispersed teams. Additionally, the rise of remote work has also led to an increased focus on data security and privacy, leading to a growing demand for secure and encrypted SaaS solutions.

Trends in the market: In EMEA, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand for cloud-based collaboration tools, as remote work becomes the new norm. This is driving the adoption of virtual meeting and project management solutions, with a focus on enhancing productivity and communication for distributed teams. Additionally, there is a growing trend of using AI and machine learning in SaaS products, enabling businesses to automate and streamline their processes. These developments are significant for industry stakeholders, as they provide opportunities for innovation and cost-savings, while also emphasizing the need for robust security measures. As the trajectory of these trends continues, we can expect to see increased competition in the SaaS market and a shift towards more advanced, AI-driven solutions.

Local special circumstances: In EMEA, the Software as a Service Market within the Public Cloud Market is heavily influenced by the region's diverse regulatory landscape. For example, in countries like Germany and France, strict data privacy laws have led to the development of secure cloud solutions. In contrast, the UK's business-friendly environment has attracted multinational SaaS players to establish their presence. Additionally, cultural factors such as language diversity and varying business practices also impact market dynamics in this region.

Underlying macroeconomic factors: The growth of the Software as a Service Market within the Public Cloud Market is influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud technology are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing digitization of businesses and the growing demand for cost-effective and scalable software solutions are driving the adoption of SaaS within the public cloud market.

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.