Software as a Service - Europe | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach €73.70bn 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 19.15%, resulting in a market volume of €178.80bn by 2029.
In global comparison, most revenue will be generated United States (€173.60bn 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).

For more information on the data displayed, use the info button right next to the boxes.

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 is seeing moderate growth in Europe nan, driven by factors such as increasing adoption of cloud technologies, growing awareness of its benefits, and the convenience of online services. This mild growth rate may be impacted by factors such as data privacy concerns and regulatory barriers in certain countries.

Customer preferences: As businesses continue to prioritize cost-saving measures and remote work options, the demand for Software as a Service solutions in the Public Cloud Market has significantly increased. This trend is driven by the need for efficient and secure collaboration tools that can seamlessly integrate with existing systems and processes. Additionally, the rise of remote work culture has led to a growing preference for cloud-based SaaS solutions, enabling employees to work from any location without compromising productivity or data security.

Trends in the market: In Europe, the Software as a Service Market within the Public Cloud Market is experiencing a steady growth due to the increasing demand for cost-effective and hassle-free software solutions. This trend is driven by the rise of digital transformation and the adoption of cloud-based technologies by businesses. With the shift towards remote working and the need for scalable and secure software solutions, the SaaS market is expected to continue its upward trajectory. This presents opportunities for industry stakeholders to tap into new markets and offer innovative solutions to meet the evolving needs of businesses. Additionally, the rising concerns over data privacy and security are driving the demand for SaaS solutions, making it a key trend to watch out for in the European market.

Local special circumstances: In Europe, the Software as a Service Market within the Public Cloud Market is thriving due to the region's strong digital infrastructure, high adoption of cloud technology, and strict data privacy regulations. Additionally, the diverse cultural and linguistic landscape of Europe has led to a wide range of SaaS solutions tailored to specific local needs and preferences. Furthermore, the European Union's push for digital transformation and innovation has created a favorable environment for SaaS companies to grow and expand their offerings. This market is also influenced by the varying levels of digital maturity and tech-savviness across different European countries, resulting in unique challenges and opportunities for SaaS providers.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in Europe is greatly affected by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in digital technologies are experiencing significant market growth, while those with regulatory challenges and limited funding are facing slower growth. The increasing demand for digital solutions, driven by the rising prevalence of chronic diseases and aging population, is also contributing to the growth of the market in Europe. These factors are expected to continue influencing the market in the coming years, as more organizations and governments adopt cloud-based solutions to improve efficiency and reduce costs.

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.