Software as a Service - Germany | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$16.60bn 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 18.55%, resulting in a market volume of US$38.86bn 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 Germany within the Public Cloud sector is experiencing mild growth, influenced by factors like the increasing use of digital technologies, growing awareness of health, and the convenience of online health services.

Customer preferences: The adoption of Software as a Service solutions in the Public Cloud Market has been driven by the increasing need for remote collaboration and project management tools. This trend is further accelerated by the growing popularity of remote work and its impact on business operations. Additionally, the demand for flexible and scalable software solutions is on the rise, as businesses look for cost-effective ways to manage their operations in the ever-changing market landscape.

Trends in the market: In Germany, the Software as a Service market within the Public Cloud Market is experiencing a surge in demand for collaboration and communication tools, as remote work becomes more prevalent. Companies are also increasingly adopting cloud-based project management software to streamline operations and improve team productivity. These trends highlight the growing importance of cloud-based solutions in enabling efficient and flexible work environments. Additionally, with a shift towards digitalization, there is potential for increased adoption of SaaS solutions in various industries, presenting opportunities for industry stakeholders.

Local special circumstances: In Germany, the Software as a Service Market within the Public Cloud Market has been influenced by the country's strict data privacy regulations, which have required cloud service providers to ensure the security and protection of personal data. Additionally, the country's strong focus on sustainability and environmental responsibility has led to a higher demand for eco-friendly and energy-efficient cloud solutions. Furthermore, Germany's robust economy and advanced technological infrastructure have created a highly competitive market, with a strong emphasis on innovation and quality of service.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in Germany is heavily impacted by macroeconomic factors, including the country's stable economic health, favorable fiscal policies, and strong investment in digital infrastructure. These factors have created a conducive environment for the growth of the market, as companies are increasingly adopting SaaS solutions to streamline their operations and reduce costs. Additionally, the growing trend of digitalization across various industries and the increasing demand for efficient and scalable cloud-based services are also driving the growth of the SaaS market in Germany. However, challenges such as data privacy regulations and cybersecurity concerns may hinder market growth in the country. Overall, the favorable economic and regulatory environment in Germany is expected to continue driving the growth of the Software as a Service Market within the Public Cloud Market.

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.