Software as a Service - Japan | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$8.63bn 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 19.30%, resulting in a market volume of US$20.86bn 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).

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 in Japan is experiencing subdued growth due to factors such as limited access to high-speed internet and slow adoption of digital technologies among small businesses. Despite this, the convenience and cost-effectiveness of SaaS solutions are expected to drive growth in the future.

Customer preferences: The Software as a Service Market within the Public Cloud Market in Japan has witnessed a significant increase in demand for cloud-based productivity and collaboration tools, as well as online project management solutions. This trend is driven by the growing preference for remote work and the need for efficient communication and project management among distributed teams. Additionally, the cultural emphasis on efficiency and productivity has also led to the adoption of SaaS solutions for streamlined business operations.

Trends in the market: In Japan, the Software as a Service Market within the Public Cloud Market is witnessing a rise in demand for cloud-based business solutions, as companies seek to streamline their operations and reduce costs. This trend is expected to continue, driven by the government's push for digital transformation and the increasing use of mobile devices for work. As a result, there is a growing adoption of Software as a Service (SaaS) applications, such as collaboration tools and project management software. This trend is significant as it allows companies to be more agile and efficient, while also reducing the need for in-house IT infrastructure. However, it also poses challenges for traditional software vendors, who may need to shift their business models to compete in the SaaS market. Overall, the current trajectory of this trend points towards a more competitive and dynamic Software as a Service market in Japan, with potential implications for both buyers and sellers of cloud-based solutions.

Local special circumstances: In Japan, the Software as a Service Market within the Public Cloud Market is influenced by the country's strong technology infrastructure and highly skilled workforce. Additionally, Japan's unique cultural emphasis on efficiency and innovation drives demand for cloud-based solutions. The country's strict data privacy laws also play a role in shaping the market, as companies must adhere to stringent regulations when storing and accessing sensitive data. Furthermore, Japan's aging population has increased the demand for cloud-based healthcare solutions, such as remote patient monitoring and telemedicine services.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in Japan is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Japan's strong economic growth and stable political environment have encouraged the adoption of cloud-based solutions by businesses, leading to a rapidly expanding market. Additionally, the country's high-tech industry and skilled workforce have enabled the development of innovative SaaS products, further driving market growth. Furthermore, Japan's focus on digital transformation and its support for cloud computing initiatives have created a favorable environment for the growth of the SaaS 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.