Software as a Service - Lithuania

Lithuania

Revenue in the Software as a Service market is projected to reach US$91.48m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.27%, resulting in a market volume of US$230.20m by 2029.
The average spend per employee in the Software as a Service market is projected to reach US$59.43 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

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Analyst Opinion

The Software as a Service market in Lithuania is experiencing steady growth and development, driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Lithuania are shifting towards cloud-based solutions, as businesses seek more flexibility, scalability, and cost-effectiveness. Software as a Service (SaaS) offers these benefits, allowing companies to access software applications and services through the internet, eliminating the need for expensive infrastructure and maintenance. This customer preference for cloud-based solutions aligns with global market trends, as businesses worldwide are increasingly adopting SaaS to streamline their operations and improve efficiency. Trends in the SaaS market in Lithuania are also influenced by global developments. One key trend is the rise of subscription-based pricing models, where customers pay a recurring fee for access to SaaS applications. This model provides predictable revenue streams for SaaS providers and allows customers to easily scale their usage based on their needs. Additionally, there is a growing demand for industry-specific SaaS solutions, as businesses look for tailored software applications that address their unique requirements. This trend is driven by the increasing specialization of industries and the need for software solutions that can support specific workflows and processes. Local special circumstances in Lithuania also contribute to the development of the SaaS market. The country has a highly skilled IT workforce and a thriving startup ecosystem, which fosters innovation and entrepreneurship. This creates a favorable environment for SaaS companies to emerge and grow. Furthermore, Lithuania has a strong focus on digitalization and technology adoption, with the government implementing initiatives to promote the use of digital tools and services. This support from the government and the overall tech-savvy culture in Lithuania further fuel the growth of the SaaS market. Underlying macroeconomic factors play a significant role in shaping the SaaS market in Lithuania. The country has a stable economy and a favorable business environment, attracting both domestic and foreign investments. This provides a solid foundation for SaaS companies to operate and expand their operations. Additionally, Lithuania's strategic location within the European Union offers access to a large market and facilitates international business partnerships. These macroeconomic factors contribute to the overall growth and development of the SaaS market in Lithuania. In conclusion, the Software as a Service market in Lithuania is experiencing growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards cloud-based solutions, the adoption of subscription-based pricing models, and the demand for industry-specific SaaS solutions are key trends in the market. The favorable business environment, strong IT workforce, and government support for digitalization further contribute to the growth of the SaaS market in Lithuania.

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.