Software as a Service - MENA | Statista Market Forecast

Revenue in the Software as a Service market is projected to reach US$4.40bn 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 19.94%, resulting in a market volume of US$10.93bn 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 MENA is witnessing mild growth, influenced by factors such as increasing cloud adoption, growing awareness of digital solutions, and the ease of accessing online services. This has resulted in significant market expansion, driven by the convenience and cost-effectiveness of SaaS offerings.

Customer preferences: As the public cloud market in MENA continues to expand, there is a growing preference for Software as a Service (SaaS) solutions. This is driven by the need for cost-effective and flexible software options, as well as the increasing demand for remote work and collaboration tools. Additionally, cultural nuances and demographic shifts have led to a rise in demand for localized and personalized SaaS offerings, catering to the diverse needs and preferences of the MENA region.

Trends in the market: In the MENA region, there is a growing demand for Software as a Service (SaaS) solutions in the Public Cloud Market. This is driven by the increasing adoption of cloud computing in the region, as well as the need for cost-effective and scalable software solutions. Additionally, there is a trend towards more specialized SaaS offerings, such as industry-specific solutions for healthcare, finance, and government. This trajectory is significant for industry stakeholders, as it allows them to tap into a growing market and cater to the specific needs of their target industries. It also presents opportunities for partnerships and collaborations among SaaS providers to offer comprehensive solutions. However, there may be challenges in terms of data privacy and security, as well as competition from global players entering the market.

Local special circumstances: In the MENA region, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand due to the region's rapid digital transformation. With governments heavily investing in digital initiatives, there is a growing need for secure and cost-effective cloud solutions. Additionally, the region's large and young population, coupled with the increasing adoption of smartphones, is driving the demand for SaaS products. Furthermore, the region's unique regulatory landscape, with data sovereignty laws and strict data privacy regulations, is also influencing the market dynamics and shaping the SaaS market in MENA.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in MENA is heavily influenced by macroeconomic factors such as government policies, infrastructure development, and economic stability. Countries with favorable government policies and strong investment in cloud computing infrastructure are experiencing rapid growth in the market. In contrast, regions with limited government support and underdeveloped infrastructure are facing challenges in adopting cloud-based software solutions. Additionally, the growing demand for cost-effective and efficient software solutions, along with the increasing trend of digital transformation, is driving the growth of the market in MENA.

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.