Software as a Service - North America

Revenue in the Software as a Service market is projected to reach US$197.70bn 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 18.97%, resulting in a market volume of US$471.20bn 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 Public Cloud market in North America is seeing mild growth, impacted by factors such as increasing adoption of Software as a Service, growing awareness of digital solutions in the healthcare industry, and the convenience of online services.

Customer preferences: As the public cloud market continues to grow, businesses are increasingly turning to Software as a Service (SaaS) solutions for their software needs. This shift is driven by the desire for more flexible and scalable software options, as well as the need for remote accessibility and collaboration. Additionally, the rise of the gig economy and remote work has led to a higher demand for SaaS tools that enable seamless communication and project management across teams.

Trends in the market: In North America, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand due to the increasing use of remote work and virtual collaboration tools. This trend is expected to continue as companies shift towards a more remote and flexible work environment. Additionally, there is a growing focus on data security and compliance, leading to a rise in the adoption of cloud-based software solutions. These trends have significant implications for industry stakeholders, including increased competition and the need for innovative and secure offerings. Companies that can adapt to these trends and provide reliable and secure SaaS solutions will have a competitive edge in the market.

Local special circumstances: In North America, the Software as a Service Market within the Public Cloud Market is heavily influenced by the region's advanced technological infrastructure and high internet penetration rates. Additionally, the cultural emphasis on innovation and efficiency drives the adoption of cloud-based solutions. Furthermore, the strict data privacy regulations, such as the General Data Protection Regulation (GDPR) in Europe, have a significant impact on the market dynamics, as companies must comply with these regulations when offering their services in North America. The highly competitive nature of the market also drives continuous advancements and enhancements to meet the evolving needs of customers.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in North America is greatly impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. The increasing demand for cost-effective and scalable solutions, along with the rising adoption of cloud-based services, is also driving the growth of the market in North America. Moreover, the region's stable economic conditions and high internet penetration rates are creating a conducive environment for 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.