Software as a Service - Philippines

Revenue in the Software as a Service market is projected to reach US$284.80m 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 25.84%, resulting in a market volume of US$898.90m 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 Philippines is witnessing steady growth due to factors such as increasing adoption of Software as a Service (SaaS), growing demand for online services, and rising awareness about digital solutions. The average growth rate of the market is influenced by factors like increasing government initiatives towards digital transformation and the rising need for cost-effective and scalable solutions.

Customer preferences: As technology advancements continue to accelerate, consumers in the Philippines are increasingly relying on Software as a Service solutions for their business needs. This trend is driven by the desire for more efficient and cost-effective ways of managing operations. Moreover, with the rise of remote work and virtual collaborations, SaaS platforms have become essential tools for businesses to stay connected and productive. Additionally, the ability to access these services through the public cloud has made them more accessible and scalable for a wider range of businesses.

Trends in the market: In the Philippines, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand for cloud-based collaboration tools and project management software. This trend is driven by the shift towards remote work arrangements and the need for efficient and effective communication among teams. As more businesses embrace the benefits of SaaS, the market is expected to continue its upward trajectory. This presents opportunities for industry stakeholders to develop innovative solutions and cater to the growing demand for cloud-based services. It also highlights the need for continued investment in infrastructure and cybersecurity measures to ensure the security of data stored in the cloud.

Local special circumstances: In the Philippines, the Software as a Service market within the Public Cloud Market is growing due to the country's strong digital infrastructure and large English-speaking workforce. This has attracted major players to offer SaaS solutions tailored to the local market, such as tools for e-commerce and online payment systems. Additionally, the government's push for digital transformation and the country's increasing adoption of cloud technology are further driving the growth of the SaaS market.

Underlying macroeconomic factors: The growth of the Software as a Service Market within the Public Cloud Market in the Philippines is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in digital technologies, such as the Philippines, are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Moreover, the rapidly growing Philippine economy and increasing adoption of cloud-based solutions in the public sector are driving the demand for Software as a Service. Additionally, the country's young and tech-savvy population is a key factor contributing to the growth of the 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.