Software as a Service - Saudi Arabia

Revenue in the Software as a Service market is projected to reach US$427.00m 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 18.28%, resulting in a market volume of US$988.40m 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 SaaS market in the public cloud market of Saudi Arabia is experiencing subdued growth due to factors such as limited IT infrastructure, low internet penetration, and concerns regarding data security. However, the market is still expected to grow as businesses in the region recognize the benefits of adopting SaaS solutions for their operations.

Customer preferences: The increasing reliance on remote work and virtual collaboration in the wake of the pandemic has accelerated the adoption of cloud-based productivity tools such as project management software and online communication platforms. This shift towards remote work has also led to a rise in demand for cloud-based virtual desktop infrastructure (VDI) solutions, allowing employees to access their work desktop remotely from any device. Furthermore, the trend towards subscription-based software models is gaining traction, as businesses look for cost-effective and flexible solutions for their software needs.

Trends in the market: In Saudi Arabia, the Software as a Service (SaaS) market within the Public Cloud market is experiencing a surge in demand due to the increasing adoption of cloud-based solutions by businesses. This trend is driven by the country's economic diversification efforts and the growing need for digital transformation. With the rise of remote work and a shift towards a digital-first approach, the SaaS market is expected to continue its growth trajectory in the coming years. This presents significant opportunities for industry stakeholders, including cloud service providers and software vendors, to tap into the Saudi Arabian market. However, it also poses challenges in terms of ensuring data security and compliance with local regulations. As a result, industry players are focusing on developing localized solutions and partnerships with local providers to cater to the specific needs of the Saudi Arabian market.

Local special circumstances: In Saudi Arabia, the Software as a Service Market within the Public Cloud Market is experiencing growth due to the country's strong focus on digital transformation and the government's initiatives to promote data-driven decision making. Additionally, the region's high internet penetration rate and increasing demand for cost-effective and scalable solutions are driving the adoption of SaaS. However, the market faces challenges due to strict data privacy laws and cultural preferences for on-premise solutions.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in Saudi Arabia is also heavily impacted by macroeconomic factors. The country's strong national economic health and favorable fiscal policies have led to a significant increase in investments in digital technologies and infrastructure. This, coupled with the growing trend towards digital transformation and the government's initiatives to promote a knowledge-based economy, is driving the demand for SaaS solutions in the country. Additionally, the increasing adoption of cloud-based services by businesses and the rise in the number of startups are also contributing to the growth of the SaaS market in Saudi Arabia.

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.