Software as a Service - South Africa

Revenue in the Software as a Service market is projected to reach US$1.17bn 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 18.27%, resulting in a market volume of US$2.71bn 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 South Africa is experiencing mild growth, driven by factors such as increasing adoption of Software as a Service, growing awareness of its benefits, and the convenience of online services. This trend is influenced by the country's developing digital infrastructure and increasing demand for efficient and cost-effective solutions.

Customer preferences: As more businesses adopt cloud-based solutions for their operations, there has been a noticeable increase in demand for Software as a Service (SaaS) offerings in the South African market. This trend is largely driven by the need for cost-effective and flexible software solutions, as well as the desire for seamless collaboration and remote work capabilities. Additionally, the rise of the gig economy and freelancing has also contributed to the growing preference for SaaS models, as individuals seek out affordable and efficient tools to support their work.

Trends in the market: In South Africa, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand, driven by the growing adoption of cloud-based solutions by businesses of all sizes. This trend is expected to continue, with more companies embracing the scalability and cost-effectiveness of SaaS. Additionally, there is a growing trend towards AI and automation in SaaS solutions, providing more efficient and personalized services for users. This has significant implications for industry stakeholders, as SaaS providers will need to continuously innovate and evolve to stay competitive in a rapidly expanding market.

Local special circumstances: In South Africa, the Software as a Service Market within the Public Cloud Market is heavily influenced by the country's unique regulatory environment. The Protection of Personal Information Act (POPIA) requires strict data protection measures, making it challenging for foreign companies to enter the market. Additionally, the country's diverse population and its growing adoption of mobile technology present both challenges and opportunities for SaaS providers. This has led to the development of locally tailored solutions, such as mobile-first applications and data encryption services, to cater to the diverse needs and preferences of South African businesses and consumers.

Underlying macroeconomic factors: The growth of the Software as a Service Market within the Public Cloud Market in South Africa is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with robust technological capabilities and supportive fiscal policies are experiencing faster market growth compared to regions with restrictive regulatory environments and limited technological investment. Furthermore, the increasing digitalization of businesses and the growing need for cost-effective solutions are driving the demand for software as a service in 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.