Software as a Service - United Kingdom

Revenue in the Software as a Service market is projected to reach US$16.71bn 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 20.90%, resulting in a market volume of US$43.16bn 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 the Public Cloud Market in the United Kingdom has been steadily growing, driven by factors such as the increasing adoption of cloud-based solutions, rising demand for more efficient and cost-effective software, and the convenience of online services. The average growth rate in this market is being impacted by the continuous advancements in technology and the continuous shift towards digital solutions in various industries.

Customer preferences: As more businesses and organizations embrace remote work, the demand for Software as a Service solutions has increased significantly. This trend is driven by the need for efficient and cost-effective remote collaboration and communication tools. Additionally, the rise of virtual events and conferences has also contributed to the growth of the Software as a Service Market within the Public Cloud Market. This shift towards virtual solutions is also influenced by the increasing trend of flexible work arrangements and the need for flexibility in work processes.

Trends in the market: In the United Kingdom, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand for cloud-based solutions, as companies seek to streamline their operations and reduce costs. This trend is expected to continue as more businesses embrace digital transformation and adopt cloud-based solutions for their software needs. With the rise of remote work and the need for flexible and scalable solutions, the SaaS market is poised for significant growth in the coming years. This presents a significant opportunity for industry stakeholders, such as SaaS providers and cloud service providers, to capitalize on this trend and cater to the evolving needs of businesses in the UK market. Additionally, the increased adoption of SaaS in the public sector is expected to drive growth in the market, as governments look to modernize their IT infrastructure and improve service delivery to citizens.

Local special circumstances: In the United Kingdom, the Software as a Service Market within the Public Cloud Market is influenced by the country's strong data privacy laws and regulations, as well as its highly skilled workforce in the technology sector. These factors have attracted major global players to establish their cloud operations in the country. Additionally, the UK's advanced digital infrastructure and high adoption of cloud services by businesses have driven the growth of the SaaS market.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in the United Kingdom is heavily influenced by macroeconomic factors such as technological advancements, government policies, and financial investments. The country's strong economy and supportive regulatory environment have led to a favorable market environment for SaaS solutions. Furthermore, the increasing adoption of cloud-based services by businesses and the growing trend towards digital transformation have also contributed to the market's growth. The UK's robust healthcare infrastructure and high investment in digital health technologies have also created a conducive environment for SaaS companies to thrive in the healthcare sector. However, Brexit and its potential impact on the country's economy may pose challenges for the market's growth in the near future.

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.