The software as a service (SaaS) market is projected to reach US$164.3 by the end of 2022, advancing at a remarkable CAGR of 27.90% during the forecast period (2015–2022). Software as a service (SaaS) is a model in which software and other related data are centrally hosted, and users can access it via a web browser. This model enables users to have access to numerous functionalities of software via the use of a subscription model and without having to worry about product licensing. Software as a service has several advantages, including the ability to be accessed from anywhere, is cost-effective, is simple to implement, update, and debug, and is easy to scale.
The rising awareness of the advantages of SaaS has resulted in significant growth in the adoption of SaaS solutions by various organizations, which is driving the software as a service (SaaS) market.
The primary factor driving the software as a service (SaaS) market is the increasing adoption of SaaS solutions among organizations, owing to a variety of associated benefits such as multi-tenant software architecture, quick investment, shared license, high manageability, cost-effectiveness, and ease of customization. Furthermore, the pay-as-you-go payment model of SaaS allows businesses to shift costs to an ongoing operational expense for easier budgeting. The increasing need for application programming interface (API) connections and the expanding trend of SaaS integration are projected to generate attractive prospects for the expansion of the software as a service (SaaS) market. Moreover, the increasing use of advanced technologies such as artificial intelligence (AI), machine learning, cloud computing, and the internet of things (IoT) in SaaS solutions is fueling the growth of the software as a service (SaaS) market.
Application-wise, the global software as a service (SaaS) market is divided into enterprise resource planning (ERP), customer relationship management (CRM), human capital management (HCM), supply chain management, operations and manufacturing, and content management systems. Other applications include security management, system or network management, and structured data management. Among these, CRM accounted for the lion's share of the worldwide software as a service (SaaS) market in 2014. Growing company investments in customer service across industries have increased revenue potential. That same year, the segment was valued at US$ 6.05 billion. ERP and collaborative solutions, on the other hand, are gaining significant appeal. Advances in e-commerce and infrastructure development increasingly drive revenue growth in the segments. Moreover, the HCM value is expected to grow at a healthy CAGR of 32.90% during the forecast period.
Increasing risks to data security, particularly on cloud platforms, are projected to impede the development of organizations in the software as a service (SaaS) market throughout the forecast period. Threats to data security including industrial espionage and hacking have resulted in several breaches of data security involving public cloud infrastructures. These breaches are primarily the result of cloud service providers' negligence. Furthermore, many businesses lack confidence in data security when using a third-party provider. Since the vendor has access to the organization's data, companies are concerned about data misuse, which might harm the companies' reputations.
North America accounted for approximately 54% of the worldwide software as a service (SaaS) market. The regional market is expected to reach US$12.9 billion by the conclusion of the projection period. The software as a service (SaaS) market in North America is expanding due to the presence of a significant number of IT firms, the adoption of modern cloud infrastructure, and the availability of skilled technical expertise throughout the region. Moreover, rising demand for cloud computing-related activities and increasing acceptance of SaaS across various government entities are driving growth in the North American software as a service (SaaS) market.
Some of the prominent players in the worldwide software as a service (SaaS) market are Amazon Web Services Inc., Google Inc., Microsoft Corp., SAP SE, Oracle Corp., ADP Inc., IBM Corp., and Salesforce.com Inc.
1. Preface
1.1. Report Description and Scope
1.1.1. Market Segmentation: Global Software as a Service (SaaS) Market
1.2. Research Methodology
1.2.1. Phase I : Secondary Research
1.2.2. Phase II : Primary Research
1.2.3. Phase III : Expert Panel Review
1.2.4. Data Models
2. Executive Summary
2.1. Market Snapshot: Global Software as a Service (SaaS) Market, 2014 & 2022
2.2. Global Software as a Service (SaaS) Market Revenue, 2013-2022, (US$ Bn) and Y-o-Y Growth (%)
2.2.1. Global Software as a Service (SaaS) Market Revenue By Geography, 2014 (US$ Bn)
2.2.2. Global Software as a Service (SaaS) Market Revenue, By Deployment, 2014 (US$ Bn)
2.2.3. Global Software as a Service (SaaS) Market Revenue, By Applications, 2014 (US$ Bn)
2.2.4. Global Software as a Service (SaaS) Market Revenue, By End-users, 2014 (US$ Bn)
3. Global Software as a Service (SaaS) Market Analysis
3.1. Overview
3.2. Market Dynamics
3.2.1. Drivers
3.2.1.1. Increasing Business Outsourcing of Software and Services
3.2.1.2. Growing need to adopt new IT solutions with modern consumer trends
3.2.1.3. Rising Mobile Access to SaaS
3.2.1.4. Growing Competition for Talent
3.2.1.5. Impact Analysis of Drivers
3.2.2. Restraints
3.2.2.1. Data Security Concerns
3.2.2.2. High Speed and Continual Internet Connectivity
3.2.2.3. Lack of Integration
3.2.2.4. Impact Analysis of Restraints
3.2.3. Opportunities
3.2.3.1. Evolution of Containers as a Service (CaaS)
3.3. Key Trends Analysis
3.3.1.1. Growing Investments in Personal Consumer Research
3.3.1.2. Growing Number of Specialized SaaS Applications
3.3.1.3. Development of New Alternatives to Multi-Tenancy
3.4. Global Software as a Service (SaaS) Adoption Rate, By Industry Verticals
3.4.1. Overview
3.4.2. Global Software as a Service (IaaS) adoption rate (%), By industry verticals, 2014 & 2022
3.5. Global Software as a Service (SaaS) Market Analysis, By Deployment Model, 2013-2022
3.5.1. Overview
3.5.1.1. Global Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
3.5.2. Public Cloud
3.5.3. Private Cloud
3.5.4. Hybrid Cloud
3.6. Global Software as a Service (SaaS) Market Analysis, By Application, 2013-2022
3.6.1. Overview
3.6.1.1. Global Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
3.7. Global Software as a Service (SaaS) Market Analysis, By End-users, 2013-2022
3.7.1. Overview
3.7.1.1. Global Software as a Service (SaaS) Market Revenue and Forecast, by End-users, 2013-2022 (US$ Bn)
3.7.2. Large Enterprises
3.7.3. Small and medium enterprises/ businesses (SMEs/SMBs)
3.7.4. Others (Banking, financial services, and Insurance (BFSI), retail and government or public sectors)
3.8. Competitive Landscape
3.8.1. Market Positioning of Key Players, 2014
3.8.2. Market Positioning of Key Players in Software as a Service (SaaS) Market (2014)
3.8.3. Competitive Strategies Adopted by Leading Players
3.8.4. Top 100 SaaS Vendors Revenue Share Analysis, 2013
4. North America Software as a Service (SaaS) Market Analysis
4.1. Overview
4.1.1. North America Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
4.2. North America Software as a Service (SaaS) Market Analysis, by Deployment Model
4.2.1. North America Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
4.3. North America Software as a Service (SaaS) Market Analysis, By Application
4.3.1. North America Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
4.4. North America Software as a Service (SaaS) Market Analysis, by End-user
4.4.1. North America Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
4.5. North America Software as a Service (SaaS) Market Analysis, by Region
4.5.1. North America Software as a Service (SaaS) Market Revenue and Forecast, by Region, 2013-2022 (US$ Bn)
5. Europe Software as a Service (SaaS) Market Analysis
5.1. Overview
5.1.1. Europe Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
5.2. Europe Software as a Service (SaaS) Market Analysis, by Deployment Model
5.2.1. Europe Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
5.3. Europe Software as a Service (SaaS) Market Analysis, By Application, 2013-2022
5.3.1. Europe Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
5.4. Europe Software as a Service (SaaS) Market Analysis, By End-user, 2013-2022
5.4.1. Europe Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
5.5. Europe Software as a Service (SaaS) Market Analysis, by Region, 2013-2022 (%)
5.5.1. Europe Software as a Service (SaaS) Market Revenue and Forecast, by Region, 2013-2022 (US$ Bn)
6. Asia Pacific Software as a Service (SaaS) Market Analysis
6.1. Overview
6.1.1. Asia Pacific Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
6.2. Asia Pacific Software as a Service (SaaS) Market Analysis, by Deployment Model, 2013-2022 (%)
6.2.1. Asia Pacific Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
6.3. Asia Pacific Software as a Service (SaaS) Market Analysis, By Application, 2013-2022
6.3.1. Asia Pacific Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
6.4. Asia Pacific Software as a Service (SaaS) Market Analysis, by End-user, 2013-2022 (%)
6.4.1. Asia Pacific Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
6.5. Asia Pacific Software as a Service (SaaS) Market Analysis, by Region, 2013-2022 (%)
6.5.1. Asia Pacific Software as a Service (SaaS) Market Revenue and Forecast, by Region, 2013-2022 (US$ Bn)
7. Middle East and Africa (MEA) Software as a Service (SaaS) Market Analysis
7.1. Overview
7.1.1. MEA Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
7.2. MEA Software as a Service (SaaS) Market Analysis, by Deployment Model, 2013-2022 (%)
7.2.1. MEA Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
7.3. MEA Software as a Service (SaaS) Market Analysis, By Application, 2013-2022
7.3.1. MEA Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
7.4. MEA Software as a Service (SaaS) Market Analysis, by End-user, 2013-2022 (%)
7.4.1. MEA Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
7.5. MEA Software as a Service (SaaS) Market Analysis, by Region, 2013-2022
7.5.1. MEA Software as a Service (SaaS) Market Revenue and Forecast, by Region, 2013-2022 (US$ Bn)
8. Latin America Software as a Service (SaaS) Market Analysis
8.1. Overview
8.1.1. Latin America Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
8.2. Latin America Software as a Service (SaaS) Market Analysis, by Deployment Model, 2013-2022
8.2.1. Latin America Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
8.3. Latin America Software as a Service (SaaS) Market Analysis, By Application, 2013-2022
8.3.1. Latin America Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
8.4. Latin America Software as a Service (SaaS) Market Analysis, by End-user, 2013-2022
8.4.1. Latin America Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
8.5. Latin America Software as a Service (SaaS) Market Analysis, by Region, 2013-2022 (%)
8.5.1. Latin America Software as a Service (SaaS) Market Revenue and Forecast, by Region, 2013-2022 (US$ Bn)
9. Company Profiles
9.1. Salesforce.com, Inc.
9.2. SAP SE
9.3. Oracle Corporation
9.4. Workday, Inc.
9.5. Fujitsu Ltd.
9.6. Blackboard, Inc.
9.7. Symantec Corporation
9.8. Automatic Data Processing, Inc.
9.9. Google, Inc.
9.10. Microsoft Corporation
9.11. IBM Corporation
9.12. Amazon Web Services, Inc.
List Of Tables
TABLE 1: Market Snapshot: Global Software as a Service (SaaS) Market, 2014 & 2022
TABLE 2: Impact Analysis of Drivers
TABLE 3: List of Companies with High CAPEX
TABLE 4: Shifting Recruitment Patterns
TABLE 5: Impact Analysis of Restraints
TABLE 6: Major Compliance Dimensions for SaaS Vendors
TABLE 7: Global Software as a Service (SaaS) Adoption Rate (%), By Industry Verticals, 2014 & 2022
TABLE 8: Global Software as a Service (SaaS) Market Revenue and Forecast, by Deployment, 2013-2022 (US$ Bn)
TABLE 9: Global Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
TABLE 10: Global Software as a Service (SaaS) Market Revenue and Forecast, by End-users, 2013-2022 (US$ Bn)
TABLE 11: North America Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
TABLE 12: North America Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
TABLE 13: North America Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
TABLE 14: North America Software as a Service (SaaS) Market Revenue and Forecast, by Region, 2013-2022 (US$ Bn)
TABLE 15: Europe Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
TABLE 16: Europe Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
TABLE 17: Europe Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
TABLE 18: Asia Pacific Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
TABLE 19: Asia Pacific Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
TABLE 20: Asia Pacific Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
TABLE 21: MEA Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
TABLE 22: MEA Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
TABLE 23: MEA Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
TABLE 24: Latin America Software as a Service (SaaS) Market Revenue and Forecast, by Deployment Model, 2013-2022 (US$ Bn)
TABLE 25: Latin America Software as a Service (SaaS) Market Revenue and Forecast, by Application, 2013-2022 (US$ Bn)
TABLE 26: Latin America Software as a Service (SaaS) Market Revenue and Forecast, by End-user, 2013-2022 (US$ Bn)
List of Figures
FIG. 1: Market Segmentation (1/2): Global Software as a Service (SaaS) Market
FIG. 2: Market Segmentation (2/2): Global Software as a Service (SaaS) Market
FIG. 4: Global Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (%)
FIG. 5: Global Software as a Service (SaaS) Market Revenue, By Geography, 2014 (US$ Bn)
FIG. 6: Global Software as a Service (SaaS) Market Revenue, By Deployment, 2014 (US$ Bn)
FIG. 7: Global Software as a Service (SaaS) Market Revenue, By Applications, 2014 (US$ Bn)
FIG. 8: Global Software as a Service (SaaS) Market Revenue, By End-users, 2014 (US$ Bn)
FIG. 9: Percentage of Revenue Generated Outside the U.S., 2014
FIG. 10: Percentage of SMB users who rely on Tablet computers, 2012
FIG. 11: Top 5 Mobile Initiatives for 2015
FIG. 12: Container as a Service Model compared with previous SaaS and On-premise Model
FIG. 13: Barriers to Enterprise Cloud Adoption (%)
FIG. 14: Market Positioning of Key Players in Software as a Service (SaaS) Market (2014)
FIG. 15: North America Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
FIG. 16: Economic Trends – Year –Over- Year GDP Growth (%)
FIG. 17: Europe Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
FIG. 18: Asia Pacific Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
FIG. 19: Online Presence By Population and By SME in MEA, 2012
FIG. 20: MEA Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
FIG. 21: Projected GDP Growth in Latin America, 2013-2014 (%)
FIG. 22: Latin America Software as a Service (SaaS) Market Revenue, 2013-2022 (US$ Bn) and Y-o-Y Growth (Value %)
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Software as a Service (SaaS) Market
