Software as a Service (SaaS) Market to 2025 is Expected to reach US$ 172.20 Bn |The Insight Partners

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Increased awareness of Shared Infrastructure Model Coupled with rising use of Big Data Analytics in organizations to boost the Software as a Service Market at a CAGR of 18.6%

According to a new market research study titled ‘Software as a Service Market to 2025 – Global Analysis and Forecasts by Deployment Model, Applications and End-user’, the global software as a service market was valued at US$ 31.57 Bn in 2015 and is estimated to reach US$ 172.20 Bn by 2025. The report highlights the trends prevalent in the global SaaS market and the factors driving the market along with those that act as deterrents to its growth.

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Capital investments for setting up IT infrastructure in all organizations is a bit challenging issue, especially for small organizations and startups that lack sufficient funds. In addition, problems faced in scaling up or down the operations and additional deployment of human personnel for handling the IT, thus further ads up to the woes of organizations. It also leads to increased financial pressures and more time to reach the break-even for the respective organization.

SaaS on the other hand enables smaller organizations access to world class software services at very cheaper rates. The reduced capital and operational expenditures combined with pay-as-per use model has attracted a large number of SME’s to adopt SaaS model in their organizations. This has enabled especially SME’s lesser time-to-market their products, increased profitability and quicker time to achieve the break-even point. With increasing number of SME’s in APAC countries like India and China and the growing awareness about the benefits of SaaS, its adoption by smaller organizations would be the booster for this market

Currently, almost 80% of the SaaS-based deployments are off-premise and third party operated. This deployment model is the public cloud model. Public cloud models are preferred mostly by smaller organizations to store, manage and process efficiently less critical and sensitive data. Larger organizations generally prefer private or hybrid cloud deployment models for their mission critical data. Lesser investments and easy integration with the legacy systems have made the adoption of public cloud deployment model more attractive among the organizations.

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With the growing concerns for security and privacy of data, private cloud deployment model was developed but that proved to be very costly. All the data of organizations cannot be mission critical and sensitive. Various types of data demands for varying levels of security. The flexibility of storing less critical data over public cloud while mission critical data over hybrid cloud makes it highly attractive for organizations to adopt. Banking sector that has to store large amounts of sensitive data was the most benefitted business segment due to the introduction of hybrid cloud deployment model. Hybrid cloud model is thus expected to grow at a rapid pace during the forecast period.

The global software as a service market has been segmented on the basis of deployment model into private cloud, public cloud and hybrid cloud. The global software as a service market is further segmented on the basis of applications into Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Management (HRM), Supply Chain Management (SCM) and others. Additionally, this market is also segmented on the basis of end-users into Small & Medium sized enterprises and Large Scale Enterprises. Geographically, the global software as a service market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA) and South America (SAM).

Currently, Software as a Service model has seen significant adoption in the North American and western countries of Europe. Furthermore, with increased awareness and advancements in technology and infrastructure, various developing economies in APAC and MEA are expected to witness significant adoption of Software as a Service model. Thus, North America and Europe dominate the global software as a service market, however, they are expected to lose market share to APAC during the forecast period. The APAC region is expected to register a growth rate of 20.5% during 2016 to 2025.

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In 2015, Brazil led the software as a service market in South America (SAM), and is expected to continue its dominance by expanding at a CAGR of 15.8% during the forecast period from 2016 to 2025. Brazil is expected to witness rising adoption of software as a service model due to rise in the number of small and medium scale organizations. The report profiles key players such as ADP LLC,, Google, Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Inc., SAP SE, Fujitsu Limited and Workday, Inc.

The report segments the global Software as a Service market as follows:

  • Global Software as a Service Market – By Deployment Model
    • Private Cloud
    • Public Cloud
    • Hybrid Cloud
  • Global Software as a Service Market – By Applications
    • Customer Relationship Management (CRM)  
    • Enterprise Resource Planning (ERP)
    • Human Resource Management (HRM)
    • Supply Chain Management (SCM)
    • Others
  • Global Software as a Service Market – By End-user
    • Small & Medium Enterprises (SMEs)
    • Large Enterprises
  • Global Software as a Service Market – By Geography
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • France
      • Germany
      • Italy
      • Spain
      • U.K.
      • Rest of Europe
    • Asia Pacific (APAC)
      • Japan
      • China
      • India
      • Australia
      • Rest of APAC
    • Middle East & Africa (MEA)
      • Saudi Arabia
      • South Africa
      • U.A.E.
      • Rest of MEA
    • South America (SAM)
      • Brazil
      • Rest of SAM

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