Press release
Software as a Service (SaaS) Market to Reach US$ 418.92 Bn, Globally, by 2025 at 28.3% CAGR: The Insight Partners
The Software as a Service (SaaS) market accounted for US$ 34.78 Bn in the year 2015 and is expected to grow at a CAGR of 28.3% during the forecast period 2016 - 2025, to account for US$ 418.92 Bn in the year 2025.The North American region continues to dominate the global SaaS market and has more than half the slice of the market. SaaS applications like emails, HCM, web conferencing and office suites are widely used across this continent. Moreover, cloud apps for tablets, smartphones, and Chromebooks continue to drive the growth of the North American market.
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The SaaS model has proved to be boon for organizations but at the same time it has affected the businesses of ISVs. A bigger challenges awaits the Independent Software Vendors whether to adapt to SaaS model or continue with some value added features. With their solutions becoming obsolete they quickly need to find a way out to still attract the customers which usually they had. The process of re-engineering their products is also rather more challenging and hence the reluctance shown by them to adapt to SaaS models. Their clients use their core solutions which have been built over the years. They either have multiple products assimilated inorganically or a list of products that have been established by different teams.
The skills to re-engineer these products are found rarely, thus hampering the ISVs' ability to remain competitive. An ISV generally would take 18 or 36 months to re-engineer and considering the business scenario today, this time frame is highly unacceptable. The time frame to re-engineer the package takes the ISV out of competition completely.
Companies Profiled in this report includes:
• ADP, LLC
• Amazon, Inc.
• Google, Inc.
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• Salesforce, Inc.
• SAP SE
• Fujitsu Limited
• Workday, Inc.
SaaS Market Expected to Flourish in APAC:
Businesses are seeking paradigm shift in their operations especially in developing economies like India and China of APAC region. Awareness about the benefits of SaaS in these regions has significantly increased the adoptions of SaaS solutions by various organizations. Digitalization of economies supported by Government in these countries is favoring the further growth of Software as a Service (SaaS) market in the countries. Furthermore, these developing economies have been the breeding grounds for a large number of SME's that are the largest adopters of SaaS models. As a result, SaaS market is expected to witness a huge opportunity with its rise in the APAC region.
Global SaaS Segments:
SaaS Market - By Deployment Model:
• Private Cloud
• Public Cloud
• Hybrid Cloud
SaaS Market - By Applications:
• Customer Relationship Management (CRM)
• Enterprise Resource Planning (ERP)
• Human Resource Management (HRM)
• Supply Chain Management (SCM)
• Others (Business Intelligence, Compliance, Messaging and Collaboration, Web Conferencing platforms)
SaaS Market - By End-user:
• Small & Medium Enterprises (SMEs) (1B Revenue)
• Large Enterprises (=1B Revenue)
Deployment Model Market Insights:
SaaS is an emerging technology that is transforming traditional on-premise software systems into a modern cloud based solution globally. Along with reduced efforts of running a process, installing and purchasing a software, it also helps an organization minimize its costs and maximize its revenue. Consequently, private organizations across the world have understood the potential behind these services and come up with the cloud based services. The global SaaS market is classified based on the deployment model into private cloud, public cloud and hybrid cloud.
Applications Market Insight:
The software as a service model for application segment is segmented vertically as well as horizontally. Vertical SaaS are the kind of software which handle needs of a specific industry e.g. software for agriculture, healthcare, finance industries, real estate. Whereas horizontal SaaS are the products which focus on a software category e.g. marketing, sales, HR. The growth of the different SaaS categories in the different industries is not uniform.
End-users Market Insight:
The global SaaS market is classified based on the end-users into small and medium enterprises (SME's) and large enterprises. The classification is done on the basis of annual turnover of organizations. Companies having turnover of more than 1 Bn USD have been categorized as Large enterprises while companies having an annual turnover that is less than 1 Bn USD are specified as SME.
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Contact Us:
If you have any queries about this report or if you would like further information, please contact us:
Contact Person: Sameer Joshi
E-mail: sales@theinsightpartners.com
Phone: +1-646-491-9876
About Us:
The Insight Partners is a one-stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Healthcare, Manufacturing and Construction, Media and Technology, Chemicals, and Materials.
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