Global Software as a Service (SaaS) Market

Global Software as a Service (SaaS) Market Size Zooming More Than 3.7X to Touch Whopping USD 790 Billion by 2029

Published | 13 June 2023

Global software as a service (SaaS) market is flourishing because of an increasing scalability and flexibility of SaaS solutions enable companies to easily adapt to changing business needs and environment, acceleration of digital transformation, and growing adoption of smart phones and app-based services.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated global software as a service (SaaS) market size at USD 211.12 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects global software as a service (SaaS) market size to grow at a robust CAGR of 16.36% reaching a value of USD 789.23 billion by 2029. Major growth drivers for the global software as a service (SaaS) market include an increasing usage of smart devices and the growing adoption of public and hybrid cloud solutions, which facilitate business outsourcing. The demand for smart devices is rising among end-users, primarily driven by the widespread use of instant messaging apps, emails, and video communication platforms. These factors further contribute to the positive trajectory of the SaaS market. Also, businesses are increasingly adopting Customer Relationship Management (CRM) Software-as-a-Service (SaaS) solutions to minimize IT costs and improve scalability. The availability of user-friendly customization and configuration options for CRM SaaS solutions allows businesses to tailor their CRM systems to specific needs, including security requirements. These factors are expected to drive the growth of the global software as a service (SaaS) market in the forecast period. However, high costs associated with implementation and maintenance of SaaS platform solution are anticipated to restrain the overall market growth.

Global Software as a Service (SaaS) Market – Overview

Software as a Service (SaaS) is a software licensing and delivery model where software is licensed on a subscription basis and centrally hosted. It is also referred to as "on-demand software." SaaS operates as a cloud-based service, allowing users to access the software through a web browser instead of downloading and installing it on local devices or networks. The advantages of SaaS include accessibility, compatibility, and streamlined operational management. Moreover, the SaaS model offers lower upfront costs compared to traditional software downloads and installations, making it accessible to a wider range of businesses. This accessibility empowers smaller companies to disrupt existing markets while enabling suppliers. The two primary deployment models for SaaS are the public cloud and private cloud. The public cloud involves third-party management of on-demand computing services and shared infrastructure over the internet, catering to customer relationship management, enterprise resource planning, human resource management, manufacturing and operations, and supply chain management needs of small, medium, and large businesses. Various industries, such as manufacturing, retail, education, healthcare, IT and telecom, and BFSI, leverage SaaS for their operations.

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Impact of COVID -19 on Global Software as a Service (SaaS) Market

COVID-19 pandemic had a positive impact on the global Software as a Service (SaaS) market. As organizations rapidly shifted to remote work models, the demand for cloud-based SaaS solutions soared. Companies heavily relied on SaaS applications for collaboration, communication, and workflow management. The pandemic also accelerated digital transformation initiatives, leading to increased adoption of SaaS across various sectors. However, the economic downturn caused by the pandemic has created budget constraints for some businesses, affecting their ability to invest in SaaS solutions. Also, supply chain disruptions and market uncertainties have posed challenges for SaaS providers.

Global Software as a Service (SaaS) Market – By Organization Size

Based on organization size, the global software as a service (SaaS) market is bifurcated into Small & Medium-sized Enterprises (SMEs) and Large Enterprises segments. The large enterprises segment dominated the global software as a service (SaaS) market in 2022. This segment benefits from various advantages offered by SaaS solutions, including cost-effectiveness, scalability, and flexibility. Large enterprises are increasingly adopting multi-cloud and hybrid-cloud strategies to effectively manage complex distributed application environments across different geographies, data centers, and cloud providers. Moreover, the adoption of platform as a service (PaaS) solutions is another noticeable trend among large enterprises. PaaS solutions provide a higher level of abstraction, allowing enterprises to focus on application development and deployment without the burden of managing underlying infrastructure. This approach enables large enterprises to expedite time-to-market, reduce development costs, and enhance agility and innovation. Meanwhile, the small and medium enterprises (SMEs) segment is projected to witness substantial growth throughout the forecast period. The on-demand consumption model of SaaS has brought about a revolution in the IT landscape, leading to rapid SaaS adoption among SMEs in recent years. The cost-effectiveness, accessibility, and scalability of SaaS have made it an appealing choice for SMEs, as they often have limited budgets and cannot afford the upfront capital investment and ongoing expenses associated with traditional IT infrastructure. By embracing SaaS, SMEs gain access to powerful software applications and services that would otherwise be financially out of reach. This enables them to compete more effectively with larger businesses, boost productivity, and drive overall growth.

Competitive Landscape

Major players operating in the global software as a service (SaaS) market include Alphabet Inc., Amazon, Microsoft Corporation, IBM Corporation, Salesforce Inc., SAP SE, Oracle Corporation, Cisco Systems, Inc., Hewlett Packard Enterprise Company, and ServiceNow, Inc. To further enhance their market share, these companies employ various strategies, including mergers & acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Don’t miss the business opportunity in the Global Software as a Service (SaaS) Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Global Software as a Service (SaaS) Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Global Software as a Service (SaaS) Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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