Report Overview

United States Software as a Service (SaaS) Market – Industry Trends & Forecast Report, 2031

United States Software as a Service (SaaS) Market size was estimated at USD 129.52 billion in 2024. During the forecast period between 2025 and 2031, United States Software as a Service (SaaS) Market size is projected to grow at a CAGR of 14.81% reaching a value of USD 340.55 billion by 2031. Prominent drivers of United States Software as a Service (SaaS) Market include the rising adoption of public cloud services, increasing preference for cost-effective subscription-based models, and the ongoing shift away from costly on-premises infrastructure. SaaS solutions provide businesses with greater scalability, flexibility, and faster deployment, making them attractive for both large enterprises and small and medium-sized businesses. The growing use of SaaS-based applications such as Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) is further enhancing operational efficiency, streamlining communication, and opening new revenue opportunities. Additionally, the surge in remote and hybrid work models has fueled demand for cloud-based collaboration tools, while continuous upgrades and innovation from providers allow businesses to access the latest technologies without additional costs. Together, these factors are expected to accelerate the growth of the United States SaaS Market in the coming years.

Software as a Service (SaaS) – Overview

Software as a Service (SaaS) is a cloud-based software delivery model where applications are hosted by a provider and made accessible to users over the internet through subscription plans. Unlike traditional on-premises software, SaaS eliminates the need for installation, maintenance, and infrastructure costs, offering scalability, flexibility, and cost-effectiveness. Users can access the software from any device with an internet connection, making it ideal for modern, remote, and hybrid work environments. SaaS providers manage updates, security, and performance, ensuring businesses always operate with the latest features while reducing IT burdens, enabling organizations to focus on growth and efficiency.

United States Software as a Service Market

Growth Drivers

Rapid Cloud Adoption by Various Types of Enterprises

Rapid adoption of cloud technologies is significantly driving the growth of United States Software as a Service (SaaS) Market, as enterprises increasingly migrate from traditional on-premises infrastructure to cloud-based platforms for greater scalability, flexibility, and cost efficiency. Recent studies indicate that cloud computing contributed more than USD 1 trillion to global GDP in 2023 and is projected to exceed USD 12 trillion by 2030, underscoring its central role in digital transformation. By replacing heavy upfront capital expenditures with subscription-based access, SaaS allows organizations to reduce IT costs while accessing advanced tools such as customer relationship management, enterprise resource planning, analytics, and collaboration software. The integration of artificial intelligence and machine learning into cloud-delivered applications further enhances automation and data-driven insights, enabling businesses to improve agility and efficiency. Additionally, major providers like AWS continue to expand their cloud infrastructure across the United States, creating stronger foundations for SaaS adoption and reinforcing its position as a key enabler of enterprise modernization and long-term market growth.

Challenges

Rising Cloud Costs and Bill Shock

The growth of the United States Software as a Service (SaaS) Market is being restrained by rising cloud costs and unexpected bill shock. While SaaS adoption offers scalability and flexibility, enterprises often face challenges in managing unpredictable usage-based pricing models, which can result in higher-than-expected monthly expenses. As workloads scale, hidden costs associated with data storage, bandwidth, and additional features amplify budget pressures, particularly for small and medium-sized enterprises. This lack of cost transparency can hinder adoption, forcing businesses to reassess cloud strategies and creating a restraint for the broader expansion of SaaS solutions.

Impact of Escalating Geopolitical Tensions on United States Software as a Service (SaaS) Market

Escalating geopolitical tensions can significantly impact United States Software as a Service (SaaS) Market. Heightened conflicts and trade disputes may disrupt global supply chains, restrict access to critical technologies, and increase compliance burdens related to data privacy and cross-border regulations. Sanctions and export restrictions could limit collaborations with international vendors, while rising cybersecurity threats driven by state-sponsored attacks may increase costs for SaaS providers to safeguard infrastructure. Additionally, economic uncertainties caused by geopolitical instability can lead enterprises to delay or reduce IT spending, impacting SaaS adoption rates. These factors collectively pose risks to market stability and growth prospects.

United States Software as a Service (SaaS) Market

Segmental Coverage

United States Software as a Service (SaaS) Market – By Deployment Mode

Based on deployment mode, United States Software as a Service Market (SaaS) is divided into Public Cloud, Private Cloud, and Hybrid Cloud segments. The hybrid cloud segment holds the largest share of United States Software as a Service Market by deployment mode. Its dominance is driven by the growing demand for industry-specific SaaS applications in sectors such as healthcare, banking, and education, where regulatory compliance and customized functionality are critical. Hybrid cloud offers the flexibility to balance public and private infrastructure, enabling businesses to securely manage sensitive data while leveraging the scalability of cloud solutions. This adaptability makes it the preferred choice for organizations seeking tailored SaaS platforms, positioning the hybrid cloud segment for continued strong growth over the forecast period.

United States Software as a Service (SaaS) Market – By Application

By application, United States Software as a Service (SaaS) Market is divided into Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Management (HRM), Supply Chain Management (SCM), and Business Intelligence & Analytics segments. The CRM segment holds the highest share in United States Software as a Service (SaaS) Market by application. CRM solutions dominated revenues as businesses increasingly adopted platforms that deliver AI-driven analytics, personalized marketing automation, and unified omnichannel communication. These capabilities enable companies to strengthen customer engagement, improve loyalty, and optimize sales processes. The surge in e-commerce and digital-first business models has further accelerated CRM adoption, allowing organizations to manage vast customer data more effectively. Moreover, seamless integration of CRM with enterprise applications such as ERP and HRM enhances workflow efficiency and provides holistic business insights, reinforcing its leadership position in US SaaS Market.

United States Software as a Service (SaaS) Market – By Industry Vertical

On the basis of industry vertical, United States Software as a Service (SaaS) Market is segmented into BFSI, Healthcare, Retail & E-commerce, IT & Telecom, and Education. The BFSI segment holds the highest share in United States Software as a Service (SaaS) Market by industry vertical. The segment dominates the market as financial institutions increasingly adopt SaaS platforms to support essential operations, including customer relationship management, risk assessment, fraud detection, and regulatory compliance. The integration of advanced analytics and AI-driven tools enables real-time insights and personalized financial services, enhancing overall efficiency and customer engagement. The rapid growth of digital banking and fintech further accelerates the demand for SaaS solutions to manage large volumes of transactional data seamlessly. Moreover, robust security capabilities within SaaS platforms address strict data protection requirements, reinforcing their widespread adoption across the BFSI sector.

Competitive Landscape

Major players operating in United States Software as a Service (SaaS) Market include Microsoft Corporation, Salesforce, Oracle Corporation, Google LLC, Adobe Inc., ServiceNow, IBM Corporation, SAP SE, Workday, and Zoom Video Communications. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2024 - Fractal, a US-based paytech startup, launched to provide SaaS companies with a pre-built, embeddable payment solution. The platform offers cost-effective alternatives to traditional providers, including online checkout, invoicing links, merchant onboarding, and customizable APIs. Aimed at simplifying historically complex payment processes, Fractal is said to enable SaaS firms to integrate payments quickly, reducing technical and regulatory hurdles and accelerating monetization, positioning itself as a preferred payment method for the SaaS sector.

Scope of the Report

Deployment Mode

• Public Cloud

• Private Cloud

• Hybrid Cloud

By Application

• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)

• Human Resource Management (HRM)

• Supply Chain Management (SCM)

• Business Intelligence & Analytics

By Industry Vertical

• BFSI

• Healthcare

• Retail & E-commerce

• IT & Telecom

• Education

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. United States Software as a Service (SaaS) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Rapid Cloud Adoption Across Enterprises
         2. Shift from CAPEX to OPEX Subscription Models
         3. Acceleration of Remote & Hybrid Work Models
      2. Restraints
         1. Rising Cloud Costs & Bill Shock
         2. Data Residency & Privacy Compliance Issues
      3. Opportunities
         1. Increasing FinOps & Cost Optimization Platforms
         2. Modernization of Legacy Back-Office Systems
      4. Challenges
         1. Intense Competition & Commoditization in SaaS Categories
         2. Evolving Regulatory Requirements
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. United States Software as a Service (SaaS) Market: Marketing Strategies
5. United States Software as a Service (SaaS) Market: Pricing Analysis
6. United States Software as a Service (SaaS) Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. Deployment Mode
         1. Public Cloud
         2. Private Cloud
         3. Hybrid Cloud
      2. By Application
         1. Customer Relationship Management (CRM)
         2. Enterprise Resource Planning (ERP)
         3. Human Resource Management (HRM)
         4. Supply Chain Management (SCM)
         5. Business Intelligence & Analytics
      3. By Industry Vertical
         1. BFSI
         2. Healthcare
         3. Retail & E-commerce
         4. IT & Telecom
         5. Education
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. United States Software as a Service (SaaS) Market Share Analysis, 2024
      1. Competitive Benchmarking, By Operating Parameters
   3. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on United States Software as a Service (SaaS) Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Microsoft Corporation
   2. Salesforce
   3. Oracle Corporation
   4. Google LLC
   5. Adobe Inc.
   6. ServiceNow
   7. IBM Corporation
   8. SAP SE
   9. Workday
   10. Zoom Video Communications
   11. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       United States Software as a Service (SaaS) Market Segmentation                           

Figure 2       United States Software as a Service (SaaS) Market Value Chain Analysis                 

Figure 3       Company Market Share Analysis, 2024

Figure 4       United States Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019–2031          

Figure 5       United States Software as a Service (SaaS) Market Share, By Deployment Mode, By Value, 2019–2031

Figure 6       United States Software as a Service (SaaS) Market Share, By Borrower Type, By Value, 2019–2031

Figure 7       United States Software as a Service (SaaS) Market Share, By Industry Vertical, By Value, 2019–2031

Figure 8       United States Software as a Service (SaaS) Market Share, By Deployment Mode, By Value, 2019–2031

Figure 9       United States Software as a Service (SaaS) Market Share, By Borrower Type, By Value, 2019–2031

Figure 7       United States Software as a Service (SaaS) Market Share, By Industry Vertical, By Value, 2019–2031

List of Tables

Table 1         United States Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019–2031

Table 2         United States Software as a Service (SaaS) Market Share, By Deployment Mode , By Value, 2019–2031                        

Table 3         United States Software as a Service (SaaS) Market Share, By Borrower Type, By Value, 2019–2031

Table 4         United States Software as a Service (SaaS) Market Share, By Industry Vertical, By Value, 2019–2031

Table 5         United States Software as a Service (SaaS) Market Share, By Deployment Mode, By Value, 2019–2031

Table 6         United States Software as a Service (SaaS) Market Share, By Borrower Type, By Value, 2019–2031

Table 7         United States Software as a Service (SaaS) Market Share, By Industry Vertical, By Value, 2019–2031

Table 8         Microsoft Corporation Company Overview

Table 9         Microsoft Corporation Financial Overview

Table 10       Salesforce Company Overview

Table 11       Salesforce Financial Overview

Table 12       Oracle Corporation Company Overview

Table 13       Oracle Corporation Financial Overview

Table 14       Google LLC Company Overview

Table 15       Google LLC Financial Overview

Table 16       Adobe Inc. Company Overview

Table 17       Adobe Inc. Financial Overview

Table 18       ServiceNow Company Overview

Table 19       ServiceNow Financial Overview

Table 20       IBM Corporation Company Overview

Table 21       IBM Corporation Financial Overview

Table 22       SAP SE Company Overview

Table 23       SAP SE Financial Overview

Table 24       Workday Company Overview

Table 25       Workday Financial Overview

Table 26       Zoom Video Communications Company Overview

Table 27       Zoom Video Communications Financial Overview