Top Updates in the Software as a Service (SaaS) Market: Key Drivers Shaping the Future of Industry Growth
RELEASE DATE: Aug 2024 Author: Spherical Insights Request Free Sample
Overview
A provider of cloud services hosts apps and makes them accessible to end users via the internet under the software as a service (SaaS) distribution model. The global software as a service (SaaS) market size is expected to grow from USD 243.53 billion in 2023 to USD 895.23 billion by 2033, at a CAGR of 13.90% during the forecast period 2023-2033. Installing and running apps on company computers or in data centers is no longer necessary due to SaaS. In addition to software licensing, installation, and support, this also removes the cost of hardware acquisition, provisioning, and maintenance.
Advancements in Software as a service (SaaS)
The global market comprises some of the leading companies in the automotive software as a service (SaaS) industry, such as Alphabet Inc., Amazon.com, Cisco Systems, SAP SE, and IBM Corporation. These companies are acquiring small and local firms to expand their business presence and customer reach. For instance, in February 2023, Oracle, a leader in cloud computing, introduced Banking Cloud Services, a new line of modular services designed specifically for the banking sector.
Government Initiatives and Regional Market Expansion
The Ministry of Electronics and IT (India) released recommendations for government agencies to utilize in the establishment of cloud computing IT infrastructure. One of the criteria is that all data be stored domestically.
The United States is making a favorable contribution to the market revenue growth. One of the main drivers of market expansion is the existence of well-established industry players. Furthermore, the area's strong IT infrastructure facilitates the easy implementation of cloud-based virtual services, which helps the region capture a sizeable portion of the worldwide software as a service (SaaS) market. The largest market share was also aided by large investments in cloud infrastructure and the accessibility of numerous secure online servers.
Insights and Projections: Global Software as a Service (SaaS) Market Analysis
The report provides a summary of the global top trends and future prospects for the global software as a service (SaaS) market based on historical data sets (current trends, industry statistics, and emerging trends shaping the software as a service (SaaS) industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global software as a service (SaaS) trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions.
Growth Factors and Emerging Trends in the Software as a Service (SaaS) Market
- Increasing industry acceptance of cloud software solutions
Cloud software gives companies the scale and flexibility they need to stay competitive in today's digital environment and adjust to shifting market needs. Decision-making processes continue to prioritize issues like data security and VAT compliance as businesses move to cloud-based solutions. SaaS market dynamics and investor sentiment are significantly influenced by quarterly earnings and expert opinions. Companies hoping to profit from this growing market must comprehend the relevant segment and pinpoint the primary forces behind SaaS adoption. The degree of digitization in corporate operations and the state of exchange rates both have an impact on SaaS companies' growth trajectory.
- Increase in Smartphone and App-Based Service Adoption
SaaS is a cutting-edge technology that gives businesses online access to and storage of data. Among the main attributes of SaaS technology are flexibility, scalability, agility, and reliability. Software as a service (SaaS) helps businesses lower their IT infrastructure costs. This is the main cause of the rise in the use of SaaS apps by businesses. Businesses are investing more in mobile SaaS and app-based products as smartphones become a necessity for people to have easy access to information anywhere, at any time. One can also synchronize, update, and control documents with smartphones and app-based SaaS. In the future, it is anticipated that usage of app-based services and SaaS for smartphones will increase.
Opportunities and Future Prospects in the Software as a Service (SaaS) Market
- Artificial intelligence's growing adoption in the SaaS sector
In the SaaS industry, artificial intelligence is becoming more and more popular. The field of computer science known as artificial intelligence (AI) is concerned with teaching machines to simulate human intellectual functions. AI in SaaS enables businesses to regularly update themselves with the most recent data, improve user experience through predictive analytics, automate tasks that formerly needed manual labor, and customize user interface elements. One major company in the SaaS industry, Oracle, for instance, is using AI and machine learning to surpass salesforce in the SaaS space. This suggests that machine learning and artificial intelligence will be key differentiators for the SaaS market's expansion.
List of Key Companies in the Software as a Service (SaaS) Market
- Microsoft
- Adobe
- Amazon Web Services (AWS)
- Salesforce
- Shopify
- Intuit
- Atlassian
- Dropbox
- HubSpot
5 Players in the Software as a Service (SaaS) Market
1. Google Cloud
Headquarters: California, United States
Cloud computing solutions are offered by the Cloud Platform provided by Google. The business provides services for data analytics, machine learning, storage of information, and computing. Its head office is in Mountain View, California, and it was established in 2011. The company uses acquisitions and mergers to broaden its line of business. Over $9.49 billion has been raised by Google Cloud and its rivals in 355 financing rounds with 774 investors. The complete competition set consists of 65 acquired companies, 14 public companies, and 4 private unicorns. Without having to purchase or maintain physical infrastructure, GCP helps companies develop, launch, and grow apps and services rapidly and effectively.
2. Microsoft azure
Headquarters: Washington, United States
Microsoft Corporation is a worldwide technology firm based in Redmond, Washington, that is owned by Americans. It creates, produces, licenses, supports, and markets consumer electronics, personal computers, computer software, and services. The Microsoft Office suite, the Internet Explorer and Edge web browsers, and the Microsoft Windows series of operating systems are its most well-known software offerings. Microsoft developed Microsoft Azure, a cloud computing service for developing, testing, launching, and maintaining services and applications via data centers under Microsoft management. It supports a wide range of programming languages, tools, and frameworks, including Microsoft-specific and third-party applications and systems. It offers software as a service, platform as a service (PaaS), and IaaS. Numerous programming languages, tools, and frameworks are supported by Microsoft Azure, along with third-party and Microsoft-specific apps and services.
3. Amazon Web Services
Headquarters: Washington, United States
Amazon Web Services, Inc. (AWS) is a division of Amazon that offers measured, make monthly payments cloud computing platforms and APIs to people, businesses, and governments. This is frequently used in conjunction with autoscaling, which enables clients to consume more processing power during periods of high application usage and scale back to lower expenses during periods of lower traffic. Through AWS server farms, these cloud computing web services offer a range of services pertaining to networking, compute, storage, middleware, IoT, and additional processing capability, in addition to software tools. It provides capability for almost all computing domains, including machine learning, blockchain, and robots. In summary, AWS can help any organization that need additional processing capacity, be it NASA, the U.S. Navy, or any other government agency.
4. Dropbox
Headquarters: San Francisco, California
Dropbox is an online file hosting company that provides cloud storage, file synchronization, personal cloud, and client applications. It is run by Dropbox, Inc., an American corporation with its headquarters located in San Francisco, California. Drew Houston and Arash Ferdowsi, two MIT students, launched Dropbox as a firm in 2007 with seed money from Y Combinator. The business offers solutions for syncing, sharing, and safely storing business files. It permits safe file editing, addition, and device-to-device transmission. Businesses can use Dropbox to secure user papers so that they cannot be accessed by other online or mobile devices.
5. IBM Cloud
Headquarters: New York, United States
The American multinational technology corporation International Business Machines Corporation, also known as Big Blue, is based in Armonk, New York and operates in more than 175 countries under the trademark IBM. International Business Machines Corp. (IBM) offers consultancy services, global hybrid cloud, and artificial intelligence solutions. The company provides infrastructure, hosting, and consulting services in addition to developing system hardware and software. Analytics, AI, automation, blockchain, cloud computing, IT infrastructure, IT management, cybersecurity, and software development are some of IBM's core competencies. IBM Cloud, formerly known as Bluemix, is a suite of cloud computing services that the IT corporation provides for businesses. Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) are two of the cloud computing services provided by IBM Cloud, formerly known as IBM Bluemix and IBM SoftLayer. At the moment, it is among the top five cloud service providers globally.
Recent Development
- In July 2024, Google Cloud and Oracle just announced a fascinating new collaboration that will offer joint client’s data-transfer-free private, secure, adaptable, dependable, low-latency connections.
- In March 2024, the Oracle Fusion Cloud apps package is a cloud package of SaaS apps. Oracle revealed new generative AI capabilities within the suite that would assist clients improve decision-making and better the employee and customer experience.
- In March 2024, Cognizant and Google Cloud have announced a further development of their relationship to improve the overall software development lifecycle and efficiency among developers.
- In October 2023, the AWS European Sovereign Cloud, a new, autonomous cloud for Europe created to assist public sector clients and those in highly regulated industries in meeting the strictest regulatory data residency and operating requirements, was announced by Amazon Web Services, an Amazon.com division.
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