Software as a service (SaaS) market 2022-2026: A descriptive analysis of five forces model, market dynamics, and segmentation - Technavio
NEW YORK, Jan. 30, 2023 /PRNewswire/ -- According to Technavio, the global software as a service (SaaS) market size is estimated to grow by USD 147.44 billion from 2021 to 2026. The market is estimated to grow at a CAGR of 11.41% during the forecast period. Moreover, the growth momentum will accelerate. North America will account for 51% of the market's growth during the forecast period. The report provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. To know more, buy the report!
Global software as a service (SaaS) market - Five forces
The global software as a service (SaaS) market is fragmented, and the five forces analysis covers–
Bargaining power of buyers
The threat of new entrants
Threat of rivalry
Bargaining power of suppliers
Threat of substitutes
For interpretation of Porter's five forces model – Request a sample report
Global software as a service (SaaS) market – Customer landscape
The report includes the market's adoption lifecycle, from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global software as a service (SaaS) market - Segmentation assessment
Technavio has segmented the market based on deployment (public cloud, private cloud, and hybrid cloud).
The public cloud segment will account for a significant share of the market's growth during the forecast period. As public cloud services offer multiple advantages, companies invest heavily in them. Some of the advantages of the public cloud are low investment requirements, high availability and multi-tenant capabilities, reduced complexity, flexible pricing, and simplified access to platform solutions such as AI, big data, data analytics, and the Internet of Things (IoT). These factors will increase the demand for public cloud solutions, which, in turn, will drive the growth of this segment during the forecast period.
Based on geography, the global software as a service (SaaS) market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global software as a service (SaaS) market.
North America will account for 51% of the market's growth during the forecast period. The US is a key country in the software as a service (SaaS) market in the region. However, market growth in this region will be slower than the growth of the market in APAC, South America, and MEA. The increasing demand for cloud computing services is fueling demand for SaaS in the US. The availability of technologically advanced infrastructure and the presence of a large number of cloud service providers in the country will drive the market growth in North America.
Global software as a service (SaaS) market – Market dynamics
Key factor driving market growth
The increasing use of AI-enabled SaaS will drive the growth of the market.
End-user enterprises can obtain better value from their data with the help of AI-enabled SaaS solutions.
They can provide personalized and automated services to their customers through live chatbots.
AI-enabled SaaS also makes internal processes and operations faster.
These benefits will further increase the use of AI-enabled SaaS, which, in turn, will fuel the growth of the SaaS market.
Leading trends influencing the market
The increasing use of vertical SaaS is a key trend in the market.
Vertical SaaS is suitable for industries such as retail, insurance, and auto manufacturing.
Industry-specific vertical SaaS is cost-effective and can improve customization.
It can generate industry-specific customer data and intelligence, which can help enterprises cater to customers' needs.
Such factors will increase the demand for vertical SaaS during the forecast period, which will support the market's growth.
Major challenges hindering the market growth
Issues associated with system integration will challenge the software as a service (SaaS) market during the forecast period.
Various enterprises are adopting SaaS solutions, which are a cost-effective alternative to traditional IT deployments
However, enterprises face issues related to the integration of new software systems and IT infrastructure.
It is difficult for enterprises to integrate new software programs into their existing monolithic architecture.
Hence, the issues associated with system integration are impeding the growth of the global software as a service (SaaS) market.
Drivers, trends, and challenges have an impact on market dynamics, which can impact
businesses. Find more insights in a sample report!
What are the key data covered in this software as a service (SaaS) market report?
CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the software as a service (SaaS) market between 2022 and 2026
Precise estimation of the size of the software as a service (SaaS) market and its contribution to the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the software as a service (SaaS) market across North America, Europe, APAC, South America, and Middle East and Africa
A thorough analysis of the market's competitive landscape and detailed information about vendors
Comprehensive analysis of factors that will challenge the growth of the software as a service (SaaS) market vendors
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Software as a Service (SaaS) Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 11.41%
Market growth 2022-2026
USD 147.44 billion
YoY growth 2021-2022 (%)
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution
North America at 51%
US, Japan, China, India, UK, and Germany
Leading vendors, market positioning of vendors, competitive strategies, and industry risks
Key companies profiled
Accenture Plc, Adobe Inc., Alphabet Inc., Amazon.com Inc., BetterCloud Inc, Box Inc, Cisco Systems Inc., Convedo Ltd., EdgeVerve Systems Ltd., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Intuit Inc., Microsoft Corp., Oracle Corp., Salesforce Inc., SAP SE, ServiceNow Inc., Shopify Inc., and Slack Technologies Inc
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
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Table of contents
1 Executive Summary
1.1 Market overview
2 Market Landscape
2.1 Market ecosystem
3 Market Sizing
3.1 Market definition
3.2 Market segment analysis
3.3 Market size 2021
3.4 Market outlook: Forecast for 2021-2026
4 Five Forces Analysis
4.1 Five forces summary
4.2 Bargaining power of buyers
4.3 Bargaining power of suppliers
4.4 Threat of new entrants
4.5 Threat of substitutes
4.6 Threat of rivalry
4.7 Market condition
5 Market Segmentation by Deployment
5.1 Market segments
5.2 Comparison by Deployment
5.3 Public cloud - Market size and forecast 2021-2026
5.4 Private cloud - Market size and forecast 2021-2026
5.5 Hybrid cloud - Market size and forecast 2021-2026
5.6 Market opportunity by Deployment
6 Customer Landscape
6.1 Customer landscape overview
7 Geographic Landscape
7.1 Geographic segmentation
7.2 Geographic comparison
7.3 North America - Market size and forecast 2021-2026
7.4 Europe - Market size and forecast 2021-2026
7.5 APAC - Market size and forecast 2021-2026
7.6 South America - Market size and forecast 2021-2026
7.7 Middle East and Africa - Market size and forecast 2021-2026
7.8 US - Market size and forecast 2021-2026
7.9 UK - Market size and forecast 2021-2026
7.10 Germany - Market size and forecast 2021-2026
7.11 Japan - Market size and forecast 2021-2026
7.12 China - Market size and forecast 2021-2026
7.13 India - Market size and forecast 2021-2026
7.14 Market opportunity by geography
8 Drivers, Challenges, and Trends
8.1 Market drivers
8.2 Market challenges
8.3 Impact of drivers and challenges
8.4 Market trends
9 Vendor Landscape
9.2 Vendor landscape
9.3 Landscape disruption
9.4 Industry risks
10 Vendor Analysis
10.1 Vendors covered
10.2 Market positioning of vendors
10.3 Accenture Plc
10.4 Adobe Inc.
10.5 Alphabet Inc.
10.6 Amazon.com Inc.
10.7 BetterCloud Inc
10.8 International Business Machines Corp.
10.9 Microsoft Corp.
10.10 Oracle Corp.
10.11 Salesforce Inc.
10.12 SAP SE
11.1 Scope of the report
11.2 Inclusions and exclusions checklist
11.3 Currency conversion rates for US$
11.4 Research methodology
11.5 List of abbreviations
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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