New York, Feb. 15, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Software as a service (SaaS) Global Market Report 2023" - https://www.reportlinker.com/p04442303/?utm_source=GNW
The global software as a service (saas) market will grow from $235.58 billion in 2022 to $253.62 billion in 2023 at a compound annual growth rate (CAGR) of 7.7%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The software as a service (saas) market is expected to grow to $328.03 billion in 2027 at a CAGR of 6.6%.
The software as a service (SaaS) market includes revenues earned by entities by providing cloud based software services.SaaS is a software solution that can be purchased on a subscription or pay per use basis to use an application for organizational purposes.
Customers can access this application over the internet, mainly through a web browser.All software and application data is located in the service provider’s data center.
SaaS allows an organization to run an application with minimal upfront costs and accelerates the overall functionality of the organization.The market value includes the value of related goods sold by the service provider or included within the service offering.
Only goods and services traded between entities or sold to end consumers are included.
SaaS is a software distribution model which allows data to be accessible from any device with an internet connection and a web browser. The software provider hosts and maintains the servers, databases, and code that comprise the application under this web-based approach.
North America was the largest region in the Software as a Service (SaaS) market in 2022.Western Europe was the second largest region in the Software as a Service (SaaS) market.
The regions covered in the Software as a Service (SaaS) market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main deployment types of software as a service (SaaS) are public cloud and private cloud.The public cloud is an IT model in which on-demand computing services and infrastructure are managed by a third party and shared by multiple organizations via the public Internet.
The software is used by small and medium enterprises (SMEs), large enterprises for customer relationship management (CRM), enterprise resource planning (ERP), human resource management (HRM), manufacturing and operations and supply chain management (SCM). The various end users of the software include manufacturing, retail, education, healthcare, IT and telecom, BFSI and others.
Rapid changes in business dynamics in the market are expected to benefit the software as a service (SaaS) market in the forecast period as cloud-based solutions support business operations in changing conditions.Dynamic market conditions include economic uncertainty, competitive rivalry and the increasing adoption of mobile, changing regulations, internet usage and applications.
These conditions along with the increasing number of infrastructures and established networks have forced organizations to pursue scalable and flexible solutions such as SaaS and other cloud-enabled services to run and supervise their operations in a cost-effective and efficient way.These factors have also compelled companies to outsource applications and prefer cloud computing services like SaaS to reduce their cost burden on infrastructure.
Companies that seek services from a third-party vendor are more likely to get better performance, compliance and customer satisfaction at a low cost.For example, Sony Communications aims at delivering innovative products and better experiences to its customers using automation and Infosys SaaS solutions.
Infosys helped Sony to attain customer loyalty and win competition by providing robust IT solutions and design thinking at a low cost which helped Sony to have a competitive edge in the market.
Increasing threats on data security especially on cloud platforms are expected to limit the growth of companies in the software as a service market during the forecast period.The threats on data security include industrial espionage and hacking which resulted in multiple breaches of data security involving public cloud environments.
These breaches are mainly because of the negligence the cloud service providers.In addition, many companies lack trust in data security when outsourcing from a third-party vendor.
As vendor has access to organizations’ data, companies fear the misuse of data which might affect the organization’s reputation. For example, Code Spaces, a former SaaS provider, discontinued its operations as hackers had access to its cloud services and stole all their data due to which Code Spaces faced damages to its reputation, finances, and business.
The introduction of artificial intelligence is gaining popularity in the SaaS market.Artificial Intelligence (AI) is an area of computer science that focus on the simulation of human intelligence processes by machines.
AI in SaaS helps companies to upgrade themselves from time to time with the latest data, create better user experience through predictive analytics, automate the areas where manual functions were required previously and personalize user interface features.For example, Oracle, a big player in SaaS market uses AI and machine learning to overtake salesforce in SaaS.
This indicates that AI and machine learning would be differentiating factors for the growth of SaaS market.
The General Data Protection Regulation (GDPR) break the split of regulations for the security of personal data in the European Union.It makes provisions to protect personal data and privacy of EU citizens for transactions that happen within EU member states.
It also regulates the export of personal data outside the EU.There could be data-subjects that patronize the subscriber that are located in the EU, even if a single SaaS subscriber is based in a non-EU location and the SaaS application is based in a non-EU location.
This may cause the subscriber to follow the GDPR regulations. For instance, Intercom, a US-based SaaS provider is shortening its time of storing data on visitors to customers’ sites by deleting the visitor data if a visitor has not been seen for nine months to comply with the GDPR.
In October 2021, Microsoft Corporation acquired Ally.io for an undisclosed amount. With this acquisition, Ally.io has become a member of the Microsoft Viva family as part of its employee experience platform (EXP) designed to assist businesses in embracing the new digital work life. Ally.io is a US-based SaaS startup.
The countries covered in the software as a service (SaaS) market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for a specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The software as a service (SaaS) market research report is one of a series of new reports that provides software as a service (SaaS) market statistics, including software as a service (SaaS) industry global market size, regional shares, competitors with a software as a service (SaaS) market share, detailed software as a service (SaaS) market segments, market trends and opportunities, and any further data you may need to thrive in the software as a service (SaaS) industry. This software as a service (SaaS) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
Read the full report: https://www.reportlinker.com/p04442303/?utm_source=GNW
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