Dublin, Sept. 09, 2025 (GLOBE NEWSWIRE) -- The "Software-as-a-Service (SaaS) - A Global Market Overview" has been added to ResearchAndMarkets.com's offering.
The global Software-as-a-Service (SaaS) market is witnessing robust growth as enterprises rapidly advance their digital transformation efforts and shift towards subscription-based models. Starting from a projected US$281.8 billion in 2024, the market is expected to reach US$774.3 billion by 2030, growing at a compound annual growth rate (CAGR) of 18.3%.
This trend is transforming how businesses deploy software, fueled by cloud migration of legacy systems, the rise of low-code/no-code solutions, and the integration of AI and analytics into business processes. SaaS offers rapid scalability, cost-effectiveness, and seamless updates, positioning it as a pivotal component in enterprise modernization strategies. Additionally, vertical SaaS and micro-SaaS are offering tailored solutions to industry-specific challenges.
The momentum for SaaS is supported by developments in hybrid and private environments, catering to enterprises with regulatory and security needs. While the public cloud remains popular for its speed and scalability, small and medium-sized enterprises (SMEs) increasingly prefer SaaS to minimize IT costs, thanks to pay-as-you-go models and ease of deployment. Integration of APIs, mobile applications, and collaborative digital tools is facilitating extensive adoption across sectors such as banking, financial services, and insurance (BFSI), healthcare, and ecommerce. As SaaS platforms evolve, there's a continued emphasis on innovation and cloud-native, personalized solutions driving market growth.
Regional Analysis
North America leads the SaaS market, contributing 43.8% of global revenue in 2024, propelled by mature cloud infrastructures, early adoption, and significant investments in digital transformation. Europe follows at 26.4%, influenced by regulatory needs like GDPR and expanding public-sector cloud initiatives. The Asia Pacific region is the fastest-growing, expected to grow at around 20% CAGR, with revenue likely reaching US$176.2 billion by 2030. The growth is attributed to widespread digitalization in SMEs, government transformation activities, and improved internet connectivity in regions including India, Southeast Asia, and China.
Component Analysis
In 2024, software subscriptions dominate the SaaS market with an 83.6% revenue share, driven by the adoption of cloud-based CRM, ERP, and productivity tools. Services, encompassing implementation and customization, constitute 16.4% but are expected to grow faster at a 20.9% CAGR, exceeding US$144 billion by 2030. This uptrend reflects increased demand for AI integration support, data governance expertise, and multi-cloud optimization, underscoring a broader movement towards comprehensive digital transformation.
Deployment Type Analysis
Private SaaS deployments captured a 44.5% market share in 2024 due to their appeal in regulated sectors requiring stringent control and data residency. Public SaaS holds a 34.6% share, appreciated for its low initial costs and swift rollouts. Hybrid SaaS represents 20.9% of the market and is forecasted to increase at a 20.1% CAGR, reaching US$176.6 billion by 2030. The hybrid model's rise is motivated by its flexibility and ability to manage workloads across both public and private environments, balancing security, performance, and compliance considerations.
Company Type Analysis
Large enterprises are responsible for 65.3% of SaaS revenues in 2024, driven by their intricate application needs, expansive deployments, and requirements for robust analytics and automation. These firms favor private or hybrid deployments to address compliance and scalability, generating substantial per-client revenue. Meanwhile, SMEs account for 34.7% but are rapidly expanding at a 19.7% CAGR, attracted by affordable subscription models and scalable cloud tools, especially among startups and emerging markets.
Application Analysis
Customer Relationship Management (CRM) continues to lead the SaaS applications segment in 2024 with a 25.8% market share, emphasizing its importance in customer engagement and sales automation. CRM is favored for centralized access, scalability, and AI-driven features. Content, Collaboration & Communication (CCC) applications are the fastest-growing, with a 22.4% CAGR, anticipated to top US$211 billion by 2030, driven by hybrid work demands and the integration of platforms like Zoom and Microsoft Teams. Other segments, such as Human Capital Management and BI & Analytics, are expanding due to the need for workforce management and data-centric decision-making.
Industry Sector Analysis
The BFSI sector leads with a 21.8% share of the SaaS market in 2024, leveraging cloud technology for digital banking, compliance, and enhanced customer experiences. Healthcare is the fastest-growing vertical, expected to register a 23.7% CAGR through 2030, driven by telehealth adoption and AI diagnostics. Retail and ecommerce sectors are also increasing SaaS investments to optimize omnichannel strategies and data-driven marketing, highlighting SaaS's integral role in digital transformation across industries.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 580 |
| Forecast Period | 2024-2030 |
| Estimated Market Value (USD) in 2024 | $282 Billion |
| Forecasted Market Value (USD) by 2030 | $774 Billion |
| Compound Annual Growth Rate | 18.3% |
| Regions Covered | Global |
Companies Featured
- Adobe Inc.
- Alibaba Cloud International
- Atlassian Corporation
- Babbel
- Box, Inc.
- Cisco Systems, Inc.
- Citrix Systems, Inc.
- Google LLC
- HPE
- HubSpot, Inc.
- IBM Corporation
- Infosys
- Intuit Inc.
- IONOS Cloud Inc.
- Microsoft Corporation
- NetSuite Inc.
- Oracle Corporation
- Rackspace Technology, Inc.
- Sage Group plc
- Salesforce, Inc.
- SAP SE
- ServiceNow
- Shopify Inc.
- Slack Technologies, LLC
- TCS
- Tecent Holdings
- Trend Micro
- VMware Inc.
- Workday, Inc.
- Workiva
- Zendesk, Inc.
- Zoho Corporation
- Zoom Video Communications, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/hk87ik
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