SaaS (world market)

2021: Market growth by a third, up to $145 billion

In 2021, the volume of the global SaaS market amounted to $145 billion, which is a third more than a year earlier. At the same time, in 2020, the growth rate of spending on software provided as a service was significantly higher (+ 78%). Such data in March 2022 were cited by analysts at Paddle, which offers an infrastructure payment platform for SaaS projects.

Experts attribute the tangible decrease in the growth dynamics of the global Solutions SaaS market to the weakening of the influence of the coronavirus pandemic factor, COVID-19 which in 2020 pushed companies to a massive transition to (remote operation because of this, the demand for cloud tools has greatly increased). Vendors began to adapt to the changed situation, offering new tools and models for price formation, as well as relying on the capabilities of products.

When the coronavirus hit, the world went online in a way no one could predict, and the industry SaaS reaped the benefits of it. Although the pandemic accelerated the growth of revenue for software developers in 2020, in 2021 it was already different, "says Paddle CEO Christian Owens. - As our report shows, the industry has failed to maintain growth levels in the first year of the pandemic, and we have seen a correction as we approach 2022. However, there are several players who have changed this trend. They have several common features: product-oriented growth strategies, a flexible pricing approach, and a global view of payments.

The fastest-growing SaaS vendors in 2021 were those that revised their prices and experimented with dynamic models that involve paying for services as they were consumed, analysts said. 40% of producers who regularly adjust their prices were able to increase annual revenue by 25% or more. However, most players in the market still do not have a pricing optimization strategy or they do not even consider it as a growth factor, according to a study published in March 2022.

It also says that 20% of surveyed SaaS Solutions SaaS providers over the past five years have not changed the price of their products at all, and 30% of respondents do not have plans to revise price lists.

It is noted that SaaS company accept payments in at least two currencies grew 13% faster in 2021 than those that use only one currency. Vendors operating with more than 25 currencies showed an increase of 25% higher compared to "single currency" players. And companies offering at least one payment alternative are growing 22% faster than competitors who do not have it.

According to analysts, providers of Solutions SaaS have abandoned the traditional business model, in which sales are put at the forefront, are achieving higher results. Thus, manufacturers betting on the quality of their product increase revenue by 7% faster compared to competitors practicing other strategies. There are also signs that product-oriented business growth is becoming the dominant model: 79% of software sellers surveyed by Paddle said they consider themselves primarily product-oriented rather than sales-oriented.

One of the growing trends in the SaaS market, researchers consider the use of artificial intelligence in such solutions. Another trend is the popularization of SaaS in the mobile market. In addition, analysts point to the expansion of the range of niche SaaS products focused on specific industries.^[1]

2020: Forrester names market leaders SaaS

In August 2020, the analytical company Forrester announced the results of a study of the global market software offered as a service (model). SaaS The report lists the largest suppliers of such solutions, as well as describes the strengths and weaknesses of marketplaces that develop these companies.

Two companies SaaS named market leaders Salesforce : and (Amazon more precisely, its division/). Amazon Web ServicesAWS According to experts, Salesforce dominates due to its developed marketplace, in which a wide range of scalable SaaS products are available. However, this site is largely focused on Salesforce customers who need additions for. ON

The study says AWS "continues to expand its capabilities in areas such as standard contract terms, negotiation of individual contracts on its marketplace, and integration with leading procurement tools such as Coupa."

At the same time, the company does not offer many business applications compared to competitors and is primarily interested in AWS developers who like deeply integrated security settings.

According to experts, among Alibaba Solutions SaaS, "any company can find suitable in terms of scalability and functionality. However, Alibaba is focused on the Chinese market, and only a small number of applications have an English version, and several products in the extended version are available only in the Middle Kingdom.

Alibaba is classified as a Strong Performers along with ServiceNow and Microsoft. The study also mentions companies that, according to analysts, claim leadership (Contenders): Google, ADP, Adobe.^[2]

2019: Sales of $101 billion - Synergy Research

The volume of the global SaaS market in 2019 amounted to $101 billion, more than doubling in three years, calculated in the analytical company Synergy Research.

The fastest growing segments of the market in question are solutions for collaboration and personnel management. What dynamics were in 2019 is not specified.

As for the leaders of the software market distributed as a service, Microsoft has been the first place since 2016. In 2019, the share of the American corporation was 17%. The top 5 largest manufacturers are as follows:

• Microsoft (17%);
• Salesforce (12%);
• Adobe (12%);
• SAP (6%);
• Oracle (6%). 

The study notes that the leading group has practically not changed compared to 2018, and the leading Microsoft and Salesforce have increased their shares by only half a percentage point over the year.

Moreover, if the largest vendors show slightly high growth rates, then smaller players are growing much faster. Among them are Dassault Systemes, Atlassian, VMware and ServiceNow.

The growing demand for collaboration technologies has helped Microsoft, Cisco, and IBM strengthen their position in the SaaS market. And human resources software helped improve the financial performance of Workday, Intuit and ADP. According to experts, ERP systems (enterprise resource planning) are among the largest segments of the entire corporate software market, but the corresponding category of SaaS is still poorly developed.

Over the past 10 years, the purchase of SaaS versions of software has become increasingly attractive to companies due to significant improvements in hosting capabilities, a more flexible economy and increased comfort when switching to the cloud operating model, "said John Dinsdale, lead analyst at Synergy Research Group. - Entering the market of new cloud providers also ensured a significant growth of the SaaS market. At first, Salesforce was the undisputed leader in the SaaS segment, but over the past ten years we have watched the launch of a number of other Developer SaaS, including Workday, Zendesk, ServiceNow, Atlassian, Splunk, Cloudera, Carbonite and Tableau. These new players have forced traditional software developers to promote SaaS more than they could do without such pressure. "

According to the analyst, the purchase of software in the service format is becoming more attractive for business due to significant improvements in hosting capabilities, a more flexible economy and increased comfort when switching to the cloud operating model. Since cloud software costs are still significantly less than enterprise costs for software used locally, Synergy Research expects the SaaS industry to grow further over the years, in all regions and in all areas.

In 2019, the global corporate software market reached $450 billion, of which 23% accounted for the SaaS segment. In 2019, this share was 2%. If the demand for cloud software is growing rapidly, then sales of local products (installed on client computers) over the past 10 years have increased only by an average of 4% annually, experts said in March 2020.

Although the other two segments of the cloud services market - IaaS (Infrastructure as a Service) and PaaS (Platform As A Service, Business Platform as a Service) - are developing more dynamically, SaaS significantly exceeds them in volume, and this advantage will remain in the foreseeable future, analysts are sure.^[3]

2016: Forrester Data

2015: Forrester Forecast and Data

2012

The United States occupies 60% of the global market SaaS

The United States is the world leader in the SaaS (Software-as-a-Service) market, which accounts for about 60% of the segment, the PAC analytical agency came to such conclusions.

"The US is an unqualified leader - the business model was invented there, the choice of services is very wide and there are no obstacles to development. However, other countries are afraid of losing control over their data, they are concerned about security issues, as well as the lack of competition from independent developers - ON all this significantly impedes the development of the market, "says chief analyst PAC Christoph Chalon.

According to the study, the second place is divided by Great Britain and Germany - 6% each, followed by Japan and Canada - 4% each, France - 3%. All other countries where they are provided for SaaS share 17% of this market.

According to PAC, the main consumers of SaaS are production segments and consumer services. Then the services of cloud providers are used by the banking sector and wholesale and retail enterprises. Analysts note that recently there has been a trend towards strong changes in the volumes and growth rates of the SaaS market in various countries.

According to Chalon, cloud services are attractive primarily for medium and small businesses due to the high speed of deployment and automation, as well as flexibility of solutions. It is also SaaS simple and profitable from a financial point of view. "However, security problems and compliance with some rules hinder the growth of this market in segments such as banking and government," said Christoph Chalon.

The research of the world market SaaS 2009-2015 is conducted in 25 countries (Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, India, Italy, Japan, Mexico, the Middle East, the Netherlands, Norway, Poland, Russia, South Africa, Spain, Sweden, Switzerland, Great Britain, the USA) and is divided into three regions - America, the Pacific Rim, region of EMEA.

Analysts consider the following industries: manufacturing, banking, insurance, the public sector, telecommunications, utilities, retail and wholesale trade, services and consumers, transport.

2011

According to analysts, the SaaS market volume will reach $10.7 billion in 2011. Compared to 2010, growth will be 16.2%.

2010

According to preliminary calculations, in 2010 the volume of the global market "software as services" will grow by 15.7% and reach $9.2 billion. Next year, the market is expected to increase by another 16.2%. According to analysts, questions regarding SaaS security, waiting times and the quality of service offered by providers, with the development of the cloud market, are a thing of the past. This method of delivering software is increasingly being chosen to solve more problems, Gartner says.

Analysts also note growth of number of contracts for use of SaaS within which to this technology it is transferred from several thousand to several tens of thousands jobs. Also the continuing integration of SaaS and social platforms, including Facebook and Twitter is noted. This is due to the fact that these platforms are often used as platforms for promoting goods and interacting with customers. According to experts, Content, Communications and Collaboration (CCC) continues to lead the market for corporate Solutions SaaS, which in 2010 will account for about $2.9 billion in revenue. The second largest share is occupied by CRM platforms - about $2.6 billion according to the results of this year.

Gartner experts note that over the past two years, SaaS technology has been among the top five topics discussed, as well as the generally broader concept of cloud computing, of which "software as a service" is a part.

According to experts of the developer of corporate software CA Technologies, in 2011 the business will move from words to actions. This is mainly facilitated by overcoming the last barrier to cloud services - a barrier related to security issues. CA believes that cloud computing (including SaaS) will not just become an additional technology, but will change the principles of doing business as a whole.

2009

The global market, SaaS according to analysts, in Gartner 2009 will grow by 21.9% compared to the previous year, that is, up to 9.6 billion. In the dollars future, it will also continue to grow and by 2013 will reach $16 billion. At the same time, the spread of SaaS everywhere goes differently. The use of such solutions is growing, but the largest growth is noted in horizontal structures, virtual workgroups and projects. Web 2.0 Office applications and digital content creation (DCC) still remain the areas where SaaS spreads the fastest: within office applications, the volume of the SaaS segment in 2009 will increase to $512 million, and within DCC - to $126 million. At the same time, the largest market for SaaS is the field of content support, communications and collaboration (CCC), where profits in 2009 reached $2.5 billion.

In December 2010, Gartner announced that the global market for "software as a service" (Software as a Service - SaaS) in 2009 amounted to $7.9 billion. In 2010, the market will grow by 15.7% compared to last year to $9.2 billion.

IDC experts expect that in 2009, the SaaS market in the Asia-Pacific region, excluding Japan (APEJ), despite the difficulties, in general, will show itself well. So, it will reach 298 million dollars, which is 18% more compared to 2008. This indicator, in addition, is 6 times higher than the expected growth indicator for the entire software market in this region for the year - 3%. For individual countries, Australia is the largest contributor to the market, with a 45% share of the SaaS market in 2009. Followed by China, whose expected share is 29%. If we talk about various market segments, then the leadership here belongs to CRM applications (31% of the market).

2008

Global profits in the SaaS market within the corporate sector, million USD <TBODY>{| borderColor=#ffffff cellSpacing=0 cellPadding=0 width="70%" align=center bgColor=#f6f6f6 border=1 style="BACKGROUND-COLOR: #f0f0f0"

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Market

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2009

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2008

|- | class=td11 vAlign=top align=left|Content, Communications and Collaboration (CCC) Support | class=td11 vAlign=top align=left|2,507 | class=td11 vAlign=top align=left|2,155 |- | class=td11 vAlign=top align=left|Office Applications | class=td11 vAlign=top align=left|512 | class=td11 vAlign=top align=left|136 |- | class=td11 vAlign=top align=left|Digital Content Creation (DCC) | class=td11 vAlign=top align=left|126 | class=td11 vAlign=top align=left|70 |- | class = td11 vAlign=top align = left|Customer Relationship Management System (CRM) | class=td11 vAlign=top align=left|2,169 | class=td11 vAlign=top align=left|1,838 |- | class = td11 vAlign=top align = left|Enterprise Resource Planning System (ERP) | class=td11 vAlign=top align=left|1,376 | class=td11 vAlign=top align=left|1,256 |- | class = td11 vAlign=top align = left |Logistics (SCM) | class=td11 vAlign=top align=left|861 | class=td11 vAlign=top align=left|748 |- | class=td11 vAlign=top align=left|Other areas | class=td11 vAlign=top align=left|483 | class=td11 vAlign=top align=left|387 |- | class=td11 vAlign=top align=left|Total volume | class=td11 vAlign=top align=left|8,035 | class=td11 vAlign=top align=left|6,591 |}

According to the Gartner Research Agency, office applications and digital content creation (DCC) still remain the areas where SaaS spreads the fastest: within office applications, the volume of the SaaS segment in 2009 will increase to $512 million, and within the DCC - up to $126 million. At the same time, the largest market for SaaS is the field of content support, communications and collaboration (CCC), where profits in 2009 reached $2.5 billion.

Notes