According to the new research report published by The Insight Partners, titled “Software as a Service (SaaS) Market  - Global Analysis and Forecast to 2025”, the global SaaS market is expected to reach US$ 172.20 Bn in 2025, registering a CAGR of 18.6% during the forecast period 2016-2025.

In 2015, North America accounted for the largest revenue share of more than half of the total market share, followed by Europe.

The North American region continues to dominate the global SaaS market and has more than half the slice of the market. SaaS applications like emails, HCM, web conferencing and office suites are widely used across this continent. Moreover, cloud apps for tablets, smartphones, and Chromebooks continue to drive the growth of the North American market.

SaaS is an emerging technology that is transforming traditional on-premise software systems into a modern cloud-based solution globally. Along with reduced efforts of running a process, installing and purchasing software, it also helps an organization minimize its costs and maximize its revenue. Consequently, private organizations across the world have understood the potential behind these services and come up with cloud-based services. The adoption for SaaS has today reached a point where the popularity of Big Data and IoT goes hand-in-hand with the progress of the SaaS market. Business Intelligence, predictive analysis, prediction of buying behavior of the customer all such software can be found at the SaaS vendor. The need to include Big Data and IoT as an integral part of various businesses is thus driving the SaaS market today.

The global SaaS market is classified based on the deployment model into a private cloud, public cloud, and hybrid cloud. Private cloud model being relatively costlier has witnessed fewer adoptions, and the users of private cloud models are large scale industries willing to invest huge amounts. The public cloud has witnessed highest adoptions owing to the cheaper costs and interest shown by SME’s across the globe. The private cloud deployment model has witnessed fewer adoptions on account of it being relatively costlier deployment model when compared to others. On the other hand, Public cloud model with cheapest deployment cost has gained the maximum popularity across all industry verticals and various sizes. Largely, SME’s have contributed to the remarkable market share of the public cloud deployment model.

 Key findings of the study:

North America is anticipated to account the high Y-o-Y growth during the forecast period of the SaaS market and is expected to register a CAGR of 18.3%

Based on the end-user, the SMEs segment is expected to dominate the market during the forecast period

European countries are witnessing high demand for SaaS due to the increasing demand from the industries.

Europe is the second biggest consumer in the SaaS market, compelled by wide adoptions in Western European countries such as UK, France, and Ireland. Apart from Europe and North America, APAC remains at third but is expected to outpace other regions in the near future in the adoptions of SaaS applications. With developing internet infrastructure, huge outsourced industry, and Government support, countries like India and China are to witness highest adoptions for the emerging SaaS technology. Major IT hubs housed in the European continents, the huge automotive industry in Germany and a large number of SMEs spread across the European continent have contributed towards the growth of the SaaS market in this region. The need to move from traditional methods and adopt a better way to manage respective IT infrastructures by the businesses along with well-equipped technology and internet connectivity has been the main driving force behind large adoptions of SaaS in this region.

The key companies profiled in this report include ADP, LLC, Amazon.com, Inc., Google, Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc., SAP SE, Fujitsu Limited, and Workday, Inc.

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