Software as a Service (SaaS) Operation Market

Software as a Service (SaaS) Operation Market Overview

The global SaaS Operation Market size was valued at USD 301.17 billion in 2023 and is predicted to reach USD 807.83 billion by 2030 with a CAGR of 15.3% from 2024-2030. The software as a service (SaaS) offers cloud-based software solutions for businesses to enhance operational management. These services consist of different applications such as ERP, CRM, HCM, project management, accounting, supply chain management, and e-commerce solutions. Important features of this market consist of cloud-based distribution, subscription costs, ability to grow, automated upgrades, ease of access, and integration capacities. The advantages for businesses adopting SaaS solutions are significant as they reduce IT infrastructure costs, offer flexibility and scalability and ensure access to the latest features through automatic updates, and enable remote access. 

Market Dynamics and Trends

Rising adoption of cloud-based security solutions among the banking industries propels the SaaS operation market growth. For instance, in February 2023, Oracle launched its banking cloud services, a new set of componentized and constructed banking service that runs standalone, work seamlessly together, and coexist with existing applications to help banks lower the cost and risk with increasing innovations. The corporate and retail banks is expected to modernize their banking applications to meet customer demand with Oracle’s cloud-based software as a service (SaaS) solution.

Also, increasing demand for SaaS solutions in the retail sector is driven by the need for advanced customer relationship management (CRM) systems, which leads to enhanced customer satisfaction and loyalty. Additionally, the need for streamlined inventory and supply chain management results in improved efficiency and reduced costs. For example, in July 2024, BigBasket launched an advanced SaaS supply chain platform known as BB Matrix, aimed at enhancing its operational efficiency and scalability. This platform integrates various aspects of supply chain management, including inventory management, demand forecasting, and retail optimization.

Moreover, growing implementation of software as a solution (SaaS) service in healthcare industries is boosting a significant growth of the market globally. For instance, in August 2023, Brillio, a leading digital transformation services and solution provider partnered with Google Cloud to build generative AI cloud solutions for the financial and healthcare industries. Healthcare companies are benefited from these solutions by accelerating medical coding, prior authorization, claims processing, regulatory and compliance documentation for clinical trials.

However, the high initial and upgradation cost that restrict the small and medium sized industries to install software solution and services in its operation is restraining the growth of market. On the contrary, integration of latest technologies such as 5G with artificial intelligence (AI) will further enable more consumers to implement the SaaS operation globally which is expected to create a significant opportunity growth for the market.

For instance, in February 2024, Ericsson launched its AI-powered intent-based operations within its managed services Ericsson operations engine to enable differentiated premium 5G services. This development represents a significant step in Ericsson's autonomous networks journey, transforming network operations and enabling communication service providers to unlock the monetization of new services.

Market Segmentation and Scope of Study

The SaaS operation market report is segmented on the basis of solution type, deployment mode, enterprise size, industry vertical, and region. On the basis of solution type, the market is categorized into customer relationship management (CRM), enterprise resource planning (ERP), operation management, human resource management (HRM), supply chain management, and others. On the basis of deployment mode, the market is classified into public cloud, private cloud, and hybrid cloud. On the basis of enterprise size, the market is divided into small & medium enterprises and large enterprise. On the basis of industry vertical, the market is again segmented into BFSI, manufacturing, IT & telecom, retail & e-commerce, energy & utility, healthcare, media & entertainment, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and Rest of the World (RoW).

Geographical Analysis

North America dominates the SaaS operation market share during the forecast period. This is attributed to the factors such as the incidence of data and cyber security due to which companies are implementing the use of SaaS service among the industry to maintain a sustainable working environment is driving the overall market growth.

For instance, July 2023, Cohesity, Inc., a global leader in data security and management announced its partnership with Cisco Systems, Inc. and Hewlett Packard Enterprise Development LP to offer Cohesity Cloud Services (CCS) for efficient data security and management to companies operating in hybrid and multi-cloud environment. This SaaS approach simplifies the management of multiple data and workflows which provides backup and recovery, cyber vaulting and data isolation, and threat defence as a service on a single platform.

Also, the growing utilization of SaaS among the growing population in the developed countries such as the U.S. and Canada for the integration of this service among cloud-based providers, is driving the SaaS operation industry growth.

For instance, in February 2023, the U.S. department of the Treasury launched its cloud-based security service to strengthen its regulatory and cooperation with private organizations. According to the report, financial service firms are increasing on cloud-based technologies which need more visibility, staff support, and cybersecurity incident response from Cloud Service Providers (CSPs).

On the other hand, Asia-Pacific is considered fastest growing region where the market is analyzed across India, China, Japan, and rest of the APAC region. It is based on the fact that the presence of key players such as Infosys Limited, Tata Consultancy Services (TCS) and others are involved in various market strategies to maintain their dominance over this region.

In September 2023, Infosys Limited, a prominent provider of digital services and consulting, revealed the purchase of Danske Bank’s IT Center in India. This purchase enables the corporation to meet its strategic goals of enhancing customer satisfaction, improving operations, and updating technology. Thus, Infosys Limited helps the Bank’s digital agenda by significantly enhancing their IT operations with Infosys Topaz, an AI set of services and solutions that support SaaS operation.

Moreover, the growing number of secured internet servers in developed countries such as China, Japan and Singapore further drive the growth of SaaS operation market. For instance, in June 2022, Aqua Security Software Ltd., the leading cloud security provider announced the general availability (GA) of cloud native security SaaS in Singapore which serves the growing consumers in Asia-Pacific and Japan (APJ) region. The consumers take advantage of the data sovereignty, platform security, and flexibility provided by SaaS to prevent the cloud attacks.

Competitive Landscape

The SaaS operation industry includes several key market players including Adobe Inc., Microsoft Corporation, IBM Corporation, Google LLC, SAP SE, Salesforce Inc., Cisco Systems, Inc., Hewlett Packard Enterprise Development LP, Oracle Corporation, Amazon Web Services, Inc. and others. These key players are opting various strategies such as collaboration and business expansion to maintain their dominance in the global market.

For instance, in September 2023, Salesforce Inc., collaborated with Snowflake Inc, to bring data storage and actionable insights for the consumers with the snowflake data cloud. The collaboration helps in solving a common challenge faced by various industry in business sector and the need to seamlessly combine customer data to operate efficiently.

For instance, in September 2023, IBM Corporation expanded its cloud security and compliance centre with modernized cloud security and compliance solutions designed to provide data protection across the hybrid, multi-cloud environment and AI workloads. The expansion demonstrates the continued focus on industry-specific capabilities that resolves the real-world business challenges for the clients.

Key Benefits

• The report provides quantitative analysis and estimations of the SaaS operation market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future SaaS operation market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the SaaS operation market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

SaaS Operation Market Key Segments

By Solution Type

• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)

• Operation Management

• Human Resource Management (HRM)

• Supply Chain Management

• Other Solution Type

By Deployment Mode

• Public Cloud

• Private Cloud

• Hybrid Cloud

By Enterprise Size

• Small & Medium Enterprises

• Large Enterprise

By End-Users

• BFSI

• Manufacturing

• IT & Telecom

• Retail & E-Commerce

• Energy & Utility

• Healthcare

• Media & Entertainment

• Other End-Users

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION

Parameters	Details
Market Size in 2023	USD 301.17 Billion
Revenue Forecast in 2030	USD 807.83 Billion
Growth Rate	CAGR of 15.3% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rising adoption of cloud-based security solutions among the software companies. Increasing adoption of SaaS solutions in the finance and banking sector propels the market. Growing implementation of Software as a Solution (SaaS) service in healthcare industries is boosting a significant growth.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Adobe Inc.

• Microsoft Corporation

• IBM Corporation

• Google LLC

• SAP SE

• Salesforce Inc.

• Cisco Systems, Inc.

• Hewlett Packard Enterprise Development LP

• Oracle Corporation

• Amazon Web Services, Inc.