Global Enterprise SaaS Market 2022-2028

Global Enterprise SaaS Market 2022-2028

The SaaS (Software-as-a-Service) business model has emerged and grown in the last few years as the availability of real-time resource provisioning has been made possible by advances in cloud computing. SaaS deployments are becoming larger, with ranges of thousands to tens of thousands of employees within large enterprises.

Growth in the mid-market has been substantial, however, the demand for SaaS solutions has not been limited to that segment. Many large, global enterprises prefer to manage the mission-critical business processes of sales performance and incentive management in an on-demand environment. Unlike traditional enterprise software, enterprise SaaS provides infrastructure and development environments on demand while allowing companies to reap the benefits of increased productivity and low enterprise-software ownership costs.

The increasing investment in SaaS technology coupled with the growing adoption of cloud services tends to drive the global enterprise SaaS market. Moreover, the market players are bringing new products to the market in order to gain maximum share in the market. For instance, in July 2021, Infobird Co., Ltd., a SaaS provider of AI-powered, or customer engagement solutions in China, announced the successful implementation of its Intelligent Quality Inspection SaaS, a new product in AI, with one of the leading Fintech companies in China. With the help of Infobird's Intelligent Quality Inspection SaaS, the customer service center's service platform has realized intelligent management and operation and sets the foundation for a further upgrade of its customer service. Since its launch, Infobird's Intelligent Quality Inspection has been used in Finance, E-commerce, Retail, and other industries. This solution is essential for many industries, especially the financial industry which has very high compliance and service requirements for customer and sales centers

Segmental Analysis

The global enterprise SaaS market is segmented on the basis of deployment and end-user. Based on deployment, the market is segmented into public cloud, private cloud, and hybrid cloud. Based on end-user, the market is segmented into BFSI, IT & telecom, retail & e-commerce, media & entertainment, healthcare, energy & utilities, manufacturing, and others.

Hybrid cloud is widely adopted owing to the fact that it enables the storage of legacy information or backup of data to be stored for the long term. Further, hybrid cloud can transform conventional IT infrastructure to service model with enhanced flexibility, decreased operational tasks with the assistance of automated administrative tasks, self-service infrastructure access and applications, and optimal utilization of IT resources. Owing to these, the adoption of this server model is gaining more traction across various industry verticals.

Among these, BFSI dominated the market. The dominance of the BFSI segment is attributed to the increasing adoption of enterprise software to enable enhanced client experience, and advantages such as secure transactions and constant access to client databases. Moreover, the increasing digitization in the banking industry in order to deliver enhanced customer experience further increases the demand for business software and services in the BFSI segment.

Regional Analysis

Geographically, the market is segmented into North America (the US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and the rest of the world (Latin America and the Middle East & Africa). North America held a major market share in the global enterprise SaaS market in 2021. The market in North America is projected to grow at a CAGR of 20.7% during the forecast period.

The presence of a large number of enterprises in the region, particularly in the US has significantly increased the demand for SaaS solutions. Moreover, the US is home to the majority of SaaS solution providers such as Salesforce, ServiceNow, Microsoft, and many more. The US-based players, as well as international players, generate the majority of their revenue from the US and hence the region dominated the market in 2021. Further, it will maintain its dominance during the forecast period.

Market Players

SaaS solution providers have offerings available for various business applications, such as email and collaboration, customer relationship management (CRM), billing/payroll processing, human resources management, enterprise resourcing planning (ERP), and document editing & management, among others. The market is fragmented in nature with the presence of a large number of players operating in the SaaS landscape and offering various products to cater to the growing need of enterprises of all sizes. Some of the key players of the market include Salesforce, ServiceNow, Adobe Inc., DocuSign Inc., and many more.