The global SaaS market was valued at almost USD23 billion in 2016 and is expected to reach around USD58 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on SaaS for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the SaaS market during the forecast period. Some of the top vendors listed in this industry analysis include Amazon Web Services, Microsoft Corporation, IBM Corporation, Oracle Corporation, and Google Inc.
In terms of geographical analysis, North America was the dominant shareholder in the global market with a market share of around 55%. The market’s growth in this region attributable to the increasing use of SaaS-based solutions such as HCM, office suites, e-mails, and web conferencing in the region.
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According to Angad Singh, a category specialist at Technavio for research on category spend intelligence, “The latest trend in the global SaaS market is the increased adoption of vertical SaaS applications. Vertical SaaS applications are cloud computing solutions created for specific industries such as retail, insurance, or manufacturing. These applications help acquire, aggregate, and store industry-specific data. IBM‘s Genelco SaaS, for instance, can be used for processing life and health insurance policies.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Vast improvements in security
The cloud services market has experienced the highest growth in the areas of cloud-based encryption, security information and event management, vulnerability assessment, and web application firewalls owing to increasing concerns of organizations regarding security of their cloud-based data during 2015. The growth of the market also helped resolve the security concerns associated with SaaS applications hosted on cloud. As a result, more organizations are adopting SaaS applications, leading to the growth of the global market.
Cost-effectiveness of SaaS applications
The use of SaaS applications eliminates the need to buy hardware and host new applications, and helps minimize additional hardware costs. Furthermore, SaaS vendors provide APIs and customize software for buyers. SaaS offers scalable solutions with automated updates to new versions and enables cross device compatibility without any initial setup costs. Owing to such cost-effective advantages, organizations across the globe are actively adopting SaaS applications.
Adoption of cloud systems
The high demand for SaaS applications can be accredited to their interoperability and ability to provide better operational insights. Many large organizations are shifting from on premise software to SaaS owing to such advantages. Flexibility and elimination of installation and maintenance costs are also factors that help SaaS applications gain popularity across organizations. The projected growth of the cloud-based software application market is expected to reflect positively on the global SaaS market during the forecast period.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global SaaS Market – Procurement Market Intelligence 2017.’
