Built to provide research that’s more actionable and strategically valuable, The Business Research Company’s 2026 market reports include market attractiveness analysis, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, broader supply chain intelligence, emerging startup tracking, and in-depth product insights.
Software as a service (SaaS) Market Growth Analysis: How Will Revenue Trend Over The Forecast Period?
The market size for software as a service (saas) has experienced robust growth in recent years. It is projected to expand from $254.84 billion in 2025 to $267.94 billion in 2026, at a compound annual growth rate (CAGR) of 5.1%. The historical growth can be ascribed to several factors, including the increasing adoption of cloud computing, the rising need for scalable software solutions, expanding SME digitalization, increasing remote work trends, and the growing demand for cost-efficient IT solutions.
The software as a service (SaaS) market is anticipated to show significant expansion over the next few years, growing to $331.04 billion in 2030 at a compound annual growth rate (CAGR) of 5.4%. This increase in the forecast period is driven by factors such as the growing integration of AI-enabled SaaS tools, a rising need for integrated enterprise applications, an increased focus on cybersecurity and data protection, the growing adoption of hybrid cloud models, and an increasing demand for industry-specific SaaS solutions. Prominent developments expected in this period include multi-cloud deployment strategies, subscription-based licensing models, integration with enterprise applications, the rise of low-code/no-code platforms, and real-time analytics and reporting.
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Software as a service (SaaS) Market Development Factors: What’s Supporting Demand?
The burgeoning requirement for cloud-based solutions is anticipated to drive the expansion of the software as a service (SaaS) market in the future. These solutions encompass applications, data storage, on-demand services, computer networks, and other resources, all accessible via an internet connection through a shared cloud computing framework provided by a third party. Software as a service (SaaS) offerings are provided online and generally operate on a subscription model, requiring businesses to pay either a monthly or annual fee for software usage. This arrangement often proves more cost-effective than acquiring and maintaining software installed locally, particularly beneficial for smaller enterprises. A relevant example is found in December 2023, where Eurostat, a Luxembourg-based intergovernmental body, reported that approximately 45.2% of European Union businesses employed cloud computing services. Their primary uses included hosting emails, storing files, and managing diverse operational functions, reflecting a significant rise of 4.2 percentage points since 2021. Consequently, the rising need for cloud-based solutions is projected to fuel the expansion of the software as a service (SaaS) market.
Software as a service (SaaS) Market Segmentation: How Does The Market Break Down By Category?
The software as a service (saas) market covered in this report is segmented –
1) By Application: Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Management (HRM), Manufacturing And Operations, Supply Chain Management (SCM)
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Enterprise Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By End User: Manufacturing, Retail, Education, Healthcare, IT And Telecom, Banking, Financial Services, And Insurance, Other End-Users
Subsegments:
1) By Customer Relationship Management (Crm): Sales Automation Tools, Customer Support And Service Management, Marketing Automation And Analytics
2) By Enterprise Resource Planning (Erp): Financial Management Solutions, Procurement And Sourcing, Project Management
3) By Human Resource Management (Hrm): Recruitment And Talent Acquisition Systems, Employee Onboarding And Training Solutions, Payroll And Benefits Administration
4) By Manufacturing And Operations: Manufacturing Execution Systems (Mes), Production Planning And Scheduling Software, Quality Management Systems (Qms)
5) By Supply Chain Management (Scm): Inventory Management And Order Fulfillment, Supplier Relationship Management, Demand Forecasting And Planning Tools
Software as a service (SaaS) Market Transformation Trends: What Innovations Are Driving Change?
Leading companies operating within the software-as-a-service (SaaS) market are concentrating on introducing advanced 5G-enabled SaaS solutions to aid communication service providers (CSPs) in accelerating network deployment, improving scalability, and enhancing operational efficiency. SaaS platforms for 5G are defined as cloud-based software solutions designed to deliver core network functionalities as a service, allowing for flexible, automated, and cost-effective network management. For instance, in June 2025, Ericsson, a telecommunications company based in Sweden, introduced Ericsson On-Demand, a true SaaS platform for core network services developed collaboratively with Google Cloud. This platform represents a notable technological advancement in the telecom industry, offering a fully managed SaaS-based 5G core built on Google Cloud that empowers operators to rapidly deploy, scale, and monetize 5G services with heightened agility and reduced time-to-market.
Software as a service (SaaS) Market Competitive Overview And Top Companies
Major companies operating in the software as a service (saas) market are Microsoft Corporation; Salesforce.com Inc.; Oracle Corporation; Automatic Data Processing Inc.; Alphabet Inc.; Adobe Inc.; Amazon.com Inc.; ServiceNow Inc.; Shopify Inc.; Alibaba; Tencent; Kingsoft Corporation; UCloud Information Technology; Infosys Technologies Ltd.; Tata Consultancy Services; Zenith Infotech Limited; DigitalOcean Inc.; Wipro Ltd.; SAVVIS Australia Pty Ltd; Sage; Commerce Decisions; Mimecast; Wise; GoCardless; Sequel; Triptease; Duffel; MeTail; SKB Kontur; Softline; Tensor; Neuron Soundware; Manta; IP Fabric; 1C Bitrix; TOTVS S.A; Beedoo Edtech; Tiendanube; Vates; Glamit; GOintegro; CodeLab; LMKR; Dimension Data; T-Systems South Africa
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Software as a service (SaaS) Market Top Region By Revenue And Market Share
North America was the largest region in the Software as a Service (SaaS) market in 2025. Western Europe was the second largest region in the global Software as a Service (SaaS) market share. The regions covered in the software as a service (saas) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
