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Software industry

Global SaaS Market to Reach $720.44 Billion by 2028

Strategic Insights

— 1 min read

The global Software as a Service (SaaS) market has witnessed significant growth in recent years, driven by the increasing adoption of cloud-based services and the proliferation of mobile devices. The market was valued at $143.77 billion in 2021 and is expected to reach $720.44 billion by 2028, growing at a compound annual growth rate (CAGR) of 25.89% during the forecast period. The market is driven by factors such as the increasing use of mobile devices, the growing adoption of artificial intelligence, and the need for businesses to be more flexible and cost-effective.

Key Takeaways:

  • The global SaaS market is expected to reach $720.44 billion by 2028, growing at a CAGR of 25.89% during the forecast period.
  • The market was valued at $143.77 billion in 2021.
  • Small businesses are a significant contributor to mobile SaaS growth, with 73% of all software expected to be SaaS by 2021.
  • The increasing use of mobile devices and artificial intelligence are key drivers of the SaaS market growth.
  • The SaaS market is segmented by deployment, application area, and end user, with public cloud, private cloud, and hybrid cloud being the primary deployment types.
  • The market is also segmented by application area, including Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Management (HRM), and Supply Chain Management (SCM).
  • The increasing importance of meeting regulatory and compliance standards is a major restraint on the market, due to changing company needs, increasing data breaches and cyber-attacks, and developing data security concerns.

Statistics:

  • The global SaaS market is expected to reach $720.44 billion by 2028.
  • The market grew at a CAGR of 25.89% during the forecast period.
  • The SaaS market was valued at $143.77 billion in 2021.
  • 80% of sectors utilize one or more SaaS applications.
  • 73% of all software is expected to be SaaS by 2021.

Sources:

  • Research and Markets
  • "Global SAAS Market" report, published by Research and Markets
  • "The Future of Software: SaaS, PaaS, and IaaS" report, published by American Enterprise Institute
  • "SaaS Industry to Reach $720.44 Billion by 2028" article, published on Research and Markets website

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