Software as a Service - Australia

Australia

Revenue in the Software as a Service market is projected to reach US$5.42bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.93%, resulting in a market volume of US$13.45bn by 2029.
The average spend per employee in the Software as a Service market is projected to reach US$370.40 in 2024.
In global comparison, most revenue will be generated in the United States (US$190.10bn in 2024).

Key regions: Japan, United Kingdom, United States, Italy, Germany

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Analyst Opinion

The Software as a Service market in Australia is experiencing significant growth and development. Customer preferences in the Australian market are shifting towards cloud-based solutions due to their flexibility, scalability, and cost-effectiveness. Businesses in Australia are increasingly adopting Software as a Service (SaaS) solutions as they offer a wide range of benefits such as reduced IT infrastructure costs, simplified software updates, and improved accessibility. Additionally, the ability to access software applications remotely has become particularly important in recent times due to the rise of remote work and the need for flexible solutions that can be accessed from anywhere. Trends in the Australian SaaS market indicate a strong demand for industry-specific solutions. Businesses in sectors such as healthcare, finance, and retail are seeking specialized SaaS applications that cater to their unique needs and challenges. This trend is driven by the desire for increased efficiency and productivity within specific industries, as well as the need to comply with industry regulations and standards. As a result, SaaS providers in Australia are focusing on developing niche solutions that address the specific requirements of different sectors. Another trend in the Australian SaaS market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. Businesses are leveraging these technologies to enhance their SaaS applications by providing intelligent insights, predictive analytics, and automation capabilities. AI and ML are being integrated into various aspects of SaaS solutions, including customer relationship management, data analytics, and cybersecurity. This trend is driven by the growing recognition of the value that AI and ML can bring in terms of improving decision-making, optimizing processes, and enabling personalized experiences for customers. Local special circumstances in Australia contribute to the development of the SaaS market. The country has a highly skilled and tech-savvy workforce, which creates a conducive environment for the adoption and implementation of SaaS solutions. Additionally, the Australian government has been supportive of digital transformation initiatives, providing incentives and funding programs to encourage businesses to invest in cloud-based technologies. This supportive environment has helped drive the growth of the SaaS market in Australia. Underlying macroeconomic factors also play a role in the development of the SaaS market in Australia. The country has a strong economy and a stable business environment, which attracts both domestic and international SaaS providers. Furthermore, the increasing digitization of Australian businesses and the growing reliance on technology for day-to-day operations create a fertile ground for the expansion of the SaaS market. In conclusion, the Software as a Service market in Australia is experiencing growth and development driven by customer preferences for cloud-based solutions, industry-specific requirements, the adoption of AI and ML technologies, local special circumstances, and underlying macroeconomic factors.

Methodology

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.