Highlights
Market definition
in-scope / out-of-scope
Reports special
  • Revenue in the Software as a Service segment is projected to reach US$27,043.6m in 2021.
  • Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 21.2%, resulting in a market volume of US$58,441.7m by 2025.
  • In global comparison, most revenue will be generated in the United States (US$99,969m in 2021).
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Software as a Service (SaaS) is a distribution model for delivering software applications via a web browser. Customers can access offerings over the internet that are hosted by a third-party service provider. SaaS is a component of cloud computing that offers users the advantage of flexible use regardless of location and does not require local installation.
Like other cloud services, companies typically pay a monthly or annual fee for SaaS applications. SaaS providers usually charge for applications based on certain usage parameters, such as the number of people using the applications or the number of transactions.

Company examples: Salesforce, Microsoft, SAP, Oracle.
in-scope
  • Enterprise software
  • Productivity software
out-of-scope
  • Platform as a Service
  • Infrastructure as a Service
  • On-premises software
Software as a Service Report 2020

Software as a Service Report 2020

Statista Technology Market Outlook - Segment Report
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Revenue (2021)
+32.0% yoy
US$27,043.6m

Revenue

in the Software as a Service market in million US$

Reading Support Revenue in the Software as a Service segment is projected to reach US$27,043.6m in 2021.

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Revenue:

The “Revenue” box shows the historical and forecasted revenue development of the selected market (market segment, region) for each year.

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Revenue Growth

in the Software as a Service market in percent

Reading Support The Software as a Service segment is expected to show a revenue growth of 28.0% in 2022.

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Revenue Growth:

The “Revenue Growth” box shows the year-over-year revenue development of the selected market (market segment, region) in percentage terms.

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Analyst Opinion

Software as a Service (SaaS) is the largest segment of the Public Cloud market, comprising more than half of the total market size. Growth in this segment will continue to slightly slow down in the coming years. SaaS products comprise any available on-premises software and thus offer software solutions that can be used in various industries. For this reason, the market concentration in the SaaS segment is quite low, as many very different products are offered by several companies. Software as a Service is becoming increasingly attractive to companies looking for accessibility and diversity of software solutions. Therefore, the global COVID-19 pandemic will accelerate the adoption of Software as a Service worldwide.

World Map

Spend per Employee

in the Software as a Service market in US$

Reading Support The average Total Spend per Employee is projected to reach US$10.12 in 2021.

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Average Spend per Employee:

The Average Spend per Employee box shows the average market value of the selected market (market segment, region) per employee in US dollars for each year.

A definition and detailed explanation of the displayed markets can be found here.
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Global Comparison - Revenue

in the Software as a Service market in million US$

Reading Support With a projected market volume of US$99,969m in 2021, most revenue is generated in the United States.

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Global Comparison – Revenue:

The “Revenue” box shows a comparison of revenues for the leading economies in the selected market (market segment, region) and year.

A definition and detailed explanation of the displayed markets can be found here.
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Key Market Indicators

The following Key Market Indicators give an overview of the demographic, economic and technological development of the selected region on the basis of general KPIs. The calculation of Statista’s Market Outlook is based on a complex market-driver logic including over 400 region-specific data sets.

2016201720182019202020212022202320242025 CAGR
(2016-2025)
Population in m
Number of individuals (all ages) living in the selected region, the data is based on the United Nations' medium variant of World Population Prospects as well as similar projections by national statistical offices | Source: Statista, based on UN DESA and national statistical offices
Business cycle
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Unemployment rate in %
The indicator shows the share of unemployed people in the selected region, defined as persons without work that seek employment, as a percentage of the total labor force. The data is based on national estimates. The definitions of labor force and unemployment differ by country. | Source: Statista, based on IMF WEOD, World Bank and ILO
Telecommunication
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Internet users in m
Number of people in the selected region using the internet | Source: Statista, based on ITU and national statistical offices
Mobile subscriptions, total in m
The indicator shows subscriptions to the Public Switched Telephone Network (PSTN) using cellular technology. Included are only subscriptions that also allow voice communication, pure data and M2M (machine to machine) connections are not included. | Source: Statista, based on ITU, trade assocations and national regulatory institutions
GDP, per capita (current prices)
Gross domestic product (in current prices, constant exchange rate) of the selected region per capita | Source: Statista, based on IMF, World Bank, European Commission, OECD, ADB
Internet penetration in %
Estimated share of the total population in the selected region using the internet | Source: Statista, based on ITU and national statistical offices
Source: Statista, January 2021
Source: Statista, January 2021, based on IMF, World Bank, UN and Eurostat

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