Software as a Service - Worldwide

  • Worldwide
  • Revenue in the Software as a Service market is projected to reach US$339.10bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.28%, resulting in a market volume of US$818.80bn by 2029.
  • The average spend per employee in the Software as a Service market is projected to reach US$95.25 in 2024.
  • The global market share of 0 was 0 in 2021.
  • 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

Region comparison

Analyst Opinion

The Software as a Service market is experiencing significant growth worldwide, driven by customer preferences for flexible and cost-effective solutions, as well as advancements in technology.

Customer preferences:
Customers are increasingly favoring Software as a Service (SaaS) solutions due to their flexibility and cost-effectiveness. SaaS allows businesses to access software applications and services on a subscription basis, eliminating the need for upfront investments in hardware and software licenses. This pay-as-you-go model appeals to businesses of all sizes, as it allows for scalability and reduces the financial burden of traditional software purchases. Additionally, SaaS solutions often offer regular updates and maintenance, ensuring that businesses have access to the latest features and functionalities.

Trends in the market:
One of the key trends in the SaaS market is the rise of industry-specific solutions. As businesses across various sectors recognize the benefits of SaaS, software providers are developing specialized applications tailored to meet the unique needs of specific industries. For example, there has been a surge in SaaS solutions for healthcare, finance, and manufacturing, offering industry-specific functionalities and compliance features. Another trend in the SaaS market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. SaaS providers are incorporating AI and ML capabilities into their solutions to enhance automation, improve data analysis, and deliver personalized experiences to customers. These technologies enable businesses to automate repetitive tasks, gain valuable insights from data, and optimize their operations.

Local special circumstances:
In the United States, the largest market for SaaS, the adoption of cloud computing and SaaS solutions is driven by the country's advanced technological infrastructure and the presence of numerous software companies. The European market, on the other hand, is characterized by strict data protection regulations, such as the General Data Protection Regulation (GDPR), which have influenced the development of SaaS solutions with enhanced security and privacy features. In emerging markets, such as India and China, the SaaS market is growing rapidly due to the increasing digitization of businesses and the availability of affordable internet access. These markets present significant opportunities for SaaS providers, as businesses in these regions are looking for cost-effective and scalable software solutions to support their growth.

Underlying macroeconomic factors:
The global shift towards remote work, accelerated by the COVID-19 pandemic, has also contributed to the growth of the SaaS market. As businesses transitioned to remote work environments, the demand for cloud-based collaboration tools, project management software, and communication platforms surged. SaaS solutions provided businesses with the necessary tools to ensure productivity and collaboration, regardless of physical location. Furthermore, the increasing focus on digital transformation across industries has fueled the demand for SaaS solutions. Businesses are recognizing the need to modernize their operations and leverage technology to stay competitive in a rapidly evolving marketplace. SaaS solutions enable businesses to streamline their processes, improve efficiency, and enhance customer experiences. In conclusion, the Software as a Service market is experiencing strong growth worldwide due to customer preferences for flexible and cost-effective solutions, as well as advancements in technology. The rise of industry-specific solutions, the adoption of AI and ML technologies, and the global shift towards remote work are all driving the expansion of the SaaS market. Additionally, local special circumstances, such as data protection regulations and the digitization of emerging markets, contribute to the growth of the SaaS market in specific regions.


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.


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.


  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
Please wait


Get in touch with us. We are happy to help.
Statista Locations
Contact Meredith Alda
Meredith Alda
Sales Manager– Contact (United States)

Mon - Fri, 9am - 6pm (EST)

Contact Yolanda Mega
Yolanda Mega
Operations Manager– Contact (Asia)

Mon - Fri, 9am - 5pm (SGT)

Contact Kisara Mizuno
Kisara Mizuno
Senior Business Development Manager– Contact (Asia)

Mon - Fri, 10:00am - 6:00pm (JST)

Contact Lodovica Biagi
Lodovica Biagi
Director of Operations– Contact (Europe)

Mon - Fri, 9:30am - 5pm (GMT)

Contact Carolina Dulin
Carolina Dulin
Group Director - LATAM– Contact (Latin America)

Mon - Fri, 9am - 6pm (EST)