Software as a Service - Worldwide

  • Worldwide
  • Revenue in the Software as a Service market is projected to reach US$258.60bn in 2023.
  • Revenue is expected to show an annual growth rate (CAGR 2023-2028) of 7.69%, resulting in a market volume of US$374.50bn by 2028.
  • The average spend per employee in the Software as a Service market is projected to reach US$74.29 in 2023.
  • The global market share of Other was 69% in 2021.
  • In global comparison, most revenue will be generated in the United States (US$141,400.00m in 2023).

Key regions: China, United Kingdom, Canada, Germany, Netherlands

Region comparison

Analyst Opinion

The Software as a Service (SaaS) segment accounts for a major share of the Public Cloud market. As popular software companies began offering access to their software solutions through web browsers, the removed the need to download and install software on the local servers or computers, allowing users to save on infrastructure spending. This advantage over traditional software solutions has been a key driver for the growth of SaaS revenue numbers over the last five years.

Initially, data security and protection were major concerns for consumers and had a negative effect on the growth of this segment. However, the possibility of choosing between private cloud and hybrid cloud deployment provided by the software companies helped to overcome this negative impact. Among all the included software companies, Microsoft holds a share of nearly 10% of worldwide revenue in this segment.

Over the next five years, this segment is likely to continue its growth by more than 5% in technologically advanced regions such as North America, Europe, and Australia. Meanwhile, technologically emerging countries located in Asia and Africa can expect a growth rate of more than 10%, which will be driven by the improving technological infrastructure capabilities.


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
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