Software as a Service (SaaS) Market to Grow at a CAGR of 20.0% over 2025 to 2032; Growing Adoption of Cloud Solutions to Drive Market Growth

The global Software as a Service (SaaS) market size was valued at USD 266.23 billion in 2024. The market is projected to grow from USD 315.68 billion in 2025 to USD 1,131.52 billion by 2032, exhibiting a CAGR of 20.0% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Software as a Service (SaaS) Market Size, Share & Industry Analysis, By Deployment Type (Public, Private, and Hybrid), By Application (Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Content, Collaboration, & Communication, BI & Analytics, Human Capital Management, and Others), By Enterprise Type (Large Enterprises and SMEs), By Industry (BFSI, IT & Telecom, Education, Retail & Consumer Goods, Healthcare, Education, Manufacturing and Others), and Regional Forecast, 2025 – 2032”.

Businesses are increasingly adopting multi-cloud and hybrid cloud strategies to enhance flexibility and cost-effectiveness. Avoiding vendor lock-in, they distribute workloads across providers such as AWS. Hybrid clouds combine on-premises and public cloud systems, fueling demand for SaaS solutions. SaaS platforms leverage AI to deliver personalized dashboards, product recommendations, and tailored support. Reports show that 70% of customers expect personalized interactions, driving SaaS adoption as businesses strive to meet these expectations.

Lockdowns during the COVID-19 pandemic confined people to their homes, prompting IT companies to embrace remote work. This shift drove a surge in Software as a Service adoption, with Microsoft Office 365 seeing increased usage, contributing to the market’s expansion.

Personalized Dashboards and Recommendations by Generative AI to Drive the Service Adoption

Generative AI offers personalized experiences by recommending personalized dashboards and product recommendations to tailored customer support. As per the predictions of the Industry Experts, by 2026, 75% of the SaaS companies are expected to implement AI-driven automation for minimum one of the major business process.

Salesforce introduced Government Cloud Premium to Automate Workflow

In October 2024, Salesforce introduced Government Cloud Premium, offering U.S. national security and intelligence agencies a dedicated environment for application development. The platform supports no-code, low-code, and pro-code options, with workflow automation and an API-first architecture for seamless integration.

Rising Demand for SaaS SuperApps to Fuel Market Growth

SaaS superapps, offering a suite of integrated services and the ability to create mini-apps, are gaining reaction. By providing a personalized, consistent user experience, these platforms give businesses a competitive edge. As companies focus on “One API for all” solutions and in-app monetization through ads, the superapp trend is expected to expand, particularly in the B2B SaaS sector by 2025. Moreover, these apps enable businesses to monetize through in-app advertising, leveraging an engaged user base. This capability, alongside the ability to offer personalized experiences, helps companies improve product offerings and drive higher conversation rates, further boosting Software as a service (SaaS) market growth.

However, the absence of clarity regarding the security settings, combined with multiple departments having access, increases the risks of misconfigurations and security breaches.

Key Players Focus on Acquisitions to Boost Market Share

Leading software as a service provider is enhancing their market presence by creating new solutions and updating technologies. Through strategic mergers and acquisitions, companies gain expertise, expand their reach, and boost market share by accessing a broader customer base.

List of Key Players Mentioned in the Report:

• Microsoft Corporation (U.S.)


• SAP SE (Germany)


• IBM Corporation (U.S.)


• Oracle Corporation (U.S.)


• HPE (U.S.)


• ServiceNow (U.S.)


• TCS (India)


• Google LLC (U.S.)


• Cisco Systems, Inc. (U.S.)


• Infosys (India)


• Babbel (Germany)


• Zoho Corporation (India)


• Workiva (Germany)


• Tecent Holdings (China)


• Trend Micro (Japan)

…and more

Key Industry Development:

November 2024- AppOmni and Cisco to deliver comprehensive SaaS security, ensuring zero trust from endpoints all the way to applications.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/software-as-a-service-saas-market-102222

Further Report Findings

• North America captured the key Software as a Service (SaaS) market share in 2023, driven by key players such as Oracle Corporation, Microsoft Corporation, and IBM Corporation. The U.S. is home to approximately 17,000 software as a service company and is expected to maintain a dominant share during the forecast period. SaaS adoption is growing as U.S. businesses embrace cloud solutions for operational efficiency, with 70% of companies utilizing at least one SaaS solution and 90% incorporating cloud-based applications.


• The growth of the South American market is driven by digital advancements, cloud computing, and a thriving startup ecosystem. PwC reports that 65% of companies in the region have adopted solutions such as CRM and ERP in their operations.

Table of Segmentation