Trends and Forecasts in the SaaS Industry – Everything You Need to Know
Spoiler alert: if there ever was a great time to invest in a SaaS marketplace, this is it.
There are countless of studies and research reports that sometimes offer different numbers or make different predictions and forecasts. But the gist of all is the same: the SaaS market is on the rise and it will not stop soon.
The end users are demanding more SaaS solutions. Thus, a lot of the software products we know are currently undergoing SaaSification.
Let’s take a look at the key research studies and forecasts that explain all this:
1. The global SaaS security market will grow at a CAGR of 22.19% between 2018 and 2022.
This is, perhaps, the least surprising find. The report by Research and Markets explains that this growth is fueled by SaaS growth across all industries.
Since companies are relying more and more on cloud solutions, it’s only natural that they move their security to the cloud, as well.
2. Companies will run solely on SaaS by 2020
According to a study quoted by Finances Online, it looks like 73% of companies surveyed said that nearly all their apps (80% of them) will be cloud-based by 2020. The percentage grows to 86 by 2022, showing once again that SaaS is not just a trend and that it will soon become the norm.
With more than 80% of their applications hosted in the cloud, companies will no longer depend on legacy systems. Obviously, their hardware costs will also be greatly reduced, allowing them to invest in more cutting-edge apps. [Personally, I don’t think that the switch will happen instantly. It will take time for enterprises of all sizes to let go of their legacy systems completely. The switch is bound to happen, but gradually.
3. The SaaS market will grow continuously until 2020 and beyond
Forbes says that public cloud platforms, business services, and applications (SaaS) will all grow at a 22% CAGR (Compound Annual Growth Rate) between 2015 and 2020, when they will reach $236 billion.
BetterBuys forecasts that the US SaaS expenditure alone will reach $55 billion by 2026.
Gartner is even more optimistic and sees the worldwide SaaS market reaching $75 billion by 2020.
Different studies show different numbers. Even more, some of these studies are updated yearly and typically, the number in the estimates grow with each update.
Just like the spoiler in the beginning of the article revealed, the SaaS market’s growth seems to be unstoppable. It goes without saying that SaaS marketplaces are the place to be for every service provider, irrespective of size and industry.
As end users expect to gain access to more and more SaaS products, they also expect unified access to them and the ability to get discounted bundles or create bundles of their own. This is where a customer-oriented marketplace comes into play.
Whether you are a telco that wants to retain clients and offer them additional services on top of voice and data ones or a reseller that want to capitalize on the SaaS growth, marketplaces are the best way to meet your business goals.
If you want to learn more about our white label marketplace solution, get in touch with us. We’d love to tell you more about how we helped our clients grow and how we can do the same for you!