The SaaS Market Expected to Make Huge Gains by 2024

July 07, 2016

By Steve Anderson - Contributing Writer

The software-as-a-service (SaaS (News - Alert)) market has long been a source of speculation, analysis and huge potential rewards, depending on where exactly one fits into that market. A new report from price comparison leader Better Buys reveals that the market for SaaS worldwide is on track to make some major gains over the next several years, and by 2024, it could clear the $50 billion mark.

That alone might sound impressive, until one wonders what the market is now. That's where things actually get even more impressive, as the SaaS market worldwide is around $12 billion this year, representing gains from over four times its current level, and in around the next eight years. Better Buys drew these projections from several different reports, including one that noted huge use of cloud technologies in the small and medium-sized business (SMB) market, where 64 percent of the market turned to cloud to drive both efficiency and growth. Given that 78 percent of those surveyed in a recent study note plans to put more SaaS platforms to use over the next three years, that suggests growth ahead for the entire SaaS market.

Some of the big winners in such expansion would be Salesforce, who held 11 percent of the market in 2015, followed by Microsoft at eight percent, Adobe at six percent, and SAP (News - Alert) at five percent. Though many companies have been developing SaaS in a horizontal market approach, reports suggest that software geared toward one vertical will be the focus of the wider market.

What this information has done more than anything, meanwhile, is illustrate the changes in the SaaS market over the last several years. SaaS in general may have gotten its start with Dun & Bradstreet (News - Alert)'s move to offer “objective credit information,” but it's expanded broadly since then, to the point where a company like Moodwire could offer big data analysis.

A market like SaaS represents a lot of different factors working together. Where not so long ago, SaaS offerings were comparatively limited, today that market expands to cover a variety of cloud-based tools offering just about everything from cloud-based video conferencing to cloud-based analytics tools. Such things make it possible to offer the best and latest tools to even the SMB market, and allow these businesses to prosper from their use. That's good news for the often-struggling SMB market, and news that explains nicely why this market is geared for such growth over the comparatively near-term.

With so much available as part of SaaS these days, it's not surprising to see more businesses take advantage and thus drive up the value of such a market. It's hard to see this market reversing course after 2024, either, so further gains may be in the offing to come.

Edited by Maurice Nagle