Software as a Service (SaaS) is a type of cloud-based software that is hosted and managed by a third-party provider, and it has been gaining traction in recent times. Reports from Gartner indicate that the worldwide market for SaaS is expected to expand from $48.2 billion in 2018 to $85.1 billion in 2020, at a compound annual growth rate of 16.5%. This growth is being driven by a range of factors, such as the rising cost of traditional software, increased demand from businesses, and the fact that SaaS offers a more cost-effective and scalable solution.
The Cloud Industry Forum research also revealed that the adoption of cloud-based services among small and medium-sized businesses in the UK had increased from 56% in 2016 to 76% in 2018. This shows that businesses of all sizes are taking advantage of the advantages provided by cloud-based models, such as cost savings, scalability, and access to modern technology.
Furthermore, the consumer SaaS market is also growing, largely due to the increasing number of consumer-focused applications available. From photo editing software to online streaming services, SaaS has become popular among millions of users around the world, and the market is projected to grow from $9.3 billion in 2018 to $25.3 billion in 2020, at a compound annual growth rate of 27.3%.
It’s evident that SaaS is still a strong and expanding market. Businesses and consumers alike are drawn to the advantages of cloud-based models, and the wide variety of applications available is further driving its growth. With its current level of success, it’s clear that this type of software is here to stay.