Why Is the SaaS Industry Growing?

Why Is the SaaS Industry Growing?

SaaS has and continues to take the world by storm. But how did we get here and what’s next for SaaS? To offer some insight and clarity, Elevate Ventures created this condensed SaaS market overview. We’ll cover where SaaS has been, why SaaS has become so popular, and what leaders should do to accelerate SaaS industry growth. Hint: You can start by attending a cross-sector SaaS conference, but more on that later. 

Why Is SaaS Becoming So Popular?

In truth, there’s not one answer to this question. The exponential success and growth of the SaaS industry can be attributed to several factors. At a high level, here are a few the main drivers of widespread SaaS adoption:

  • Affordability | The SaaS model eliminates hefty upfront costs associated with purchasing and upgrading physical infrastructure.
  • Scalability | SaaS solutions are easy to scale and integrate, allowing them to quickly adjust to changing business needs.
  • Improvability | SaaS is focused on continuous improvement and releases regular updates. Conversely, traditional solutions charge for pricey upgrade packages that are time-consuming to install. 
  • Security | SaaS takes security seriously, and nearly all SaaS providers include protective features like encryption, two-factor authentication, and intrusion detection. 

When Did SaaS Become Popular?

It all started in 1999 when Salesforce launched its CRM platform as the first SaaS solution to hit the market. Since then, SaaS has continued to evolve and flourish. Presently, the SaaS industry continues to grow and improve, making these solutions vital tools for small to enterprise-level businesses in nearly every industry

How Is the SaaS Industry Doing Currently?

On nearly all fronts, the SaaS industry is thriving. When evaluating the SaaS market size, Gartner forecasted that worldwide end-user spending on public cloud services is forecasted to grow 21.7% to total $597.3 billion in 2023. This is up from the $491 billion accumulated in 2022. As we touched on previously, cost efficiency, easy adoption, usability, and continuous improvements to solutions all contribute to future success. But what is the biggest market for SaaS? Is there a new space for SaaS to break into? 

From a geographical perspective, the United States, Italy, and the UK are the top three SaaS performers in the global marketplace. While the industries that rely on SaaS the most include: 

  • Banking, financial services and insurance (BFSI)
  • Retail and consumer goods
  • Healthcare
  • Manufacturing
  • Education
  • IT and telecommunications
Global Software as a Service Market Share, by Industry, 2022

What’s the Best Way to Ensure Continued Success in SaaS?

Sure, immersing yourself in the latest SaaS industry trends has its benefits. But what are you doing to think outside the box? Far too often, SaaS leaders seek advice and inspiration solely from like-minded peers and view innovation through a SaaS-centric lens. Although this is beneficial for solving narrowly defined problems, big-picture challenges must be examined through multiple perspectives. Because SaaS solutions can quite literally serve any kind of industry, it is necessary to connect with and learn from leaders in other business sectors. After all, many minds create great work. 

But where can SaaS professionals go to broaden their horizons? That’s where cross-sector events come into play. Cross-sector collaboration enables professionals from multiple disciplines and industries to build partnerships and support collective growth. Rally is one such event. 

Rally is a global conference that brings together companies, universities, entrepreneurs, and investors to foster innovation for all. We believe that gathering thought leaders across multiple industries is a vital method for achieving mutually beneficial outcomes and solving complex problems.

Rally is one of the first events to unite six of the most cutting-edge industries of the business world:

  1. Agriculture
  2. Entrepreneurship
  3. HardTech
  4. Healthcare
  5. SportsTech
  6. Software (SaaS)

Ultimately, the future of SaaS sales depends on SaaS leaders’ ability to continuously develop key differentiators for their products and find solutions to unsolved problems. This may sound like a tall order, but seemingly impossible challenges are much easier to solve through collaboration. If you’re ready for a breakthrough, get registered for Rally today and take a step towards a prosperous future.