North America Software as a Service Market Size, Share: By Deployment: Public Cloud, Private Cloud, Hybrid Cloud; By Solution: Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Capital Management, Others; By Enterprise Type; By End Use; Regional Analysis; Competitive Landscape; 2024-2032

North America Software as a Service Market Outlook

The North America software as a service market size reached approximately USD 145.43 billion in 2023. The market is projected to grow at a CAGR of 11.1% between 2024 and 2032, reaching a value of around USD 379.01 billion by 2032.

Key Takeaways

• The United States houses more than 17,000 companies, including players like IBM, Salesforce, and Microsoft.

• Canadian SaaS companies like Shopify, Wave Accounting, Memi, and SkyHive are renowned across the globe.

• With businesses increasingly attempting to gain a competitive advantage, the adoption of SaaS solutions is growing.

Software as a service (SaaS) is a cloud-based delivery model in which the user can access applications through subscription instead of buying and installing the app on their system. It is a user-friendly and cost-efficient model that offers scalable solutions depending upon the requirements of users.

The rising popularity of SaaS in remote and hybrid work environments, due to its accessibility and scalability, is one of the major trends positively influencing the North America software as a service market growth. SaaS solutions can be accessed 24/7 access on mobile, tablet, and laptops, among other devices, from anywhere and also facilitate easy collaboration between employees present in different locations.

Key Trends and Developments

Rising adoption of vertical SaaS; integration of AI and ML in SaaS; rising deployment of SaaS in the cloud; and growing trend of mobile SaaS are positively impacting the North America software as a service market growth

Jan 23rd 2024

Analytic Edge announced the launch of a Software as a Service (SaaS) platform, Analytic Edge Qube, that provides companies with an all-in-one toolkit for marketing analytics.

Oct 25th 2023

RSA announced strategic investments to increase its Canadian SaaS business by 4 times year-on-year (YoY).

Aug 2nd 2023

Innovapptive announced the launch of mRounds, its SaaS-based version of its mobile operator rounds product that offers digitisation ability to organisations.

Apr 4th 2023

Spendflo, a SaaS platform, raised USD 11 million, led by Prosus Ventures and Accel to strengthen its presence in North America and expand its global footprints.

Rising adoption of vertical SaaS

There is a rising adoption of vertical SaaS solutions that offer software solutions to clients based in specific industry verticals and provide improved functionality and increased operational efficiency.

Integration of AI and ML in SaaS

AI and machine learning are increasingly integrated in SaaS solutions to provide enhanced personalisation, automate mundane and repetitive tasks, and improve security.

Growing deployment of SaaS in the cloud

Organisations are adopting cloud-based SaaS to enhance scalability, develop innovative features, access applications from any location from devices or locations, and facilitate collaboration.

The rising trend of mobile SaaS

Mobile native SaaS solutions that can enable the accessibility to business applications and data on the go while eliminating downtime and facilitating collaboration are gaining popularity.

The advent of advanced technologies such as AI and machine learning in SaaS to speed up internal processes, identify customer interest and behaviour, and provide deep insights to gain a competitive edge also offers lucrative opportunities for the North America software as a service market demand.

Increased launch of SaaS platforms for public and private cloud infrastructure by market players is another prominent trend boosting the North American market. For example, in May 2023, IBM, a computer technology leader, launched IBM Hybrid Cloud mesh, a SaaS product, that offers a simple and consolidated platform to enterprises for the deployment of applications across multi and hybrid cloud.

Market Segmentation

“North America Software as a Service Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Deployment

• Public Cloud

• Private Cloud

• Hybrid Cloud

Market Breakup by Solution

• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)

• Human Capital Management

• Content, Collaboration and Communication

• BI and Analytics

• Others

Market Breakup by Enterprise Size

• Large Enterprises

• SMEs

Market Division by End Use

• IT and Telecom

• BFSI

• Retail and Consumer Goods

• Healthcare

• Education

• Manufacturing

• Others

Market Bifurcation by Country

• United States of America

• Canada

The deployment of private cloud is significantly rising as it offers enhanced security and data control

Private cloud occupies a significant portion of the North America software as a service market share as it offers superior data control and security to organisations compared to the public cloud. Factors such as reduced risk of a data breach as well as better customisation of the application according to the organisation’s demand also boost the segment’s growth.

Meanwhile, hybrid cloud is anticipated to gain sizeable growth in the coming years as it addresses both the scalability and security demands of an organisation by offering the benefits of public and private clouds.

The adoption of SaaS among large enterprises is increasing due to their evolving needs and the rising demand for scalability

As per the North America software as a service market analysis, large enterprise accounts for a major market share, due to the rising adoption of multi and hybrid cloud-based SaaS products to meet diverse business needs. These enterprises generally require a scalable solution for performing extensive operations, which further offers a positive market outlook.

SaaS solutions also offer seamless connectivity and collaboration to the employees and teams of the large enterprise that are dispersed across the globe. Meanwhile, the adoption of SaaS by small and medium-sized enterprises is significantly surging as it eliminates spending on software or hardware, provides flexibility and scalability, and offers ease of usage.

Competitive Landscape

Major companies included in the market are deploying new technologies in SaaS applications to enhance their efficiency

Oracle Corp.

Oracle Corp. is a multinational technology corporation, founded in 1977 and based in Texas, the United States. The company primarily offers its services in the sectors of automotive, communications, energy and water, food and beverage, oil and gas, and retail, among others.

SAS Institute Inc.

SAS Institute Inc., incorporated in 1976 and headquartered in North Carolina, the United States, is a global leader in analytics. The company helps organisations make data-driven decisions through its next-gen data engineering solutions.

Teradata Corp.

Teradata Corp., established in 1979 and based in California, the United States, is a software provider. The company is primarily known for its Teradata VantageCloud platform, which meets the diverse needs of businesses and optimises their productivity.

Cloud Software Group, Inc.

Cloud Software Group, Inc. is a company that supports organisations to transform and adapt to meet challenges across managed, private, public, and sovereign environments. It supports customers to compete and evolve by leveraging software franchises across insight, automation, and collaboration.

Other key players in the North America software as a service market are Microsoft Corp., SAP SE, Cisco Systems, Inc., Adobe Inc., IBM Corp., Salesforce, Inc., and Amazon Web Services, Inc., among others.

The market in the United States can be attributed to the rising adoption of SaaS as an affordable alternative to traditional IT deployments. Businesses in the region are also adopting SaaS to streamline their operations and gain a competitive edge. Moreover, the increasing adoption of cloud computing and the development of innovative SaaS services and solutions that can be integrated with the cloud are also aiding the regional market expansion.

Meanwhile, Canada is home to more than 6,800 SaaS companies, including Hootsuite, Shopify, SkyHive, and Wave Accounting, among others. In the country, regions like Ontario are leading technological hubs and exporters of IT services and products. Increasing investments in R&D activities are further fuelling the North America software as a service market demand.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.