Software as a Service - United Kingdom

United Kingdom

Revenue in the Software as a Service market is projected to reach €15.82bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 21.13%, resulting in a market volume of €41.26bn by 2029.
The average spend per employee in the Software as a Service market is projected to reach €0.46k in 2024.
In global comparison, most revenue will be generated in the United States (€176,300.00m in 2024).

Key regions: Japan, United Kingdom, United States, Italy, Germany

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Software as a Service market in United Kingdom has experienced significant growth in recent years, driven by the increasing demand for cloud-based solutions and the need for cost-effective and scalable software solutions.

Customer preferences: Customers in the United Kingdom have shown a strong preference for Software as a Service (SaaS) solutions due to their flexibility, scalability, and cost-effectiveness. SaaS allows businesses to access software applications and services over the internet, eliminating the need for expensive hardware installations and reducing maintenance costs. This has made SaaS a popular choice among small and medium-sized enterprises (SMEs) in the United Kingdom, as it allows them to access advanced software solutions without the need for a large upfront investment.

Trends in the market: One of the key trends in the SaaS market in the United Kingdom is the increasing adoption of SaaS solutions across various industries. Businesses in sectors such as finance, healthcare, retail, and manufacturing are increasingly turning to SaaS to streamline their operations, improve efficiency, and enhance customer experience. This trend is driven by the need for digital transformation and the desire to leverage advanced technologies such as artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) to gain a competitive edge. Another trend in the SaaS market in the United Kingdom is the growing focus on data security and compliance. With the implementation of the General Data Protection Regulation (GDPR) in 2018, businesses in the United Kingdom are required to ensure the protection of personal data. This has led to an increased demand for SaaS solutions that offer robust security measures and compliance features to help businesses meet regulatory requirements.

Local special circumstances: The United Kingdom has a highly developed technology ecosystem, with a large number of startups and established technology companies. This has created a favorable environment for the growth of the SaaS market, as it provides access to a pool of skilled talent and a supportive infrastructure. Additionally, the United Kingdom has a strong culture of innovation and entrepreneurship, which has further fueled the growth of the SaaS market.

Underlying macroeconomic factors: The growth of the SaaS market in the United Kingdom is also influenced by underlying macroeconomic factors. The United Kingdom has a strong and stable economy, which provides businesses with the confidence to invest in technology solutions such as SaaS. Additionally, the United Kingdom has a high internet penetration rate and a digitally savvy population, which creates a favorable environment for the adoption of cloud-based solutions. In conclusion, the Software as a Service market in the United Kingdom is experiencing significant growth due to customer preferences for flexible and cost-effective software solutions, increasing adoption across industries, a focus on data security and compliance, a supportive technology ecosystem, and underlying macroeconomic factors. This trend is expected to continue in the coming years as businesses in the United Kingdom continue to embrace digital transformation and look for innovative ways to drive growth and efficiency.

Methodology

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.