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The global SaaS Management Platform market is projected to witness an opportunity of US$ 4,679.3 Mn over 2022-2030 and reach US$ 7,430 Mn by 2030, registering a CAGR of 13.2% between 2022 and 2030. The promising growth of the market is majorly attributed to the need to mitigate business threats arising from unmanaged access to a large volume of SaaS data, tools, and technologies.
The need to identify and reduce wasteful SaaS spending is also boosting the growth of the market. SaaS tools help users proactively manage all their SaaS applications and serve as a single point of record from which SaaS applications can be used across the business. SaaS Management Platforms (SMPs) allow businesses to proactively monitor and manage their growing SaaS purchases, renewals, onboarding, and off-boarding and are finding increased adoption, primarily among large corporations.
The leading five major players held a share of approximately 25% of the market in 2021. The key players in the market are Zluri, Productiv, Bettercloud, Zylo, Torii, and Blissfully, among others. These market players are investing in strategies such as acquisitions, mergers, partnerships, and new product launches to maintain their competitiveness in the market.
Zluri dominates the global SaaS management platform market followed by Productiv, Bettercloud and Zylo. The leading players are expected to expand their geographical boundaries by acquiring small brands and domestic companies in the forecast period.
Key market participants recently implemented the following strategies:
The top factors impacting the presence of key players in the SaaS management platform market are:
Increasing need to eliminate risk from unmanaged tools and technologies
Renewal of SaaS management platforms is one of the major problems that can be resolved using automatic renewals with a centralized management approach that focuses on ensuring all renewal dates within the business are defined and documented. SaaS management platforms aid in the timely management of licenses, eliminating the potential of idle and unattended licenses causing a security risk and other problems. SMPs are also capable of discovering new SaaS applications in a business network and adjusting them to standard settings, including those for users, groups, files, and folders. Changes to these settings may help detect suspicious activities and alert the IT department in real time.
Better monitoring provision and reduction in wasteful spending
Leading companies are focusing on the resurgence of SaaS technology, with an increasing focus on mobile devices. The adoption of SaaS tools and service helps organizations to monetize new market opportunities with cloud computing usage capability. Along with their use in managing and monitoring the SaaS tools handling critical business data, SMPs also help keep track of SaaS expenditures and reduce wasteful expenses.
Current trends in the market
Increasing adoption of Software-as-a-Service
Businesses are seeing improved productivity, cost savings, scalability, and corporate agility by switching to SaaS. SaaS has reshaped the workplace, from reduced capital expenditures, IT load, and maintenance investment to simpler employee communication and easy deployment of mission-critical solutions. Because of the exponential rise in the use of SaaS software, it has become necessary for businesses to use SaaS management platforms to avoid any security threats or delays in their operations. There were only five public SaaS companies in 2011; there are currently over 100 public SaaS companies in the global market, with an additional 15,000+ private suppliers.
The average SaaS application spending per organization has increased substantially over the years. Studies suggest that the market revenues of SaaS businesses worldwide could reach US$ 151 Bn by 2022. The largest SaaS companies in 2021-22 include Adobe (US$ 315 Bn), Salesforce (US$ 251.8 Bn, Shopify (US$ 185.4 Bn), Square (US$ 112.9 Bn), ServiceNow (127.9 US$ Bn), Snow Flake (US$ 94.3 Bn), Zoom (US$ 89.6 Bn), and Workday (66.3 US$ Bn).
Factors restraining market growth
Latency of SaaS solutions and scarcity of skilled professionals
The integration of SaaS management software requires highly skilled professionals who may not be found on every IT team. Managing SaaS platforms also require an established and centralized process. The lack of skilled IT professionals can make SaaS cybersecurity issues more vulnerable to internal and external threats. The demand for skilled cybersecurity personnel is expected to increase with the growing rate of digital transformation in the near future. The acute shortage of IT professionals in the global market presence is one of the key factors hampering the growth of the SaaS management platform market.
Another frequently encountered issue is the slower speeds of SaaS solutions than client and server applications. Latency in SaaS solutions can affect the functioning of various cloud platforms, lead to performance issues, and significantly impact end-user experience. These factors necessitate investments by IT organizations in network architecture and planning.
The pandemic disrupted major economic activities across the world but had a positive impact on the SaaS management platform market owing to the increased adoption of SaaS-based services. As businesses had to abruptly shift to a remote working model owing to movement restrictions, they implemented SaaS management software to integrate all facility management data and work remotely in a cost-effective manner without disrupting operations.
It has also become standard practice for businesses globally to employ a variety of SaaS applications across their business activities. These applications help save time and money, boost employee productivity, and facilitate collaboration. However, they can also be challenging to administer, necessitating the use of a central platform to manage them in a simple and secure manner.
Analysis: By Application
Based on application, the cloud vendor management segment accounted for the highest market share in 2021 and is expected to retain its dominance throughout the forecast period as well. The segment is likely to register a CAGR of 13.9% during the forecast period.
Cloud suppliers are in charge of a vast number of cloud-based activities. As a result, it is critical to creating a framework for selecting a vendor, defining what they can and cannot deliver, and determining whether they are the right fit in terms of pricing, timeframes, and SLA needs. The SaaS vendor management held the second-largest share of nearly 29.3% in 2021.
Analysis: By Enterprise Size
In terms of enterprise size, large enterprises held the highest share in the global SMP market. In 2021. Large businesses require SaaS management platforms for their operations. Businesses also require distribution management, Enterprise Resource Planning (ERP), warehouse management, and field service management functionalities to effectively manage business operations. In 2021, the SMEs segment is expected to register the highest CAGR of 14.1% over the forecast period.
Analysis: By Industry
The Banking Financial Services and Insurance (BFSI) industry held the highest share of nearly 36% in the market in 2021 and is expected to retain its dominance over the forecast period as well. The IT segment held the second-largest share of 27.5% in 2021 and is projected to register a 28.1% CAGR over the forecast period. SaaS applications help companies improve scalability, lower infrastructure costs, develop business-class applications, and allow easy upgrades as per user demand. Owing to these benefits, cloud applications are witnessing higher adoption across the BFSI sector.
North America dominated the global SaaS Management Platform (SMPs) market in 2021 with a 40.0% revenue share. This rising share can be attributed to the presence of several market leaders in the region and the increased adoption of cloud solutions by organizations across several industries as per the estimates from L-SPARK’s latest State of SaaS report, in 2021, the Canadian SaaS market received funding of US$ 7.32 Bn.
The Asia Pacific regional market is anticipated to register a 13.8% CAGR over the forecast period. The market in Japan is emerging as one of the leading adopters of SaaS applications in the region. This is because Japan alone accounts for over 40% of the region’s overall SaaS expenditure. The increasing preference of organizations in Asia pacific for homegrown solutions acts as a barrier for international SaaS companies in these countries, thereby promoting the growth and expansion of regional players.
The global SaaS management platform market is segmented into:
By Enterprise Size
SaaS Management Platforms (SMPs) allows organizations to operate and manage their Software as a service (SaaS) application. The platform allows administrators to manage their operations such as IT Operations, spend Management, and Vendor Management. SMP aggregates usage, security, and administrative information from these applications into a single dashboard.
SMPs are widely deployed across various organizations to fulfil the needs of customers. Major functions include Administration, Policy Management, Licence Management, IT Workflow automation, and role-based access control among others.
Mainly it reduces the internal cost of the company by reducing time and money, helps in keeping the organization safe and secure, and ensures better compliance management.
The rising demand by the government is due to improved efficiency, better return more reliable information.
Factor such as the improved value of purchasing SaaS software and rising risks from unmanaged tools drives the growth in the global SMP Market over the forecast period.
The Application (Security Management) segment holds the largest CAGR in the Global SaaS Management Platforms market during the forecast period.
North America region is growing with the fastest CAGR during the forecast period.
Scarcity of skilled professionals is a restraining factor that inhibits the growth of the SaaS Management Platforms market during the forecast period.
US holds the major share in terms of revenue in the North America SaaS Management Platforms Market.
Growing awareness about software as a service provides a lucrative growth opportunity in the SaaS Management Platforms Market.
Application, Enterprise Size, Industry, and region are the different segments in the global SaaS Management Platforms Market.
Zluri, productiv, Bettercloud and Zylo among others are the key players in the Global SMP market.