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The Software-as-a-Service (SaaS) management platform market is undergoing a rapid transformation due to changing technological landscapes and evolving business requirements. This paper delves into key segments of the market, spotlighting SaaS vendor management as a prominent application, the Banking, Financial Services, and Insurance (BFSI) sector as a leading revenue contributor, and the Asia Pacific region as a rapidly developing market. The paper uses statistics and facts as of 2021 to provide comprehensive insights into these areas.
Top 4 Trends Shaping the Global SaaS Management Platform Market
SaaS Vendor Management: Securing Over 29% Revenue Share
SaaS vendor management remains a critical part of the larger SaaS management platform market. By 2021, it accounted for more than 29% of the overall market revenue. This considerable market share is due to several factors, including the growing number of SaaS applications in businesses and the need for effective management of these vendors to optimize costs, ensure security, and maintain compliance.
Companies use a variety of SaaS applications, each from different vendors, which can complicate vendor management. Astute Analytica reported in 2022 that a large enterprise uses, on average, over 200 SaaS applications. This increasing proliferation underscores the need for robust SaaS vendor management tools that can provide a consolidated view of all SaaS applications, track usage and expenditure, and ensure adherence to contractual obligations.
BFSI Sector: Capturing More Than 36% Revenue Share
The BFSI sector has been a leading adopter of SaaS management platforms, capturing more than 36% of the market revenue by 2021. The digital transformation wave sweeping through the banking and financial services industry has led to an increased reliance on SaaS applications for operations ranging from customer relationship management (CRM) to risk assessment and regulatory compliance.
The BFSI industry faces unique challenges in terms of regulatory compliance, data security, and the need for real-time processing. SaaS applications, managed properly, can help address these challenges while also providing scalability, cost-effectiveness, and operational efficiency. As per a report by IDC, 75% of global banking operations will run on SaaS applications by 2023, thus highlighting the sector's significance in the SaaS management platform market.
Asia Pacific: The Fastest Growing SaaS Management Platform Market
The Asia Pacific region is projected to be the fastest-growing market for SaaS management platforms across the globe, with a Compound Annual Growth Rate (CAGR) of 13.8% during the forecast period. This growth is underpinned by various factors, including increasing internet penetration, digital transformation initiatives by businesses and governments, and the growing startup ecosystem in the region.
By 2021, the Asia Pacific had the highest number of internet users globally, and this user base continues to expand. Additionally, governments in the region, such as India and China, have been promoting digitalization, which is catalyzing the adoption of SaaS applications. For instance, India's 'Digital India' initiative aims to transform the country into a digitally empowered society and knowledge economy.
The booming startup ecosystem in Asia Pacific is another catalyst for the growth of the SaaS management platform market. According to the 2021 e-Conomy SEA report by Google and Temasek, the number of internet economy startups in Southeast Asia worth more than $1 billion doubled from 2019 to 2021. Many of these startups rely heavily on SaaS applications for various business functions, thereby driving the demand for SaaS management platforms.
The global SaaS management platform market is segmented into:
By Enterprise Size