How big is the Software as a Service Market | Growth, Size, and Forecast 2025

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Code: MTA8696

Publication Date: Sep 2025

What is the size of Software as a Service Market?

According to 6Wresearch internal database and industry insights, the Global Software as a Service Market was valued at USD 272.6 billion in 2024 and is expected to reach USD 484.7 billion by 2031, growing at a compound annual growth rate of 9.20% during the forecast period (2025-2031).

The growth in the Software as a Service Market has been largely fuelled by an increase in the demand for functional digital platforms, the new trend of subscription business models, greater use of cloud-native approaches, and an increase in the adoption of AI-powered automation tools.

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Growth Factors for Software as a Service Industry

The growing popularity of functional digital platforms as replacements for on-premise deployments
Demand for subscription-based services is spurred by changing enterprise budgeting models
Used by businesses and innovators for its efficiency and scalability
Growth of cloud service marketplaces and online distribution channels
Innovation in vertical-specific SaaS and integrated API ecosystemsÂ

Software as a Service Market Trends

Software as a Service Market trends include increases in adoption of Ready-to-Use SaaS modules, micro-subscriptions, and green licensing models, which move packaging and delivery structures to modular, intentionally built services. There is increased demand for AI-embedded dashboards, no-code platforms, and mobile-first SaaS as clients want agility and customization.Â

The trends in the market are also straying toward greater emphasis on regulatory-compliant workflows, multi-cloud integration, and embedded analytics features to meet demand. In addition, providers are increasingly turning to influencer outreach and digital engagement to market to enterprise buyers requiring robust, interoperable cloud solutions.

Emerging Developments in the Software as a Service Market

Software as a Service market development includes the emergence of composable platform architectures, integration of AI agents, and inclusion of domain-specific modules enabling real-time automation for vertical workflows. Developers are blending advanced analytics, security primitives, and low-code interfaces to deliver turnkey experiences. Market developments also show a rise in consumption-based pricing, embedded data pipelines, and collaborative ecosystems hosted via marketplaces. Growth in enterprise alliances and cross-platform integrations is enabling global reach and deepening customer lock-in.