Market Scenario

SaaS management platform market was valued at US$ 3,046.3 million in 2023 and is projected to hit the market valuation of US$ 9,968.1 million by 2032 at a CAGR of 14.09% during the forecast period 2024–2032.

The Software as a Service (SaaS) management platform market is getting a huge boost as the SaaS Management market is expected to grow more than 25% during the forecast period owing to the increasing trend of cloud integrated services. This growth is further propelled by the escalation in the amount of SaaS applications needed to be deployed and maintained by the firms. At the moment, demand is mostly from the finance, healthcare, and tech sectors as North America comes first in terms of consumption. It is interesting to note that the market value of managed services in the US is around US$ 6 billion. In line with this, SaaS management platforms have become a necessity for organizations to manage their software usage or controls while ensuring reasonable cost management.

In the SaaS management platform market, key consumers are organizations with large SaaS portfolios including those in the Fortune 500 category and midsized market. The consumption trend indicates that large sized companies with more than 200 deployments of SaaS applications are the biggest users. By contrast, the small and medium businesses that normally have around 40 deployments also are responding as they could benefit from the cost. Wherein, BetterCloud is likely to be the most sought after platform in the market 2023. Vendors like Intello, Zylo and Torii are the leaders in this vendor landscape. These platforms are key to effective management of SaaS as they offer features such as application discovery and spend management and tools for automation.

As far as SaaS management platform market is concerned, the market will remain active with a robust CAGR of 14.09% from 2024-2032. Apart from cost savings, operational efficiency is expected to lure in government departments, education and other non-profits organizations as potential customers. The combination of AI and machine learning will be a game changer. By 2025, an estimated US$ 2 billion industry is expected to flood into the AI-integrated SaaS management solutions market. As companies embrace digital culture and turn to digital transformation, the SaaS management platform market will significantly increase, thus opening large opportunities for existing and new players in the sector.

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Market Dynamics 

Driver: Increasing Complexity in Managing SaaS Applications

As businesses transform themselves digitally, the difficulty of managing SaaS applications is one of the key factors. As of 2023, large businesses are using around 250 SaaS applications on average, making them difficult to control and monitor. A unified approach in the SaaS management platform market to managing these applications across different regions and departments multiplies this difficulty. The need for more efficient management processes is clear, as almost US$3 billion is spent on software as a service (SaaS) management solutions every year to address these issues. Interestingly, companies are putting aside roughly US$500 million into training and assistance in order to better manage their SaaS resources.

Expansion of complexity is also caused by shadow IT, the appropriation of SaaS applications which are independently obtained by certain departments and led to lack of efficiency and security threats. In line with this, businesses in the SaaS management platform market are spending US$1 billion to avoid these threats through better SaaS management. Moreover, the additional cost of usage of unnecessary apps amounting to US$2 billion in a year by businesses shows the strong need for wide ranging SaaS management solutions to provide better usage of applications and minimize the use of unnecessary resources. It’s estimated that through the use of centralized SaaS management systems, businesses will save around US$1 billion each year on various software costs.

Such increasing intricacy creates the need for solutions that permit the promotion of application discovery, usage monitoring, and cost containment. Consequently, there seems to be a growing appetite for AI based solutions for analysis and automation in the market. With regards to managing their software ecosystem better and more efficiently, businesses have invested US$800 million into AI-empowered SaaS management tools. We will also see the trend of embedding AI and machine learning in these platforms and see more developments and innovations in the marketplace.

Trend: Integration of AI-Driven Analytics

The incorporation of AI-tailored analytics is one of the major trends affecting the evolution of the SaaS management platform market. In the year 2023, organizations seem to be actively using AI systems for predictive forecasting of software consumption metrics, as well as to manage their SaaS ecosystems more effectively. This trend is best exemplified by the investment of US$2 billion into AI-based SaaS management solutions that would improve the quality of decisions made and even automate some of them. Companies are now using AI-powered applications which can examine large datasets in order to decide what software will be needed in the future and how much.

AI-driven analytics and AI-tailored analytics also greatly contribute to cost efficiency, with companies in the SaaS management platform market saving around US$1.5 billion each year due to better SaaS spend allocation. Machine learning algorithms integrated into such platforms are able to analyze application usage patterns, detect underuse and suggest ways to cut costs for greater savings. Also, due to the introduction of machine learning models, AI integration improves security by identifying breaches and threats, with companies investing US$700 million in AI solutions integrated into SaaS management systems. By this, you can tell the importance of security with the growing number of cyberattacks against SaaS applications.

The shift towards AI-driven analytics in the SaaS management platform market is additionally fueled by the increasing interest in customized end-use experience. Businesses, with US$900 Million allocated to AI-centric customer success solutions, target to provide quality offerings that suit the individual aspects of their users. Being able to provide support and recommendations that are customized according to the users greatly improve their satisfaction and retention and overall leads to higher use of AI-related SaaS management applications. With the advancement of AI technology, the adoption of AI technology in SaaS management is expected to be quite deep and more beneficial to organizations.

Challenge: Ensuring Seamless Integration with IT Infrastructure

The SaaS management platform market faces several challenges while integrating fully with current enterprise IT resources. As more organizations utilize an increasing number of SaaS applications, integration into their systems becomes an imperative. In 2023, enterprises anticipating this requirement are injecting US$1.2 billion into integration solutions, which makes it sufficient for their purposes. There are different application programs which makes integration complicated and in most times discontinuity of business functions take place and companies lose approximately US$600 million ever year because of the integration failure. 

Another reason that further complicates the integration in the SaaS management platform market is the support of older systems that many companies still have. To support older systems, enterprises have earmarked US$900 million in order to ensure that the management platform of the SaaS is fully compatible with legacy systems. In order for an organization to minimize interferences and enhance the level of efficiency within itself, it is advisable for all employees to be able to integrate several applications and systems. Accordingly, the focus of vendors nowadays is to provide solutions that are not only scalable, but also are easy to integrate into other applications.

Moreover, the challenge of integration in the SaaS management platform market is related to the need to maintain data consistency and correctness across different systems. The unclear data results in inefficiency and expensive mistakes, as specialists estimate that businesses lose US$800 million due to the need to reconcile the data. To counter this, organizations are investing in sophisticated integration tools that allow data to be updated and verified in real time. As the need for rapid integration increases, vendors who develop robust integration capabilities will be in a strong position in the SaaS management platform industry.

Segmental Analysis 

By Application

Regardless of the stronghold of security services segment with over 24.5% market share, the vendor management segment continues to gain ground as one of the key components of the SaaS management platform market. In 2023, global cloud computing market was valued at around US$623.3 bn, with the trend of businesses shifting their operations to cloud infrastructure becoming more pronounced. Such moves have a vacancy of comprehensive frameworks of vendor management as businesses have to negotiate a myriad of service providers, all offering various aspects of the cloud. The importance of efficient vendor selection and SLA management is made even more apparent by the fact that the average organization manages over 30 cloud vendors. Such intricacy calls for comprehensive management technologies that would enable smooth running of outputs while optimizing expenses.

Regardless of these numbers of vendors, the organizations in the SaaS management platform market have had to contend with the increasing number of cloud applications in use, which now stand at more than 80,000 in 2023. Such a growth in the number of applications can be understood in the context of an increased range of business process digitalization across industries, whereby the businesses are hunting for effective approaches to be more agile and competitive. As a result, the SaaS vendor management sub-segment has gained prominence, accounting for a notable share of the market. Another important factor is the increase of multi-cloud strategies with organizations dealing with an average of six cloud platforms. This trend emphasizes the need for complex solutions capable of dealing with the challenges posed by multiple clouds, together with the security and compliance aspect of data shared across clouds.

Continued growth is also expected in the cloud vendor management space, as the use of cloud-native technologies will continue to drive demand. It is expected that by 2025, cloud-native enterprise IT solutions spending will elevate to US$ 1 trillion, thus signifying the importance of cloud investments. Moreover, the focus on AI powered analytics in vendor management platforms is likely to transform the way organizations manage and optimize their cloud vendors. 

By Industry

The global SaaS management platform market is led by BSFI industry due to their need for cost-effective and secure cloud solutions, which resulting in companies within the market capturing a significant market share of 34.5%. In 2023, the BFSI industry contributed around US$ 1.05 Billion to the market, which is indicative of the firms within the BFSI sector continuing to invest considerable amounts into further digitalization efforts. Firms within the BFSI sector are increasingly adopting SaaS solutions in order to become more flexible, more cost-effective, and gain a better overall customer experience. Today, a bank on average utilizes over 500 cloud applications. This consequently indicates the importance of SaaS in nurturing banks competitiveness and innovation. 

On the other hand, the IT industry also is a key industry of SaaS management platform market and is poised to grow at a robust CAGR of  14.79% in the years to come. This growth stems from the expansion of the programs that aid in development, management of projects and IT service management. Adoption of such SaaS platforms that support CI/CD is being propelled forward by DevOps culture which is being currently implemented by over 100,000 IT corporations worldwide. These tools allow IT teams to improve their organization processes, boost teamwork and develop a software of high quality in a short amount of time which emphasizes the importance of SaaS in the tech industry.

By Enterprise Size

The large-scale businesses have always used the SaaS management platform market to their advantage. As a result, they control a whopping 68.7% of the market share. The global ERP software market was worth US$44.3 Billion in 2023. This statistic alone highlights why large organizations invest so much money into SaaS solutions to increase operational efficiency and undergo digital transformation. On average, these corporations have more than 1,000 cloud applications under their umbrella, making integrating and managing their IT architecture systems quite complex. The trend of flexible, hybrid work models also fuel this demand as corporations look to increase their appeal to employees and employees’ needs. This trend is further evidenced by the increase in demand experienced in the collaboration platforms market which was at 20 billion dollars in 2023.

The large enterprises continue to dominate the SaaS management platform market and its share, however, the small and medium-sized enterprises (SMEs) sector is poised for robust growth. The Global SME SaaS market valuation soared to US$142 billion in the year 2023 on account of the cloud solutions being easier to access and cheaper. More and more SMEs have started using SaaS platforms as a means to improve their competitiveness vis a vis larger firms. Technology will enable new businesses to emerge by pushing aside old ones. There is also a major shift in business models centered around these technologies. Such a shift is also observed in SMEs as an average SME is said to utilize over 40 SaaS applications, which implies that SMEs have started using cloud solutions more frequently.

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Regional Analysis 

North America has continued to overwhelm the world’s SaaS Management Platform market by achieving a 40.06% market share. The region’s supremacy is reinforced by an active technology environment. They have a substantial edge over the global market as many major companies are well-established in the region. Moreover, there's also an inclination to use cloud technology in different industries. It is also estimated that the North American SaaS market revenue will reach new heights of over US$ 100 billion in the years to come. Wherein, the United States has also been the focal country for SaaS companies with Venture Capital Investment reaching US$ 25 billion in the year 2023 while Canadian companies hopped onboard raising US$ 10 billion as funding extended from L-SPARK’s 2021 State of SaaS report amounting to US$ 7.32 billion. In North America, the number of SaaS applications used by mid-sized enterprises has risen to 150 which indicates the increased demand for efficient SMPs. In 2023, there have been over 500 mergers and acquisitions in the SaaS sector throughout the region. Such a development highlights expansion in the market as well as increased competition.

On the other hand, the SaaS management platform market is developing more quickly in the Asia Pacific region. Japan is currently leading the regional market as the country’s expenditure on SaaS solutions was estimated to exceed US$ 15 billion in 2023, which further puts the country as the pioneer in technology. Apart from this, China SaaS market was valued at US$ 30 billion in 2023 owing to government push on digital and innovation advances. India is also not lagging behind much, NASSCOM stated that the Indian SaaS market is anticipated to reach US$ 50 billion by 2025. The country has funded more than 2,000 freshly founded SaaS enterprises in 2023, a clear sign of a favorable business environment. The Asia Pacific saw an increase in its total number of SMEs using SMPs (SaaS Management Platforms) since the year 2021, which creates an opportunity for the different SaaS management platforms that are incorporated in that area. 

Top Players in SaaS Management Platform Market

• Applogie
• Apptio
• AvePoint
• Basaas
• BetterCloud
• Binadox
• Cledara
• Chargebee
• CoreView
• GoGenuity
• LeanIX
• NachoNacho Inc.
• Productiv
• Quest Software
• Sastrify
• Snow Software
• Torii
• Vendr
• Zylo
• Zluri
• Other Prominent Players

Market Segmentation Overview

By Application

• Vendor Management
• Spend Management
• Security Management
• User Management
• Operations (Workflow) Management

By Enterprise Size

• SMEs
• Large Enterprises

By Industry

• BFSI
• IT
• Marketing & Advertising
• Retail
• Transportation & Logistics
• Automotive
• Healthcare
• Others

By Region 

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • Germany
  • France
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Latin America
  • Argentina
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Egypt
  • Rest of Middle East & Africa