Report Overview

Saudi Arabia Software as a Service (SaaS) Market - Industry Trends & Forecast Report, 2029

Saudi Arabia software as a service (SaaS) market size was estimated at USD 322.35 million in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia software as a service (SaaS) market is projected to grow at a CAGR of 17.81% reaching a value of USD 790.39 million by 2029. Major growth drivers for the Saudi Arabia software as a service (SaaS) market include an increasing demand for cloud-based solutions, the government's focus on digitalization, and a growing entrepreneurial ecosystem. Increasing connectivity and collaboration needs of organizations is expected to further drive the global market. SaaS solutions offer collaboration tools, document-sharing platforms, and integrated workflows that can facilitate seamless communication and enhance productivity across various teams and departments within businesses. Notably, substantial investments in smart grids, the rising automation trends in chemical plants, manufacturing facilities, and assembly units, along with the government's growing focus on bolstering the IT infrastructure through investments in disruptive IT solutions, digital transformation initiatives, entertainment centers, and advanced healthcare institutions, aligning with the objectives of Saudi Vision 2030, are also expected to have a positive impact on the expansion of the market during the forecast period.

Saudi Arabia Software as a Service (SaaS) Market – Overview

Saudi Arabia software as a service (SaaS) market refers to the segment of the technology industry that involves the delivery of software applications and services over the internet on a subscription basis. SaaS eliminates the need for users to install and maintain software on their own computers or servers, as the applications are hosted and managed by SaaS providers. In this model, users can access the software through web browsers or dedicated client applications, paying a recurring fee to use the software for a specific period. The SaaS market in Saudi Arabia encompasses various software solutions, including customer relationship management (CRM), enterprise resource planning (ERP), human resources management (HRM), project management, collaboration tools, and other business applications. The Saudi Arabia SaaS market is driven by the increasing demand for cloud-based solutions, digital transformation initiatives, and the government's focus on technology adoption.

Saudi Arabia Software as a Service (SaaS) Market

Growth Drivers

Digital Transformation Initiatives

The government of Saudi Arabia, along with both public and private sector entities in the nation, is actively undertaking digital transformation initiatives to prioritize agility, efficiency, productivity, and innovation, all aimed at enhancing customer experiences. Cloud computing plays a crucial role in this endeavor, and Software as a Service (SaaS), being a cloud-based model, offers flexible, scalable, and cost-effective software solutions that can be rapidly deployed and adapted to evolving business needs. These SaaS solutions align perfectly with the country's digitalization strategy. Also, these cloud-based solutions liberate businesses from the constraints of traditional on-premises software, enabling them to innovate and introduce new services and products more efficiently. Consequently, these factors are expected to propel the growth of the Software as a Service (SaaS) market in Saudi Arabia during the forecast period.

Restraints

Data Security and Privacy Concerns

Data security and privacy are paramount concerns for organizations that are embracing SaaS solutions. Particularly, companies operating in heavily regulated sectors such as BFSI (Banking, Financial Services, and Insurance) and healthcare express apprehensions regarding potential data breaches, compliance with local data protection regulations, and maintaining data sovereignty. Consequently, these concerns act as a significant obstacle to the growth of the Saudi Arabia Software as a Service (SaaS) market during period in analysis, unless robust security measures are implemented to address these apprehensions effectively.

Impact of COVID -19 on Saudi Arabia Software as a Service (SaaS) Market

COVID-19 pandemic had a dual impact on the Saudi Arabia software as a service (SaaS) market. On the one hand, the crisis has accelerated digital transformation efforts, leading to increased adoption of cloud-based solutions like SaaS. Organizations sought remote collaboration tools, communication platforms, and productivity software to support remote work setups. Hence, it drove the demand for SaaS solutions in Saudi Arabia. However, the pandemic also caused economic uncertainties and budget constraints, leading some businesses to postpone or reduce investments in software solutions. Overall, while the pandemic boosted the need for SaaS, it also introduced challenges related to market volatility and financial constraints.

Saudi Arabia Software as a Service (SaaS) Market

Segmental Coverage

Saudi Arabia Software as a Service (SaaS) Market – By Business Application

By business application, the Saudi Arabia software as a service (SaaS) market is divided into Customer Relationship Management (CRM), Human Capital Management (HCM), Enterprise Resource Planning (ERP), Operations and Manufacturing, Content Management System (CMS), and Supply Chain Management (SCM) segments. The ERP segment holds the highest share in the Saudi Arabia software as a service (SaaS) market. The ERP solutions are essential for businesses to integrate and manage their core processes, such as finance, supply chain, human resources, and customer relationship management. SaaS-based ERP solutions offer cost-effective and scalable options for companies, enabling them to streamline operations and improve efficiency. Compared to conventional on-premises ERP systems, SaaS-based ERP solutions offer several advantages, making them an attractive choice for organizations. These solutions are more cost-effective, providing improved accessibility and scalability. By utilizing pay-as-you-go models, companies can avoid upfront infrastructure expenses, scale their ERP usage as needed, and reduce overall ownership costs. Furthermore, the easy accessibility of SaaS-based ERP solutions across multiple locations is particularly advantageous for businesses with branches or operations in different cities, a significant benefit in a geographically extensive country like Saudi Arabia. Also, the deployment of SaaS-based ERP solutions is swift as the infrastructure and software are already in place. Organizations can easily configure and customize the solution to align with their specific business processes. This agility in deployment enables Saudi Arabian companies to accelerate their digital transformation efforts while reaping the benefits of ERP without significant delays. These factors drive the demand for SaaS-based ERP solutions in the country, contributing to the growth of the Saudi Arabia software as a service (SaaS) market.

Saudi Arabia Software as a Service (SaaS) Market – By Deployment Mode

Based on deployment mode, the Saudi Arabia software as a service (SaaS) market is divided into Private Cloud, Public Cloud, and Hybrid Cloud segments. The public cloud segment is expected to hold the highest market share during the forecast period. The public cloud offers cost-effectiveness and scalability, allowing organizations to pay only for the resources they use and easily scale up or down based on their needs. The public cloud providers offer a wide range of SaaS applications and services, providing a diverse and comprehensive portfolio to meet various business requirements. Also, public cloud platforms provide high availability, reliability, and security measures, making them a preferred choice for businesses in Saudi Arabia looking for efficient and robust SaaS solutions.

Saudi Arabia Software as a Service (SaaS) Market – By End User

Based on end user, the Saudi Arabia Software as a Service (SaaS) Market is divided into Commercial Enterprises, BFSI, Hospitality & Healthcare, Industrial & Manufacturing, Government & Transportation, and IT & Telecommunications segments. The banking, financial services, and insurance (BFSI) segment dominates the market and exhibits a growing inclination towards the adoption of SaaS solutions in Saudi Arabia. The integration of SaaS services in banks and other financial institutions offers advanced security and improved access management. By implementing a uniform framework for user authentication and enforcing perimeter network control through predefined firewalls, intrusion detection, and prevention systems, banks can effectively mitigate the risk of security breaches. Also, the BFSI sector operates within strict compliance and security requirements. SaaS providers invest significantly in robust security measures and obtain regulatory compliance certifications, aiding banks and financial institutions in meeting industry standards and data protection regulations. The utilization of SaaS solutions allows the BFSI sector to allocate internal resources and IT teams towards core competencies such as risk management, customer service, and innovation, rather than investing time and effort in software maintenance and infrastructure management. Hence, these advantages of SaaS solutions play a pivotal role in driving their adoption within the BFSI sector, thereby stimulating the overall growth of the Saudi Arabia Software as a Service (SaaS) market.

Competitive Landscape

Major players operating in the Saudi Arabia Software as a Service (SaaS) Market include Salesforce, Microsoft, Oracle, SAP, Adobe, IBM, Google Cloud, Amazon Web Services, Intuit, and ServiceNow. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Business Application

• Customer Relationship Management (CRM)

• Human Capital Management (HCM)

• Enterprise Resource Planning (ERP)

• Operations and Manufacturing

• Content Management System (CMS)

• Supply Chain Management (SCM)

By Deployment Mode

• Private Cloud

• Public Cloud

• Hybrid Cloud

By End Users

• Commercial Enterprises

• BFSI

• Hospitality & Healthcare

• Industrial & Manufacturing

• Government & Transportation

• IT & Telecommunications

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Software as a Service (SaaS) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Digital Transformation Initiatives
         2. Enhanced Collaboration and Remote Work
      2. Restraints
         1. Data Security and Privacy Concerns
         2. Disruptions or Limitations in internet infrastructure
      3. Opportunities
         1. Small and Medium Enterprises (SMEs) Adoption
      4. Challenges
         1. Competition from On-Premises Software and Legacy Systems
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Software as a Service (SaaS) Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Business Application
         1. Customer Relationship Management (CRM)
         2. Human Capital Management (HCM)
         3. Enterprise Resource Planning (ERP)
         4. Operations and Manufacturing
         5. Content Management System (CMS)
         6. Supply Chain Management (SCM)
         7. Others
      2. By Deployment Mode
         1. Private Cloud
         2. Public Cloud
         3. Hybrid Cloud
      3. By End User
         1. Commercial Enterprises
         2. BFSI
         3. Hospitality & Healthcare
         4. Industrial & Manufacturing
         5. Government & Transportation
         6. IT & Telecommunications
         7. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Software as a Service (SaaS) Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid–19 on Saudi Arabia Software as a Service (SaaS) Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Salesforce
   2. Microsoft
   3. Oracle
   4. SAP
   5. Adobe
   6. IBM
   7. Google Cloud
   8. Amazon Web Services
   9. Intuit
   10. ServiceNow
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of case of non–listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in–depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Software as a Service (SaaS) Segmentation

Figure 2       Saudi Arabia Software as a Service (SaaS) Market Value Chain Analysis        

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia Software as a Service (SaaS) Market Size, By Value (USD Million), 2019–2029 

Figure 5       Saudi Arabia Software as a Service (SaaS) Market Share, By Business Application, By Value, 2019–2029     

Figure 6       Saudi Arabia Software as a Service (SaaS) Market Share, By Deployment, By Value, 2019–2029

Figure 7       Saudi Arabia Software as a Service (SaaS) Market Share, By End Users, By Value, 2019–2029 

List of Tables

Table 1        Saudi Arabia Software as a Service (SaaS) Market Size, By Value (USD Million), 2019–2029

Table 2        Saudi Arabia Software as a Service (SaaS) Market Size, By Business Application, By Value, 2019–2029

Table 3        Saudi Arabia Software as a Service (SaaS) Market Size, By Deployment, By Value, 2019–2029

Table 4        Saudi Arabia Software as a Service (SaaS) Market Size, By End Users, By Value, 2019–2029

Table 5        Salesforce Company Overview

Table 6        Salesforce Financial Overview

Table 7        Microsoft Company Overview

Table 8        Microsoft Financial Overview

Table 9        Oracle Company Overview

Table 10      Oracle Financial Overview

Table 11      SAP Company Overview

Table 12      SAP Financial Overview

Table 13      Adobe Company Overview

Table 14      Adobe Financial Overview

Table 15      IBM Company Overview

Table 16      IBM Financial Overview

Table 17      Google Cloud Company Overview

Table 18      Google Cloud Financial Overview

Table 19      Amazon Web Services Company Overview

Table 20      Amazon Web Services Financial Overview

Table 21      Intuit Company Overview

Table 22      Intuit Financial Overview

Table 23      ServiceNow Company Overview

Table 24      ServiceNow Financial Overview

Table 25      Other Prominent Players Company Overview

Table 26      Other Prominent Players Financial Overview