Report Overview

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

South Africa Software as a Service (SaaS) Market size was estimated to be worth USD 1.51 billion in 2022. During the forecast period between 2023 and 2029, the South Africa Software as a Service (SaaS) Market size is projected to grow at a CAGR of 8.88%, reaching a value of USD 2.52 billion by 2029. Major growth factors for the South Africa Software as a Service (SaaS) Market include rapid digital transformation across industries along with rising adoption of public cloud services. Furthermore, the increasing adoption of smart devices and innovative technologies, including artificial intelligence (AI) and machine learning (ML) are anticipated to present lucrative growth opportunities to the South Africa Software as a Service (SaaS) Market.

Software as a Service (SaaS) – Overview

Software as a Service (SaaS) is a software licensing and delivery model in which software is licensed by subscription and hosted centrally. It is also known as "on-demand software." SaaS is a cloud-based service that allows users to access software via a web browser rather than downloading and installing it on local devices or networks. Accessibility, interoperability, and improved operational administration are some of the benefits of SaaS. Furthermore, as compared to traditional software downloads and installs, the SaaS model has fewer upfront expenses, making it more accessible to a larger spectrum of organizations. Accessibility enables smaller businesses to challenge established marketplaces while also empowering suppliers.

South Africa Software as a Service (SaaS) Market

Growth Drivers

Expansion of Foreign SaaS Companies in South Africa

South Africa is emerging as a lucrative market for software as a service (SaaS) owing to the increasing number of small and medium-sized enterprises (SMEs) and strengthening telecommunications infrastructure. As a result, several global companies are launching their SaaS products and services to tap into the growing opportunities in the country. For instance, Tagger Media, a software company based in the United States, announced its expansion into South Africa in partnership with Tribeez, a social intelligence influencer agency based in Cape Town. Zoho Corp., an India-based multinational technology company, announced its plan to expand its services in Africa and the Middle East. With an increasing number of SaaS companies and rising competitiveness in the country, the South Africa Software as a Service (SaaS) Market is projected to expand over the forecast period.

Restraints

Lack of Security for Sensitive Data

One of the major disadvantages is the risk of the company's data being shared on a public network; this is particularly troublesome when working with more traditional organizations. This is one of the primary issues for businesses considering a SaaS-based application strategy. Issues such as identity and access control must be addressed before entrusting any third-party service provider with sensitive corporate data. Before any sensitive data is disclosed to the service provider, stringent procedures must be performed, particularly in the event of accessibility from a mobile device. However, a lack of awareness and skilled professionals in South Africa to handle such security risks may hamper the growth of the SaaS market in the country.

Impact of Escalating Geopolitical Tensions on South Africa Software as a Service (SaaS) Market

The escalating geopolitical tension is hindering the growth of the South Africa software as a service (SaaS) market. The raging war between Israel and Hamas sends shockwaves across various industries, transcending geographic boundaries and affecting businesses globally. The conflict between Israel and Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 7, 2023, Hamas, a Palestinian military organization, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ According to United Nations reports, as of December 15, 2023, there had been an estimated 19,000 fatalities in Gaza since October 7. Israel is a hub for many SaaS startups and companies. With the outbreak of war between Israel and Hamas, the accessibility of Israeli SaaS solutions and services for companies based in South Africa was hampered, negatively impacting market growth.

South Africa Software as a Service (SaaS) Market

Segmental Coverage

South Africa Software as a Service (SaaS) Market – By Deployment Model

Based on the deployment model, the South Africa Software as a Service (SaaS) Market is segmented into public cloud, private cloud, and hybrid cloud. The public cloud segment accounts for the highest share in the South Africa Software as a Service (SaaS) Market. The growth of this segment is mainly attributed to its lower cost and higher demand among SMEs. The presence of a high number of SMEs in South Africa plays a crucial role in fueling the demand for public cloud services in the country. However, hybrid deployment is anticipated to register substantial growth during the forecast period owing to its demand for healthcare, finance, and education because of its customizable services to cater demands of the industries.

South Africa Software as a Service (SaaS) Market – By Application

Based on application, the South Africa Software as a Service (SaaS) Market is segmented into customer relationship management (CRM), enterprise resource planning (ERP), human resource management (HRM), supply chain management (SCM), and other. The CRM segment holds the largest share of the market owing to the increasing volume of customer data. Companies use CRM SaaS services to simplify customer data, boost client interaction, and improve their entire sales and marketing tactics. The option to access CRM software via the cloud provides firms with cost savings, scalability, and flexibility.

South Africa Software as a Service (SaaS) Market – By Enterprise Size

Based on enterprise, the South Africa Software as a Service (SaaS) Market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. The large enterprise segment accounts for a higher market share. The rising adoption of hybrid-cloud and private deployment, along with the cost-effectiveness SaaS models offer and the availability of capital to invest in advanced technologies plays a crucial role in driving its demand among large enterprises. However, SMEs are expected to register growth at a higher CAGR during the forecast period. Subscription-based SaaS solutions and services offer affordability, accessibility, and scalability to SMEs, which contributes to their market growth.

South Africa Software as a Service (SaaS) Market – By End User

Based on end user, the South Africa Software as a Service (SaaS) Market is segmented into banking, financial services and insurance (BFSI), healthcare, retail & consumer goods, manufacturing, education, travel & hospitality, and others. The BFSI segment dominates the South Africa Software as a Service (SaaS) Market. The BFSI industry works in a highly regulated environment that needs innovative technological solutions to satisfy compliance norms. SaaS systems provide strong security, data protection, and encryption, making them suited for handling sensitive financial data. Furthermore, the BFSI segment significantly relies on customer relationship management (CRM), data analytics, and financial management software, all of which may be supplied efficiently via the SaaS model.

Competitive Landscape

Major players operating in the South Africa Software as a Service (SaaS) Market include Broadcom, Google Inc., Fujitsu Ltd, Amazon.com Inc., IBM Corporation, HP, Oracle Corporation, SAP SE, Microsoft Corporation, and Salesforce. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2023 – GoMetro, a tech company in the fleet management space based in South Africa, announced that it had raised EUR 9 million (approximately USD 11 million).

Scope of the Report

By Deployment Model

• Public Cloud

• Private Cloud

• Hybrid Cloud

By Application

• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)

• Human Resource Management (HRM)

• Supply Chain Management (SCM)

• Other

By Enterprise Size

• Small & Medium-sized Enterprises (SMEs)

• Large Enterprises

By End User

• Banking, Financial Services, and Insurance (BFSI)

• Healthcare

• Retail & Consumer Goods

• Manufacturing

• Education

• Travel & Hospitality

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Software as a Service (SaaS) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing Internet Penetration and Improving Connectivity in South Africa
         2. Growing Demand for Cloud Solutions
      2. Restraints
         1. Lack of Security for Sensitive Data
         2. Lack of Education and Awareness
      3. Opportunities
         1. Increasing Integration of AI and ML with SaaS Solutions
         2. Government Support and Incentives
      4. Challenges
         1. Limited IT Infrastructure in Some Areas
   3. Deployment Model 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. South Africa Software as a Service (SaaS) Market Overview
   1. Market Application & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Deployment Model
         1. Public Cloud
         2. Private Cloud
         3. Hybrid Cloud
      2. By Application
         1. Customer Relationship Management (CRM)
         2. Enterprise Resource Planning (ERP)
         3. Human Resource Management (HRM)
         4. Supply Chain Management (SCM)
         5. Other
      3. By Enterprise Size
         1. Small & Medium-sized Enterprises (SMEs)
         2. Large Enterprises
      4. By End User
         1. Banking, Financial Services & Insurance (BFSI)
         2. Healthcare
         3. Retail & Consumer Goods
         4. Manufacturing
         5. Education
         6. Travel & Hospitality
         7. Others
5.  Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa 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 Escalating Geopolitical Tensions on South Africa 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. Broadcom
   2. Google Inc.
   3. Fujitsu Ltd
   4. Amazon.com Inc.
   5. IBM Corporation
   6. HP
   7. Oracle Corporation
   8. SAP SE
   9. Microsoft Corporation
   10. Salesforce
   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 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       South Africa Software as a Service (SaaS) Segmentation 

Figure 2       South Africa Software as a Service (SaaS) Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       South Africa Software as a Service (SaaS) Market, By Value (USD Billion), 2019–2029 

Figure 5       South Africa Software as a Service (SaaS) Market Share, By Deployment Model, By Value, 2019–2029     

Figure 6       South Africa Software as a Service (SaaS) Market Share, By Application, By Value, 2019–2029 

Figure 7       South Africa Software as a Service (SaaS) Market Share, By Enterprise Size, By Value, 2019–2029

Figure 8       South Africa Software as a Service (SaaS) Market Share, By End User, By Value, 2019–2029 

List of Tables

Table 1        South Africa Software as a Service (SaaS) Market, By Value (USD Billion), 2019–2029 

Table 2        South Africa Software as a Service (SaaS) Market Share, By Deployment Model, By Value, 2019–2029     

Table 3        South Africa Software as a Service (SaaS) Market Share, By Application, By Value, 2019–2029 

Table 4        South Africa Software as a Service (SaaS) Market Share, By Enterprise Size, By Value, 2019–2029

Table 5        South Africa Software as a Service (SaaS) Market Share, By End User, By Value, 2019–2029 

Table 6        Broadcom Company Overview

Table 7        Broadcom Financial Overview

Table 8        Google Inc. Company Overview

Table 9        Google Inc. Financial Overview

Table 10      Fujitsu Ltd. Company Overview

Table 11      Fujitsu Ltd. Financial Overview

Table 12      Amazon.com Inc. Company Overview

Table 13      Amazon.com Inc. Financial Overview

Table 14      IBM Corporation Company Overview

Table 15      IBM Corporation Financial Overview

Table 16      HP Company Overview

Table 17      HP Financial Overview

Table 18      Oracle Corporation Company Overview

Table 19      Oracle Corporation Financial Overview

Table 20      SAP SE Company Overview

Table 21      SAP SE Financial Overview

Table 22      Microsoft Corporation Company Overview

Table 23      Microsoft Corporation Financial Overview

Table 24      Salesforce Company Overview

Table 25      Salesforce Financial Overview