Our guide to why SaaS trends will dominate the software market in 2024.
According to a study done by BCC Research, “The global software as a service (SaaS) market for business applications should total $571.9 billion by 2027 from $223.7 billion in 2022 at a compound annual growth rate (CAGR) of 20.6% from 2022 to 2027.”
SaaS products are already changing the world. Everything from Microsoft Office to supply chain management software is now available as a SaaS service.
The reasons why SaaS industry trends will dominate in 2024
We now explain the reasons why SaaS industry products will continue to dominate the market. These reasons are as follows:
1. Excellent SaaS product ideas keep emerging
SaaS is a software licensing and delivery model that utilizes cloud computing. This delivery model brings several benefits to users and businesses.
However, SaaS solutions can achieve success only if they deliver tangible value to customers. A product that doesn’t benefit customers won’t succeed just because you use an innovative delivery model!
The good news is that great SaaS product ideas keep coming up! Consider the following lesser-known examples of SaaS products:
- Everhour: Organizations that need an effective solution for time management can benefit from Everhour. It’s an easy-to-use platform that addresses all the time tracking requirements of users.
- Mealime: People that want to eat healthy meals can use Mealime to plan their meals. It offers several useful features, e.g., users can customize their recipes.
- Complice: You can use Complice to plan your goals and track day-to-day actions associated with those goals. This SaaS product helps you to plan your day. It also enables you to reflect upon your goals and track your progress.
Read more about these examples in “6 micro SaaS ideas you’ll want to steal”. The steady stream of great SaaS product ideas will significantly help SaaS to grow.
Hire expert developers for your next project
2. SaaS trends emerging are conducive to the growth of SaaS
Key SaaS trends are emerging in 2024, and these will likely help SaaS to dominate the market. These trends are as follows:
- Product-led growth: Experts define “product-led growth” (PLG) as a business methodology. In this methodology, the product mainly drives user acquisition, expansion, conversion, and retention. PLG is increasingly becoming more popular, which augurs well for SaaS products.
- The rise of mobile: Smartphones are incredibly powerful now, and that trend is accelerating. Consequently, mobile Internet traffic is increasing significantly. If you can develop user-friendly and fast mobile apps for your SaaS product, then you stand to gain from this trend.
- The need to put the customer in the center: Since customers now have so many choices, businesses are competing to put them in the center. If you can do that for your SaaS product, then you stand to gain market share notably.
- The growth of “Artificial Intelligence” (AI): AI is a powerful technology that is advancing rapidly. Using AI, you can transform your SaaS product in many ways. This will help you to gain a bigger market share. Read our guide “10 ways adding AI software to your SaaS platform can 10x your revenue” for more insights.
- The growing popularity of usage-based pricing: “Pay as you go” or usage-based pricing is becoming more and more popular. Transform your SaaS business to embrace outcome-based pricing instead of seat-based. You can grow your SaaS business significantly.
- The growth in the popularity of APIs: “Application Programming Interfaces” (APIs) are already very popular, however, their popularity is growing further. If you can capitalize on this trend, then your SaaS product can gain significant market share.
- The importance of finding an industry niche: Finding an industry niche can help you to gain a high market share there. This trend is becoming more popular, and experts call it the “vertical SaaS solutions”. Identify an industry niche for your SaaS product and dominate it.
Read “The 8 biggest SaaS trends of 2024” for more insights. Take advantage of emerging SaaS trends to grow your SaaS business.
3. The predominance of cloud computing is driving future SaaS trends
The predominance of cloud computing is a key reason that SaaS products will dominate the future. Enterprises are embracing cloud computing in a big way.
Experts estimate that enterprises will move 80% of their IT workload to the cloud. This trend of transitioning away from on-premises to the cloud has acquired certainty now.
Enterprises are especially prioritizing their mission-critical workload for this transition. Read more about this forecast in “Future of SaaS: what to expect in the next 5 years”.
While this trend isn’t confined to SaaS, SaaS businesses will certainly benefit from this. The growing popularity of cloud computing will make SaaS trends more dominant.
4. SaaS trends offer a low entry barrier
Businesses needed to do a lot earlier when they had to invest in software! They needed to buy the required licenses, and subsequently, they needed to arrange for the hardware. Of course, they needed a large enough data center.
SaaS makes it a lot simpler! Businesses just need to select the SaaS product they need and buy subscriptions. They don’t need to make any other upfront investment to use it.
The low entry barrier has been a key factor in the growth of SaaS software. It remains a key advantage even today, driving the growth of SaaS.
Hire expert developers for your next project
1,200 top developers
us since 2016
5. The growth in data will push the growth of SaaS further
The exponential growth of data represents an opportunity for all businesses and not just SaaS. Businesses will use this data to predict aspects like customer behavior.
Technologies like AI and “Machine Learning” (ML) play a big part in predictive analytics. As we have already explained, SaaS businesses are embracing AI and ML aggressively.
Incorporating these cutting-edge technologies will help SaaS companies to make optimal use of the growing data. This will further boost the growth of SaaS. Read “The future of SaaS according to these 16 companies” to learn what experts feel about this.
6. 5G will benefit cloud computing including SaaS
While 5G is still being rolled out, this latest generation of mobile wireless technology has attracted a lot of interest already. 5G will offer much faster data transmission with much lower latency.
This opens an entirely new set of opportunities, consequently, we will see a lot more application development in the coming years. 5G will benefit several sectors, e.g., healthcare, automotive, etc.
The massive growth in new applications will drive significantly higher investment in cloud computing. Read more about this forecast in “How 5G will accelerate cloud business investment”. Since SaaS occupies a proud place in cloud computing, it will see growth too.
7. The growing need for collaboration and enterprise productivity will drive the growth of SaaS
The growing popularity of Google Workspace and Office 365 tells us that enterprises want a consolidated solution for their productivity needs. Employees in enterprises don’t want to leave a platform and log in to another tool to collaborate.
SaaS providers like Google Workspace and Office 365 offer consolidated solutions. This matches what enterprises and their employees need. This trend will only accelerate and drive the growth of SaaS businesses.
8. SaaS businesses are working smarter to attract and retain customers
SaaS businesses realize that they need to address the unique needs of their customers. They are making their products and platforms more and more relevant to their customers. Google, Salesforce, and Microsoft are key examples of this.
Hire expert developers for your next project
These technology giants are also increasing the industry orientation of their developers. They are motivating their developers to learn how industries operate. This will help developers to respond to customer needs better.
The growing smartness on the part of SaaS businesses will help them to create better SaaS products. Read “5 SaaS trends for 2024” to learn more.
9. Finally, the cost advantages will continue to drive the growth of SaaS products
Businesses that buy SaaS products will continue to enjoy cost advantages. SaaS offers cost advantages due to the following reasons:
- Businesses that buy SaaS products don’t need to invest in software development and maintenance manpower. They also don’t need to invest in IT infrastructure or tools for these purposes.
- The “Pay as you go” SaaS model saves costs for businesses that buy SaaS products.
Read more about this in “Will SaaS dominate the workplace?”. The cost savings will continue to drive the popularity of SaaS.
Final thoughts on SaaS trends for 2024
In this article, we reviewed why SaaS trends will dominate the software product market in the coming years. If you, as a SaaS company, need help with developing a trending SaaS solution, please contact us at DevTeam.Space. We will help you!
Frequently Asked Questions on SaaS trend
SaaS stands for Software as a Service. It is cloud-based software that is available to users, usually for a fee. This can include document management tools, digital asset management solutions, collaboration tools, etc. The SaaS product model is often divided into horizontal SaaS and vertical SaaS.
Microsoft Office 365, Google Apps, Dropbox, and Salesforce are a few examples of SaaS software solutions.
Build a team of great developers with experience in SaaS development and set the ball rolling. If you don’t have great engineers then contact DevTeam.Space to get some.