The Asian SaaS Market and Its Promising Growth
While companies from different industries have suffered crises during the pandemic era, the Software as a Service (SaaS) industry’s growth doesn’t seem to slow down. SaaS tools provide solutions to a lot of challenges that popped up or intensified during the lockdowns, such as the inability to work from the office and the need for remote work and internal communication. SaaS solutions enable organizations to access data from any device having an internet connection and from anywhere through convenient subscription-based software, thus making them the go-to solution for businesses across many industries. SaaS provides you a hassle-free experience by giving simple access to it via the internet, without requiring tasks like installing and maintaining software.
The Evolution of SaaS
While many think that SaaS is a new concept, it actually dates back to the 1960s. The early SaaS systems used to rely on ‘dumb’ terminals connected to a mainframe. This technique was popularly used by small businesses, government organizations and educational institutions, without having to pay for hardware, training and support. It can be called as an early forerunner to the internet and SaaS. With time, computers became more popular, affordable and accessible, making people realize the need for single solutions for multiple tasks to save time and money, and to improve internal collaboration.
The SaaS Transformation
Software giant Salesforce, in 1999, introduced its customer relationship management (CRM) platform as the first-ever SaaS solution and succeeded over time. Leading the way to prove that SaaS is the future of software delivery, Salesforce made the SaaS model popular in the market. Initially, SaaS was recognized as a model suitable only for small businesses and startups, but over time, it became a revolutionary success with a wide adoption rate. The limitless functionality, low upfront costs and exponential growth of SaaS made it a go-to option for large-size businesses. Businesses started to switch from single-use models to subscription-based models.
SaaS Stats to Watch in 2023
- Gartner claims that almost 65.9% of spending on software will go to SaaS models by 2025, up from 57.7% in 2022
- Oracle reports 91% of companies consider SaaS an enabler of emerging technology adoption
- According to a report by BetterCloud, 85% of business applications will be SaaS-based by 2025
- BetterCloud statistics argue that around 38% of organizations are running completely on SaaS, while 80% of companies will switch all of their systems to SaaS by 2025
Why is SaaS Loved?
SaaS is loved by businesses of all sizes and across industries for several reasons. Here are some of the key advantages of SaaS:
Automatic Updates: SaaS companies ensure that their platforms are always up-to-date so that you can use them confidently
Cost-efficient: SaaS is highly cost-efficient as it doesn’t demand expensive hardware acquisition and high maintenance
Time-saving: The SaaS model saves a lot of time spent on installation, configuration, training and maintenance, allowing you to invest your time in more crucial tasks
Highly Scalable: SaaS provides you the flexibility to scale up and down as per your requirements, enabling you to grow your business faster
The Growth of SaaS in Asia
In the past few years, Asian SaaS companies have not only caught up with their global competitors but have also proved the potential to overtake them and become trendsetters in the SaaS space. The market for SaaS in Asia Pacific is expected to see the highest CAGR of 12.1% from 2022 to 2028. India and China are significantly contributing to the growth of the SaaS market owing to the increasing demand for outsourcing of cloud-based software and the mushrooming of small and medium businesses. The SMEs are increasingly outsourcing cloud-based SaaS platforms for reducing the cost of software deployments. Moreover, the exponential growth in the IT industry in Asian countries is further expected to present huge opportunities to the market. The growing number of secured servers in Japan, China, and India further boosted the growth of the SaaS market during the forecast period. Furthermore, major players in Asian countries are focusing on improving their operations and increasing their operational and process efficiency to stay competitive, which is expected to provide tremendous growth opportunities in the SaaS space.
The SaaS market in India is expected to account for around 7 – 10% of the global SaaS market, from the current share of 2 – 4%, according to a research report by EY-CII. The SaaS revenues in India are already witnessing 20% growth annually, with a rising uptake in SaaS solutions from Indian small and medium businesses across sectors.
SaaS Applications the Asian Market Focuses On
The evolving SaaS industry in the Asia Pacific region is primarily focusing on developing applications in the following areas:
- Enterprise resource planning
- Customer relationship management
- Human resource management
- Supply chain management
- Messaging applications
- Web conferencing platforms
Verticals the Asian SaaS Market Focuses On
The Asian SaaS players are now concentrating their focus on creating industry and niche-specific solutions. Such solutions are often for a unique set of clients and are particularly developed to meet their specific needs. The development of SaaS solutions in the Asian market is majorly focused on the following six main verticals:
- Information technology
- Telecommunications
- Education & Healthcare
- BFSI (Banking, Financial Services, and Insurance)
- Manufacturing
- Retail
Asia’s Top 500 SaaS Companies – 2022
Asia Inc. 500 is listing the 500 Exemplary SaaS Companies in Asia. The list will recognize the top 500 Asian SaaS companies that did exceptionally well in innovation and customer service & support in the year 2022. The list will be the first of its kind in Asia and will serve as a compressive directory of the best SaaS companies that businesses seeking SaaS can access. The listing will be done under several categories. The nominations will be evaluated by a jury comprising hand-picked industry experts from a spectrum of disciplines. The top-ranked companies will be listed on the Asia Inc. 500 website.
The Asia’s Top 500 SaaS Companies – 2022 listing aims to:
- Represent software innovation and diversity from all industries.
- Recognize 500 exemplary SaaS companies, several of whom might not have come to public attention.
- Rank and build a comprehensive directory of 500 SaaS companies across Asia – one that will serve as an index for Asia’s best SaaS companies.
Who can apply?
The nominations are open to any SaaS application/product/solution, regardless of industry, product focus, or market share in Asia.
How to apply?
Visit our website (http://asiainc500.com/), choose the category you want to nominate under, fill in the details with supporting documents proving your claim and submit the nomination.
To learn more, visit: http://asiainc500.com/asias-top-500-saas/
Wrapping Up
Although the Asian players have entered the SaaS landscape a little later than their global counterparts, some businesses have already established themselves as international SaaS brands. The determination, innovation and competitiveness these Asian companies are showing, imply that the Asian SaaS industry is going to witness massive growth very soon.