Access and Feeds

SaaS: North America Leads Global Growth

By Dick Weisinger

Software as a Service, a technology largely pioneered and developed in the US, has seen acceptance and strong growth in the United States, but elsewhere, globally, growth has not been nearly as strong.  A report from Siemer and Associates compared SaaS trends globally and found that outside the US, there are a number of factors that are holding back growth in the SaaS market.

The Siemer report found that globally, the SaaS market grew 16.8 percent in 2012 from a $14.3 billion market to a $16.7 billion one, and the report forecasts a market size of about $21.3 billion by 2015.  The North American market has a considerable lead in size currently at more than $9 billion, followed by Europe at $3.4 billion, Asia at about $1.4 billion and Latin America at about $0.4 billion.

The report notes that growth in the US has been stronger than elsewhere both simply because the SaaS model was developed here, and because the US presents no cultural barriers to the acceptance of the technology.  Elsewhere in the world there are privacy regulations that need to be cleared, and general worries about security and loss of control of data.  In emerging markets, a major barrier has simply been that the Internet infrastructure is not sufficiently developed to make the technology usable or reliable.

Economic conditions in Europe are cited as a major factor for slow uptake in Europe.  Eastern Europe, the Middle East and Africa are slow to adopt primarily because of infrastructure issues.

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