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    US Software as a Service Market

    ID: MRFR/ICT/14137-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US Software as a Service Market Research Report: By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Application (Customer Relationship Management, Enterprise Resource Planning, Human Resource Management, Collaboration and Communication, Marketing Automation), By Vertical (Retail, Healthcare, Manufacturing, Education, Financial Services) and By User Type (Small Enterprises, Medium Enterprises, Large Enterprises) - Forecast to 2035

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    US Software as a Service Market Infographic
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    US Software as a Service Market Summary

    The United States Software as a Service market is projected to grow significantly from 45 USD Billion in 2024 to 120 USD Billion by 2035.

    Key Market Trends & Highlights

    US Software as a Service Key Trends and Highlights

    • The market is expected to achieve a compound annual growth rate of 9.33 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 120 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 45 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of cloud computing due to increasing demand for scalable solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 45 (USD Billion)
    2035 Market Size 120 (USD Billion)
    CAGR (2025-2035) 9.33%

    Major Players

    SAP, DocuSign, Oracle, Atlassian, Zoom Video Communications, Workday, ServiceNow, Microsoft, Paycor, Shopify, Box, HubSpot, Salesforce, Adobe

    US Software as a Service Market Trends

    The US Software as a Service Market is experiencing notable market trends that are shaping its landscape. A key market driver is the increasing adoption of cloud technologies by businesses of all sizes. Companies are seeking flexible, scalable, and cost-effective solutions that can enhance their operational efficiency and reduce overhead costs. This shift towards cloud-based services is further propelled by the growing demand for remote work solutions, especially in the wake of the pandemic, where businesses are prioritizing accessibility and collaboration tools.

    Market Segment Insights

    Software as a Service Market Deployment Model Insights

    The Deployment Model segment of the US Software as a Service Market encompasses various frameworks through which software services are delivered over the internet, primarily focusing on Public Cloud, Private Cloud, and Hybrid Cloud. The trend toward cloud-based solutions continues to gain momentum in the United States, with sectors like healthcare, finance, and education leading the charge in adopting these technologies. The Public Cloud model is especially prominent due to its scalability and cost-effectiveness, allowing businesses to access robust software applications without the need for substantial upfront investment in infrastructure.

    Organizations benefit from the shared resources and services while also enjoying the flexibility to scale their operations as demands fluctuate. Meanwhile, Private Cloud deployments appeal to businesses with stringent data security and compliance requirements, as this model permits enhanced control and customization tailored to specific organizational needs. This is particularly relevant in industries such as banking and pharmaceuticals, where sensitive data management is critical.

    Additionally, the Hybrid Cloud model is gaining traction as it offers a balance between the Public and Private Cloud, enabling organizations to harness the advantages of both while maintaining the ability to operate in a secure environment for sensitive data.

    This model supports businesses in achieving greater agility and efficiency, allowing them to adapt quickly to market changes. The ongoing advancements in cloud technology, coupled with increasing Internet of Things (IoT) implementations, are fundamentally transforming service delivery in these deployment models. Furthermore, the US government’s initiatives to boost digital transformation among small and medium enterprises are also expected to play a significant role in propelling the adoption of various deployment models within the market. 

    As organizations continue to prioritize operational efficiency, data-driven decision-making, and customer experience, the Deployment Model segment within the US Software as a Service Market is positioned for notable growth, characterized by innovations that will redefine traditional business processes across numerous sectors.The segmentation of Deployment Models reflects the diverse needs and strategies of businesses aiming to leverage cloud computing effectively, presenting opportunities to streamline workflows and drive substantial market growth moving forward.

    Software as a Service Market Application Insights

    The Application segment of the US Software as a Service Market represents a dynamic and rapidly growing area, reflecting a significant shift towards cloud-based solutions across various business operations. Customer Relationship Management is pivotal as it enhances customer interactions and drives sales efficiency, making it essential for maintaining competitive advantage in the market. Enterprise Resource Planning is also vital, as it streamlines processes across departments, resulting in improved operational efficiency. Human Resource Management has gained prominence, emphasizing the need for effective workforce management and fostering employee engagement, especially as remote work becomes increasingly common in the US.

    Collaboration and Communication tools are critical in today's distributed work environments, facilitating seamless teamwork and connectivity. Finally, Marketing Automation empowers organizations to execute complex marketing strategies efficiently, enabling targeted outreach and customer engagement. As these applications continue to evolve, they contribute to the overall growth of the US Software as a Service Market, reflecting broader trends in digital transformation and businesses’ increasing reliance on technology-driven solutions for operational success.

    Software as a Service Market Vertical Insights

    The US Software as a Service Market focused on the Vertical segment showcases a diverse landscape characterized by various industries leveraging cloud-based solutions for enhanced operational efficiency. Each sector, including Retail, Healthcare, Manufacturing, Education, and Financial Services, harnesses SaaS capabilities to improve productivity, reduce costs, and ensure scalability. The Retail industry significantly benefits from customer relationship management and inventory management solutions, streamlining operations and personalizing customer experiences.In Healthcare, patient management systems and telehealth services are transforming care delivery, facilitating better patient outcomes and administrative efficiency.

    Manufacturing companies are increasingly utilizing SaaS for supply chain management and predictive maintenance, optimizing production processes and reducing downtime. 

    Education institutions are adopting learning management systems that enhance student engagement and facilitate remote learning. In the Financial Services sector, SaaS plays a crucial role in risk management, compliance, and providing advanced analytics, helping organizations remain competitive in a rapidly evolving regulatory environment.Overall, the flexibility and cost-effectiveness of SaaS solutions are driving market growth across these key sectors, making them integral to modern business strategies in the US.

    Software as a Service Market User Type Insights

    The User Type segment of the US Software as a Service Market showcases distinct dynamics across various enterprise sizes, each contributing uniquely to the overall landscape. Small Enterprises often drive innovation as they leverage SaaS solutions for cost efficiency and agility, facilitating their ability to compete with larger firms. Medium Enterprises frequently demonstrate a balanced demand for robustness and scalability, utilizing these platforms to streamline operations and enhance customer engagement. Meanwhile, Large Enterprises typically dominate the market through substantial investments, focusing on comprehensive integrations that optimize processes across multiple departments.

    The increasing adoption of cloud technologies is a significant market growth driver, as businesses seek to improve operational efficiency and reduce IT infrastructure costs. The trends indicate that as companies of all sizes aim to enhance remote collaboration and data accessibility, the User Type segment is set to expand further. However, challenges such as ensuring data security and compliance with stringent regulations remain essential considerations for enterprises engaging with SaaS solutions. Overall, the US Software as a Service Market segmentation remains critical in understanding how varying user types influence market dynamics and opportunities for innovation.

    Get more detailed insights about US Software as a Service Market

    Key Players and Competitive Insights

    The US Software as a Service Market is characterized by rapid growth and intense competition among various players offering cloud-based solutions. Businesses across various sectors have increasingly adopted SaaS models to enhance operational efficiency, reduce costs, and improve scalability. This market serves a diverse range of industries, including finance, healthcare, education, and more, providing tailored solutions to meet unique operational needs. Key factors driving competition in this space include the need for innovative technologies, superior customer service, and the ability to integrate with existing systems.

    As a result, companies are constantly innovating to capture a larger share of the market and cater to an ever-evolving customer base looking for flexibility and accessibility.

    SAP has established a formidable presence in the US Software as a Service Market through its extensive portfolio of enterprise cloud applications that cater to businesses of all sizes. The company leverages its strong reputation and brand value to offer solutions that enhance operational efficiency and data management for organizations across various sectors. Renowned for its robust capabilities in enterprise resource planning and data analytics, SAP effectively positions itself as a trusted partner for businesses navigating digital transformation initiatives.

    Its strong focus on customer experience and ongoing investment in research and development allow it to maintain a competitive edge, addressing client needs with tailored solutions while fostering long-term relationships.DocuSign plays a significant role in the US Software as a Service Market by providing electronic signature solutions that streamline the signing process for agreements and contracts. 

    Its comprehensive suite of products enables businesses to efficiently manage document workflows, increase compliance, and elevate customer experiences. Renowned for its ease of use and security features, DocuSign has built a strong market presence and customer loyalty across multiple industries. The company consistently enhances its offerings through strategic mergers and acquisitions, thereby expanding its technological capabilities and broadening its service range. By leveraging its strengths in automation and user-friendly design, DocuSign hopes to capture further market share in the US, providing innovative solutions that align with the needs of its diverse clientele.

    Key Companies in the US Software as a Service Market market include

    Industry Developments

    Recent developments in the US Software as a Service (SaaS) Market include significant growth and expansion activities by prominent companies. In October 2023, Salesforce announced a partnership with Microsoft aimed at enhancing cross-platform capabilities, reflecting the industry's trend toward integration and collaboration among service providers. ServiceNow has also been actively expanding its offerings, focusing on artificial intelligence to enhance automation capabilities. Meanwhile, Zoom Video Communications has seen substantial demand for its services, bolstered by the continued remote work trends that began during the pandemic.

    Recently, Paycor acquired the payroll technology firm, which is expected to enhance its HR solutions suite, demonstrating the continuing trend of consolidation in the SaaS sector. In the previous years, particularly in June 2022, Microsoft acquired Nuance Communications to strengthen its AI capabilities in healthcare. Overall, the US SaaS market is experiencing robust growth, driven by innovations and strategic mergers, with many firms adapting to meet increasing customer demands while enhancing their technological capabilities.

    Market Segmentation

    Outlook

    • Small Enterprises
    • Medium Enterprises
    • Large Enterprises

    Report Scope

    Report Scope:,,,,,,,,,,,,,
    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 41.15(USD Billion)
    MARKET SIZE 2024 45.0(USD Billion)
    MARKET SIZE 2035 120.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 9.326% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED SAP, DocuSign, Oracle, Atlassian, Zoom Video Communications, Workday, ServiceNow, Microsoft, Paycor, Shopify, Box, HubSpot, Salesforce, Adobe
    SEGMENTS COVERED Deployment Model, Application, Vertical, User Type
    KEY MARKET OPPORTUNITIES AI-driven analytics integration, Enhanced security solutions demand, Vertical-specific SaaS applications, Remote work enablement tools, Subscription-based pricing models
    KEY MARKET DYNAMICS cloud adoption surge, increasing remote work, cost-effective solutions, scalable infrastructure, enhanced security concerns
    COUNTRIES COVERED US

    FAQs

    What is the expected market size of the US Software as a Service Market in 2024?

    The US Software as a Service Market is expected to be valued at 45.0 USD Billion in 2024.

    What market value is projected for the US Software as a Service Market by 2035?

    By 2035, the US Software as a Service Market is projected to reach a value of 120.0 USD Billion.

    What is the expected compound annual growth rate (CAGR) for the US Software as a Service Market from 2025 to 2035?

    The expected CAGR for the US Software as a Service Market is 9.326% from 2025 to 2035.

    Which deployment model is anticipated to lead the market and what is its market size in 2024?

    The Public Cloud deployment model is expected to lead the market with a size of 18.0 USD Billion in 2024.

    What will the market value for the Private Cloud deployment model be in 2035?

    The Private Cloud deployment model is projected to reach a market value of 30.0 USD Billion by 2035.

    What are the key players in the US Software as a Service Market?

    Major players in the US Software as a Service Market include SAP, DocuSign, Oracle, and Salesforce among others.

    What is the market size for the Hybrid Cloud deployment model in 2024?

    The Hybrid Cloud deployment model is valued at 17.0 USD Billion in 2024.

    What growth opportunities exist for the US Software as a Service Market?

    Growth opportunities in the US Software as a Service Market are driven by the increasing demand for scalable and efficient business solutions.

    How will the US Software as a Service Market trend from 2025 to 2035?

    The US Software as a Service Market is expected to experience significant growth due to technological advancements and increased cloud adoption.

    What is the projected market size for the Public Cloud deployment model by 2035?

    The Public Cloud deployment model is projected to reach a market size of 50.0 USD Billion by 2035.

    US Software as a Service Market Infographic
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