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APAC SaaS Applications Market to Grow at a CAGR of 41 Percent to Touch $4321 Million in 2015

The APAC software as a Service (SaaS (News - Alert)) market is likely to grow from $390 million in 2008 to $4321 million in 2015, at an estimated CAGR of 41.0 percent, according to a report by MarketsandMarkets.

Many enterprises have the option to use application on demand compared with buying the complete license of the application. Low cost of implementation, flexibility of usage, and a growing mindset among enterprises and business users to try Web-based applications will fuel the SaaS market.

According to the MarketsandMarkets report called “The SaaS Market in APAC (2010 – 2015),” the size of the APAC SaaS applications market will be worth $4321 million by 2015.

The reach of SaaS will grow among enterprises in Asia Pacific. Australia and New Zealand (ANZ) is the largest regional SaaS market in Asia Pacific.

SaaS is generating enthusiasm in ANZ because of the market’s resemblance to the North American market with better broadband penetration, availability of applications delivered in SaaS mode and greater adoption of IT.

India and China will register a higher growth rate compared to the entire APAC in the coming years. Hong Kong and Singapore will follow the trend as the number of applications offered in SaaS mode will increase. 

Customer Relationship Management (CRM), Enterprise Resources Planning (ERP) and collaboration are widely used applications in SaaS mode with high uptake across verticals. As the market matures, end-users are gradually showing increasing interest towards applications like HRM, e-learning and e-procurement platforms.

Recently, research firm In-Stat announced that the global Infrastructure as a Service (IaaS) market is set to grow to $4 billion by 2015. IaaS growth will primarily be driven by the small business market. Small business is likely to account for over half of the market in IaaS and SaaS.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.