Global Everything-as-a-Service (XaaS) Market Size, Forecast, and Trend Highlights Over 2022 - 2031
The global everything-as-a-service (XaaS) market is estimated to garner a revenue of USD 2200 billion by the end of 2031 by growing at a CAGR of ~25% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of USD 400 billion in the year 2021. The growth of the market can primarily be attributed to the increasing amount of data generated worldwide. It was estimated that approximately 2.5 quintillion bytes of data is produced every day, in 2018.
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In the world of digitization with the advancements in the field of cloud computing, artificial intelligence (AI), Internet of Things (IoT), almost everything is available “as a service.” A business model where the user can access products, tools, technologies and services delivered to users as a service over the internet, can be categorized as XaaS business model. Everything-as-a-service (XaaS) mark out services that are related to cloud computing and remote access. The model caters to various industries such as in the software industry, XaaS examples include software-as-a-service (SaaS), platform-as-a-service (Paas), and infrastructure-as-a-service (IaaS), but is not limited to only the tech space. It was observed that, with an increase of more than 17% from 2021, approximately USD 1.8 trillion is forecasted to be spend on the digital transformation (DX) of business practices, products, and organizations in 2022.
Global Everything-as-a-Service (XaaS) Market: Growth Drivers and Challenges
Growth Drivers
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Upsurge in the Number of Secure Internet Servers – According to the World Bank data, in the year 2020, there were 11,499 thousand secure internet servers per 1 million people globally.
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Increase in the B2C E-Commerce Gross Merchandize Value (GMV) – According to data published by the United Nations Conference on Trade and Development (UNCTAD), the aggregate GMV of top 13 B2C e-commerce companies rose from 17.9% in 2019 to 20.5% in 2020.
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Rise in the Number of Internet Users: As per the World Population Review, only 6% of the world’s population, or 361 million people used internet in 2000, whereas in 2022, there are 4.9 billion people or 69% of the world’s population, actively using the internet. The trends exhibit an annual rate of 4%, meaning that ~196 million new people access the internet each year.
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Growing Number of Connected IoT Devices – It was found that, in the year 2022, the IoT connections surged by more than 8% or to ~ 12.2 billion active endpoints in 2021, whereas it is estimated to reach more than 14 billion in 2022 across the globe.
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Promising Employment Opportunities in Computer and Information Technology (ICT) – According to the data revealed by the U.S. Bureau of Labor Statistics, the employment generation in ICT sector is faster than the average for all occupations. Moreover, the demand for these workers will stem from greater emphasis on cloud computing, the collection and storage of big data, and information security. It is forecasted to rise 13% from 2020 to 2030, adding about 667,600 new jobs.
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Lack of Skilled Labor – It was found that the number of ICT employment advertisement which included the term Internet of Things (IoT) increased by more than 30% between July 2021 and April 2022.
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Concern Regarding Cyber Security and Data Breach – Average cost of data breach grew more than 2.5% from ~USD 4.2 million in 2021 to ~USD 4.3 million in 2022. In the year 2020, compromised credentials, phishing and cloud misconfiguration were responsible for ~19%, ~16%, ~15% of breaches respectively.
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High Cost of Investment for Adopting and Constant Modernizing of Technology- The global everything-as-a-service (XaaS) market is segmented and analyzed for demand and supply by business type into B2B and B2C. Out of which, the B2B segment is anticipated to hold the largest share over the forecast period on the back of the growing number of businesses as well as services adopting remote server hosting or cloud computing worldwide. According to the Organization of Economic Co-Operation and Development (OECD) data, in the year 2018, some or the other form of cloud services were purchased by more than one third of businesses in OECD countries, increasing 20% from that in 2015.
Major Macro-Economic Indicators Impacting the Market Growth
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Global Everything-as-a-Service (XaaS) Market Regional Synopsis
Regionally, the global everything-as-a-service (XaaS) market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these, the market in the North America region is projected to hold the largest market share by the end of 2031, backed by the ongoing technological innovation and development in the region as well as growing investment in the research and development. According to the World Bank statistics, in the year 2020, the annual research and development expenditure in North America accounted for 3.32% of the total Gross Domestic Product (GDP).
The global everything-as-a-service (XaaS) market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
Market Segmentation
Our in-depth analysis of the global everything-as-a-service (XaaS) market includes the following segments:
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By Business Type |
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By Enterprise |
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Top Featured Companies Dominating the Global Everything-as-a-Service (XaaS) Market
- HCL Technologies Limited
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Cisco Systems, Inc.
- Solution Analysts, Pvt Ltd.
- Nokia Corporation
- Accenture PLC
- Google LLC (Alphabet Inc.)
- IBM Corporation
- Microsoft Corporation
- VMware, Inc.
- AT&T Inc.
- SAP SE
