LATAM Software-as-a-Service (SaaS) Market Overview
Emerging technologies, such as artificial intelligence, machine learning and others in the IT industry, coupled with growing demand for SaaS solutions from end user companies and introduction of mobile SaaS services are some of the factors believed to benefit the expansion of the LATAM software-as-a-Service (SaaS) market. SaaS providers help to deliver software applications over the internet to a client which is present at a remote location. These software applications can be dedicated or a common application for the client and can be accessed by a web browser or applications with in-built internet connectivity feature. SaaS providers maintain the application on their server and are responsible for the performance, security and maintenance of the application for greater client experiences. SaaS providers can also customize the application based on the requirement of its client. Additionally, in the recent era, where businesses need to stay ahead in competition, there is an increasing demand from IT organizations for consultative support as well as for applications that have special and specific business requirements, raising the need for the deployment of SaaS solutions. Moreover, lowering costs of SaaS solutions, coupled with rising internet infrastructure in the region are some of the factors anticipated to contribute significantly towards the growth of the LATAM software-as-a-service (SaaS) market. The LATAM software-as-a-service (SaaS) market is slated to grow at a highest CAGR of around 28% over the forecast period 2019-2026.
Market Segmentation Synopsis
By Type
The LATAM software-as-a-service (SaaS) market is segmented on the basis of type into enterprise resource planning or ERP, customer relationship management or CRM, human resource management or HRM, supply chain management or SCM and others. The enterprise resource planning or ERP segment is anticipated to showcase great potential in the future. The segment occupied a market share of around 30% in the year 2018 and is further anticipated to attain an absolute $ opportunity of around USD 3900 million during the forecast period. SaaS ERP or SaaS enterprise resource planning is a cloud business process management software which allows organization to manage the business and automate back office functions. The software package usually includes all facets of an operation such as product planning and development, manufacturing, sales & marketing and others, all clubbed in a single database application backed by a user interface. ERP helps optimize business processes by providing accurate and timely access to reliable information. Further, the online software also helps to eliminate unnecessary operations and data, helping to reduce time and cost of operations.
Market Drivers and Challenges
Growth Indicators
The LATAM software-as-a-service (SaaS) market is thriving on the back of increasing adoption of cloud services observed in the region, especially by small and medium enterprises (SMEs), emerging markets in the region, along with favorable government policies that is helping several organizations to place their business in the region. Increasing local initiatives concentrating in the field is helping businesses from around the world to place their businesses in the region owing to low operational costs and greater work ambition amongst the people. Backed by the developing IT infrastructure in the region numerous startup ventures have boomed in the recent years and unlike developed nations, people here are able to work at a lower cost. Owing to such a factor, the startup ecosystem in the region is thriving significantly which is generating the need for SaaS platforms for utilization by these organizations. Additionally, greater adoption rate for SaaS applications is also contributing towards the rising demand of SaaS providers. Such factors are anticipated to drive the growth of the LATAM software-as-a-service (SaaS) market.
Barriers
Concern for data theft, cybercrimes, and other cyber thefts, coupled with the difficulties observed in integration and migration between the SaaS providers due to service quality issues are some of the factors anticipated to impact negatively towards the growth of the LATAM software-as-a-service (SaaS) market.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the LATAM software-as-a-service (SaaS) market are Fujitsu Limited, Oracle Corporation, IBM, Microsoft Corporation, Broadcom Inc., Alphabet, Inc., Amazon.com, Inc., HP Development Company, L.P., SAP SE and Salesfore.com, Inc.
