Software as a Service, or SaaS, is the use of software applications hosted remotely on a secure cloud platform. With the trend toward digital transformation and increased business demand for greater user-friendliness, SaaS adoption has surged in the last few years. By the end of 2022, total spending on software as a service will grow to $127.25 billion and become an even larger market segment than the operating system and desktop software combined by 2021. Furthermore, the annual revenue for software as a service will top other major software vendors like Microsoft and Adobe Systems.
We can see that this trend, as well as mobile development services, is extremely popular so far. However, the world doesn’t stand still. Many new technologies enter the market on an ongoing basis. No matter whether you are a business owner who wants to build SaaS projects for your needs or a software development company, you should always keep up with the latest trends in this niche. So let’s review some of the hottest trends for 2022!
Growth in Cloud Services
Cloud services have become a major part of the software as a service industry. Cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud have captured significant market share with their offerings. As companies embrace a more digital business culture, increasing numbers of businesses are turning to cloud computing for a variety of business uses.
This trend will continue into 2022 as cloud computing becomes even more accessible and accepted by businesses seeking to operate more digitally. Cloud services are becoming more advanced, with three technological trends expected to propel growth in this market by the end of 2022. First, the rise of AI and machine learning (ML) will progress the use of AI-based automation in the cloud services market. Moreover, AI has enabled new levels of automation in cloud applications.
In fact, as cloud providers continue to invest in AI and ML, this has become one of the most important trends in cloud services for 2022. Second, advancements in digital transformation might increase the adoption of cloud services for both business use and consumer applications. Consumers are increasingly relying on software to run their daily activities, from managing their money to managing their family schedules. And, as businesses adopt digital transformation, AI, digital assistants, and other technologies are improve productivity and deliver a better customer experience. This growth in digital transformation is another one of the most important technological trends in cloud services for 2022.
Third, the rise of the Internet of Things (IoT) and the growing popularity of blockchain will boost the growth of cloud services. The IoT has seen significant growth in the last few years, with an estimated 30 billion devices expected to be connected to the internet by 2020. The growing demand for IoT-based applications will boost the adoption of cloud services as a connectivity option for this booming market segment. And, as blockchain technology becomes more popular, it might also boost the demand for blockchain-based SaaS offerings.
Personalized and AI-based Software Development
While automation has driven the growth of cloud services, businesses are also increasingly turning to AI and ML for software development. According to research from Frost & Sullivan, the AI market will grow at a compound annual growth rate (CAGR) of 64% between 2018 and 2022; this growth will be fueled by the demand for digital assistants and personalization in software applications. AI will also play a major role in helping companies transform their business processes.
The growth of AI and machine learning in software development will surely help companies create software that is more reliable and efficient. In fact, AI helps companies reduce development costs, increase the number of successful software launches, and create applications that are more consistent and accurate.
Advanced User Analytics
It’s one of the top SaaS trends expected to see significant growth in the coming years. The use of advanced tools for user analytics might bolster the adoption of cloud services. As companies turn to AI for more powerful and accurate software development, they are also turning to advanced tools for user analytics. Advanced analytics tools can help companies analyze their customers’ needs, allowing them to develop highly personalized software for their users. This trend is gaining momentum as companies are looking to use advanced tools for user analytics in their SaaS offerings.
Robotic Process Automation and Chatbots
As the cloud services market continues to grow, so do the expectations of businesses. In response, more and more companies are turning to robotic process automation (RPA) and chatbots to deliver a more seamless and smoother SaaS experience. This trend is growing as more companies migrate to cloud services. With the rise of digital transformation, the demand for chatbots is increasing due to the growing need for high-reliability solutions to support a range of user scenarios. And, as the cloud services market continues to flourish, the demand for RPA tools will grow.
With the rise of AI and ML, operators will see an increased demand for automation. This automation trend is planned to follow the same path as robotic process automation and is a popular SaaS trend in 2022.
As the cloud services market continues to grow, it will probably become an even larger segment of the software market. This growth is due to the rise of advanced technologies like AI, machine learning, and automation, as well as the demand for more personalized software. These two top SaaS trends will increase spending on cloud services, resulting in revenue growth of more than $127.25 billion by the end of 2022.