Software as a Service (SaaS) has been spreading dramatically along the globe for the last decade. The SaaS business model offers a cutting-edge way of providing software products, allowing for shorter time to market and better agility. Allied Market Research states that the global SaaS market size was valued at $121.33 billion in 2020. It’s projected to be valued at $702.19 billion by 2030.
Based on various factors, such as advancements in technology, innovations in processes, and increasing adoption of SaaS models by companies, SaaS will continue to be an attractive means of delivering highly reliable services to end users. Software development companies like Yalantis help businesses to create sophisticated SaaS solutions applying advanced approaches and using the latest technologies.
We devoted this article to new SaaS industry trends as keeping up-to-date with the latest trends in the industry is never a bad idea. It’ll allow you to stay ahead of the curve and give you some great ideas when it comes to up-skilling your SaaS firm, or business. But before viewing the SaaS app development trends, let’s check out first how the SaaS market changes over time to see the future of the SaaS market.
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How the SaaS market is evolving
We’ve seen a lot of changes in the SaaS market over the past few years, and we’ll likely see more in the coming months and years.
The SaaS market is transforming as follows:
- An increasing number of small businesses are leveraging SaaS to grow and run fast and economically
- The number of enterprise customers continues to grow as well
- There’s been a shift from freemium models to paid subscriptions
- The growth of multi-tenant platforms such as Salesforce has slowed down
- Increased competition means better products
- SaaS is becoming more common than traditional enterprise software.
All the facts above contribute to the rise of new SaaS trends we list below.
The 7 latest SaaS trends to follow in 2023
As we look ahead to 2023, there are several trends that will have an impact on the future of SaaS.
1. AI implementation for improved user experience
Artificial intelligence (AI) is in the list of the most discussed topics in the SaaS domain nowadays. AI is an emerging technology that has been around for many years, but now, it’s become more prevalent in software development.
This year is also seeing a lot of SaaS companies incorporating AI into their services. This trend will continue to grow.
Some of the AI features that can be used in AI-based SaaS solutions include:
Personalization. Using AI to personalize your experience on a website or application by learning about your preferences and interests over time.
Recommendation engines. SaaS companies use AI to recommend products or services based on what you’re interested in. These suggestions can stem from what other individuals similar to you have bought or done previously.
Cognitive search. It comes to using AI to make search results more intelligent by understanding the intent behind your queries and delivering results that are relevant to your needs.
2. Machine learning as a service to simplify data analytics
In the past, it was difficult for small businesses to implement machine learning because they lacked the expertise and resources to do so. But, nowadays, there are lots of businesses providing machine learning as a service (MLaaS). This makes it easier for small businesses to incorporate machine learning (ML) into their operations without having to invest heavily in infrastructure or software development.
ML can be used by small businesses for different purposes. Take for example customer engagement. ML is leveraged to provide consumers with a high level of personalization by analyzing their behaviors and tastes. For instance, Netflix applies ML algorithms to suggest video content similar to that watched by the user previously. Retailers can use these algorithms to recommend products that may interest their customers based on their past purchases and browsing history.
3. Multiple pricing models offer more choices
SaaS software providers are offering more than just a single pricing model. They’re providing options that include pay-as-you-go, subscription, and freemium offerings. This gives users more choices when deciding how they want to use the software.
Pay-as-you-go options are popular among users who need access to a specific feature or service but don’t want to commit to an ongoing subscription. Subscription plans allow companies to pay monthly or annually for access to all features and services within the software. Freemium offers allow customers to get started without paying anything upfront; however, once they exceed their free usage limits, they’re required to upgrade their plan or stop using the software altogether.
4. Mobile-first SaaS unlocks more flexibility
Mobile has become ubiquitous with more than half of all SaaS companies offering their products as mobile apps today. Actually, consumers are spending more time on smartphones than desktops presently!
By making their products available on mobile devices, SaaS companies unlock greater flexibility for users who can access their services from anywhere and on any device they choose. The result is increased engagement levels and higher conversion rates too!
5. Vertical SaaS gaining ground
One of the biggest trends in SaaS is verticalization. Companies will have more specialized products for specific industries and verticals. Giving up on general-purpose products, businesses are creating those meeting particular needs. For example, Salesforce has launched Salesforce CPQ (Configure Price Quote) for sales, marketing, and field service organizations. Vertical SaaS is disrupting many industries including healthcare, manufacturing, and FinTech.
6. White labeling as a new revenue stream
The benefits of white labeling are significant. It allows you to build recurring revenue from an existing SaaS product without having to build your own infrastructure or manage your own customer support.
The benefits for customers are clear as well. They can purchase a complete software solution that is already functional and ready to go, without the need to spend more time or money on development. In fact, they can often even customize the solution themselves if they wish (although this might be restricted).
White labeling is a win-win situation for both sides and it’s becoming more common in SaaS products every day.
7. Minimalistic design to shift focus on features
In 2023, we will see more minimalistic designs for SaaS. The idea is that if you have a lot of features and functionalities, then the user interface will be complicated. It may be challenging for consumers to find what they are looking for. In response to this, many companies are focusing on making their interfaces as simple as possible so that consumers can easily find what they want and use it in a simple way. It’s also important that SaaS providers include a good support system so that users can get help when they need it most.
Conclusion
The SaaS market is becoming different day by day. There are many innovations, and they won’t stop! Many start-ups nowadays provide incredible solutions that make our lives easier. The SaaS market, in the end, will always be changing because technology changes, people change and businesses change. It’s a fast-moving world, so be prepared to be in constant motion as well!
