KBS - Software-as-a-Service - Market Insight

SECTOR DEFINITION

This sector encompasses businesses that deliver software applications via the cloud on a subscription or usage based model. Instead of installing software locally, customers access services through a browser or API, enabling continuous updates, scalability and lower upfront costs. The sector includes products such as CRM, ERP, HR & payroll, collaboration tools, vertical SaaS (industry-specific applications), cybersecurity SaaS, analytics platforms, developer tools, fintech SaaS, marketing automation, AI enabled services and enterprise management systems. SaaS solutions serve virtually every industry, including technology, financial services, healthcare, retail, manufacturing, real estate, logistics and government. They are critical to enterprise digital transformation, offering automation, compliance support, scalability and data-driven decision-making.

Revenue Software Development in the UK Total value (£) and annual change from 2013 - 2031. Includes 5-year outlook

1.5

20%

Forecasted

1.2

16%

2026 Annual Revenue (£bn) 1.1 2026 Change 2.5%

0.9

12%

0.6

8%

0.3

4%

0

0%

2014

2016

2018

2020

2022

2024

2026

2028

2030

Change (%)

Annual Revenue (£bn)

Source: IBISWorld