China’s SaaS Industry Report

The SaaS business is an important indicator of China’s industrial digital reform.

According to the China Software Industry Association, by the year 2020, SaaS will account for over 20% of the overall enterprise application market.

Compared with the world, the Chinese SaaS market is just beginning, with a much faster-accelerated growth rate. The overall scale of China’s SaaS market in 2019 was $5.49 billion, showing an increase of 42% year-on-year, much higher than the 18.8% growth rate of the global SaaS market.

According to the data from HaiBi Research (Soft6.com), in 2020, 41.9% of medium and 44% of large enterprises will accept the SaaS deployment model, with a continuing growth rate.

Proportion-wise, the combination of local deployment software and customization still accounts for the highest proportion of medium and large enterprise users.

Even with the effects of the epidemic, the growth rate of China’s SaaS market in 2020 remains at a mid to high rate of about 25%. The growth rate of China’s SaaS market is lower than that of PaaS, and its proportion is lower than that of IaaS, which once again confirms the unique structure of China’s public cloud market.

Nevertheless, combined with the overall global SaaS development trend and domestic demand pattern, HaiBi Research predicts that the growth rate of China’s SaaS market will bottom out in 2020 and surpass IaaS in 2021.

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Tech In China

Stories about China’s tech giants, startups, funding, venture capital, trends, and industries of tomorrow.