--2021 China SAAS (Software as a Service) Industry Market Development Trend Analysis The industry will further develop towards verticalization, platformization, intelligent development

Major listed companies in the industry: UFIDA (600588), Kingdee International (00268.HK), Huashengtiancheng (600410), Qixingchen (002439)

The core data in this article: Forecasts of China's enterprise-class SAAS market size, public cloud SAAS market size Forecast

China's enterprise SAAS market size is expected to reach 295.5 billion yuan by 2026

Compared with 2C applications, 2B applications play an important role in China's SAAS industry. China's huge potential for digital transformation, especially for small and medium-sized enterprises (SMEs), provides ample room for growth in enterprise software and SAAS spending. The government's move towards cloud adoption and software localization, rising labor costs and the new crown epidemic driving the virtualization of "everything" are strong catalysts for growth in SAAS market size. According to Foresight Industry Research Institute, China's enterprise SAAS market will reach 295.5 billion yuan by 2026.

Public cloud SAAS market size is expected to reach 186.2 billion yuan in 2026

The size of China's public cloud SAAS market in 2020 will be only 28 billion yuan, which is only one-third of China's IAAS, and is only equivalent to about 5% of the U.S. public cloud SAAS market. Due to the increasing acceptance of IAAS services in China and the emergence of more IAAS-based applications, according to the forecast of the Foresight Industry Research Institute, the growth rate of China's public cloud SAAS will rebound to a CAGR of 43% in 2021-2026, which is slightly faster than the growth of IAAS, and the size of the public cloud SAAS market will reach 186.2 billion yuan in 2026, surpassing the U.S. The public cloud SAAS market will reach 186.2 billion yuan in 2026, exceeding 1/5 of the U.S. public cloud SAAS market and accounting for about 60% of the overall SAAS market in China.

Analysis of factors hindering the development of the SAAS industry

The forward-looking analysis suggests that there are constraints in the development of the SAAS industry in the form of data and information security, the lack of industry service standards, and imperfections in the credit system and policies and regulations.

Analysis of factors contributing to the development of the SAAS industry

In recent years, China's cloud computing industry has been highly valued by the state, and the SAAS industry has been supported by national policies and favorable capital, which will lead to a positive development of the industry under the drive of continuous technological innovations and the strong demand of small and medium-sized enterprises (SMEs).

SAAS industry will further develop towards verticalization, platformization and intelligence

In 2020, affected by the new crown epidemic, the proportion of Chinese enterprise users applying SaaS services will increase, and the recognition of SaaS services will be significantly improved, which lays a good user base for the long-term development of the SaaS industry. This has laid a good user foundation for the long-term development of the SaaS industry. Foresight believes that the SaaS industry will usher in the following development trends:

The above data refers to the China SAAS (Software as a Service) Industry Market Outlook and Investment Strategy Planning Analysis Report by Foresight Industry Research Institute.