SaaS industry growth rate reaches 23.1%, AI will bring new opportunities for industry development
2024-09-03
Cloud computing, as a new type of infrastructure in the digital age, is a key element in accelerating the formation of new quality productivity and a core support for building a modern industrial system. SaaS (Software as a Service), as the top-level and closest service model to users in cloud computing, has become the first choice for enterprises to "go to the cloud and use data to empower intelligence" due to its characteristics of light assets, fast elasticity, and high efficiency and agility. Recently, the Cloud Computing and Big Data Research Institute of China Academy of Information and Communications Technology released the "Research Report on the Development of China's Enterprise SaaS Industry (2024)" (hereinafter referred to as the "Report"), which shows that the SaaS market size in China will reach 58.1 billion yuan in 2023, with a growth rate of about 23.1%. With the continuous development of AI technology, the SaaS industry is ushering in a new round of innovation. The report points out that China's SaaS industry has undergone more than 20 years of development and is currently in a stage of growth and transformation. Due to limitations in infrastructure and technological level, China's SaaS industry started relatively late. From the beginning of the 21st century to the present, it has gone through four stages: conceptual germination, exploration and transformation, rapid expansion, and growth and transformation. At present, all parties involved in industry, academia, research, and application are beginning to explore new models, new formats, and new driving forces, exploring the integration of SaaS with cross disciplinary technologies such as artificial intelligence, big data, and the Internet of Things, and helping industry enterprises move from "resource cloud" to "deep cloud use", driving new growth in the industry. Currently, the market size of China's enterprise level SaaS industry is continuously growing, and the leading players in segmented tracks are emerging. According to statistics from the China Academy of Information and Communications Technology, the SaaS market in China will reach 58.1 billion yuan in 2023, with a growth rate of approximately 23.1%. Although the growth rate has declined, the overall scale is still steadily increasing. With the accelerated clearance of the industry, every sub segment of SaaS in China has shown a head effect, and the industry pattern of ERP, CRM, office, human resources, retail and other tracks has gradually stabilized, evolving into a situation where 1 to 2 top vendors occupy the vast majority of market share. In recent years, with the empowerment of AI and exploration of overseas markets, the development of enterprise level SaaS industry has ushered in new opportunities. The report points out that with the explosion of "content productivity" brought by AIGC, the SaaS industry is also facing unprecedented development opportunities. The AI big model is rewriting all SaaS, and in the future, with the continuous development of AI technology, the SaaS industry will usher in a new round of innovation. At the same time, with the increasingly fierce domestic competition, overseas markets have become a new blue ocean for SaaS development. The coexistence of SaaS enterprises going global and SaaS services going global provides new opportunities for domestic SaaS service providers. The report points out that despite the increasing awareness and acceptance of SaaS by enterprises and the growing market demand, the industry still faces many challenges in its development. On the supply side, manufacturers face high customer acquisition costs, difficulty in revenue growth, and concerns about sustainable development; In terms of demand, there are numerous products and services, lacking evaluation criteria, making it difficult for users to select products. The report suggests that in the future, as artificial intelligence technologies such as large-scale models enter the commercial implementation stage, there will still be a large number of small and medium-sized innovative enterprises and investment companies entering the SaaS field, injecting new vitality into the field. From the perspective of market classification, general SaaS such as ERP, CRM, OA collaboration, finance and taxation, and human resources occupy the majority of the market, accounting for about 65%. Vertical SaaS in industries such as retail e-commerce, healthcare, transportation logistics, and catering account for about 35%. However, according to data from the China Academy of Information and Communications Technology, the penetration rate of SaaS services in retail, finance, logistics, and other industries is higher than that of general SaaS such as CRM, ERP, HRM, and financial management, with an average penetration rate of over 20%. The application level is relatively high, and there is huge development potential in the future. The report points out that in order to cope with challenges such as slowing down the expansion of SaaS service scope and slowing down the development speed of the industry, the SaaS industry environment can be improved through policy support; At the same time, it is necessary to guide SaaS service providers to actively embrace new generation information technologies such as AIGC, promote the transformation of SaaS services towards intelligence, personalization, and efficiency through cross fusion and deep innovation of technologies, simplify product function design and interaction processes, thereby improving service levels and user experience. (New Society)
Edit：Xiong Dafei Responsible editor：Li Xiang
Source：PRC newspaper
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