2021 China’s Enterprise SaaS Industry Report

Source:iResearchOctober 13,20217:47 PM Overview

New Opportunities for the SaaS Industry 

Thanks to internal and external factors, the development of SaaS speeds up

The development of SaaS is the result of multiple factors in both the internal and external environments. In general, the national strategy is favorable to the SaaS industry. Segments such as electronic signature and cross-border e-commerce have seized the opportunity to develop and other SaaS segments will also make progress in the future. During the pandemic, SaaS products related to online marketing, catering, retail, audio and video have been applied in enterprises. The change of generations will also increase the enterprises' willingness to purchase SaaS products. The benchmarking effect of leading SaaS companies is beginning to appear and vendors are more sensitive to customers' needs and can respond more quickly.

Size of China's Enterprise SaaS Market 

The market size is about 53.8 billion yuan and is expected to grow at a CAGR of 34% in the next 3 years.

The growth rate of the SaaS market increased in 2018, fell a little in 2019, and rose again in 2020 because of the Covid-19 pandemic. In 2020 the market size hit 53.8 billion yuan, increasing by 48.7% year on year. Nowadays the capital market’s attitude towards SaaS is more rational and the segments are becoming mature. The CAGR of the market in the next three years is expected to be around 34%.

The Ideal Type of Enterprise SaaS

The ‘Four Elements’ of standard enterprise SaaS are subscription, cloud deployment, product standardization and serving companies

To meet the demands of enterprise applications of different sizes, SaaS vendors have to try various charging models, provide private deployment, hybrid deployment, API interfaces, and customized services, etc. However, these actions make the product gradually deviate from the standards. Based on the characteristics of SaaS products in different countries, the most standard SaaS products are different from the traditional software in three aspects: First, adopt a subscription fee model rather than a one-time payment model; second, the product is deployed in the public cloud instead of a local computer room, and can enjoy the continuous update and iteration services; Third, the product is highly standardized. No customized service is provided or the customization ratio is low. Fourth, when the main customers of a SaaS product are enterprises, it can be called enterprise SaaS. The above are the four elements of an ideal enterprise SaaS product. However, based on this, most of the mainstream SaaS products extend their functions and services. iResearch believes that as long as a product's charging model is continuous and predictable, and the deployment model and standard level of products do not deviate too much from the standard, the product can still be analyzed in the SaaS system.


The development of SaaS speeds up again:Corporate digital transformation, the Covid-19 pandemic and iteration of generation promote the development of the SaaS industry. As SaaS is increasingly acceptable to companies, its application scenarios are spreading from edge to core businesses. SaaS is still a focus of investors but the investors are more rational. The SaaS market is becoming mature.

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