Every fall, I sit up for what I name my “World Tour” within the EMEA and APAC areas, the place I get to spend time with G2 staff, companions, clients, and different SaaS leaders and entrepreneurs.
My travels introduced me to Dublin for SaaStock , a four-day occasion with over 4,500 attendees consisting of SaaS founders, operators, and traders. I additionally traveled to Bangalore, India, the place not solely did we have fun a brand new workplace opening and our inside Midyear Meetup, but additionally hosted our G2 Reside occasion with SaaS leaders, clients, and companions within the area.
Reflecting on my travels, I proceed to be optimistic in regards to the development of SaaS globally. We see this pattern validated by our G2 market too. Whereas roughly 75% of G2 Leaders are based mostly within the Americas at the moment, about 15% derive from international locations in EMEA, and 10% come from the APAC area. As patrons have gotten region-agnostic, they’re searching for best-of-breed software program constructed by entrepreneurs anyplace on the planet.
EMEA SaaS leaders win with AI and happy clients
As we take into consideration the state of the EMEA SaaS market, Accel’s annual Euroscape report gives an attention-grabbing perspective. This yr’s version, titled “AI Consuming Software program,” explores the key European SaaS tendencies and distributors to observe. Notably, it acknowledges and analyzes the highest 100 EU and Israel AI/Cloud firms valued at lower than $1 billion.
Regardless of slower development noticed from these firms, generative AI is a vibrant spot — fueling momentum and funding exercise. It’s additionally price noting that the Euroscape winners proceed to persistently earn increased G2 scores than different European distributors, underscoring the significance of buyer satisfaction in rising above the competitors.
Accel’s Euroscape report
APAC’s development alternative in an age of AI
Indian SaaS merchandise have been forecasted to assert an 8% share globally because the nation’s SaaS market is about to develop to $37 billion by 2028. On the identical time, Bessemer Enterprise Companions predicts the India SaaS market will generate 3x as a lot income by 2030 because it does at the moment, pushed by the speedy acceleration of AI.
Whereas AI is spurring development globally, we see even larger adoption in APAC. In keeping with survey findings for our 2024 Purchaser Conduct Report, 63% of APAC software program patrons stated their group has bought an AI platform up to now 3 months (as of March 2024), in comparison with 53% in each EMEA and North America. This proportion climbs to 75percentfor India-based respondents.
Producing over 2.5 million STEM graduates yearly (greater than 3x the U.S.), India offers deep expertise in essential and rising fields like knowledge science and. At G2, we’ve benefitted from the native expertise. Opening our APAC headquarters within the burgeoning tech hub of Bengaluru, India in 2019, the staff has thrived – rising to over 160 staff. This rising tech expertise pool will develop into much more useful in an age of AI.
Sara Rossio, Priti Patel, Chad Gold, Sharath Jagadish, Eric Gilpin, Godard Abel, and Shreyans Dugar within the Bengaluru workplace.
SaaS distributors’ path ahead
Whereas the EMEA and APAC markets have their distinctive variations, I noticed related challenges, alternatives, and tendencies. From my conversations with different SaaS leaders in these areas, the next three key themes stood out:
- AI improvements are consuming SaaS. Startups and market leaders alike are leaning on new AI merchandise and options to hurry up their very own improvements and processes. It’s clear that AI is right here to remain and any SaaS vendor not leaning into it dangers being left behind.
- It’s more durable than ever for distributors to interrupt by the noise within the world SaaS market. Based mostly on G2 analysis, patrons now need all of it and have leverage as they consolidate SaaS stacks and spend. The will for extra compound apps, AI innovation, and extra versatile usage-based pricing fashions has lengthened gross sales cycles and shortened brief lists.
- SaaS firms should adapt their go-to-market methods to fulfill increased purchaser expectations for ROI. Because of this, gross sales and advertising groups are pivoting their messaging to be extra environment friendly, whereas leveraging knowledge and intent indicators to achieve the best patrons, on the proper time, with the best messaging.
The worldwide SaaS market continues to broaden, with our personal G2 market experiencing greater than 10% development over the previous yr. What’s fueling this development? AI, after all. We proceed to watch an explosion of AI classes, distributors, merchandise, and options – with our AI software program class including practically 800 merchandise over the previous yr!
And whereas we’re nonetheless in a interval of financial uncertainty and slower development charges, SaaS distributors have a promising outlook – if they’ll meet patrons’ wants for AI-powered options that ship quick ROI.