Every fall, I stay up for what I name my “World Tour” within the EMEA and APAC areas, the place I get to spend time with G2 workers, companions, prospects, 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 Stay occasion with SaaS leaders, prospects, and companions within the area.
Reflecting on my travels, I proceed to be optimistic concerning the development of SaaS globally. We see this development validated by our G2 market too. Whereas roughly 75% of G2 Leaders are based mostly within the Americas as we speak, about 15% derive from nations in EMEA, and 10% come from the APAC area. As patrons have gotten region-agnostic, they’re in search of best-of-breed software program constructed by entrepreneurs wherever on the planet.
EMEA SaaS leaders win with AI and glad prospects
As we take into consideration the state of the EMEA SaaS market, Accel’s annual Euroscape report presents an attention-grabbing perspective. This yr’s version, titled “AI Consuming Software program,” explores the main European SaaS developments and distributors to look at. Notably, it acknowledges and analyzes the highest 100 EU and Israel AI/Cloud corporations valued at lower than $1 billion.
Regardless of slower development noticed from these corporations, generative AI is a brilliant spot — fueling momentum and funding exercise. It’s additionally value 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 say an 8% share globally because the nation’s SaaS market is ready to develop to $37 billion by 2028. On the similar time, Bessemer Enterprise Companions predicts the India SaaS market will generate 3x as a lot income by 2030 because it does as we speak, pushed by the speedy acceleration of AI.
Whereas AI is spurring development globally, we see even larger adoption in APAC. In accordance with survey findings for our 2024 Purchaser Conduct Report, 63% of APAC software program patrons mentioned their group has bought an AI platform prior to now 3 months (as of March 2024), in comparison with 53% in each EMEA and North America. This share climbs to 75percentfor India-based respondents.
Producing over 2.5 million STEM graduates yearly (greater than 3x the U.S.), India supplies 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 workforce has thrived – rising to over 160 workers. This rising tech expertise pool will grow to be much more helpful 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 comparable challenges, alternatives, and developments. 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 way of 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 quick lists.
- SaaS corporations should adapt their go-to-market methods to satisfy increased purchaser expectations for ROI. In consequence, gross sales and advertising and marketing groups are pivoting their messaging to be extra environment friendly, whereas leveraging knowledge and intent indicators to achieve the correct patrons, on the proper time, with the correct 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, in fact. We proceed to look at an explosion of AI classes, distributors, merchandise, and options – with our AI software program class including almost 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 will meet patrons’ wants for AI-powered options that ship quick ROI.