Worldwide Software as a Service and Cloud Software Market Shares, 2023: Generative AI Generates Explosive Growth in Platform-Based Solutions

This IDC study examines the SaaS and cloud software market in 2023 and includes a list of the top 20 vendors by revenue. In 2023, the SaaS and cloud software markets experienced robust growth of 21.0%, with Microsoft leading at $91.1 billion in revenue and a 17.0% market share. Despite a slight decline from the previous year, companies like Salesforce and Google also saw significant growth, driven by the demand for AI-driven business transformations. The industry is moving toward hyper-innovation, focusing on generative AI and large language models, indicating a major technological platform shift."Generative AI ushers in a seismic platform shift, transforming jobs and heralding an era of hyper-innovation in the SaaS and cloud software markets," says Frank Della Rosa, research vice president, SaaS, Business Platforms, and Industry Cloud, IDC.