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, 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 buyers. I additionally traveled to Bangalore, India, the place not solely did we have a good time a brand new workplace opening and our inner Midyear Meetup, but additionally hosted our G2 Stay occasion with SaaS leaders, clients, and companions within the area.
Reflecting on my travels, I proceed to be optimistic concerning the progress of SaaS globally. We see this development validated by our G2 market too. Whereas roughly 75% of G2 Leaders are primarily based within the Americas right now, about 15% derive from international locations 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 this 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 affords an attention-grabbing perspective. This yr’s version, titled “AI Consuming Software program,” explores the key 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 progress noticed from these corporations, generative AI is a vibrant spot — fueling momentum and funding exercise. It’s additionally value noting that the Euroscape winners proceed to persistently earn greater G2 scores than different European distributors, underscoring the significance of buyer satisfaction in rising above the competitors.
Accel’s Euroscape report
APAC’s progress 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 right now, pushed by the fast acceleration of AI.
Whereas AI is spurring progress globally, we see even higher adoption in APAC. In response to 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 gives 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 crew has thrived – rising to over 160 workers. This rising tech expertise pool will turn into much more beneficial 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 tougher than ever for distributors to interrupt by the noise within the international SaaS market. Based mostly on G2 analysis, patrons now need all of it and have leverage as they consolidate SaaS stacks and spend. The need 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 fulfill greater purchaser expectations for ROI. In consequence, gross sales and advertising groups are pivoting their messaging to be extra environment friendly, whereas leveraging knowledge and intent indicators to succeed in the proper patrons, on the proper time, with the proper messaging.
The worldwide SaaS market continues to increase, with our personal G2 market experiencing greater than 10% progress over the previous yr. What’s fueling this progress? 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 progress charges, SaaS distributors have a promising outlook – if they will meet patrons’ wants for AI-powered options that ship quick ROI.
