Everything as a Service (XaaS) Market Research Report Information By Type (Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), Network-as-a-Service (NaaS), Database-as-a-Service (DBaaS), Storage-as-a-Service (STaaS), Security-as-a-Service (SECaasS), , Others (Monitoring-as-a-Service [MaaS], and Containers-as-a-Service [CaaS])), By Enterprise Size (SMEs, Large Enterprises), By End Use (BFSI, IT & Telecommunications, Manufacturing, Retail, Others) By Region –Market Forecast Till 2032

Everything as a Service (XaaS) Market Overview

Everything as a Service (XaaS) Market Size was valued at USD 353.1 Billion in 2022. The Everything as a Service (XaaS) market industry is projected to grow from USD 409.5 Billion in 2023 to USD 2,470.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 22.1% during the forecast period (2023 - 2032).

Everything as a Service (XaaS) is the assimilation of various services related to cloud computing and remote access. It recognizes the vast number of products, tools and technologies that are delivered to users as service over internet. Growing use of as-a service model among business, increasing advantage of everything as a service model, increasing digital transformation among SMEs are some of the key drivers of the market.

FIGURE 1: EVERYTHING AS A SERVICE (XAAS) MARKET SIZE 2018-2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Everything as a Service (XaaS) Market Driver

• Increase in digital transformation among SMEs is expected to drive the market growth

Firms of all size across all sectors are increasing equipping their staff with digital tools. Digital tools bring many benefits for firms. Digitalization reduces transaction cost by providing better and quick access to information, and communication between staff, suppliers and network. The recent outbreak of Covid-19 has led to flexible IT solution that enable them to build a new business process ensuring smooth operation. SMEs are using digital transformation to usher in revolutionary changes in the conventional methods of production, warehousing, and distribution. SMEs arcos the globe are turning to digital transformation methodologies to enhance the business growth.

Shifting IT resources to higher value projects along with increasing XaaS delivery model to streamline business operation is expected to drive the demand for Everything as a Service (XaaS) Market. With the application of XaaS firms can cut down cost by purchasing services from provider. Outsourcing of IT infrastructure also shift cist from capex to opex providing an attractive option for firms which is expected to drive the market during the forecast period.

Optimizing workforce efficiency is a crucial factor for an organization, mainly when the staff is scattered across different places and verticals. Digital technology plays a critical role in helping organizations optimize primary functions both in and out making employees more productive. With the growth of digitalization higher adoption of IoT services, use of Machine learning (ML) and Artificial Intelligence (AI) combined with different platforms is also expected to drive the market of XaaS.

Everything as a Service (XaaS) Market Segment Insights

Everything as a Service (XaaS) Type Insights

The Everything as a Service (XaaS) Market based on type is segmented into Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), Network-as-a-Service (NaaS), Database-as-a-Service (DBaaS), Storage-as-a-Service (STaaS), Security-as-a-Service (SECaasS), Disaster Recovery-as-a-Service (DRaaS), Others (Monitoring-as-a-Service [MaaS], Backup-as-a-Service [BaaS], Functions-as-a-Service [FaaS], and Containers-as-a-Service [CaaS]). The Software-as-a-Service (SaaS) segment dominated the market in 2022. The major advantage of using SaaS is cost reduction, scalability, and accessibility. SaaS eliminates traditional and on primise upfront cost for hardware, software and licensing. SaaS also uses an on demand pricing model due to which scalability of business operation is possible.

Everything as a Service (XaaS) Enterprise Size Insights

The Everything as a Service (XaaS) Market based on enterprise size is segmented into Small and Medium Enterprises (SMEs), Large Enterprises. The large enterprises segment dominated the market in 2022. Companies like Microsoft, Alibaba and Amazon have invested heavily in various business models to reduce the operational cost, increase productivity, and streamline business operation. The SMEs are expected to have the fasted growth rate during the forecast period owing to high adoption of XaaS services.

Everything as a Service (XaaS) End Use Insights

The Everything as a Service (XaaS) Market based on end use is segmented into BFSI, IT & Telecommunications, Manufacturing, Retail & E-Commerce, Automotive, Healthcare, Others (oil & gas, energy, etc.). The IT & Telecommunications dominates the market. Various software under SaaS such as CRM, HRM, CMS, and PM is in huge demand in the IT industry due to large management options available to firms. The demand for Xaas in BFSI has grown at a significant rate owing to cloud banking solutions since they offer more flexibility and scalability than traditional on premise solutions. XaaS services in BFSI provide wide range of value added services such as fraud prevention, customer management and analytics tools for various fintech start-ups  to improve their opeartions.

Everything as a Service (XaaS) Regional Insights

Based on Region, the global Everything as a Service (XaaS) is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Further, the major countries studied in the market report are the U.S., Canada, Germany, UK, Italy, Spain, China, Japan, India, Australia, UAE, and Brazil.

North America Everything as a Service (XaaS) dominated this market. North America is a major hub for technological innovation, and Everything as a Service (XaaS) technologies are being widely adopted in the region. Some of the companies are under enormous pressure to develop and launch their services as swiftly as possible in today's fast-paced business environment in order to remain competitive. The quick pace of technical improvements is one of the main causes of the rising need for XaaS in North America. Organizations must constantly innovate and upgrade their services to meet shifting consumer needs as new technologies appear virtually daily. Additionally, the growth of digitalization has prompted the incorporation of numerous technologies, including cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). XaaS services not only shorten the time to market but also provide economical solutions. Corporations have the option to outsource services, which frequently turn out to be more cost-effective than investing in their own internal development teams.

Asia Pacific's economy is expanding rapidly. Another important driver of the Asia Pacific Everything as a Service (XaaS) market is outsourcing trend. Engineering expertise is abundant in Asian nations, particularly in IT centres like Bangalore, Shenzhen, and Hanoi. Asian nations are making significant investments in R&D, promoting an innovative and entrepreneurial culture. Organizations can take advantage of this culture by outsourcing to Asia, where they can also acquire cutting-edge tools and techniques that will keep them ahead of the competition. Another important driver of the Asia Pacific Everything as a Service (XaaS) market is investment in retail sector. Many e-commerce sites and applications have been launched, and they are being established fast as online retail businesses.

Figure 2: EVERYTHING AS A SERVICE (XAAS) MARKET SIZE BY REGION 2022 VS 2032, (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Everything as a Service (XaaS) market accounts for the second-largest market share. Everything as a Service (XaaS)'s extensive application in BFSI, IT & telecommunication and retail is one of the key factors influencing the market in Europe. Due to cultural openness, consumers and businesses in Europe are more receptive to XaaS technology in retail because it frequently mixes creativity and innovation. The new generation retailers use IT applications to achieve business and operating efficiencies. Investments in IT have been made very affordable even for small retailers as IT services are now offered on a monthly subscription basis by the use of cloud by service providers.

Everything as a Service (XaaS) Key Market Players & Competitive Insights

Major players in the Everything as a Service (XaaS) Market are making substantial investments in research and development to expand their product/service portfolios, contributing to the market's robust growth. These market leaders are implementing various strategic initiatives to expand their global presence. Key developments include new product/service launches, mergers and acquisitions, contractual agreements, increased investments, and collaborations with other organizations. Given the competitive and evolving market landscape, competitors in the education industry are focusing on cost-effective offerings to thrive and expand. Everything as a Service (XaaS) is a new paradigm of computing that will augment the workforce by bringing together several emerging technologies. Everything as a Service (XaaS) offers so much more when combining with other technologies such as computer vision, machine learning, robotics, IoT, machine learning and artificial intelligence.

Some of the key players in the Everything as a Service (XaaS) market, includes Amazon Web Services (AWS) (US), Microsoft Corporation (US), Google Inc. (US), Salesforce Inc. (US), Digital Ocean (US), Hitachi Vantara (Japan), Avaya Holdings Corp. (US), Adobe Inc. (US), SAP SE (Germany), Oracle Corporation (US), IBM Corporation (US), Cisco Systems Inc. (US), NetApp (US), Acronis International GmbH (Switzerland), Nutanix Inc. (US), VMware Inc. (US), Rackspace Technology Inc. (US), Perimeter 81 (Israel), Aryaka Networks (US), Fidelis Cybersecurity (US), McAfee Corp. (US), Cloudflare Inc. (US), Alibaba Cloud (China), EngineYard (US), and Fresworks Inc. (US), among others, are attempting to increase market demand by investing in research and development operations.

In June 2021, Alibaba Cloud, Alibaba Group's data intelligence backbone, announced an initial USD 1 billion commitment to help talent and start-ups across the Asia-Pacific region over the following three years which aims to foster one million digital talents, empower 100,000 developers and accelerate the growth of 100,000 tech start-ups across the region.

Key Companies in the Everything as a Service (XaaS) market include

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  Amazon Web Services (AWS) (US)

  
  


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  Microsoft Corporation (US)

  
  


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  Google Inc. (US)

  
  


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  Salesforce Inc. (US)

  
  


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  Digital Ocean (US)

  
  


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  Hitachi Vantara (Japan)

  
  


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  Avaya Holdings Corp. (US)

  
  


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  Adobe Inc. (US)

  
  


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  SAP SE (Germany)

  
  


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  Oracle Corporation (US)

  
  


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  IBM Corporation (US)

  
  


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  Cisco Systems Inc. (US)

  
  


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  NetApp (US)

  
  


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  Acronis International GmbH (Switzerland)

  
  


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  Nutanix Inc. (US)

  
  


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  VMware Inc. (US)

  
  


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  Rackspace Technology Inc. (US)

  
  


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  Perimeter 81 (Israel)

  
  


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  Aryaka Networks (US)

  
  


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  Fidelis Cybersecurity (US)

  
  


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  McAfee Corp. (US)

  
  


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  Cloudflare Inc. (US)

  
  


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  Alibaba Cloud (China)

  
  


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  EngineYard (US)

  
  


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  Fresworks Inc. (US)

  
  

Everything as a Service (XaaS) Industry Developments

November 2023: Amazon Web Services introduced Amazon One Enterprise, a new palm based identity service for organization which improves organizational security and helps in preventing costly security breaches. Amazon One Enterprise eliminates operation overhead associated with management of traditional enterprise authentication methods like badges and PINs. 

May 2022: IBM signs strategic collaboration with Amazon Web Services to deliver IBM Software as a Service. Building on IBM Software being available as-a-Service (aaS) on IBM Cloud, this first-of-its-kind agreement between IBM and AWS will provide clients with quick and easy access to IBM Software that spans automation, data and AI, security and sustainability capabilities, is built on Red Hat OpenShift Service on AWS (ROSA), and runs cloud-native on AWS.

Everything as a Service (XaaS) Market Segmentation

Everything as a Service (XaaS) Type Outlook

• Software-as-a-Service (SaaS)


• Platform-as-a-Service (PaaS)


• Infrastructure-as-a-Service (IaaS)


• Network-as-a-Service (NaaS)


• Database-as-a-Service (DBaaS)


• Storage-as-a-Service (STaaS)


• Security-as-a-Service (SECaasS)


• Disaster Recovery-as-a-Service (DRaaS)


• Others
  
  
  
  • Monitoring-as-a-Service [MaaS]
  
  
  • Backup-as-a-Service [BaaS]
  
  
  • Functions-as-a-Service [FaaS]
  
  
  • Containers-as-a-Service [CaaS]
  
  
  
  

Everything as a Service (XaaS) Enterprise Size Outlook

• Small and Medium Enterprises (SMEs)


• Large Enterprises

Everything as a Service (XaaS) End Use Outlook

• BFSI


• IT & Telecommunications


• Manufacturing


• Retail & E-Commerce


• Automotive


• Healthcare


• Others

Everything as a Service (XaaS) Regional Outlook

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East & Africa
  
  
  • South America