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 traders. I additionally traveled to Bangalore, India, the place not solely did we have a good time a brand new workplace opening and our inside Midyear Meetup, but in addition hosted our G2 Reside 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 at present, about 15% derive from international locations in EMEA, and 10% come from the APAC area. As consumers have gotten region-agnostic, they’re on the lookout 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 presents an fascinating perspective. This 12 months’s version, titled “AI Consuming Software program,” explores the main European SaaS developments 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 progress noticed from these firms, generative AI is a vivid 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 progress 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 present, pushed by the fast acceleration of AI.
Whereas AI is spurring progress globally, we see even better adoption in APAC. In line with survey findings for our 2024 Purchaser Habits Report, 63% of APAC software program consumers 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 information 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 workers. This rising tech expertise pool will turn into much more worthwhile 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. Primarily based on G2 analysis, consumers 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 firms should adapt their go-to-market methods to satisfy increased purchaser expectations for ROI. Because of this, gross sales and advertising and marketing groups are pivoting their messaging to be extra environment friendly, whereas leveraging information and intent indicators to succeed in the best consumers, on the proper time, with the best messaging.
The worldwide SaaS market continues to increase, with our personal G2 market experiencing greater than 10% progress over the previous 12 months. What’s fueling this progress? AI, in fact. 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 12 months!
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 consumers’ wants for AI-powered options that ship quick ROI.
