SaaS Industry Trends 2022 and Beyond
The Software-as-a-Service (SaaS) model drives many modern businesses. It has changed the way companies operate — making business simpler, more efficient and fun.
Ask a writer who has used an editing aid like Grammarly, a founder who pays their staff with Payoneer or a manager who communicates with their team on Slack.
They’ll all tell you one thing: SaaS makes their lives better.
According to Statista, the SaaS industry is worth over $145.5 billion. New ideas spring up every day and many developers are trying to put a new spin on old ideas too. (Not another note pad, please, we beg on bended knee!)
Here are some SaaS industry trends to look out for in 2022 and beyond.
Greater Artificial Intelligence (AI) and Machine Learning (ML) Integration within SaaS platforms
AI and ML have significantly reduced business bottlenecks. Repetitive tasks can be automated, improving overall customer experience and worker efficiency. Business decision-making can also be enhanced, helping organizations to make better choices. Several use cases already exist for AI in SaaS, from chatbot integration to user onboarding, pricing dynamics, and easier maintenance.
With more data, SaaS companies will optimize their plans and adjust them to improve success rates. We should expect increased integration of ML algorithms in SaaS solutions.
Grammarly, Amazon, Zendesk, Dropbox and others are already at the front line of SaaS — AI integration, and we should expect to see more of this in the near future.
The Rise of Vertical SaaS
We can group SaaS solutions as Vertical SaaS or Horizontal SaaS. Horizontal SaaS aims to serve a wide range of customers, and it cuts across various niches and industries. As the name implies, they spread across a large and diverse customer base.
Popular Horizontal SaaS solutions include:
Vertical SaaS, on the other hand, provides industry-specific products and solutions. They offer more unique approaches to niche business processes, compared to horizontal SaaS.
Some Vertical SaaS solutions making waves in 2022 include:
- Thapos, for the sports industry
- Procore, for project management
- Riskalyze, for financial advisers
- Venga, a customer management tool for fitness and restaurant businesses
We are likely to see more Vertical SaaS offerings in 2022, more product releases, and better features. We are also likely to witness an increased adoption of vertical SaaS by large and small companies seeking quick, efficient solutions for their day-to-day tasks.
Technology solutions are not a one size-fits-all affair. The growth and adoption of Vertical SaaS will increase for industries like Health care, Construction, Aviation, and Government. Along with this growth we are likely to see greater industry-specific compliance, higher customer retention, lower acquisition costs, and more niche marketing.
The Explosion of No-Code and Low Code Tools
No-code and low code tools in the SaaS industry have made software more accessible. Because these tools are easier to use, they appeal to more people and create a ready market. We are going to see more offerings in this model, ready to serve that market.
Low code and no-code SaaS solutions also improve customer experience, increase team productivity, reduce maintenance and development costs, and allow faster implementation of changes. This gives users an edge over those with products that require coding.
We predict that more people will adopt them and more of them will be developed.
Examples of existing low-code tools are
- Salesforce Lightning
- Google Appsheet
- Wix Editor X
- Zoho Creator
Examples of no-code tools are:
Mobile SaaS Takes Center Stage
Mobile devices are an indispensable part of daily life. In 2021, the average person spent about four hours on their phone every day, a 30% increase from the previous year. The CNBC projects that by 2025, about three-quarters of Internet users will access the internet from their smartphones.
With trends like these, mobile SaaS solutions can no longer be an afterthought. SaaS companies will need to replicate their web solutions into mobile-friendly apps. They’ll need to create the same (or a superior) quality of experience and provide adequate support for that ‘round the clock.
The companies that identify this opportunity and create targeted solutions will reap huge rewards.
White Label SaaS Wins More Fans
A white label SaaS product is one you can adopt, rebrand as your own, and resell. The importance of personal and corporate branding has become clearer as millions of brands jostle to get a share of the global digital economy.
The cost of creating new features and functionalities can be overwhelming. White-labeling offers an efficient alternative to this. This new SaaS trend allows SaaS companies to offer their services to customers without their branding affecting customer experience. It saves costs for the companies while reducing risks for customers.
SaaS companies can also collaborate with other white-labeled SaaS solutions, and integrate them into their solutions or products via APIs. White-labeling improves product functionality, offering more solutions while keeping brand identity consistent and saving costs.
These are a few of our predictions for the SaaS industry. It’ll be interesting to see how industry players continue to adapt and innovate. At Unpluggd Media, we like to keep an eye on the future, so we’re always prepared.
What do you think?
Do you agree with the predictions? Any others you see on the horizon? Can you see how these trends might influence the choices you make in the job market or elsewhere?
Let us know in the comments.
Originally posted on our home base at unpluggddigital.co. Check it out to see more of what we do and how we can work with you.
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