The Global SaaS Escrow Services Market size is expected to reach $12.4 billion by 2028, rising at a market growth of 13.3% CAGR during the forecast period.
SaaS (Software-as-a-Service) escrow secures access to a running instance of a third-party cloud application that is important for a company’s business continuity assurance. It aids in avoiding long-term and temporary disruption to the end user’s regular business operations and, consequently, prevents financial losses regardless of their developer’s or supplier’s operational status. SaaS escrow is a specialized software protection solution designed to protect cloud-native software applications from external and internal threats, wrong configurations, or critical errors that can adversely affect the functioning of the business.
The escrow is a financial process utilized when two parties participate in a transaction, and there is uncertainty about fulfilling their obligations. Situations that may occur during the usage of escrow can make internet transactions, banking, real estate, banking acquisitions, law, mergers, and more. For instance, a company selling goods globally requires assurance that it will get paid when the goods reach their destinations. On the buyer’s part, they are prepared to pay for the goods only if they arrive in good condition. The buyer can place funds in escrow according to the instruction to disburse them to the seller once the goods are in the appropriate state. With this, both parties are protected, and the transaction can be carried on.
Escrow is an account separate from the mortgage account where a deposit of funds occurs to pay particular conditions that apply to the mortgage, generally property taxes and insurance. Escrow companies are usually utilized to transfer high-value business and personal property, like websites and companies, and to complete person-to-person remote auctions. However, the advent of new low-cost online escrow services has allowed even low-cost transactions to benefit from the use of escrow.
COVID-19 has significantly boosted the growth of the SaaS Escrow services market due to the speeding requirement for the cloud to assist numerous crucial solutions. The pandemic has also introduced considerable challenges for organizations trying to execute essential processes, report accurately with data spread over multiple locations, efficiently communicate with teammates, and operate complex systems, especially where the organizations don’t have an infrastructure for such processes. The fast growth in the revenue of SaaS escrow services has been observed during COVID-19. Such enhancements are expected to generate more opportunities for market growth.
The rise of entrepreneurs in small & medium organizations has been significant in the last few decades. Increasing demand for cloud-based services due to the advantages offered, like business flexibility and cost reduction, proves to be a significant advantage for startup businesses. The need for SaaS-based services is increasing due to the growth of these enterprises, including SMEs. Many IT enterprises need advanced technological SaaS escrow services to flourish their businesses and leave their footprints in numerous geographies. The SaaS escrow services provide various functional advantages and actively contribute to the market’s expansion. . The benefits and the rising adoption of SaaS escrow services by many organizations are expected to surge the market growth during the projection period.
If the necessary SaaS vendor gets bankrupt and the user loses access to their data, it can be catastrophic for the company. The cost of the SaaS escrow is generally a small percentage of an investment in technology. Investing in a SaaS escrow solution will ensure business continuity and mitigate the risks associated with modern cloud service delivery methods and the service provider’s rising responsibility. The SaaS escrow service provides accurate and up-to-date data while also providing business continuity assurance will aid to boost the SaaS escrow services market expansion.
Financial security is an issue that is generated by the user’s agreement to use the SaaS provider. A majority of them need both long-term and upfront payment. That’s even if they are unsure how long the user will need their services or if something in their policy changes with time. It’s a concern of investing in a potentially necessary part of the company that might not be at par and might not satisfy the customer. Some may require the user to pay upfront for the services. The upfront payment demand and issues related to it are expected to restrict the SaaS escrow services market’s growth.
Based on Cloud Type, the market is segmented into Public Cloud, Private Cloud and Hybrid Cloud. The private cloud segment acquired a prominent revenue share in the SaaS escrow services market in 2021. The growth is attributed because the private cloud providing an easier way to meet regulatory compliance requirements. Private cloud deals with their workloads like confidential documents, intellectual property, personally identifiable information (PII), medical records, and financial or other sensitive data.
Based on Type, the market is segmented into Hardware Configuration Services, Data Services, Legal Counseling Services and Others. The hardware configuration services segment held the highest revenue share in the SaaS escrow services market in 2021. This is because they allow the user to define I/O (input/output) configurations to hardware and software from a single interactive surface. This means that computer specialists can enhance hardware performance by tweaking some configurations. Hardware devices have specific configuration settings that can impact the user system's net performance and functionality.
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium-sized Enterprises. The small & medium-sized enterprises segment acquired a significant revenue share in the SaaS escrow services market in 2021. This is due to the shift of smaller companies towards Escrow vendors to develop robust SaaS continuity solutions. These solutions continue services if something happens to the SaaS vendor.
Based on Vertical, the market is segmented into IT & Telecom, BFSI, Retail & E-commerce, Energy & Utility, Media & Entertainment, Manufacturing, Healthcare and Others. The IT & telecom segment led the SaaS escrow services market by generating the maximum revenue share in 2021. The growth is because of the usage of SaaS escrow to mitigate the risk of technology acquisition. With an escrow contract, the developer's software code and other IP are put in a secure account held by the escrow representative, a trusted independent third party on the cloud or internet.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 5.2 Billion |
| Market size forecast in 2028 | USD 12.4 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 13.3% from 2022 to 2028 |
| Number of Pages | 267 |
| Number of Tables | 489 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Cloud Type, Type, Enterprise Size, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The North America region generated the highest revenue share in the SaaS escrow services market in 2021. This is due to the increase in the utilization of SaaS escrow services in the BFSI, healthcare, retail, and other sectors to enhance the businesses and the customer experience. Also, there is rising adoption of various cloud-based services and solutions, which is expected to propel the usage of SaaS escrow.
Free Valuable Insights: Global SaaS Escrow Services Market size to reach USD 12.4 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include NCC Group plc, Iron Mountain Incorporated, Ardas International, Inc., Escrowtech International, Inc., Harbinger Group Pty Ltd., Legal Escrow & Arbitration Services Limited, PRAXIS Technology Escrow, LLC, SES, and Escrow4all B.V.
By Cloud Type
By Type
By Enterprise Size
By Vertical
By Geography
The global SaaS Escrow Services Market size is expected to reach $12.4 billion by 2028.
IAccurate Data and Business Assurance are driving the market in coming years, however, The Requirement for Upfront and Long-Term Payment restraints the growth of the market.
NCC Group plc, Iron Mountain Incorporated, Ardas International, Inc., Escrowtech International, Inc., Harbinger Group Pty Ltd., Legal Escrow & Arbitration Services Limited, PRAXIS Technology Escrow, LLC, SES, and Escrow4all B.V.
The Large Enterprises market has acquired the maximum revenue share in the Global SaaS Escrow Services Market by Enterprise Size in 2021, achieving a market value of $9 billion by 2028.
The Public Cloud market is leading the Global SaaS Escrow Services Market by Cloud Type in 2021, a market value of $6.7 billion by 2028.
The North America market dominated the Global SaaS Escrow Services Market by Region in 2021, achieving a market value of $4.8 billion by 2028.
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