SaaS Escrow Services Market Statistics, 2031
The global saas escrow services market was valued at $5.4 billion in 2021, and is projected to reach $18.4 billion by 2031, growing at a CAGR of 13.4% from 2022 to 2031.
Factor such as growing digitalization transformation initiative, thus drives the growth of the SaaS escrow services market trends. In addition, increase in adoption of SaaS escrow services across enterprises and emergence of source code escrow and low-code, strengthens the SaaS escrow services market forecast. Furthermore, rapid changes in business model software due to geographical expansion of the businesses, provides lucrative growth opportunities for the market during the forecast period. However, excessive cost of innovation and budget constraints hamper the growth of the market.
SaaS escrow secures access to a running instance of a third-party cloud application that is critical to ensuring a company’s business continuity. As such, it helps avoid both temporary and long-term disruption to the end-user’s regular business operations and consequently, prevents financial loss regardless of their developer’s or supplier’s operational status. In other words, SaaS escrow is a specialized software protection solution designed to protect cloud-native software applications from internal and external threats, critical errors, or incorrect configurations that can adversely affect business functions.
Although SaaS offers its advantages such as cost reductions, ease of accessibility and effortless scalability, many companies are not carefully planning the adoption of these SaaS applications. By establishing a SaaS escrow agreement, a company that subscribes to a SaaS application protects itself from a potential sudden loss of access to critical SaaS services whether temporary or long-term and secures direct access to a running copy of the software and their own customer data in case release conditions are met.
On the contrary, it is undeniable that cloud services meet the current trend, mostly due to their cost advantages. However, they may entail specific risks. SaaS escrow enables to take full advantage of modern cloud services while potential risks of failure are minimized at the same time. Such advantages provide the lucrative growth opportunities for the market during the forecast period.
Furthermore, as software shifts away from the traditional on-site licensing model, SaaS and other cloud escrows are becoming increasingly more important, thus drive the growth of the market. Furthermore, the opportunity for SaaS escrow services market lies in the developing economies as they have gradually grown to become the hub for IT services, one of the largest target segments for SaaS escrow services. In addition, substantial increase in the number of startup, small and medium enterprises is expected to lead to increased adoption of SaaS escrow services in such regions. The SaaS escrow services market is segmented into enterprise size, type, cloud type and industry vertical.
Segment Review
The SaaS escrow services market is segmented into type, cloud type, organization size, industry vertical, and region. By type, it is bifurcated into hardware configuration services, data services, legal, counseling services and others. By cloud type, it is divided into public cloud, private cloud, and hybrid cloud. By organizational size, the market is segregated into small & medium-sized enterprises and large enterprises. By industry vertical, the market is classified into BFSI, manufacturing, IT and telecom, retail and e-commerce, energy and utility, healthcare, media and entertainment and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of cloud type, the global SaaS escrow services market share was dominated by the public cloud segment in 2021 and is expected to maintain its dominance in the upcoming years. This is mainly attributed to the fact that the public deployment mode is the most accepted deployment model due to the easy access and low costs. However, private cloud segment is expected to witness the highest growth, due to higher security and easier maintenance.
By region, North America dominated the market share in 2021 for the SaaS escrow services market. The increase in usage of SaaS escrow services in BFSI, retail, healthcare, and other sectors to improve businesses and the customer experience are anticipated to provide lucrative growth opportunities for the SaaS escrow services market in North America. However, Asia-Pacific is expected to exhibit highest growth during the forecast period. This is attributed to the increase in penetration of advanced technology and higher adoption of cloud-based solutions and services that propel the growth of the SaaS escrow services industry in this region.
Top Impacting Factors -
Increase in adoption of SaaS escrow services across enterprises:
Last few decades have shown a tremendous rise in entrepreneurs with their small and medium organizations. Upsurge in demand for cloud-based services due to the advantages offered such as cost cutting, and business flexibility proves to be a boon to the startup businesses. The need for SaaS-based services is rising due to the growth of these enterprises including SMEs. Most of the IT enterprises need advanced technology of SaaS escrow services to flourish their businesses and leave their footprints in various geographies.
The SaaS escrow services provides a range of functional advantages and actively contributes to the market's expansion. The functional benefits offered by cloud are not upgrading & instillation functions, operative use of IT staff, and distributed resources. Elimination of regular upgrades and installation proves beneficial to the user as the responsibility of upgrade, patch, and add on installations remain with the service provider. Use of SaaS escrow services reduces the workload of the staff in maintaining infrastructure and helps them to work in other projects making more operative use of IT staff. Moreover, the resources are evenly distributed and can be used by every individual in the cloud. The use of SaaS Escrow services provides recovery and backup solutions, which improve the agility of the business.
Emerging SaaS technology become exponential for industry growth due to Covid-19:
The SaaS has become an essential component of modern business. The COVID-19 pandemic has hastened the transition from on-premises applications to SaaS. Nowadays, 71% of enterprises are using SaaS apps to improve the efficiency of IT service delivery and support the scalability of business solutions Although there are obvious and verifiable benefits to IT-backed SaaS installations, such as quick and easy implementation, employees are increasingly avoiding IT departments and installing SaaS solutions directly onto personal PCs. While this appears to boost team agility and productivity, this would propel SaaS escrow services market growth in order to manage the organization's environment.
COVID-19 Impact Analysis
The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has considerably boosted growth of the SaaS escrow services market due to accelerating demand for the cloud to support several crucial digital solutions. Moreover, the pandemic has introduced considerable challenges for companies which are trying to execute key processes, report accurately with data spread over multiple locations, operate complex systems, and efficiently communicate with teammates; particularly where they do not have the infrastructure for such processes. Hence, a greater number of companies are investing in SaaS escrow services. SaaS escrow services provides the limitless scalability and continual enhancement of functionality, which are critical in accomplishing digital transformation, which boost the growth of the market.
For instance, the SaaS market is currently growing by 18% each year. North America is the most mature market in terms of cloud computing services adoption, due to several factors, such as the presence of many enterprises with advanced IT infrastructure, and availability of technical expertise, thus provide the lucrative growth opportunities for the market during the forecast period. Although SaaS offers its advantages such as cost reductions, ease of accessibility and effortless scalability.
However, Insufficient data security is one top concern, with many businesses just assuming their SaaS provider will take care of their security and software resilience needs. Further, cost effective and easy to deploy SaaS continuity escrow solutions, helping them to mitigate against the risks associated with modern service delivery methods and the growing responsibility of cloud service providers. In addition, the rapid growth in revenue of SaaS escrow services providers has been observed during the pandemic. Such an enhancement is anticipated to create numerous opportunities for the market growth during the forecast period.
Key Benefits for Stakeholders
- The study provides an in-depth SaaS escrow services market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the SaaS escrow services market size is provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the SaaS escrow services industry.
- The quantitative analysis of the global SaaS escrow services market for the period 2021–2031 is provided to determine the SaaS escrow services market potential.
SaaS Escrow Services Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 18.4 billion |
 Growth Rate | CAGR of 13.4% |
 Forecast period | 2021 - 2031 |
 Report Pages | 405 |
 By Cloud Type |
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 By Industry Vertical |
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 By Type |
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 By Enterprise Size |
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 By Region |
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 Key Market Players | Escrow London, Ardas Group, Iron Mountain, SES-Escrow, Praxis Technology Escrow, Escrowtech International, Inc., Escrow4all, Harbinger Escrow, LE?AS, NCC Group |
Analyst Review
According to the CXOs of leading companies, the SaaS escrow services market is going through enormous transformation and growth. As customer demand and expectations are evolving with rapid pace of digitalization, legacy infrastructures are making it difficult to accommodate these customer needs. This has compelled industries to adopt emerging technological change in their operating environment. Cloud has evolved to be the dominant technology in the race of technological changes. Hence, increase in adoption of subscription-based products is expected to boost the global market at an exponentially high rate in the coming years.
Next-generation digital businesses are leveraging SaaS capabilities and preparing for a future of integrated solutions. These include vendor selection, migration tactics, process optimization, cloud security, multi-cloud environments, hybrid & digital infrastructures, data center outsourcing strategies, cloud optimization, cloud computing, PaaS, IaaS, SaaS, and others. Furthermore, extreme agility and accessibility capabilities of a cloud dominate the SaaS escrow services market. Investing in a SaaS escrow vendor who can introduce automated deposits as standard will provide extra benefits. In addition to this, verification testing provided by the SaaS escrow vendor on a regular basis can ensure that the system is deployable and operational, offering added advantages to the business.
According to studies, there has been a huge shift in cloud and Software-as-a-service (SaaS) adoption globally, notably with government, large enterprise, and financial institutions. Although SaaS offers its advantages such as cost reductions, ease of accessibility, and effortless scalability, many companies are not carefully planning the adoption of these SaaS applications. By doing so, they may not have considered the disadvantages that may occur. Insufficient data security is one top concern, with many businesses just assuming their SaaS provider can take care of their security and software resilience needs. Cost effective and easy to deploy SaaS continuity escrow solutions, helping them to mitigate against the risks associated with modern service delivery methods and the growing responsibility of cloud service providers. For instance, the New Delhi-based startup Escrow service provider, Castler partnered with ICICI Bank and certified trusteeship companies to ensure complete safety and transparency for clients, with the launch of the country's first white-label digital escrow solution “Castler SmartEscro.” Their solution includes quick opening of digital escrow accounts for transacting parties, along with eKYC.
On the contrary, the CXOs further added that the SaaS escrow services market is competitive and comprises number of regional and global vendors competing based on factors such as cost of solution & services, reliability, and support services. The growth of the market is impacted by rapid advances in the SaaS escrow services offerings, whereas the vendor performance is impacted by COVID-19 conditions and industry development.
Owing to the competition, vendors operating in the market are offering advanced SaaS escrow services to improve the experience of their customers. Such enhancement provides lucrative opportunities for market growth in the coming years.
The global SaaS escrow services market is projected to reach $18,437.36 million by 2031.
Factor such as growing digitalization transformation initiative and increase in adoption of SaaS escrow services across enterprises, thus drives the growth of the market.
The North America is the largest market for the SaaS Escrow Services.
The key growth strategies for SaaS Escrow Services include product portfolio expansion, acquisition, partnership, merger, and collaboration.
Ardas Group, Escrow London, EscrowTech International, Inc., Escrow4all, Harbinger Escrow, Iron Mountain, LE?AS, NCC Group, Praxis Technology Escrow and SES-Escrow.
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