THE 5 FASTEST GROWING SECTORS OF ENTERPRISE SAAS
As noted in in our Q4-2017 update, one of the most illuminating things that results from Cardin Partners’ data-first approach to tracking the SaaS software space is the kind of analysis we can do with respect to sub-sector and vertical software market growth. If you haven’t already reviewed our Global SaaS 10k list, please have a look. In updating the figures through the end of the fourth and final calendar quarter of 2017, we note the following 5 fastest growing segments of the SaaS software space:
| Sector / Vertical | Q4/Q3 Growth [Implied CAGR] | Sector Leaders |
|---|---|---|
| Scheduling Software | 9.0% [41%] | Calendly Acuity Scheduling |
| Governance, Risk & Compliance | 5.1% [22%] | MetricStream FICO |
| Finance & Accounting | 5.0% [22%] | Intuit Concur Xero Sage |
| Development Tools | 4.1% [18%] | Pivotal Software Kony |
| IT Security | 3.9% [17%] | Trend Micro Comodo Group |
| Overall | 4.5% [19%] |
As we expect, the software space is growing relative to the IMF Global GDP Data, which suggests a 2% annualized global growth rate among developed nations; the SaaS software space is presently growing 6.5 times as fast as the world economy. This is not a big surprise, as indeed the BVP Cloud Index reflects that the market capitalization of the world’s largest publicly traded SaaS businesses has grown more than 13%, YTD (since Jan 1, 2018, through Feb 16th), (and has grown fully 3.6X faster than the NASDAQ index, which appreciated just 3.6% in that same time period).