Europe SaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Structural policy pressure across the EU is forcing SaaS procurement to internalise competition, interoperability, and data portability requirements. The EU’s Digital Markets Act became applicable in May-2023 and continues to reshape platform behaviour, access guarantees, and cross-service interoperability obligations for large gatekeepers. The practical impact: enterprise buyers and public tenders now demand richer API interoperability commitments, clearer export controls for data processing, and contractual terms that reduce lock-in risk. Procurement teams prefer platforms that publish interoperability roadmaps and that support modular integrations; legal teams increasingly require contractual remedies tied to portability and neutral access clauses, which changes shortlist dynamics in strategic vendor selection.

Industry Player Insights: Europe's competitive environment is driven by SAP, OVHcloud, Google Cloud, and Elastic etc. As per our findings, a distinct commercial thread ties sovereign-cloud offerings to buyer selection criteria. OVHcloud launched an expanded sovereign cloud partnership in Apr-2025 to address public-sector and regulated-industry demand for European-controlled infrastructure, which boosted interest among governments and regulated enterprises seeking provider chains with European provenance. SAP accelerated Business AI and industry cloud releases through 2024–Jan-2025, embedding prebuilt generative capabilities into ERP and industry suites and prompting enterprises to prefer vendors that deliver vertical AI use cases with integrated data governance; this trend elevated buyers who require industry templates and governed AI primitives from core platform providers.