US 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: A deliberate federal push to modernize public-sector digital services and procurement practices, reshaping commercial SaaS demand profiles in the region. The Office of Management and Budget issued guidance in Sep-2023 promoting modular service delivery, user-centred design, and measurable outcomes that require closer integration between commercial cloud providers and agency operational metrics. That guidance has translated into stronger assessment of vendors’ security posture, tighter expectations around FedRAMP alignment, and explicit requests for modular, interoperable components that can be embedded into legacy stacks. Procurement teams now shortlist vendors on the basis of demonstrated integration testing, well-scoped SLAs for incident response, and clear roadmaps for secure data handling in government contexts. Consequently, suppliers targeting U.S. federal and regulated markets emphasize composable service architectures and published security playbooks to win deals.

Industry Player Insights: The US landscape is shaped by key players such as Salesforce, ServiceNow, Zoom, and Microsoft etc. Recent vendor activity shows a pivot to productized AI for operational workflows and communications. ServiceNow expanded generative AI and governance capabilities on the Now Platform in May-2024, embedding AI agents into IT and customer service processes and prompting trials that aim to reduce ticket volume and workflow cycle times. Zoom launched its AI Companion in Sep-2023 and iterated capabilities to embed meeting intelligence into collaboration flows, shifting buyer expectations toward communications platforms that double as workflow automation hubs and searchable knowledge surfaces.