Western 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: Recent enterprise behaviour shows heightened cybersecurity regulation is shifting SaaS procurement toward demonstrable operational resilience and incident-readiness. The NIS2 Directive transposition and application across member states from Oct-2024 set higher baseline obligations for risk-management, incident reporting, and supply-chain security for digital services. The immediate effect: buyers now require clearer evidence of supplier cyber-risk programs, incident-detection SLAs, and third-party audit attestations as part of commercial evaluations. Security and compliance now act as primary gating criteria in procurement, lengthening RFP cycles and favouring vendors that publish concrete cyber-playbooks, run regular external testing, and provide rapid forensic and notification capabilities when incidents occur.

Industry Player Insights: Western Europe’s strategic direction is guided by companies like Atlassian, OVHcloud, SAP, and IBM etc. Our assessment finds platform vendors responded with both product and regional controls to win risk-sensitive buyers. Atlassian expanded and formalised data-residency options and cloud migration pathways in 2024–Nov-2024 to support enterprise customers migrating off self-managed instances; that product push accelerated large-scale cloud migrations and made data-location controls a procurement differentiator. OVHcloud amplified sovereign-capability investments and commercialised regional compliance packaging during 2024–2025, which encouraged public-sector and regulated customers in Western Europe to shortlist European providers that combine local infrastructure with managed service offerings.