Finland Software as a Service (SaaS) Market - Forecasts from 2024 to 2029

Finland's software as a service (SaaS) market is projected to rise at a compound annual growth rate (CAGR) of 19.91% to reach a market valuation of US$2,958.644 million by 2029 from US$830.074 million in 2022.

The Software as a Service (SaaS) market in Finland is witnessing consistent growth, buoyed by the country's robust internet penetration rate of over 97.7%,  providing widespread access to the internet. This extensive connectivity creates an advantageous landscape for the adoption of cloud-based solutions like SaaS. Finland's digital economy and society within the European Union (EU) prioritize the availability and utilization of information and communication technologies (ICTs) by individuals and households.

The scalability inherent in SaaS solutions empowers organizations to tailor their resource utilization according to evolving requirements, offering adaptability and cost efficiency. Finnish enterprises are increasingly recognizing the advantages of SaaS in improving operational effectiveness, fostering collaboration, and stimulating innovation.

Finland's substantial investment in education, allocating USD 13,705 per full-time equivalent student annually (adjusted for purchasing power), surpasses the OECD average of USD 12,647 . This commitment underscores the significance of educational advancement in the country. Hence, Academic Software's acquisition in Finland and the appointment of a new CEO represent significant steps forward. The acquisition of Ilona IT, a prominent player in Finland's educational software and training sector, further propels Academic Software's expansion in Europe

Both Academic Software and Ilona IT are enthusiastic about the potential synergies between the two entities, particularly in advancing technological solutions for the education sector.  Numerous leading educational institutions recognize both companies as ideal partners for their digital transformation endeavours.

Key Market Developments:

• In October 2023, Academic Software finalized the acquisition of Ilona IT, a renowned provider of educational software and training solutions, cementing its position as a market leader in Finland. This strategic move is poised to propel Academic Software's expansion across Europe, leveraging Ilona IT's extensive expertise accumulated over more than two decades.
• In July 2023, Tietoevry acquired MentorMate, a digital engineering company headquartered in Minneapolis, US, from its current owner Taylor Corporation. MentorMate plays a key role in driving customers’ digital agenda with its strategy, design, and engineering capabilities
• In May 2022, RELEX Solutions, based in Finland, revealed its acquisition of Formulate, a Swedish company specializing in promotion planning and analytics. The acquisition represents a significant stride in RELEX's dedication to delivering an unparalleled unified platform, tailored for retailers and consumer packaged goods (CPG) companies worldwide.

Key Players:

• Nordic specializes in networking, application enablement, cyber security, and multi-cloud products and services for business-critical infrastructure. They provide solutions built on cutting-edge, market-leading technologies.
• Tietoevry develops technology with a purpose that completely transforms the world. They are a top technology company with a solid Nordic foundation and an extensive global reach.
• Fujitsu has made a name for itself as a pioneer in systems integration and software-as-a-service (SaaS) consulting. Their delivery methodology, worldwide reach, and industry-focused experience gives clients the know-how to deploy SaaS business solutions. 

Segmentation:

By Deployment Model

• Public
• Private
• Hybrid
• Community

By Enterprise Size:

• Small
• Medium
• Large

By End-User Industry

• BFSI
• Communication and Technology
• Retail
• Media and Entertainment
• Government
• Education
• Others