SAP Application Services Market Size, Share, Growth, And Industry Growth By Type (Management Services, Implementation and Upgrades, Post-Implementation Services, and SAP Hosting), By Application (BFSI, Manufacturing, Retail & CPG, Telecom & IT, Life Sciences & Healthcare and others) Regional Forecast (2022-2027)

REPORT OVERVIEW

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The global SAP application services market size was USD 33040 million in 2020. The global COVID-19 pandemic has been unprecedented and staggering, with the SAP application services market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. As per our research, the market is projected to touch USD 50670 million by 2027, exhibiting a CAGR of 6.3% during the forecast period. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

SAP which stands for system, application and products in data processing is used to reduce the complexities of businesses and provide them with real data analytics for efficient management and better decision making.

Businesses in the contemporary world are more service driven. The competitive landscape compels the organization to provide the best customer experience and maintain a good relationship with the client. To achieve that feat, one has to improve the internal operation of each department, analyse the data for a wise investment, higher revenue opportunities and lower the operation cost at the same time. To combat all these problems, SAP application services provide end-to-end solutions to businesses.

COVID-19 Impact: Increase in Remote Work Culture to Boosted the Market Demand

The increase in the rise of COVID-19 cases has resulted in frequent lockdowns and a shifting toward remote work culture. In these times of fluctuating business SAP application services comprehended the opportunity to grow. With the increase in work from home and chaos in global supply chain management, they innovated new ways to sustain themselves in difficult times. The SAP cloud adaptation witnessed a massive jump during the pandemic times. As the world is adjusting to the new normal and business ventures are opening up, industries are realizing the advantages of the SAP application services it will continue to see growth in the forthcoming years.

LATEST TRENDS

"Introduction of Artificial Intelligence to Accelerate the Product Sales"

Artificial Intelligence is considered the latest technology. AI models are being integrated into the SAP application services tools to increase user engagement, efficient data management, and automated customer service. It is cost-effective and secure. It automates the process and provides personalized recommendations and integrated chatbots to enrich customer satisfaction.

SEGMENTATION

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• By Type

Based on type, the market is divided into management services, implementation and upgrades, post-implementation services, and SAP hosting.  Implementation and upgrades are expected to dominate the market in the upcoming years.

• By Application

Based on the application, the market is divided into BFSI, manufacturing, retail & CPG, telecom & IT, life sciences & healthcare and others. BFSI is anticipated to lead this segment during the forecast period.

DRIVING FACTORS

"Increase in Adaptation of SAP Cloud Technologies to Expedite the Sale of SAP Application Services"

The IT industry is striving toward cloud technologies and many reasons are contributing to the growth of cloud technology. It improves the infrastructure and the complexities of running the businesses. The outdated IT technologies required heavy human resources for hardware and software up-gradation, fixing errors and deployment. It was a time-consuming process and decreases the productivity level. The introduction of cloud technologies has solved all these hassles. The security structure evolved with cloud computing. The digitalization of the economy, internet accessibility, rise in artificial intelligence and roll out of 5G technology has boosted the market growth. However, with the increase in usage of cloud technology, there are many arising problems in managing, storing and deploying. SAP application increases the efficiency of cloud technology. The integration is easy and compiles all the business functionalities into one providing real data analytics for fast decision-making. SAP application services are flexible and can be deployed either on a public or private cloud server based on the requirements. It gives high-level support to all businesses regardless of the size of the venture. So, the large-scale adaptation of SAP cloud technologies by the organization will drive SAP application services market growth in the forecasted years.

"Integration of SAP Application Services in the Telecom Sector to Boost the Market Demand "

The telecommunication sector is a fast-growing sector with the broadening of global networks and communication. The traditional telecom sector is gearing for a transformation with the rollout of innovative products, 5G applications and the constant pressure to improve customer service and make it more engaging. The competitive landscape of the telecommunication industry is to cut down the operation cost, retain clients and generate revenue opportunities. SAP application service tool provides a solution with internal operation structure such as workforce management, enterprise management, financial management and supply chain solutions. SAP application services help the telecom industry to thrive in the dynamic market, and customer demands. The real-time data also helps in making wise investments. SAP application services' ability to provide a solution to the existing problem will act as a major growth factor in the upcoming years.  

RESTRAINING FACTORS

"High Cost of SAP application Services to Affect the Market Growth"

The developing countries have witnessed a rise in the small and medium enterprises which are essential in a growing economy and meeting consumer demands. The enterprises need better infrastructure to increase their productivity and efficiency. Deployment of SAP cloud technology needs high investment which might go beyond the affordability of the small enterprises. The expensive nature of the SAP application service might restrict the market growth.

REGIONAL INSIGHTS

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"Europe Region to Dominate the Market due to the Digital Transformation"

Europe is transforming itself into a new era of the digital economy. The latest developments are triggered by the presence of top key players in the region. The adaptation of new technology is fast in the region triggered by the pressure of meeting consumer demand across all the industrial sectors. A good economy, high investments, and a booming telecommunication sector is playing a crucial role in the growth of SAP application services market share in Europe.

KEY INDUSTRY PLAYER

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and the launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.   

List of Market Players Profiled

• SAP (Germany)
• NTT Data (Japan)
• Infosys (India)
• Atos (France)
• Deloitte (U.K.)
• Accenture (Ireland)
• Capgemini (France)
• Wipro (India)
• Tata Consultancy Services (TCS) (India)
• IBM (U.S.)
• Fujitsu India)
• PwC (U.K.)
• Cognizant (U.S.)
• CGI (Canada)
• DXC Technology (U.S.)
• EPAM (U.S.)

REPORT COVERAGE

This report covers the analysis of the SAP application services market providing a comprehensive market insight taking into consideration the existing key players who would play a crucial role in the forecasting period. It also analyses based on segmentation, industrial developments, trends, growth, size, share, restraints and revenue. The report covers an overview of the latest driving factor in the industry, dominant region, latest innovations and opportunities.