Norway Software As A Service (SaaS) Market - Strategic Insights and Forecasts (2022-2027)

The Norway software as a service (SaaS) market is projected to witness a compound annual growth rate of 13.77% to grow to US$1,675.153 million by 2027, from US$678.8 million in 2020.

With the growing digitalization in Norway and increased adoption of smart devices, the use of software as a service (SaaS) has been increasing in the country. According to data from the International Telecommunication Union (ITU), the share of internet users in Norway reached 97% in 2020. The Norwegian business has been rapidly adopting cloud computing which has been one of the most prominent drivers of the software as a service (SaaS) market in the country. The end-user industries have been quickly adopting cloud computing. According to Statistics Norway, the share of private enterprises (excluding financial activities) buying one or more cloud computing services has increased from 29% in 2014 to 64% in 2021. Furthermore, the expansion of artificial intelligence in the country is paving way for SaaS. In 2021, Statistics Norway stated that 42% of information and communication businesses use one or more artificial intelligence technologies in the country. The growing trend of AI in the country is expected to have a positive impact on the Norway SaaS market.

Government support and increasing investments in cloud computing are anticipated to have a positive impact on the Norwegian SaaS market during the forecast period.

The government of Norway has been pushing and backing cloud computing in the country lately. In April 2018, the government of Norway announced that it will establish a government marketplace for cloud services. Two years before this announcement, in 2016, the Norwegian government had launched the country’s national cloud computing strategy, under which the government is stimulating project development and investment in cloud computing. More and more companies in Norway have been utilizing services from the cloud and data center providers in order to accelerate their business growth. In August 2020, the Norwegian SaaS company announced it have received investments from existing and new investors valuing the business at US$12.2 billion.

Technological advancements and an increase in the number of service providers are assisting organizations' adoption of the public cloud, and these developments are boosting the Norway SaaS industry. Furthermore, SMEs' rising use of cloud services is propelling public cloud market growth. As the number of startups develops, the demand for public cloud is expected to rise. Neptune Software, for instance, is an Oslo-based start-up that offers no-code or low-code app development solutions. The application can be linked with existing IT architecture and the cloud.

Key Developments:

• In April 2022, Statens Vegvesen (Norwegian Public Road Administration) partnered with Ørn Software, a Nordic provider of SaaS solutions, regarding a cloud-based facility management system covering the entire portfolio of real estate, totaling 400,000 square meters. The contract adds NOK 1.8 million to Ørn Software's annual recurring revenue. The service will be available starting July 2022.

• In May 2021, Cognite, a global pioneer in industrial software development, reported that it closed a $150 million financing round with TCV, valuing the business at $1.6 billion. This investment represents one of Europe's largest SaaS fundraising rounds, confirming industrial digitalization as a global trend. Additionally, Cognite achieved unicorn status as a result of the new valuation round.

COVID-19 Insights

The COVID-19 pandemic had a positive impact on Norway's Software as a Service market. With the rise in the number of COVID-19 cases in the region, governments had begun to impose lockdowns and travel bans. This had led to an increase in the adoption of cloud-based SaaS services. Since, the beginning of the pandemic, working from home had been gaining prominent traction in the country. Cloud adoption has also surged at a noteworthy level in Norway.

Norway Software As A Service (SaaS) Market Scope: