The consumption of products and services online is growing in the wake of mobile connectivity and new digital goods. Learn about some of the sectors that are on the leading edge of the trend
More cell phones on the market, better internet, and cellular connectivity are about to enter the 5G era once and for all. These are just some of the most important factors that have strengthened the growth of consumption of SaaS products, where the purchase is made on a recurring basis, instead of a one-time contribution, as in the traditional model.
The trend is highly strong in Latin America, a region that’s becoming ever-more digital and, consequently, interested in SaaS: 41.12% of Brazilian startups in 2020 were operating within the SaaS market, making it the most popular modality of operation for this type of company (Associação Brasileira de Startups). followed by the marketplace business, with 19.4% of the total. By 2022, the market is expected to have a CAGR of 29.1%, reaching $5.3Bi, with Brazil and Mexico being the leaders in the field, jointly expected to reach $6.19Bi.
It is clear, therefore, that this type of digital product sales has been growing in general, but some segments are particularly hot and should perform even better than others in the coming years. Check them out:
Fintechs
The companies that came to redefine the image of banks are also an example of how to ride the SaaS wave. Companies like Nu Bank, C6, Inter, and others are revolutionizing the banking industry, with cutting edge technology, agility, a language in tune with the public more accustomed to digital and lower fees. And all this operating 100% digitally, directly on the client’s cell phone, forming an excellent case of success in digital banking platforms provided as SaaS.
For companies that operate in B2B, companies like PagSeguro, which process payments for other companies, are good examples of how the use of SaaS helps to streamline the commercial activities of companies in various sectors.
CRM, Communication, and Collaboration
If there was one area that was largely strengthened by the social distancing rules imposed by the pandemic, it was remote collaboration and communication tools for companies, which had to quickly and forcefully adopt the home office. An example of this was the meteoric growth of companies like Zoom last year, which grew more than 500% in months because of the mass adoption of its solution. With this work format still expected to remain even with the recent relaxation of restrictions, these platforms will certainly maintain their relevance for a long time to come.
Other enterprise management tools such as CRM, ERP, and marketing automation are also growing, already updated to be cloud-first and able to bring more performance and flexibility through a SaaS offering.
E-commerce and Hosting
In the same way that offices have adapted to the home office model, commerce has also had to evolve to e-commerce at an accelerated pace, rising to the impressive number of 248.7 million total digital Latin American buyers in 2021. Thus, hosting companies and platforms, payment solutions, and even complete sales management have grown rapidly in the last year.
With the great acceptance by the public and the good user experiences generated by sales platforms, the trend is that this format will not lose strength, and will continue to be widely used by consumers.
Education
Another area driven by the pandemic, distance learning has grown strongly at almost all levels of formal and informal education, with face-to-face classes being quickly and successfully replaced by distance learning. In Latin America, the e-learning market is expected to reach $3 billion by 2023, with a CAGR of more than 4% from 2018-2023.
Similarly, language courses, arts and even physical training have gained prominence and popularity in recent months, and should continue to do so in the near future.
Entertainment
Today it is hard to imagine watching movies and series without at least having an option like Netflix, Amazon Prime, Disney+ or similar, just like listening to music without the convenience of Spotify. Streaming content platforms are on the rise, and with more and more features and better connectivity, it is possible to predict growth for a long time in the sector. According to a research by WhipMedia, five global platforms will take hold of 88% of streaming subscriptions by 2025 in Latam: Netflix, Amazon Prime Video, Disney+, Apple TV+, and HBO Max.
The gaming market is also going strong, both in PCs, consoles, and cell phones, driven by the increasingly robust processing power of the devices, as well as by the better connectivity available in the region. Game options ranging from free games with the possibility of buying add-ons to well-established (and expensive) franchises are gaining space and should continue this good phase for a long time to come.
These are five examples of a market that should continue in solid expansion. Thus, this moment is ideal for companies looking to grow here by providing SaaS products. With consumers searching for better, agile, easy and practical consuming processes, it is fundamental to offer all, not only in your product, but in every step of the way. To be able and capable of delivering the best experience, look for a partner to perform local payment processing, prepare your product portfolio, and start selling.
