Software-as-a-service (SaaS) has been gaining popularity since the onset of the COVID-19 pandemic because the remote lifestyle incentivized companies to digitize their operations rapidly. Given the ongoing digital transformation of almost every industry worldwide, the demand for SaaS is expected to increase. The global SaaS market is expected to grow at an 18.8% CAGR over the next eight years to $703.19 billion by 2030.
But despite bullish industry growth prospects, shares of most SaaS companies have been retreating lately due to the current tech rout. And because the Fed has already raised interest rates and plans further hikes, tech stocks might remain under pressure. However, as COVID-19 cases surge again in several countries, a likely extension of work-from-home arrangements could help SaaS stocks rebound soon.
