It’s that time of year when I look forward to my “world tour” across Asia Pacific and EMEA, spending time with G2 employees, customers, partners, and other SaaS leaders and entrepreneurs.
Looking back at our G2 Live and mid-year meetup events in Bangalore and conversations at SaaStock in Dublin, I remain bullish on the growth of global software and the role artificial intelligence will play in accelerating that growth.
The B2B software landscape continues to evolve, with global leaders emerging
Despite the economic climate, software remains a global growth opportunity.Over the past five years, the list of software on the G2 Market has Growing at a rate of 7%.
This positive trend represents global opportunity. While 74% of G2 leaders are from the Americas, 17% are from European, Middle Eastern and African countries, and 9% are from the Asia-Pacific region. As buyers become agnostic, they are looking for the best software built by entrepreneurs around the world.
Despite an overall slowdown in venture capital and deals, we are seeing positive signs in the regions I visited. So far this year, $7.6 billion It has invested in 977 deals in India, with the total deal value growing for the past two consecutive quarters.Additionally, Indian SaaS centaurs and unicorns are expected to bring Over $20 billion Revenue through 2023.
We’re also seeing bright spots in the EMEA region.Newly released 2023 Accelerating the European Landscape The report states: “Year to date, we have invested $31 billion in private cloud companies, with Europe and Israel ($11B 2023 to date) and the United States ($20B 2023 to date) converging towards pre-COVID levels.
However, it is worth noting that the European and Israeli cloud ecosystems have solidified their relative advantage, accounting for more than half of the US (53%), up from 46% in 2020. ” Euroscape is up 29% so far this year.
All indicators point to a recovery coming and opportunities ripe for growth for global SaaS innovators.
Artificial intelligence is driving the growth of today’s software, accelerating innovation and digital purchasing
It’s no coincidence that this growth opportunity coincides with the rise of artificial intelligence. We have already observed a shift from B2B software purchasing to consumer-style shopping. Actually, 67% of global B2B software buyers Said they usually only hire salespeople from software companies after a purchasing decision has been made. Now, as we enter the age of artificial intelligence, we are seeing an acceleration of software innovation and a shift to digital purchasing.
OpenAI’s ChatGPT ushers in the most exciting era of software since the launch of the visual Internet and the iPhone.At G2, we have followed this trend Monty – The first-ever software buying assistant designed to make the process of finding the best software for buyers’ unique business needs faster and easier than ever.
We also see SaaS providers competing to launch new AI software solutions. Last year, G2 added 643 new products to the AI category, making AI the fastest-growing software market (annual growth of 39%). Accel reports that while most of the generative funding has gone to U.S. companies, there are also a number of promising generative AI companies emerging in Europe and Israel, which have raised a combined $7.6 billion.
Software buyer behavior is changing rapidly as AI capabilities are anticipated.According to G2 2023 Software Buyer Behavior Report81% of global buyers say it is important for the software they purchase to have AI capabilities, and 78% trust the accuracy and reliability of AI solutions.
India in particular is leading the world in trust adoption of artificial intelligence. Indian respondents ranked highest in the survey (78%) global survey Respondents were asked if they currently use artificial intelligence at work. I believe this trust stems from SaaS entrepreneurs in the Asia-Pacific region, who are leading AI innovation with the region’s vast data science and AI talent pool.
AI is the ultimate growth wave for SaaS innovators
A year ago, I advised SaaS companies to ride the wave and win. Artificial intelligence has become the ultimate growth wave, fundamentally changing the way we buy and sell software.
Despite difficult global economic times and a financing slowdown, the SaaS landscape in Asia Pacific, EMEA, and the Americas remains resilient. By pivoting to smart organic growth, continuing to leverage artificial intelligence to innovate, and adapting to changing buying behaviors, SaaS innovators will accelerate their growth in the coming years.
