A vast number of IT companies that are being funded these days are based on the SaaS model. That’s because the world is transforming much faster than before. And SaaS is bringing a change everywhere, you name it, it’s there. Healthcare, finance, home, education – in all these sectors, SaaS companies have impacted positively, and the impact is going to increase in the coming years. If you want to do your own startup in these areas, then make sure you’re doing something that has more chances to succeed. This is why you must know, what are the in-things in the market.
Below are the top trends in SaaS applications for the year 2020:
1 Artificial Intelligence
Chatbots are now more common than they ever were. If you’ve been recently asking questions on a website over live chat, such as travel or support, then chances are that a robot was replying to your queries. AI-based apps are helping people discover what content to watch, where to go, what to buy and what to paint. Not just that, there are searches and local discoveries happening over voice, thanks to Alexa and Siri. Because there are too many apps on the net, with some doing similar things, the ones with AI features are standing out. As per Venture Scanner, there are 1,600+ AI-based startups as well as corporates, who’ve been able to secure more than $12 billion in funding. Marketwatch did research on which states that the market of AI as a service is expected to be around $7 billion by 2023. This means AI is here to stay for good. Of course, there are areas where bots will never be enough, and human intelligence is going to be required.
2 Augmented Reality and Virtual Reality
So many brands these days are warming up to AR and VR. They want to offer their customers, a look & feel of the product, so they know how it is without having them use it physically. Volvo makes you experience driving in their cars, without sitting in one. You can see how Lacoste’s products will look on you, without making you go to the trial room. The education sector is also gearing up on this front, with Google Expeditions app that makes lessons come to life (literally!). Major advancements are expected in healthcare, as doctors can know more about the body system, without the need for a real dead body.
The US Meditation app market is expected to grow to $2+ Billion in revenues by 2022, as per Marketdata Enterprises. Apps like Headspace are having thousands of downloads each day. Many new players are entering this market, as more people the world over are opening up to having a relaxed life. And yet, none of these apps can relax your customers, if their valuable data gets stolen. In recent times we’ve seen hackers attacking Facebook and LinkedIn, as phishing attacks are on the rise. For SaaS applications, security is an ever-growing aspect, for securing precious memories of customers who share their data on your app. There’s scope for apps that can secure other applications, as well as secure themselves.
4 Mobile payments
Even though PayPal is an old favorite and there are other players like Mint and Square; the market is open to newer startups offering better ways to transact money online. The growing smartphone usage offers room for adoption, as more & more people are buying online from before. According to McKinsey, by 2020 many Americans would stop using cash and rely entirely on their smartphones. Companies, as well as people, are always open to adopting SaaS apps that make it easier to do things than what others are offering, such as splitting a bill, trading bitcoins, analyzing your credit score, etc.
With apps getting bloated and filled with too many features, users are looking for specialized solutions to fulfill their needs. That’s where Micro-SaaS applications come in, which offer a small set of specialized features from the main application. So that users use the options they want the most. Such apps are small, lightweight, and easy to use for the end-user. Hence, if you have used an app having tonnes of features and can create something based on just the top few ones, it may have a good chance to do well.
Vertical404 Capital – Early stage investing
These are the top SaaS trends for the coming year. Creating a great app, that solves problems for the end-user and also has market potential, makes it easier to get funding. For Latinx or Black entrepreneurs, if you’re looking to get funded then send us a message. Based in Atlanta, our focus is on early-stage SaaS startups. All our ventures get expert advice and coaching, to ensure that they succeed in the market. Feel free to write your questions in the comments box below.