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In this guide, we focus on the latest SaaS development trends in 2021. Whether yours is a small startup in the IoT industry or a giant enterprise, these cloud solutions can help you stay ahead of your competition.


The software-as-a-service (SaaS) industry has undergone tremendous growth in recent years. Both SMBs and enterprise companies from the powerful finance industry to state-of-the-art IoT startups lean toward a cloud deployment option. That’s because business owners know these options give them convenience, efficiency, and affordability. The number of SaaS companies is expected to grow due to the benefits of its model for both business owners and customers: it is sustainable, adjustable, fits many industries. Along with it, SaaS development services will stay in demand too.   

Indeed, between 2020 and 2025, the SaaS market is expected to grow globally. For example, experts expect the global market size of cloud computing to grow from $371.4 billion in 2020 to $832.1 billion by 2025. Notably, more than 60% of decision-makers from different industries worldwide have already incorporated cloud service bundles into their businesses.

Since 2019, a groundbreaking year for the SaaS world, cloud-based solutions’ popularity has not waned. Moreover, 2021 continues this trend. The SaaS industry growth is driven by cloud computing technology advancements. Using these advancements, companies can take their business to the next level and gain prominence in a highly competitive marketplace.

In this guide created by Itransition, we cover the latest SaaS development trends in 2021. Use the information here to gain an edge over your competitors.

Top 8 SaaS Development Trends

1. All-Permeating AI

According to Salesforce Research, 84% of customers believe a brand experience is as important as its products or services. SaaS development companies can create hyper-personalized user experience. This is due to better customer behavior analysis and prediction with AI-algorithm implementation. In addition, AI can help automate daily chores and send alerts regarding identified anomalies. This supplements human capacity and ensures complete control over your business.

2. More Vertical SaaS Development

Vertical SaaS implies products and services developed for specific industries. While horizontal SaaS solutions focus on diverse industries and customers, a vertical SaaS solution is more targeted and customizable. For example, these solutions are capable of troubleshooting bottlenecks in a specific niche.

Benefits of vertical SaaS solutions include advanced data management, profound customer intelligence, higher lead conversion, and lower customer acquisition costs.

3. Micro-SaaS Solutions

To keep your digitally savvy customers, your software should be a step up. Additionally, it needs to be tailored to niche customers’ needs. Micro-SaaS can be the right solution to complement your existing software with add-ons. For example, you can use it to address deficiencies and enhance the features of your system.

A small team usually manages micro-SaaS development, and sometimes it can be a single person. For small companies, micro-SaaS development is a great chance to carve a niche in the tremendously competitive market without heavy investments.

4. The Mobile-First Approach

Mobile-first SaaS products are gaining traction right now. This makes sense. During the lockdown, the option of using software remotely took on great importance.

More and more SaaS companies are developing solutions that are accessible across devices and can be used on the go. Sometimes, companies struggle with challenges, especially in the design. More precisely, they contend with responsive interface creation.


5. API Connectivity

SaaS software without API integration options lags behind those SaaS systems that incorporate API connectivity. The thing is, companies running their legacy digital solutions might find it difficult to modify these systems to connect them to their new SaaS. Therefore, it is much easier and cheaper to add a new cloud solution via an API.

API-based SaaS vendors provide a necessary degree of code and data access to SaaS subscribers’ developers who can integrate the solution into legacy systems.

6. Increased Demand for White-Label SaaS

White-label SaaS products imply a set of services and software rebranded for marketing by another company. With a white-label SaaS option, companies can add their branded elements and hallmarks tailored to their needs to the system. Thus, they make their product more personalized and customized.


7. The Development of Low-Code SaaS

The emergence of low-code and no-code SaaS platforms allows non-tech people to use end-to-end solutions and successfully integrate them into their business environments. Additionally, companies are free to develop their apps quickly without heavy investments. What’s more, with little or no coding involved, such SaaS solutions usually have low setup and maintenance costs. Additionally, they offer a faster go-live process.

8. A Growing Demand for PaaS

Today’s cut-throat competition in the SaaS market forces SaaS development companies to search for more sustainable cloud-based solutions and rethink their customer retention strategies. One of these solutions is migration to a platform-as-a-service (PaaS).

One of the hallmarks of the PaaS option is the possibility for customers to create their own applications on top of the platform. This extends the customization capabilities almost limitlessly.

SaaS Development Will Continue Growing and Changing

The SaaS industry will continue to be in flux. Moreover, the latest trends in SaaS development demonstrate how flexible, scalable, and adaptable the industry is. Additionally, ongoing AI integration and more personalization are possible, meaning SaaS solutions will continue changing how enterprises create and run their digital solutions.

We hope this article has given you a glimpse of the SaaS development world in 2021, with an eye toward giving your business continuing growth.