Excessive competition in the SaaS industry is expected to gather pace over the next 3–5 years, and Rakus President Nakamura has revealed an “investment strategy aimed at buying time.” The market has entered a mature phase, with rising CAC and slower adoption becoming evident.
In Japan's domestic SaaS market, an oversupply of funding during the COVID-19 pandemic led to the launch of numerous software products, intensifying competition. Demand for back-office DX has now passed its peak, while the market is increasingly made up of slower decision-makers, making slower adoption and higher CAC evident.
The market once grew rapidly at more than 30%, but its growth rate has now fallen to the 10% range. Against this backdrop, the market is maturing and excessive competition is emerging as companies compete for a limited share of the market. Rakus's cloud business expects organic average annual growth of more than 15%, with upside potential from M&A and price revisions.
Regarding the timeline for future consolidation, the view has been expressed that it will gather pace over the next 3–5 years. The article's continuation is required to specify the timing, but it indicates that momentum toward consolidation is building.