92+ SaaS Statistics, Trends and Facts [2024]

October 1, 2023 0 Comments

Curious about SaaS but don’t know where to start? 

You’re not alone. 

Software as a service has grown tremendously in the last decade. 

Whether you are a business looking to invest in SaaS or an individual who wants to build a career in it, navigating this ever-growing domain can be quite confusing. 

Here are some interesting SaaS statistics and facts you need to know:

Keep reading to gather more insight into each of these topics.

SaaS solutions have revolutionized nearly every sector. AI and machine learning have simplified processes that previously took hours of manual labor. If you’re wondering how much the industry could grow in the next five years, here’s an interesting fact for you:

The global SaaS market is estimated to value a whopping 482715.22 million USD by 2028.  

Can the SaaS market make this prediction a reality? 

What are the significant milestones in the domain? 

Read on to get the answers to all these questions.

Top SaaS Stats – Editor’s Pick

  1. The software as a service industry is worth over $195 billion in 2023.
  2. Currently, there are approximately 30,000 SaaS companies worldwide.
  3. The market size of SaaS is projected to reach $700 billion by 2030.
  4. The US has 17,000 SaaS companies and 59 billion customers, making it the country with the highest number of SaaS customers in the world.
  5. The global AI market is estimated to reach more than half a trillion US dollars by the end of 2023.
  6. 85% of the apps used by corporates will be SaaS-based by 2025.
  7. SaaS contributes to nearly 30% of public cloud end-user spending worldwide.

Now that you have an overview of the top SaaS statistics, let’s look at the growth and latest trends.

SaaS Revenue is expected to see an annual growth rate of 7.89% by 2027

The increasing demand for cloud-based solutions, the rise in digital transformation, and the need for scalability in business operations have been blessings to the SaaS realm. 

The global SaaS market grew from $31.4 billion in 2015 to an estimated $161.7 billion in 2022, representing a compound annual growth rate (CAGR) of 24.6%.

In 2023, the industry is worth 193 billion, and it is estimated to reach 195 billion by the end of this year. It is expected to continue to grow rapidly in the next 5 years, with a projected growth rate of 13.7%.

High-performing organizations are planning to invest more than 20% of their budgets in AI

Towards the end of 2022, ChatGPT gained popularity, and the world hasn’t been the same ever since. By 2025, global AI software revenue is predicted to reach $118.6 billion

ChatGPT users

How are businesses in the SaaS space going to use this opportunity? Well, they are integrating generative AI into their products to gain an edge over their competitors. 35% of companies are already using AI, and another 42% plan to use it in the near future. 

The US is home to about 60% of the world’s SaaS Companies

There are about 30,000 SaaS companies in the world, and this number is expected to increase to 72,000, excluding AI firms. 

The United States is the leading country in terms of the number of SaaS companies. It is followed by Canada and the UK. Here is an overview of SaaS companies by country:

CountryNumber of SaaS CompaniesNumber of SaaS Customers
United States1700054 Billion
United Kingdom20003 Billion
Canada20003 Billion
Germany1000233 Million
France10001 Billion
India10002 Billion
China7073 Billion
Australia635233 Million
Netherlands402967 Million
Singapore327930 Million
Italy24443 Million
Japan241160 Million
South Africa631 Million
South Korea48100 Million
Number of SaaS companies by country

674 New SaaS companies were founded in 2019

While COVID-19 didn’t affect the SaaS industry much, it was a barrier for new SaaS businesses. 

In 2018, there were 1,196 new SaaS companies. This shows the significant dip in numbers because of the pandemic. 

However, now that the world is getting back to normal and AI is gaining traction, the number is bound to increase by the end of 2023. The global market value already saw a significant increase in 2022.

The market for vertical SaaS is expected to reach over $157 billion by 2025

Vertical SaaS is one of the biggest SaaS trends of 2023. It is like a custom suit designed to perfectly fit the specific needs of an industry or vertical. 

With more and more businesses wanting to provide a personalized experience to their customers, a cookie-cutter approach doesn’t cut it anymore. 

So it’s no surprise that SaaS companies are seeing an increase in the demand for vertical SaaS

How are SaaS Tools Used?

We’ve covered SaaS growth by numbers and industries. It’s time to address a pressing question: how are SaaS tools used?

There are over 24,000 productivity tools and collaboration applications

SaaS companies function in various segments. The tools they develop can be applied to different areas of business operations. 

SaaS companies by industry

Productivity Tools and Collaboration Applications: These tools help the workforce be more productive by automating tasks and streamlining workflows. They also help teams collaborate better. Some of the examples are Google Workspace, Microsoft 365, and Slack.

Customer Service Solutions: There are about 17,000 customer service solutions. These tools help businesses provide better customer service. Examples include Salesforce Service Cloud and Zendesk.

Marketing Software: Tools like HubSpot Marketing Hub and Marketo automate and streamline their marketing tasks. SaaS has about 15,000 applications for this function.

E-commerce: These solutions help businesses create and manage their online stores. Some examples are Shopify and Magento. This segment has about 14,000 such tools.

Data & Analytics: Collecting, analyzing, and visualizing data is quite simple with Tableau, Power BI, and other such tools. There are about 12,000 data analytics solutions on the market.

Sales: These solutions help businesses automate and streamline their sales process. Examples include Salesforce Sales Cloud and Pipedrive. The SaaS solutions in this segment are about 11,500.

Company Spending on SaaS and How They Use SaaS Products

Public cloud end-user spending can reach nearly $600 Billion worldwide in 2023

Businesses of all sizes are adopting public cloud computing rapidly. This trend will continue as more firms migrate to the cloud. Public cloud computing enhances scalability and flexibility and helps businesses save money.

The amount companies spend on SaaS is expected to grow by 16% in 2023

company spends per employee on SaaS

Companies with more than 1,000 employees spend an average of $7,624 per employee on SaaS. Organizations with less than 1000 employees spend $3,133 per employee on average.

Cloud security is the fastest-growing segment in the IT security market

As businesses move their data to the cloud, the need to protect those assets from cyberattacks has become crucial. The cost of cybercrime is predicted to hit $8 trillion in 2023 and will grow to $10.5 trillion by 2025. That’s why businesses are focused on investing more in cybersecurity.

75% of apps used by companies are SaaS-based

SaaS based apps

Today, businesses use an average of 80 IT-sanctioned SaaS apps. That’s a 5x increase over a period of 3 years and a 10x increase since 2015. It is estimated that by 2024, 85% of apps used by companies will be SaaS-based.

87% of companies either use or plan to implement marketing automation tools

In today’s digital world, businesses across all industries are leveraging technology to improve efficiency. This is where automation comes into play. Companies automate redundant marketing tasks like scheduling social media content or sending emails. In marketing, the ROI of automation is on average $5.44 for every dollar invested.

75% of business leaders cite that business agility has improved after implementing pure SaaS

74% of business leaders also state that the implementation and deployment of a SaaS solution is one of the main reasons they chose it. 

The average time to fully implement a new software product has gone down from 57 hours to 7 hours. This reduces downtime and helps businesses optimize their processes.

68% of businesses say that SaaS has helped them improve customer satisfaction and increase productivity

SaaS applications can help businesses automate tasks such as customer support and order processing. This frees up employees to focus on providing more personalized service. SaaS applications can also help businesses track customer interactions and use the data to improve the overall experience.

69% of businesses claim that has helped them reduce costs

SaaS applications are mostly subscription-based. So, businesses only pay for the resources they use. This can reduce operating costs, especially for companies that have seasonal fluctuations in demand.

SaaS Adoption Statistics

At this point, you would’ve understood the growth rate of SaaS and its applications. The next part is about the adoption of SaaS.

  • 78% of small businesses have already invested in SaaS options. [14]
  • 65% of small businesses plan to increase their investment in SaaS next year. [15]
  • SaaS adoption in the healthcare industry grows at a rate of 20% annually. [16]
  • With more and more manufacturers using cloud-based solutions for their operations, the manufacturing SaaS market is predicted to reach $19.71 billion by 2026. [17]
  • By 2025, the global healthcare cloud computing market will reach $61.84 billion. [18]
  • 80% of higher educational institutions use SaaS applications. [19] 
  • The retail SaaS sector is expected to reach $33.34 billion by 2026. [17]
Retail SaaS market

Top 30 SaaS Companies

  • Salesforce is the biggest SaaS company, with a market capital of over $183 billion.
  • Adobe comes in second with a valuation of $158 billion.
  • The third biggest player in the SaaS domain is Intuit Inc., with a value of $115 billion

Check out the ranking of the Top 30 SaaS companies:

CompanyMarket Capital
1Salesforce, Inc.$183.80 Billion
2Adobe Inc.$158.87 Billion
3Intuit Inc.$115.78 Billion
4ServiceNow, Inc.$90.54 Billion
5Shopify Inc.$55.51 Billion
6Workday, Inc.$48.90 Billion
7Block, Inc.$48.65 Billion
8Snowflake Inc.$45.69 Billion
9Roper Technologies, Inc.$45.57 Billion
10Atlassian Corporation$45.14 Billion
11Autodesk, Inc.$44.95 Billion
12Recruit Holdings Co., Ltd.$43.90 Billion
13Paychex, Inc. $40.78 Billion
14ResMed Inc.$32.9 Billion
15CrowdStrike Holdings, Inc.$29.90 Billion
16Veeva Systems Inc.$27.46 Billion
17Datadog, Inc. $24.50 Billion
18Zoom Video Communications, Inc.$20.96 Billion
19Cloudflare, Inc.$19.8 Billion
20HubSpot, Inc.$19.80 billion
21Paycom Software, Inc.$17.66 Billion
22Palantir Technologies Inc.$17.4 Billion
23Zscaler, Inc.$17.27 Billion
24Splunk Inc.$16.90 Billion
25MongoDB, Inc. $15.23 Billion
26PTC Inc.$14.74 Billion
27Twilio Inc.$13.84 Billion
28Okta, Inc.$13.48 Billion
29DocuSign, Inc.$12.89 Billion
30WiseTech Global Limited$11.1 Billion

Conclusion

That’s the end of our SaaS statistics. Now, you have insight into the growth of SaaS, its applications, and future trends.

The world has gone through some drastic changes in the last five years due to rapid tech growth. A lot of organizations are working remote or hybrid, which has made cloud-based computing a necessity. With machine learning, generative AI, and natural language processing, the software as a service industry is only going to evolve further. 

AI models like ChatGPT are even capable of coding. Staying on top of what’s happening in the SaaS industry will help you be better equipped for the future. So keep an eye on our website for more articles like this. 

Sources

  1. Statista. “Leading software as a service (SaaS) countries worldwide
  2. McKinsey. The state of AI in 2023: Generative AI’s breakout year
  3. Latka Agency. Top Countries: SaaS Database
  4. Card Connect. The Rise of SaaS
  5. Apptension. Is vertical SaaS right for your next project?
  6. Ascendix Tech. How Many SaaS Companies Are There in the World
  7. Gartner. “Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2023
  8. Gartner. “Market Share: Customer Experience and Relationship Management, Worldwide, 2020
  9. Gartner. “Gartner Forecasts Worldwide Security and Risk Management Spending to Exceed $150 Billion in 2021
  10. Better Cloud: “2020 State of SaaSOps: The Impact and Implications of the SaaS Revolution
  11. ResearchGate: “Marketing Automation Report 2021: Lead Generation and Lead Qualification Through Data-Driven Marketing in B2B
  12. Workday: “Moving to the Cloud: How to Lead a Cloud-First Technology Strategy
  13. BetterCloud: “2023: State of SaaSOps
  14. BMC: “The State of SaaS in 2022: Growth Trends & Statistics
  15. SEMrush: “73 Remarkable Small Business Statistics to Know
  16. Good Firms: “How Healthcare SaaS Is Taking Off in the Medical Industry
  17.  Market Splash: “300+ SaaS Statistics, Geographics, Organizations, Growth, Challenges, Usage, Market & Pricing
  18. Zion Market Research: “Healthcare Cloud Computing Market Size, Share, Growth Report 2030
  19. eCampus News: “Trends in Cloud Computing in Higher Education
  20. Yahoo Finance: “30 Biggest SaaS Companies in the World in 2023

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