79 SaaS Statistics (2024)

Uncover the essential statistics for informed Software-as-a-Service decisions. Our concise resource will provide you with valuable insights to help you navigate the SaaS industry more effectively.

Key Takeaways:

  • SaaS end-user spending will grow 17% next year
  • Organizations use an average of 130 SaaS
  • AI SaaS market has expected CAGR of 37.6%

SaaS Market Statistics

1. $237.4 Billion Market Value

YearCurrent and Predicted Market Value (in Billions)
2022$237.4
2023$273.5
2025$363.2

The worldwide SaaS market value is worth approximately $237 billion with a compound annual growth rate (CAGR) of 18.7%.

2. SaaS Accountable for 45% of Global Software Sales

SaaS commands almost half of all software sales globally, signaling its widespread adoption and influence in modern business.

3. North American Market Responsible for up to 71% of SaaS Market

The North American market’s size and advanced development are key reasons for its dominant SaaS market contribution.

4. U.S. Has 8x More SaaS Companies than Any Other Country

The U.S. has 17,000 SaaS companies, more than 15,000 more than second-placed U.K. and Canada.

5. 59 Billion SaaS Customers

The U.S. has the largest customer base of any country in the world. In fact, its customer base is bigger than every other country combined.

6. European SaaS Market to Be Worth $60.3 Billion Within 2 Years

The European market has an estimated value of $45.5 billion and is an expected CAGR of 18.4%.

7. German Market Size on Track to Grow 300% over 5 Years ($6.9 Billion in 2020)

Analysts expect the German market to be worth in the region of $28 billion within the next 2 years.

8. U.K.Market Predicted to Value $15 Billion by 2025

The U.K. is one of the largest providers of SaaS services, and the domestic market will reach a $15 billion valuation in 2 years.

9. Three-Quarters of U.K. Small Businesses Have Invested in SaaS

Small businesses in the U.K. have seen the benefit of SaaS, with 78% investing in SaaS technology. 

SaaS Adoption & Growth Statistics

10. End-User Spending to Grow by 17%

YearEnd-User Spending (in Billions)
2015$31.4
2023$197.3
2024$232.3

End-user spending has grown more than 600% since 2015. It’s predicted to climb another 17% next year.

11. Small & Medium Business Adoption Expected to Drive 60% of SaaS Growth

SMBs will play a pivotal role in shaping the SaaS industry by supplying most of the industry’s growth opportunities. 

12. SaaS Communication & Collaboration Tools Have 73% Adoption

These are the most commonly adopted type of SaaS tools; high adoption rates signify a strong digital shift.

13. Number of SaaS Companies Grew 21% in 2 Years

In the last two years, the number of SaaS companies worldwide grew from 25,000 to 30,000.

14. The Most Popular Venture Capital Investment Category

This year, 47.5% of venture capital investments went to startups with a SaaS business model—a 2.5% increase.

15. 22% Revenue Growth for the Largest U.S. SaaS Companies

U.S.-based SaaS companies earning more than $100 million in yearly revenue have an average growth rate of 22%.

16. Web & Video Conferencing SaaS Market to be Worth $7 Billion by 2026

The web and video conferencing SaaS market is on track to double in value within the next 3 years.

17. SaaS Use in Healthcare Grows 20% per Year

SaaS solutions have become a key way for healthcare providers to improve efficiency and affordability.

SaaS Usage & Benefit Statistics

18. 130 SaaS Applications

The average organization uses 130 SaaS applications.

19. Large Organizations Use More SaaS Applications

Number of EmployeesAverage number of SaaS Applications
200 – 74959
750 – 2,999146
3,000 – 9,999135
10,000 +447

The more employees an organization has, the more SaaS applications they are likely to use. The largest use an average of 447.

20. Just 1% of Companies Not Using SaaS

Analysts assert that approximately 99% of companies will use at least one SaaS application by the end of this year.

21. 70% of Company Software Is SaaS-Based

Almost three-quarters of the software an average company uses is SaaS-based. Experts expect this to rise to 85% within 2 years.

22. 8 of 10 Leaders in Tech Say SaaS Is Responsible for 25% of Their Business

79% of leaders in the tech businesses space say that over a quarter of the applications they use are SaaS.

23. Some Workplaces Are More SaaS-Mature than Others

Type of Workplace# of SaaS Applications% of Software in the Cloud
SaaS-Powered21293%
Traditional398%
Transitioning7955%

Traditional workplaces use just one-fifth the amount of cloud-based SaaS solutions that more SaaS-mature organizations use. 

24. Scalability Is the Top Reason for Using SaaS

70% of Chief Information Officers say that SaaS solutions make scaling simpler and easier.

25. 16% Lower Maintenance Costs

SaaS-based solutions have been shown to reduce I.T. maintenance costs by as much as 16.1% when implemented correctly. 

26. SaaS Costs Are up to 25% Lower than Traditional Software

SaaS technologies offer a significant savings potential while potentially providing increased functionality and performance.

SaaS Challenges

27. Integrating SaaS with Existing Systems Is a Challenge for 70%

Merging existing technologies and workflows with SaaS solutions is one of the biggest challenges for 70% of business leaders.

28. 8 out of 10 SMBs Struggle with New SaaS Applications

Introducing new SaaS solutions can be difficult for SMBs, with 84% reporting they have difficulties with new SaaS technologies.

29. Traditional Workplaces Need to Boost SaaS Budgets

Approximately two-thirds (63%) of traditional organizations have an unsuitable budget dedicated to SaaS tech.

30. Half of Businesses Are Concerned About Vendor Lock-In

Approximately half of businesses surveyed consider vendor lock-in to be a “significant risk” when adopting SaaS solutions.

SaaS Pricing Model Statistics

31. Value-Based Pricing Is Most Popular Approach to Pricing

Pricing Method% of SaaS Companies Using Pricing Method
Best Judgment27%
Competitor-Based24%
Cost-Plus10%
Value-Based39%

More SaaS companies prefer to price their services on the “perceived value” and use emotionally-driven selling practices.

32. 61% of SaaS Companies Using “Usage-Based” Pricing

Charging users based on how much they use the service, rather than a set price, is gaining popularity.

33. Free Trials Offered by 4 of 10 SaaS Providers

The free trial is a valuable tool for 44% SaaS providers with almost half of them offering 30 days free.

34. Most New SaaS Companies Undervalue Their Products & Services

In the early stages of developing the business, most leaders choose to sell their SaaS tools at a loss. 

35. 43% of SaaS Companies Review Their Pricing More than Once a Year

Another 34% review prices once a year, while 15% do it every 2-3 years. 8% say they never review their pricing.

36. Most First-Stage Companies Choose a Free-Trial or Freemium Model

75% of SaaS companies that are in the early stages of growth choose to let the product speak for itself.

37. 48% of SaaS Companies Do Zero Pricing Research Based on Their Customers

Research shows that just 6% of SaaS businesses do thorough pricing research on their customer base.

SaaS Customer Retention Statistics

38. Customer Lifetime Value Is 75% Better

This indicates that customers are generally satisfied with their SaaS tools and services and they are happy to remain recurring subscribers.

39. SaaS Companies Lose 13% of Customers Each Year

Across the industry, SaaS companies lose 13% of their customers each year specifically due to poor onboarding experiences.

40. 3% – 8% Customer Churn Rate

A good churn rate for enterprise-sized businesses is 3% – 5% and 5% – 8% for smaller SaaS businesses.

41. Poor Customer Support Is Primary Reason to Stop Using SaaS

68% of customers who stop using SaaS services do so because they perceive poor customer support.

42. 8 of 10 SaaS Customers Are Satisfied

Industry-wide, approximately 80% of customers report being satisfied with their current SaaS providers.

43. Upselling Linked to 20% Lower Churn Rate

Successfully upselling additional SaaS services and features has been shown to reduce customer churn rate by as much as 20%.

SaaS Cloud Infrastructure Statistics

44. Amazon Web Services Holds 32% of SaaS Cloud Infrastructure Market

SaaS Cloud Infrastructure LeadersMarket Share (%)
Alibaba Cloud4%
AWS32%
Azure22%
Google Cloud11%
IBM Cloud3%
SaaS Cloud Infrastructure LeadersMarket Share (%)
Oracle2%
Salesforce3%
Tencent Cloud2%

Amazon Web Services is the biggest provider of the cloud infrastructure that SaaS solutions rely on. 

45. 96% of Enterprises Using SaaS Applications Use the Cloud

Cloud infrastructure use in the SaaS space is almost ubiquitous. Just 4 out of 100 SaaS systems users don’t use the cloud.

46. Cloud-Based SaaS Solutions Provide Real-Time Support & Collaboration

Real-time support and enhanced accessibility provide an opportunity to reduce IT costs by as much as 21%. 

47. Most Organizations Use a Multi-Cloud Strategy

Approximately three-quarters of organizations use more than one cloud infrastructure provider to avoid vendor lock-in.

Emerging Technologies in SaaS

48. 8 out of 10 Cloud Companies Have AI in Their SaaS Products

SaaS Product Type% of Cloud Companies Using SaaS Product
SaaS Products with AI Features82%
SaaS Products without AI Features18%

Cloud companies have overwhelmingly embraced AI technologies, with less than 20% using SaaS tools without any AI features.

49. AI SaaS Market Value Predicted to Reach $1.5 Trillion by 2030

Between 2022 and 2030 the AI SaaS market is expected to have a CAGR of 37.66%.

50. $43 Billion Investment in AI SaaS Startups

There is substantial investment in companies leveraging the power of these complimentary technologies as they will fuel further economic advancement. 

51. AI Adoption Is Improving User Experience

The adoption of AI in SaaS tech is improving user experiences and fueling faster adoption of AI-driven SaaS solutions.

SaaS in Remote Work Statistics

52. 95% of Remote Workers Are Using SaaS Tools for Daily Tasks

Remote workers rely on SaaS tools to provide services that would have been the exclusive domain of office workers a few years ago.

53. Microsoft 365 & Zoom Are Most Used SaaS Applications

These two SaaS apps are the most widely used by remote workers worldwide with an 80% adoption rate.

54. Remote Work Boosted SaaS Tool Use by 20%

The enforced work-from-home mandates caused by the COVID pandemic sped up the uptake of SaaS solutions.

55. SaaS Tools Have Improved Collaboration

Remote workers report improved productivity because of a 30% improvement in collaboration stemming from the use of SaaS collaboration tools. 

56. 65% of Organizations Plan to Invest in SaaS Tools for Remote Work

Organizations say they plan to increase spending on SaaS tools that will support long-term remote working strategies.

SaaS Security Statistics

57. Data Leaks Are Most Common Type of SaaS Security Incident

SaaS Security Incident Type% of Security Professionals Reporting Incident Type
Data Breach41%
Data Leak58%
Malicious Application47%
Ransomware40%

Almost 6 out of 10 security professionals report data leaks are the most common security incidents they experience with SaaS technology.

58. Average Data Breach Costs SaaS Companies $4.45 Million

The average cost of a data breach to a SaaS company has climbed approximately $600,000 in the last year.

59. 12% Increase in Reported SaaS Security Incidents

In the last 2 years, a little over half (55%) of IT security professionals say they have had a “SaaS security incident.”

60. Employees Are Cause of 83% of SaaS Security Issues

Security professionals at organizations using SaaS technologies say negligent employees are the source of 83% of incidents.

61. 5% of Organizations Don’t Run SaaS Configuration Checks

5 out of every 100 organizations using SaaS have never run configuration checks. 13% run them once a year only.

62. SaaS Security Posture Management Improves Security for 51%

Half the companies currently employing an SSPM report improved SaaS security and 33% save time on management and maintenance.

SaaS Competitive Landscape

63. Organizations Consider Integration Capabilities in Their SaaS Purchasing Decision

SaaS purchasing decisions are strongly influenced by the integration capabilities it offers.

64. Higher Average Revenue Per Account Leads to Lower Monthly Revenue Return Churn Rate

As a SaaS company’s ARPA grows, the data shows that its monthly net MRR churn rate decreases.

65. Paid Leads Cost 2x More than Organic Leads

B2B SaaS companies spend an average of $310 per paid lead versus $164 per for organic leads.

66. Net Revenue Retention of 110% for Best-Performing SaaS Companies

A combination of strong customer retention and growth strategies has led to this impressive net revenue retention percentage.

67. B2B SaaS Companies Have Average Growth Rate of 35%

The average growth rate of 35% (across all company sizes) shows the sector’s expanding influence.

68. SaaS Companies Targeting Horizontal Market Grow Faster

Horizontal SaaS companies have a growth rate of 45% compared with 38% for vertical SaaS companies.

69. SaaS Company Growth Slows as They Mature

Top businesses earning $1 million to $8 million grow 70% yearly. In the $8 million + category growth slows to 45% annually.

70. Using Product Qualifying Leads Triples Conversion Rates

Converting users from free to paid accounts is 300% more successful when using PQLs. 

SaaS Trends & Predictions

71. Data-as-a-Service Market is Expected CAGR of 36.92%

YearEstimated Market Value (in Billions)
2023$27.27
2024$37.26
2025$51.10
2026$70.11
2027$96.25

The DaaS market is predicted to grow rapidly in the coming years as more organizations look for better and cheaper data storage.

72. By 2025, 85% of New Software Will Be Delivered as SaaS

An industry-wide shift toward cloud-based software is underway and within 2 years, traditional software formats will make up just 15% of sales.

73. IOT & Blockchain to Have Bright Future

SaaS adoption in IOT and blockchain applications is predicted to grow by up to 50% over the next 2 years.

74.  Vertical SaaS Expected to Grow 2.4x Faster than Horizontal SaaS

SaaS technologies that cater to a specific niche are forecast to grow 240% faster than broad-reaching SaaS tools.

75. SaaS Security Spending to Increase

78% of SaaS providers have plans to increase investment in cybersecurity.

76. AI-Driven SaaS Tools Projected to Account for Over 40% of SaaS Revenue

The AI revolution will rumble on and within 2 years, over 40% of SaaS sales will strongly feature AI technologies.

77. Better API Integration

SaaS providers are improving their integration capabilities, meaning users will be less likely to need an API vendor.

78. SaaS Turns into PaaS

The SaaS provider transition to a Platform-as-a-Service provider will gain pace and become the standard by the end of next year.

79. SaaS Super Apps

SaaS provider consolidation is predicted to lead to “super apps” with more features and tools and improve user experience.

Frequently Asked Questions

Many of us use SaaS every day without realizing it. Microsoft 365, Zoom, and Google Workspace are all examples of SaaS. In the business world, 99% are thought to use at least one SaaS product.

Yes, end-user spending is growing and SMBs are expected to fuel further growth as they adopt SaaS technologies.

Across the industry, the average is approximately 75%. It should be noted, however, that this can vary based on a company’s annual recurring revenue.

AI-driven SaaS solutions and transitioning from SaaS to PaaS (Platforms-as-a-Service) are 2 trends expected to feature prominently in the near term future.

The average across all company sizes is currently 130. Companies with over 10,000 employees typically use around 4x more than that.

Sources

McKinsey, Fortune Business Insights, Gartner, IBM, PWC.

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  • Noel Griffith

    Noel Griffith is a Co-Founder and the Senior Analyst at SupplyGem. With a deep understanding of online businesses and a distinct passion for the creator economy. Drawing from his experience as a developer and online marketer, Noel is devoted to guiding others toward success in their online endeavors. In addition to his contributions at SupplyGem, he is affiliated with notable organizations such as the Association for Talent Development (ATD) and The Learning Guild.

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    Dr. Angelia Cline, Ed.D., has over 20 years of extensive editing expertise and a commendable academic foundation from William Carey University. Besides her position as a Chief Editor for SupplyGem, she is also an Instructional Designer. Dr. Cline manages the Learning Management System (LMS) for a large team, skillfully converting SME knowledge into engaging courses. With over 12 years of teaching experience, she has demonstrated her aptitude across various subjects and educational settings. At William Carey University, Dr. Cline achieved an Ed.D. in Educational Leadership, a Master’s in Teaching of the Gifted and Talented, and another in English Language and Literature. She also secured her BA in English from The University of Southern Mississippi. Her proficiencies range from research and differentiated instruction to educational leadership.