fbpx ...

Bring your business into the future: SaaS Statistics [Infographic]

Created: Oct 31, 2022

Updated: Sep 24, 2024

SaaS software programs are often available at a subscription rate to users. Just a few examples of this type of service are ClickUp, QuickBooks, and Adobe. They can provide access to the program while lowering your total cost. Here you will see various SAAS statistics for general understanding.

The key reasons SaaS is so popular are its flexibility, accessibility, scalability, security, and consistency. Besides these seven qualities that SaaS offers enterprise companies, there's also increased collaboration with it.

SAAS Statistics

For these reasons, the SaaS market has been booming in recent years and is expected to grow even more in the coming years. The amount that companies are paying on average per application has steadily risen each year and it's forecasted that this growth will continue.

Larger companies tend to take advantage of more SaaS apps and custom software than SMBs do. In general, organizations that have over 1,000 employees use an average of 171+ SaaS applications. A study by Gartner shows that nearly 50% of all companies using more than one SaaSe products will centralize their management of them within the next five years. This is a trend that is expected to continue as businesses are looking for ways to increase their productivity and reduce costs.

Should SaaS be the future of business? Many people seem to think so. It also seems inevitable considering how many people experienced working from home during the pandemic. Many businesses owners and managers have realized the importance of SaaS within their company and employees now work more efficiently and collaboratively through it.

There are so many new SaaS companies coming out, which is both a good and a bad thing. It’s great because it means there’s so much innovation happening. But as you know, with all this innovation also come strong competition which might end up squashing some interesting startups. We should also be wary of the risks behind using SaaS. It's vital that organizations work with their employees on how to use it properly so they're aware of any potential risks. And they also need to make sure third party SaaS products are approved by their IT departments, otherwise sometime it becomes difficult to maintain the safety of their employees, customers and data.

Overview   - (SaaS) estimated market is approximately worth 152$ billion  
    - 208$ billion by 2023  
       
    Organizations with more than 1,000 employees use 170+ SaaS applications  
    SaaS apps account for 70% of all business software usage.  
       
    There is a tenfold increase in SaaS apps since 2015, and by 2025 it is expected that 85% of business apps will be SaaS-based.  
    50% of businesses will centralise SaaS application management by 2026.  
    Most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.  
       
SaaS growth in key markets 1 US, UK, Canada, and Germany have the most SaaS companies in the world  
  1.1 Only 2% of UK businesses are not on the cloud  
  1.2 26% of the EU is using the cloud.  
  2 Region # of companies
    US 17000
    UK 2000
    Canada 2000
    Germany 1000
    France 1000
  3 SaaS, is the main startup model in Brazil and it makes up 41.12% of Brazilian startup  
       
Stats on SaaS pricing   38% of SaaS companies only charge clients when they actually use the service or product.  
    In 50% of SaaS businesses, consumers are charged based on the number of users.  
    31% of SaaS businesses, they rarely give discounts.  
    30 days is the most common free trial period.  
    More than 50,000 SaaS companies give their clients discounts of at least 30%.  
       
usage of SaaS   94% of the 786 technical professionals in small and big enterprises use cloud SaaS.  
    in 2017, 86% of data centre workloads were performed in the cloud; by 2021, this percentage had increased to 94%.  
    Companies use an average of 34 SaaS apps.  
    50% of US government organizations are now using the cloud.  
       
SaaS popularity in businesses   Enterprise businesses see themselves as "intermediate" or "advanced" level user in 68% of cases.  
    16% of business organisations are in the beginning stages.  
    12% of companies are taking a look at what the digital industry has to offer but haven't yet taken the plunge into participating or educating themselves about it.  
    12% of a business’s SaaS budget is for operating systems.  
    10% of a business’s SaaS budget is for productivity  
       
       
       
SaaS attraction Factor   Agility and scalability: 70% of CIOs are drawn to cloud-based software applications for their flexibility and the ability to grow with the company.
    Disaster recovery: 38% of companies are now using cloud-based systems that allow for more improved disaster recovery.
    Flexibility: 37% of companies are adopting cloud-based systems because they offer flexibility.
       
Sales and Marketing Trends for SaaS   48% of companies have an average of one-year SaaS contracts.  
    13% of businesses use SaaS products on a monthly basis.  
    SaaS contracts with lengths of three years or longer are used by 11% of businesses.  
    The biggest SaaS businesses have blogs in 85% of cases.  
    Top SaaS firms with podcasts account for 18% of the market.  
    36% of SaaS businesses share educational materials on their blogs.  
    For SaaS businesses from other regions, North America continues to be a significant market.The software market in North America is the most developed.  
       
SaaS Trends   Use of AI  
    Vertical SaaS  
    Integration Capabilities  
    Re-disruptors  

Important SaaS Statistics

Everything is changing in business due to SaaS or Software as a Service. Here are a few relevant SaaS statistics that speak for themselves about how influential it is:

 

  • By the end of 2024, the worldwide SaaS in numbers is going to hit almost $317.55 billion. In 2023, SaaS market was around $273.55 billion. This shows that SaaS solutions are going to stay for long with high demand of consumers. 
  • In next few years, it is predicted that SaaS market may touch $1.23 trillion. Since every other day a new business is forming, the need for SaaS softwares is on its peak.
  • A total of 92% of business leaders are planning to buy AI-powered software in 2024. That makes up a huge interest in using smart technology in everyday work.
  • 73% of Saas companies have reported that they put most of their time on manual planning for their budget. That is an open need for easier tools for these tasks.
  • For 2024, the top priorities for SaaS buyers are investing in new technology to improve productivity which is 52%, and enhance security is about 47%. Both are critical competencies today.
  • Almost 90% of the IT experts believe automation is important for handling SaaS operations. However, 64% indicate that they do not have enough resources for effective automation.
  • Spending by SaaS end-users is likely to surge to $679 billion in 2023. All public cloud services could eventually surpass $1 trillion by 2027. This SaaS stats is proving how SaaS becomes indispensable for common business activities.

 

Market Growth of SaaS Businesses

The SaaS or Software as a Service market has actually picked up pretty well. Since this market is expected to grow by an impressive 349% in the next ten years, it suggests just how many businesses select this cloud-based software to meet their needs. As per the SaaS statistics, North America alone accounted for 48% of the overall SaaS pie in 2023-a share of over $131.18 billion. While the U.S. leads the charge for most SaaS companies, which is over 17,000 !. U.S is a big player in that industry where Microsoft is alone valued at nearly $2.3 trillion.

 

As per the latest SaaS facts, experts project the global SaaS market to register a compound annual growth rate of 18.4% from 2024 to 2032. They expect the Asia Pacific region, which is among the fastest-growing, to post around 22% per annum. This goes to say that there will be increased adoption of SaaS solutions by more businesses in the region. More than 50% of large companies are expected to leverage the specialized cloud platforms by 2028. The new research which is conducted some time ago indicates that 60% of businesses plan to increase spending on software more than last year. 

 

Among the public SaaS companies, the median growth rate was at 35% as of the cutoff date for March 2023. The growth rate was the same for companies with investors while it was 32% among self-funded businesses. Moreover, private SaaS B2B companies with less than $1M of ARR reported the highest median growth rate at 50%. B2B private SaaS companies with $20M+ in ARR reported the worst growth rate at 27%.

 

These SaaS statistics prove the strength of SaaS businesses growth that will continue rising. Since many companies invest more in this market, it is clear that SaaS is taking its vital role in how businesses work.

Overview Of Saas Market Revenue and Pricing Models

SaaS Market Revenue

  • The growth rates of SaaS companies have not only changed but have also gone down lately. The Compound Annual Growth Rate for them dropped down to 8.4% in September 2023; that was the lowest value since early 2022 when they had grown at a CAGR of 60%.
  • The European SaaS market would garner a revenue of $69.82 billion by 2024.
  • SaaS contributes to more than 60% of the world total revenue, attributed to large enterprises with more than 1,000 employees, in 2022. This shows that large companies have a very high dependence on SaaS solution.
  • Private cloud companies dominated the source of the revenue, accounting for 43% of the total market share of SaaS market in 2022 and lead other segments in the market.
  • Public SaaS companies tend to have a huge number of customers for an average of 36,000 in every company.
  • Private SaaS companies have a net revenue retention rate of 102%. That means these companies could hold and grow their customers.
  • By 2023, a total of 836 software companies in the world have valuations over a billion dollars. This is one of the surging values in the SaaS market.
  • The median ARR per employee at private SaaS firms for 2023 reaches $112,500. Companies with more than $20 million in ARR-reach a relatively higher median ARR per employee at $183,932.
  • On the lower side, the smallest SaaS companies with an ARR of less than $1 million reported a very low median ARR per employee which is valued at $55,183.

SaaS Pricing Models

SaaS companies adopt various pricing strategies to meet market demands. Here’s a breakdown of Saas statistics of common pricing models used in the industry:

 

Pricing Strategy

Percentage of Companies Using It

Key Insights

Value-based pricing

39%

Companies set prices based on the value their software delivers to customers. This approach leverages the flexibility SaaS solutions offer.

Competitor-based pricing

24%

Some SaaS companies choose to match their competitors' prices, following market trends.

Published pricing structure

45%

Nearly half of SaaS companies publicly share their pricing details, making it easier for customers to understand costs upfront.

Hidden pricing structure

55%

Slightly more than half keep their pricing confidential, often requiring potential clients to engage with sales teams.

Discounting

68%

The majority of companies offer discounts in fewer than 25% of deals, while 29% admit that they rarely discount their pricing.

Price increases

73%

Between August 2022 and August 2023, most SaaS providers raised their prices by an average of 12%.

 

AI Involvement in SaaS

Artificial Intelligence (AI) is playing a big role in the world of Software as a Service (SaaS). Here’s how AI is impacting the SaaS market:

Market Growth

The global AI software market reached $16.98 billion in 2024. It’s expected to grow to $80.6 billion by 2031, with a CAGR of 29.64%. This shows how rapidly AI is expanding in the tech space.

Investment Surge

By 2025, private investments in AI ventures are expected to hit $200 billion globally, with $100 billion of that in the U.S. This highlights the increasing interest and belief in AI’s potential.

Revenue Growth for AI Data Services

Revenue from AI data services, specifically for Machine Learning Operations tools, is predicted to almost quadruple from 2024 to 2028. This indicates a growing need for advanced data services in SaaS applications.

Compliance Improvement

By 2028, generative AI is expected to reduce the risk of noncompliance in software and cloud contracts by 30%. This is significant for businesses that rely on SaaS solutions, as compliance is crucial.

 

Blog Partners

© 2005 - 2024 GO-Globe ™ | CUSTOM DEVELOPMENT. All rights reserved.
This site is protected by reCAPTCHA and the Google
Int'l. Web Design
Int'l. Logo Design
Int'l. SEO
Int'l. Ecommerce