110+ SaaS Statistics and Trends for 2024

Companies are moving their apps to the cloud faster than ever, leading to new ways of using software that we couldn’t even imagine ten years ago. SaaS has brought in flexible use, easy growth, and new ideas. But what’s next for SaaS?

There’s a huge chance for growth and new ideas, but businesses will have to deal with new tech, what buyers want, and the financial side of things. Let’s go deeper into these SaaS statistics and trends to see what’s shaping the future of software and business tech.

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110+ SaaS Statistics for 2024

Here below are some SaaS stats to refer to for a complete understanding of the industry’s direction and impact. These SaaS statistics will provide valuable insights into market growth, user trends, and evolving business strategies within the SaaS landscape.

1. Market Size, Growth, and Global Trends

The growth line of the SaaS industry reflects a shift towards more scalable, efficient solutions in the tech sector. Understanding SaaS market statistics helps businesses and investors understand the potential for expansion and identify new opportunities in various regions.

A. General Market Size and Growth

  1. The Global SaaS market is projected to grow from $273.55 billion in 2023 to $908.21 billion by 2030. (Source: Fortune Business Insights)
  2. End-user cloud SaaS expenditure was predicted to grow by almost $365 million in 2022. (Source: Gartner 2020)
  3. Gartner predicts 2023’s $200 billion SaaS spending will rise by 18% in 2024. (Source: Gartner 2023)
  4. U.S. SaaS industry to grow to $225 billion by the end of 2025. (Source: MarketSplash 2023)
  5. The global SaaS market reached $261.15 billion in 2022. (Source: Grand View Research)
  6. The expected compound annual growth rate (CAGR) for the global SaaS market from 2023 to 2030 is 13.7%. (Source: Grand View Research)

B. Regional Market Insights

  1. North America is the most mature SaaS market in terms of adoption. (Source: ReportLinker 2024)
  2. The North American SaaS market represented 44% of the global market share in 2022. (Source: Grand View Research)
  3. From 2022 to 2025, the Asia Pacific region is expected to grow at the highest rate. (Source: ReportLinker 2024)
  4. Looking at the Big-5 cluster, figures are forecast to grow for both the public/private hosted cloud and OT infrastructure & edge markets, with an impressive increase of up to 60% (2025 vs 2020) in the USA. (Source: Reply)
  5. SaaS industry value is expected to increase by over 2x in major European markets. (Source: Statista 2023)
  6. Germany is expected to experience the largest increase in SaaS market growth from 6.85 billion euros to 16.3 billion euros in 2025. (Source: Statista 2023)

C. Global Distribution and Company Insights

  1. The U.S. had 17,000 SaaS companies in 2023, the most of any country, with about 59 billion customers worldwide. (Source: Statista, 2022)
  2. In 2023, Italian SaaS businesses generated $41.5 billion, while U.K., Australian, Indian, and German SaaS companies generated $26.6 billion, $16 billion, $15.1 billion, and $13.8 billion, respectively. (Source: Demandsage 2023)
  3. Salesforce is the largest SaaS company in the world, with an enterprise value of $199.48 billion as of June 2023. (Source: Yahoo Finance)
  4. Adobe has a SaaS market capital of over $250 billion. (Source: Mike Sonders 2024)
  5. Salesforce has a market capital exceeding $240 billion. (Source: Mike Sonders 2024)
  6. Zoom increased 148 percent revenue growth, from 90 million U.S. dollars in the first quarter of 2019 compared to 225 million in the first quarter of 2020. (Source: Statista 2022)

2. SaaS Adoption and User Trends

When it comes to SaaS adoption statistics, we’re looking at how widely SaaS solutions are being used across different industries. These statistics offer insights into usage patterns, preferences, and the overall acceptance of SaaS solutions in the business world. They help in identifying which sectors are rapidly adopting SaaS and which aren’t.

A. Adoption Rate and Usage Insights

  1. 70% of software used by companies in 2023 are SaaS applications. (Source: Demandsage 2023)
  2. 85% of business apps will be SaaS-based by 2025. (Source: BetterCloud)
  3. A majority of companies plan to adopt cloud SaaS in 2024, and most use multiple applications. (Source: DevSquad 2023)
  4. SaaS application usage in 2022 was higher than in 2021 by 18%. (Source: Vena 2023)
  5. 50% of a 2022 study’s respondents planned to increase the number of cloud providers they use within the next two years. (Source: Vena 2023)
  6. Over 70% of software used by companies today are SaaS applications. (Source: Demandsage 2023)
  7. SaaS applications make up 70% of total company software use. (Source: BetterCloud)
  8. Organizations believe that SaaS is key to achieving their business goals (73%). (Source: Colorlib 2023)

B. Organizational SaaS Utilization

  1. Organizations use 371 SaaS applications on average, meaning SaaS usage has grown by 32% since 2021. (Source: Productiv)
  2. The average department in an organization uses about 87 SaaS applications. (Source: Productiv)
  3. Organizations with more than 1,000 employees use 150+ SaaS applications. (Source: BetterCloud)
  4. The largest organizations, those with over 1,000 employees, use an average of 177 SaaS applications. (Source: BetterCloud)
  5. Companies used an average of 130 SaaS apps in 2022, an increase of 18% over 2021. (Source: BetterCloud)

C. Cloud Computing and Data Center Trends

  1. Cloud workloads took up 94% of data center workloads in 2021. (Source: Statista 2022)
  2. Worldwide Cloud Applications Market to reach $168.6 billion by 2025. (Source: Apps Run The World 2021)
  3. The cloud application market has grown year-over-year since 2013. (Source: Apps Run The World 2021)

3. Business Strategy and Financial Aspects

In the SaaS sector, financial strategies and business models are deeply mixed with SaaS capabilities. Saas industry statistics offer insights into how companies are investing in, earning from, and planning around SaaS solutions. They’re key to understanding the financial side of SaaS, showing how businesses use these tools for growth and stability.

A. SaaS Financial Management and Budgeting

  1. The average SaaS spend per employee is $9,643, with SMBs spending more than larger enterprises. (Source: Productiv)
  2. SaaS spending is less than 15% of total enterprise spending. (Source: DevSquad 2023)
  3. 12% of a business’s SaaS budget is for operating systems, 10% for security software, and 10% for productivity. (Source: DevSquad 2023)
  4. The median spend of ARR on research and development costs is 24%, the highest revenue spending. (Source: SaaS Capital 2023)
  5. Median costs as a portion of ARR other than R&D include selling costs (16%), administration (15%), customer success and support (10%), and marketing (10%). (Source: SaaS Capital 2023)
  6. Equity-backed SaaS companies, on average, spend 100% more on sales and administrative costs, 83% more on marketing and research and development, and 25% more on customer success than bootstrapped ones. (Source: SaaS Capital 2023)
  7. The average ARR per professional services employee at SaaS companies in 2021 was about $160,000, around $10,000 less than in 2015. (Source: Statista 2023)

B. Business Strategy and Growth

  1. SaaS has become an integral part of software development, with 93% of CIOs adopting or planning to adopt SaaS. (Source: MarketSplash 2023)
  2. 73% of companies expect their revenue to increase in 2024. (Source: Spiceworks)
  3. Many SaaS companies founded in the last decade saw revenue grow by 20%–30% annually. (Source: Ernst & Young 2023)

D. Pricing and Discounting Strategies

  1. 68% of surveyed SaaS companies discount their prices in fewer than one-quarter of all deals, and 29% admit to ‘very little discounting’ from their sales teams. (Source: OpenView 2021)
  2. 39% of SaaS organizations use a value-based pricing model. (Source: OpenView 2021)
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4. Security, Risk, and Compliance

SaaS statistics software reveals how companies address security challenges and comply with standards. These statistics give us a clear picture of the risks of using SaaS and what steps are being taken to reduce them.

A. Security and Data Protection

  1. 78% of organizations store sensitive data in SaaS applications. (Source: Demandsage 2023)
  2. Organizations store 61% of their sensitive data with SaaS applications, and most have experienced at least one cybersecurity breach. (Source: Help Net Security 2023)
  3. Encryption worries are the biggest SaaS-related security concern. (Source: Thales Group)
  4. 43% of IT professionals surveyed implemented a SaaS app that stores sensitive information. (Source: BetterCloud 2022)
  5. 42% of IT professionals surveyed have trouble securing SaaS user activities. (Source: BetterCloud 2022)
  6. Insider threats where former employees still have access to SaaS apps account for 22% of security problems. (Source: Security Boulevard 2022)

B. Risk Management and Compliance

  1. Cyber-attacks and a lack of skilled workers could hinder market growth. For instance, Cloud Security Alliance CSA states that SaaS misconfigurations caused 63% of security incidents. (Source: Fortune Business Insights 2023)
  2. 43% of organizations surveyed can tie at least one security issue to a SaaS misconfiguration. (Source: Cloud Security Alliance 2022)
  3. 46% of organizations surveyed only have the bandwidth for monthly or more infrequent checks for SaaS misconfigurations, and 5% never check for them. (Source: Cloud Security Alliance 2022)
  4. According to 35% of companies who responded, the main issue with SaaS misconfigurations is too many parties with credentials to change SaaS security settings. (Source: Cloud Security Alliance 2022)

5. Operational Efficiency and Automation

Improved SaaS automation, faster deployment, and agility are fueling SaaS market growth. Saas growth statistics clearly demonstrate the significant impact of SaaS on operational efficiency and automation.

These statistics reveal that SaaS solutions are essential for streamlining workflows and improving productivity in modern tech environments.

A. Operational Efficiency and Productivity

  1. 54% of companies choose SaaS tools to increase productivity. (Source: DevSquad 2023)
  2. 86% of businesses that use SaaS experience higher employee engagement. (Source: DevSquad 2023)

B. Automation and Technological Integration

  1. An overwhelming 86% of IT professionals believe automation is important to effectively managing SaaS operations. (Source: Better Cloud 2023)
  2. Nearly two-thirds (64%) of IT professionals lack insight and visibility to automate effectively. (Source: Better Cloud 2023)
  3. 72% of IT specialists believe zero-touch SaaS automation is the future. (Source: Spiceworks 2023)
  4. Three out of four IT professionals surveyed say they want SaaS solutions capable of insights-driven automation. (Source: Vena 2023)
  5. Cloud workloads took up 86% of data center workloads in 2017. By 2021, this number reached 94%. (Source: Statista 2022)

6. Customer Engagement and Retention

SaaS statistics show the importance of SaaS platforms in building and maintaining customer relationships. These stats provide a clear view of how customers interact with SaaS services and the strategies used to keep them engaged.

A. Customer Acquisition and Retention Strategies

  1. 89% of SaaS companies prioritize new customer acquisitions, while 59% prioritize customer renewals. (Source: Cloudzero 2023)
  2. Companies that do not ask for credit card info during free trial signups generate 2x as many paying customers. (Source: DevSquad 2023)

B. Customer Engagement Metrics

  1. The acceptable churn rate is between 5% and 7% (Source: 16 Ventures), and 2023’s average annual SaaS churn rate was 5.2%. ( Source: Techopedia 2024)
  2. SaaS companies that increase user retention by 5% can experience a profit increase from 25 to 95%. (Source: Hubspot 2022)
  3. The median net revenue retention rate across all SaaS companies was 102% in 2022. (Source: Churnzero 2023)

7. Workforce and Talent Management

SaaS statistics reveal how workforce and talent management are changing in the SaaS industry. These stats show how companies adjust their hiring and management approaches. They provide information on the latest hiring trends, needed skills, and how SaaS is influencing workforce strategies.

A. Workforce Expansion and Staffing Trends

  1. 59% of companies plan to increase the size of their overall staff in 2024. (Source: Spiceworks 2023)
  2. 63% of companies are still finding it challenging to secure IT talent. (Source: Spiceworks 2023)
  3. 66% of companies are gearing up to increase their IT budgets for 2024, vs. only 4% planning to decrease tech spending. (Source: Spiceworks 2023)
  4. 84% of companies are worried about a recession in 2024, and 87% of companies are thinking about switching tech vendors. (Source: Spiceworks 2023)

B. Talent Management in SaaS Companies

  1. 60% of organizations noted that finance decision-makers don’t have a seat at the table for strategic planning discussions, and only 28% said they have the final say in those decisions. (Source: Vena Solutions)
  2. 59% of respondents reported that offboarding employees was a top SaaS concern. (Source: Torii 2023)

8. Contracting, Sales, and Marketing

Exploring SaaS marketing statistics reveals how SaaS is changing the game in sales and marketing. These numbers are key to understanding how customers behave, how long they take to buy, and what strategies work best in selling SaaS products. It’s about seeing how the world of sales is adapting to the new ways that SaaS brings to the table.

A. SaaS Contracting Trends

  1. 48% of companies have an average of one-year SaaS contracts. (Source: DevSquad 2023)
  2. Multi-year contracts of 2.5 years or more have an average churn rate of 8.5%, but only about 11% of SaaS companies offer such contracts. (Source: Staxbill 2021)
  3. 39% of SaaS organizations use a value-based pricing model to take advantage of the solution flexibility SaaS offers. (Source: OpenView 2021)

B. Sales Strategies and Customer Acquisition

  1. Leads who speak with a sales representative on the phone are 70% more likely to become paying customers. (Source: DevSquad 2023)
  2. Marketers using a CRM are 128% more likely to say their marketing strategy is very effective. (Source: Hubspot 2024)

C. Marketing Effectiveness and Investment

  1. 56% of marketers plan to increase their TikTok budget. (Source: HubSpot 2024)
  2. 44% of marketers use short-form video, which offers the highest ROI. (Source: HubSpot 2024)
  3. 85% of video marketers plan to maintain or increase spending on video in 2024. (Source: Wyzowl 2024)
  4. Social Media Management: Facebook, Instagram, and YouTube are the most common social media platforms used by marketers. (Source: HubSpot 2024)

9. Technology Adoption and Integration

The SaaS usage statistics effectively highlight how quickly new technologies are being incorporated into SaaS platforms. These numbers give us a clear view of how SaaS is both adapting to and influencing the development of new tech solutions. They help us understand the integration and evolution of technology in the SaaS sector.

A. Adoption of Emerging Technologies

  1. 57% of businesses plan to adopt AI within the next two years. (Source: Spiceworks 2023)
  2. 78% of organizations now rely on third-party AI tools like OpenAI and Glide. (Source: Management Sloan School 2023)
  3. Over two-thirds of Oracle’s revenue is derived from cloud services. In 2021, cloud services accounted for $28.7 billion of Oracle’s total revenue. (Source: Oracle 2021)
  4. 75% of video marketers say they’ve used AI tools to help them create or edit marketing videos. (Source: Wyzowl 2024)
  5. 53% of SaaS licenses go unused, while companies use over 300 SaaS apps on average. (Source: Gartner 2023)

B. Integration of SaaS with Other Technologies

  1. 91% of organizations believe SaaS will help them adopt new technologies and increase their revenues. (Source: Artios 2023)
  2. Business leaders are increasingly using generative AI in companies. (Source: Deloitte)
  3. 80% of business leaders believe Generative AI will increase efficiencies in their business. (Source: Deloitte)
  4. 52% claim that their business is implementing generative AI to some degree. (Source: Deloitte)
  5. 60% of organizations find their cloud bill slightly over or way above their expectations. (Source: AWS 2022)
  6. SaaS (cloud application services) contributes nearly 30% of worldwide public cloud end-user spending. (Source: Gartner 2023)

10. Impact of COVID-19 on SaaS

The impact of COVID-19 on SaaS is clearly seen through SaaS statistics. It led to changes in technology adoption, with significant shifts towards SaaS and cloud-based solutions. The pandemic led many organizations to quickly adopt Software as a Service (SaaS) tools.

These tools supported remote work and digital operations, playing a key role in the shift towards more online business activities.

A. Changes in SaaS Adoption Due to COVID-19

  1. 23.5% of respondents reported decreased spending on SaaS as a result of the pandemic. (Source: IDC 2020)
  2. 11.9% of total respondents cited a slight 10% to 20% decrease in SaaS spending. (Source: IDC 2020)
  3. 11.6% reported spending over 20% less on SaaS as a result of the pandemic. (Source: IDC 2020)
  4. 22.5% reported no impact on organizational spending on SaaS as a result of the COVID-19 pandemic. (Source: IDC 2020)
  5. 30.4% of respondents claimed to spend more on SaaS due to the pandemic. (Source: IDC 2020)

B. Pandemic's Effect on SaaS Market Trends

  1. In a 2022 survey, 54% of respondents said that company leaders and decision-makers changed their views on technology after the COVID-19 pandemic, leading to new adoptions of SaaS software. (Source: Torii 2023)
  2. The growth rate of SaaS apps slowed slightly in 2022, as 40% of IT professionals combined redundant applications. (Source: BetterCloud 2022)

11. SaaS and Financial Decision-Making

SaaS content marketing statistics give us a clear idea of how SaaS affects financial planning and choices. These SaaS statistics help us understand the financial side of SaaS investments and their effect on business health.

A. Financial Strategy and Decision-Making in SaaS

  1. 60% of respondents noted that finance decision-makers don’t have a seat at the table for strategic planning discussions, and only 28% said they have the final say in those decisions. (Source: Vena Solutions)
  2. 41% of respondents, including those from SaaS businesses, said they weren’t drawing on organizational data to influence decision-making. (Source: Vena Solutions)
  3. Financial data is more than 3x more influential than customer data in influencing decision-making among businesses surveyed. (Source: Vena Solutions)
  4. Sales data only has half the influence of financial data in decision-making, according to businesses that Vena surveyed, of which 13% were SaaS firms. (Source: Vena Solutions)
  5. 55% of survey respondents, including SaaS businesses as well as other companies, said their organizations aren’t using scenario modeling before making forecasting adjustments. (Source: Vena Solutions)

B. SaaS Spending and Budgeting Insights

  1. Only 29% of SaaS companies do minimal discounting, while 39% occasionally offer discounts ranging from 10 to 25%. (Source: Openview 2021)
  2. Over 50,000 SaaS providers give discounts of 30% or more. (Source: DevSquad 2023)
  3. The typical duration for a SaaS free trial is 14 days, but this varies across industries. Financial apps often have 30-day trials, while social media management tools usually offer 7-day trials. (Source: onlysaasfounders 2023)
  4. Most SaaS firms provide three tiers of subscription plans, and 93% of startups display their pricing from the lowest to the highest. (Source: Breadcrumbs 2021)
  5. The most common billing method in SaaS is the annual subscription plan, used by 42% of businesses, with monthly (36%) and quarterly (11%) plans following. (Source: DevSquad 2023)
  6. A combined approach of monthly and annual subscriptions is used by 42% of SaaS companies, whereas 26% exclusively offer monthly plans and 18% only have annual plans. (Source: DevSquad 2023)
  7. Yearly discounts are provided by 40% of SaaS businesses, and 48% have free plan options. (Source: DevSquad 2023)
  8. Usage-based pricing is implemented by 60% of SaaS companies, and it’s projected that by the end of 2023, 74% will adopt this model. (Source: Charge bee 2023)
  9. A study revealed that 39% of SaaS businesses favor value-based pricing, closely followed by 38% who prefer usage-based pricing. (Source: Togai 2023)

In 2024, SaaS trends are increasingly focusing on catering to the needs of a wide range of industries and users.

1. AI Integration and Analytics

Using AI in SaaS platforms, especially for analyzing data, will make things more efficient and give better insights.

In 2023, AI technology made big progress, particularly in Generative AI (GenAI). This tech is now a key part of many online services. For instance, following ChatGTP’s success, Canva added a tool for AI-driven design creation like Magic Media, Magic Eraser, etc.

Salesforce has already stepped in with “Einstein Copilot,” an AI helper for customers.

Even platforms like LinkedIn have adopted the AI features. With these advancements, it’s clear AI is becoming crucial in business, expected to reach a market value of over $1.8 trillion by 2030. (SaaS Statistics – Grand View Research 2023)

2. Data security

As the B2B SaaS market grows, making sure data is private and secure will continue to be a main focus. To keep important information safe, companies now use strong security methods like encryption and require multiple ways to prove who you are.

They also make sure they follow rules like the GDPR ( General Data Protection Regulation) to handle customer information properly and with care. Companies need to always be ready for new security challenges and keep improving their ways to protect their customers’ data.

3. Personalized User Experiences (Vertical SaaS)

Focusing on creating tailored experiences for users, using data and AI to meet individual preferences and needs.

Vertical Software as a Service (SaaS) companies can easily change their features to meet the specific needs of their clients and their business sector. This approach allows them to better meet the unique requirements of their customers.

As a result, they can offer more tailored services, find more chances to sell additional products or services, and spend less money on getting new customers (thus reducing the customer acquisition costs) This makes vertical SaaS providers very adaptable and efficient in serving their niche markets.

4. Embedded Payment Systems

By embedding payment functionalities, SaaS products not only streamline transactions for users but also open up new revenue streams for the providers.

This approach is becoming increasingly popular as it offers a seamless, unified experience with less friction. It leads to more completed sales and stronger customer loyalty.

While popular SaaS companies such as Shopify and Mindbody have long been generating almost half of their income through payment services, many other SaaS businesses have yet to explore this opportunity.

5. Usage-Based Pricing Models

Transitioning to pricing models that charge based on actual usage, offering more flexibility and potentially lower costs for users.

In 2024, a major trend in the SaaS industry is the change in pricing strategies by providers, as observed by the latest SaaS statistics. A report by Vertice highlighted that software spending has risen by 17.9% in the last year, with a significant portion of this increase due to higher prices and general inflation.

Another reason for the rise in software costs is “Shrinkflation,” where providers charge the same but offer less functionality. Examples include usage-based pricing models where unused credits expire and changes in bundling features, making customers pay extra for unnecessary additions or separate charges for individual features.

6. Mobile-First Solutions

A surge in mobile-first SaaS solutions reflects the growing importance of mobile devices in both personal and professional contexts.

This method involves designing for smaller screens and touch controls, which are common on mobile devices. Developers also consider the unique needs of mobile users. The goal is to make the software easy to use and effective on mobile devices, providing a smooth and enjoyable experience for the user.

Examples of SaaS that have adopted this model include Loom, Calendly, Evernote, Notion, Airtable, etc.

7. Improved Integration Capabilities

The trend in software-as-a-service (SaaS) is increasingly about integrating these services with current business systems. As more companies use SaaS, they want to combine it with their existing technology, either by moving everything to the cloud or by making the cloud part of their current setup.

Initially, SaaS providers didn’t offer good integration options, which frustrated customers. They often had to use third-party APIs to link the cloud service with their systems.

This approach was easier for SaaS companies because they could save time and focus on making unique features instead of building integration solutions from scratch.

Conclusion

To wrap it up, looking at the SaaS stats and statistics for 2024, we’re seeing a SaaS market that’s really grown up and keeps reaching new heights.

It’s changing how businesses do pretty much everything – from talking to customers and handling their money to how they set up their IT operations.

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