On this article, we’ll expose the newest SaaS statistics and share with you what number of SaaS firms are there globally.
Software program as a Service is revolutionizing how companies function. It makes managing and sustaining all the pieces cost-effective and gives nice flexibility and adaptableness.
New and present firms are adopting SaaS as certainly one of their crucial parts in taking issues to the following stage.
So whether or not you’re a enterprise proprietor or a software program developer (even somebody merely keen on tech developments), these SaaS statistics will certainly present a lot of priceless insights into this quickly rising area.
This put up covers:
SaaS Statistics (Our High Picks)
- There are almost 31,000+ SaaS firms globally
- The US alone has 17,000 SaaS firms
- The worldwide SaaS market is anticipated to be price nearly $900 billion by 2030
- Germany is anticipated to develop probably the most in SaaS enterprise in Europe
- The common group makes use of 110 SaaS apps
- Gross sales and advertising are SaaS firms’ greatest bills
- Adobe spent $130 million on Google Advertisements in 2023
- By 2025, 85% of enterprise apps will likely be SaaS-based
- Solely 14% of organizations monitor their SaaS safety settings day by day
How Many SaaS Firms Are There?
1. There are roughly 30,800+ SaaS firms globally
The report by Statista reveals that there are round 30,800+ SaaS firms world wide, with probably the most in the USA.
A few of the largest ones within the US are Google Office, HubSpot, Slack, GitHub, Zoom and Figma, to call a couple of. Two-thirds of the highest 100 firms are situated within the Silicon Valley. Additionally, out of all these 30Ok+ firms, 337 are unicorns and 15 are decacorns.
Nonetheless, Ascendix predicts a large bounce to 72,000 SaaS firms by 2024. And if we embody all of the AI firms on the earth, the quantity would improve to a whopping 175,000.
2. The US alone has 17,000 SaaS firms
As talked about earlier, the USA has the biggest share of SaaS firms on the earth, roughly 17,000. And these 17Ok organizations had round 59 million clients globally. The UK and Canada have 2,000 firms in second place, and Germany and France, with 1,000 firms in third place.
| Nation | Variety of SaaS firms |
| United States | 17,000 |
| United Kingdom | 2,000 |
| Canada | 2,000 |
| Germany | 1,000 |
| France | 1,000 |
| India | 994 |
| China | 702 |
| Brazil | 647 |
| Australia | 631 |
| Spain | 511 |
Supply: Statista
3. Most SaaS firms are within the Buyer Service Options section
There are 17,000 SaaS firms (like Salesforce) within the Buyer Service Options section, adopted by Advertising and marketing Software program (15,000), eCommerce (14,000), Knowledge and Analytics (12,000) and Gross sales (11,000).
Supply: Ascendix
4. 344 new SaaS organizations launched in 2023
Within the final yr, there have been 344 new SaaS organizations, of which 334 had been for-profit and the remainder non-profit. (In reality, information reveals that solely 5 had been non-profit – so we’re uncertain wherein bucket the remaining few go.)
One of the vital vital spikes within the variety of new SaaS firms based was in 2015 and 2017, with 1,469 and 1,460 new SaaS companies, respectively.
Enjoyable truth: The pattern of newly began SaaS firms dropped in 2018, 2019, and 2020.
Supply: Crunchbase
SaaS Market Share
5. International SaaS market is anticipated to be price nearly $900 billion by 2030
The worldwide SaaS market was valued at $151.31 billion (or $167.34 if taking a look at Statista’s information) in 2022 and is anticipated to develop at 27.45% CAGR from 2023 to 2030.
In response to Statista, the worldwide SaaS market will likely be price round $197 billion in 2023 and attain $232 billion in 2024.
| Yr | SaaS market worth |
| 2024 | $232.Three billion |
| 2023 | $198.29 billion |
| 2022 | $167.34 billion |
| 2021 | $146.33 billion |
| 2020 | $120.7 billion |
| 2019 | $102.1 billion |
| 2018 | $85.7 billion |
| 2017 | $58.Eight billion |
| 2016 | $48.2 billion |
| 2015 | $31.Four billion |
Supply: Verified Market Research, Statista
6. The US SaaS market is forecast to hit $135.1 billion in 2023
The Software program as a Service section is anticipated to develop to over $135 billion in 2023 within the US. However with an annual progress price of 5.49% CAGR, it must be valued at round $167 billion by 2027.
After we take a look at the worldwide market share, the USA will generate probably the most income.
Supply: Statista
7. Germany is anticipated to develop probably the most in SaaS enterprise in Europe
Whereas the European SaaS market has been rising since 2020, Germany is anticipated to expertise probably the most progress, from $7.56 billion in 2020 to just about $18 billion in 2025. And it’s forecast to leap to $18.83 billion by 2027.
Supply: Statista
8. SaaS market share prediction for 2027 world wide
Now let’s take a peek on the prediction of the worth of the Software program as a Service market share in different nations world wide.
| Nation | SaaS market quantity |
| China | $29.84 billion |
| United Kingdom | $17.39 billion |
| Japan | $14.82 billion |
| France | $10.7 billion |
| Canada | $8.47 billion |
| Australia | $6.23 billion |
| Sweden | $3.65 billion |
| Brazil | $3.17 billion |
| Spain | $2.43 billion |
| Mexico | $2.05 billion |
| Taiwan | $1.6 billion |
| New Zealand | $1.21 billion |
| Russia | $1.13 billion |
| Poland | $928.1 million |
| Eire | $750.7 million |
Fast recap: The highest 5 main SaaS firms are the USA, China, Germany, the UK and Japan.
Supply: Statista
9. SaaS beats different cloud providers by end-user spending
The full international cloud adoption is growing throughout all sectors, with SaaS main the sport.
| Cloud service | Finish-user spending |
| Cloud Software Providers (SaaS) | $171,915 million |
| Cloud System Infrastructure Providers (IaaS) | $121,620 million |
| Cloud Software Infrastructure Providers (PaaS) | $100,636 million |
| Cloud Enterprise Course of Providers (BPaaS) | $55,538 million |
| Cloud Administration and Safety Providers | $29,736 million |
| Desktop as a Service (DaaS) | $2,710 million |
The full international public cloud service end-user spending was $313,853 million in 2020 and $396,147 million and 2021.
Gartner predicts that the full public cloud spending will surpass 45% of all enterprise IT spending by 2026.
Supply: Gartner
SaaS Adoption Statistics
10. The SaaS market is rising by almost 18% yearly
As we discovered earlier than, the SaaS market is rising the quickest within the cloud computing house, with a CAGR of 17.6% yearly.
Talking of which, have you ever seen our complete cloud computing statistics?
Supply: ReportLinker
11. The SaaS adoption in healthcare is rising at 20%/yr
The healthcare trade is without doubt one of the most keen on adopting SaaS services, with a rising price of 20% annually.
Supply: BMC
12. Agility and scalability as two of the highest causes for utilizing SaaS functions
70% of CIOs reported that agility and scalability are two of the most important motivators in relation to integrating SaaS functions into their companies.
Supply: LogicMonitor
13. 88% of organizations use at the least one cloud service
Practically 90% of organizations report utilizing at the least one cloud service of their organizations, however they count on to combine extra SaaS providers within the coming yr.
Supply: O’Reilly
14. The common group makes use of 110 SaaS apps
From 80 functions in 2020, the common variety of SaaS apps adopted by organizations elevated to 110 in 2021. Historic information reveals a virtually 7x improve since 2017 and a 14x improve since 2015.
Moreover, it’s reported that one to two-year-old firms (thought-about younger) begin with round 29 SaaS functions. However they’ll have over 100 apps once they’re six years previous. After that, the variety of apps in use decreases due to consolidation.
Supply: BetterCloud #1, BetterCloud #2
15. 93% of SaaS-powered workplaces are SaaS-based
A SaaS-powered office is a company that runs nearly fully on SaaS – such group use, on common, 212 SaaS functions. Nonetheless, most of workplaces are nonetheless within the transition section, with greater than half of their apps being SaaS-based. There’s solely a small share of workplaces that use lower than 10% SaaS apps.
Supply: BetterCloud
16. 55%+ say lack of visibility into Third-party app entry to the core SaaS stack is the principle safety concern
56% of respondents stated their important safety concern when adopting SaaS apps worldwide is the shortage of visibility into third-party app entry to the core SaaS stack. Furthermore, 32% stated their greatest concern is the shortage of SaaS safety.
Supply: Statista
17. $34+ billion funding for early-stage SaaS firms
In 2022, early-stage SaaS firms acquired greater than $34 billion in VC investments. Because the graph above reveals, that’s a major and largest improve in historical past.
In the identical yr, investments of $20 billion and $12 billion had been made in bodily tech, marketplaces, and eCommerce.
Supply: Dealroom
18. Gross sales and advertising are SaaS firms’ greatest bills
SaaS firms spend 50% (or extra!) of their income on gross sales and advertising. The principle cause for the excessive ratio is the results of the enterprise mannequin – income lags behind funding. And second is inefficiency.
Supply: McKinsey
19. Microsoft had the biggest SaaS market income share in 2021
With almost 17% of the SaaS market share, Microsoft dominated the house in 2021, adopted by two different large gamers, Salesforce and IBM.
| Yr | Income |
| 2022 | $198.27 billion |
| 2021 | $168.09 billion |
| 2020 | $143.09 billion |
| 2019 | $125.84 billion |
| 2018 | $110.36 billion |
Supply: Statista
20. The highest 15 SaaS firms had a $1.Four trillion market cap in 2020
The fifteen main SaaS firms had an insane $1.Four trillion market cap in 2020 and a income of $80 billion. A few of the prime manufacturers are Microsoft, Salesforce, SAP, Oracle, Google and WordStream, to call a couple of.
Supply: Tech Times
21. Adobe spent $130 million on Google Advertisements in 2022
Adobe was the best spender in Google Advertisements in 2022, investing a staggering $130 million globally. Second and third had been IBM and WordStream, with spending of $85.7 million and $80.Four million.
Supply: Statista
22. Zoom skilled a virtually 150% income progress between 2019 and 2020
Whereas many firms’ revenues decreased (considerably) due to the COVID-19 pandemic, Zoom’s elevated by 148%, going from $90 million in Q1 of 2019 to $225 million in Q1 of 2020.
Then, in Zoom’s fiscal yr 2022, the corporate generated a income of $4.1 billion.
Supply: Statista #1, Statista #2
23. The common SaaS firm has 36Ok clients
There are SaaS firms of all sizes and styles, from a whole bunch to 1000’s to tens and a whole bunch of 1000’s of consumers. Nonetheless, a median SaaS firm has 36,000 clients. However the quantity will increase to 85,000 for public SaaS firms that promote primarily to SMBs.
Supply: SaaStr
24. Firms with SaaSOps use 2x SaaS instruments than non-SaaSOps ones
An organization with SaaSOps often makes use of twice as many SaaS instruments as a non-SaaSOps firm. IT professionals are agency believers that SaaSOps is the way forward for tech and can proceed to develop.
Supply: BetterCloud #2
25. By 2025, 85% of enterprise apps will likely be SaaS-based
On the time of scripting this, firms say that 70% of the enterprise functions they use are SaaS-based, however the share is prone to improve to 85% by 2025. The 2 important causes for SaaS adoption are elevated productiveness and diminished value (moreover these talked about earlier).
Supply: BetterCloud #2
26. Firms care about SaaS safety, integrations and ease of use probably the most
After they choose the SaaS resolution that meets their standards, the principle three issues an organization cares about are safety (43%), ease of use (22%) and native integrations (27%).
Supply: BetterCloud #2
Challenges Of SaaS Apps Statistics
27. Practically 30% say that it takes them sooner or later to repair SaaS safety misconfiguration
28% of respondents stated it takes sooner or later to type a SaaS safety misconfiguration. However 1% of them stated it takes them greater than half a yr to repair this sort of misconfiguration. Fortunately, such a difficult misconfiguration occurs very hardly ever.
Supply: Statista
28. 49% discover controlling software sprawl probably the most difficult in managing SaaS apps
A survey was achieved asking IT leaders of organizations with 500+ workers to call the most important challenges in relation to managing SaaS functions. Listed here are the outcomes:
| Problem managing SaaS apps | Share of respondents |
| Controlling software sprawl | 49% |
| Discovering unmanaged functions | 26% |
| Minimizing unmanaged spend | 14% |
| Offering guardrails and governance | 11% |
Supply: Statista
29. 22% of SaaS safety incidents are resulting from former workers’ entry
Insider threats in organizations utilizing SaaS functions are extra critical than you assume. The staff who retain entry to the group’s SaaS apps account for greater than 20% of safety incidents.
This reveals how necessary it’s to delete all ex-employee accounts to keep away from inconvenience, which might result in pointless spending of money and time.
Supply: Security Boulevard
30. Offboarding can take 7+ hours with out automation
Relying on the corporate dimension, it may take anyplace from three hours to seven and a half hours to offboard one person/worker. However an organization that makes use of a SaaSOps platform to automate the offboarding workflow can considerably scale back the time wanted to finish this journey.
As you possibly can see from the desk beneath, it may solely take a couple of minutes.
| Firm dimension (nr. of workers) | With out automation | With automation |
| 0-199 | Three hours | 12 minutes |
| 200-499 | 7 hours, 30 minutes | 1 hour, 10 minutes |
| 500+ | 5 hours, 20 minutes | 38 minutes |
Supply: BetterCloud #2
31. 35% say SaaS misconfigurations occur resulting from too many departments with entry
The primary cause for SaaS misconfigurations resulting in safety incidents is that too many departments can entry the safety configurations. And the second commonest trigger is a scarcity of visibility when safety settings change.
| Causes for SaaS misconfigurations | Share of respondents |
| Too many departments with entry to safety settings | 35% |
| Lack of visibility when safety settings change | 34% |
| Lack of SaaS safety information | 22% |
| Misappropriated person permissions | 8% |
Supply: Adaptive Shield
Different SaaS Statistics
32. 73% say SaaS is the most important participant in attaining enterprise objectives
In a research on expertise, 73% of organizations stated that SaaS is an important in realizing their enterprise objectives. Of these 73%, 38% stated it’s “crucial,” and 35% stated it’s “fairly necessary.”
The opposite most necessary applied sciences are large information (72%), synthetic intelligence (52%) and robotic course of automation (46%).
Supply: Harvey Nash Group
33. Salesforce has almost 80,000 workers
In 2023, Salesforce is using a whopping 79,390 workers, which is a 7.95% improve from 2022.
The corporate had 73,541 workers in 2021, 56,606 in 2020 and 49,000 in 2019 (a 40% improve since 2018).
Supply: Macrotrends
34. Enterprise-critical SaaS functions are seeing the most important investments
Greater than 80% of organizations are growing their funding in business-critical SaaS functions. Investments in safety instruments for the SaaS stack and employees for SaaS safety are seeing decrease will increase, at 73% and 55%.
Supply: Adaptive Protect
35. Solely 14% of organizations monitor their SaaS safety settings day by day
If SaaS safety configurations aren’t checked repeatedly, organizations are at a better danger of misconfigurations, making them extra susceptible.
| Frequency | Share of organizations |
| Yearly | 13% |
| Quarterly | 15% |
| Month-to-month | 18% |
| Weekly | 24% |
| Day by day | 14% |
| Constantly | 10% |
| Don’t test | 5% |
Supply: Adaptive Protect
36. Gross sales-negotiated pricing is the preferred pricing mannequin in B2B SaaS firms
44% of firms’ method to pricing is sales-negotiated, adopted by fastened pricing (34%) and variable pricing (24%). However 64% of firms stated they count on to broaden into new pricing fashions, extra specializing in variable pricing fashions.
Supply: Maxio
37. 42% of Saas firms promote month-to-month and annual subscriptions
Whereas greater than 40% promote each pricing choices, 26% of firms supply solely month-to-month and 18% solely yearly pricing fashions.
Furthermore, 82% checklist precise costs, 40% supply a yearly low cost and 48% have an choice of a free plan. In terms of subscription plans, 42% point out add-ons, 36% spotlight the preferred plan and 4% embody a type that implies the best-fitting plan.
Supply: FastSpring
38. Elevated person retention by 5% can increase earnings from 25%-95%
Everybody is aware of buying new customers is way more sophisticated than retaining new ones.
And when you realize that growing person retention by 5% can enhance your earnings from 25% to 95%, you wish to work on constructing even stronger relationships with present clients.
Supply: Future Of SaaS
39. 65% of firms use buyer success to upsell clients
The primary upsell approach SaaS firms use to upsell clients is buyer success. The opposite two standard fashions are demos, trials and open exams and direct communication.
Supply: RiverSaaSCapital
Conclusion
SaaS has grown right into a multi-billion-dollar trade with no indicators of slowing down. Hey, all of us profit from SaaS in a method or one other.
It saves prices, time and ensures flexibility and scalability, which these with out utilizing fashionable expertise are arduous to compete with.
Because the statistics present, the SaaS market is anticipated to develop much more within the coming years as extra firms deal with integrating fashionable tech (comparable to synthetic intelligence, machine studying, and so forth.).
By staying up-to-date by these SaaS statistics, companies worldwide can keep forward of the curve and stay aggressive within the fast-paced world of expertise.
It simply could also be that with out SaaS, chances are you’ll be left (far) behind.
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