Top 100 SaaS Statistics and Trends for Marketers [2024]

Since the early 2000s till date, software companies have increasingly transitioned to the Software as a Service (SaaS) business model. In this software distribution model, a third-party provider hosts an application and makes it available to customers across the Internet. 

Gone are the days of purchasing and installing software on individual computers. SaaS now offers businesses a cost-effective alternative to using software. With subscription-based pricing structures, these solutions eliminate the upfront infrastructure costs and IT resources required for maintenance.

Given the criticality of these solutions, it’s vital to keep up with SaaS industry statistics. It can help businesses identify emerging technologies and features that could give them a competitive edge. 

Read till the end to discover the top SaaS stats for 2024 and beyond.

Key Saas Statistics to Watch in 2024  

Technological growth is constantly changing the SaaS space. If you can keep up with these changes, you can leverage new technologies to scale up and stay ahead of the curve. Here are some key SaaS statistics to watch out for in 2024: 

1. The SaaS market is estimated to reach approximately $232 billion by 2024. 

2. This figure is expected to surge to $1,228.87 billion by 2030, growing at a compound annual growth rate (CAGR) of 18.4 percent during the forecast period from 2024 to 2030. 

3. Businesses with over 1000 employees typically use more than 150 SaaS tools.  

4. SaaS startups attracted the majority of venture capital funding in 2022, capturing 45.1 percent of all investments.  

5. The B2B SaaS sector is seeing a remarkable surge in the number of unicorns, with over 100 private companies globally surpassing a valuation of $1 billion.

6. The value of the US SaaS industry is predicted to surge from $108.4 billion in 2020 to $225 billion in 2025.

7. SaaS spending has increased slightly. Companies allocated 14.1 percent of their budgets for SaaS expenses in 2023, up from 12.7 percent in 2022.

8. By 2024, global spending on public cloud application services and SaaS is expected to reach $679 billion.

9. As of March 2024, Salesforce is the top SaaS company by market capitalization, followed by Adobe and Intuit.

10. Almost 15,000 SaaS companies are in the marketing sector.

11. Over 25 percent of American investment funds were allocated to AI startups in 2023. 

SaaS Market Size and Growth Statistics

Several factors have contributed to the accelerated SaaS industry growth in recent years. Some industries and country SaaS markets have seen unprecedented growth and are set to outperform others in the coming years. Understanding the growth trajectory can help you capitalize on emerging sectors or target underserved niches. These  stats will help:

12. Over the past decade, the SaaS market has seen a compound annual growth rate of 25 percent.

13. By 2025, about 85 percent of the software used for business will come from Software as a Service (SaaS) companies.

14. Meanwhile, McKinsey estimates that the global SaaS market could expand to $10 trillion by 2030. 

15. In terms of annual SaaS growth rates, the top quartile of companies grows around 60-70 percent annually, while the median business grows around 30 percent annually.

16. However, the overall median growth rate for private SaaS companies was reported at 35 percent in 2023, slightly down from 40 percent in 2021. 

17. The number of SaaS companies worldwide increased from 25,000 in 2021 to 30,000 in 2023, representing a 20 percent increase.

18. Generally, SaaS businesses experience the highest growth in the first quarter, with March being the most prosperous month. 

19. The fourth quarter is typically the slowest growth period for SaaS brands.

20. European private SaaS funding is growing rapidly at a 320 percent increase annually.

SaaS Adoption and Usage Statistics

Companies have increasingly adopted cloud-based software because it involves lower upfront costs and is easily scalable. These figures show how SaaS usage has grown across different countries and industries. 

So, if your question is: how many SaaS companies are there in the US? Find your answer below: 

21. With over 9100 SaaS organizations, the United States has about 6 times as many SaaS companies as any other nation.

22. The UK has the second-highest number (1500) of SaaS companies after the United States.

23. The Indian SaaS market is also on an impressive trajectory, projected to grow from $13 billion in 2022 to $25 billion by 2025.

24. North America accounted for a market value of USD 131.18 billion in 2023. 

25. Large organizations with over 10,000 employees use an average of 447 SaaS apps. 

26. About 70 percent of a company’s software use comes from SaaS applications.

27. Organizations using SaaSOps platforms use twice the number of SaaS tools compared to those that do not use SaaSOps platforms.

28. The average number of SaaS applications per company is 50 to 70.

29. By 2027, half of companies that use multiple SaaS apps plan to consolidate their management under a central system.

30. Only 48 percent of all SaaS licenses are used regularly 

31. Out of ten technologies, 73 percent of survey participants voted SaaS as the most important technology for attaining business objectives.

32. Germany is expected to have the highest SaaS market growth among major markets by 2025, with an increase from €6.85 billion to €16.3 billion. 

33. As of March 2024, the highest-rated SaaS app on G2 is Sprout Social, followed by Smartsheeet and Microsoft Defender XDR

SaaS Revenue and Financial Metrics Statistics

SaaS companies use different financial metrics to evaluate business performance. With these insights they can determine where to allocate their capital, or areas of business that need more attention. 

Check out these figures on SasS revenue and financial metrics:

34. Large, private SaaS businesses with over $20 million ARR have the highest average ARR per employee, at $183,932.  

35. Equity-backed SaaS businesses with less than $1 million ARR have the lowest average ARR per employee, at $29,412.

36. On average, private SaaS businesses generate $112,500 in revenue per employee.

37. Public SaaS companies have an average of 36,000 customers.

38. Public SaaS companies in the US with revenues exceeding $100 million experience a median revenue growth of 22 percent.

39. Over the decade from 2011 to 2021, only 1.6 percent of SaaS companies were able to maintain substantial revenue growth of 30 percent or more.

40. Private cloud providers dominated the SaaS markets in 2022 with 43 percent of revenue. 

41. On average, SaaS companies investing $1 million in customer acquisition gain an extra $100,000 in monthly revenue.

42. The top 10 percent of SaaS companies generating $1-3 million ARR grow at an impressive rate of 192 percent each year.

43. The best SaaS companies reach the $1M annual recurring revenue (ARR) milestone in just months.

44. Only 13 percent of SaaS startups reach $10M ARR after 10 years in business.

45. Most SaaS startups grow from $1 million to $10 million in ARR primarily through increasing their number of subscribers.

46. SaaS companies with ARR between $15 million and $30 million, make 36 percent of their revenue from expansion. 

Customer Acquisition and Retention Statistics

SaaS companies use targeted marketing strategies to reach their ideal customer base and convert them. They also offer quality support and customer services to keep clients engaged. 

These SaaS market statistics show how well or poorly their strategies perform: 

47. The average Customer Acquisition Cost (CAC) for B2B SaaS companies is $239.

48. Fintech SaaS companies have the highest CAC of $1450 followed by insurance with a CAC of $1280.

Explore more 60 FinTech Statistics here

49. eCommerce SaaS businesses have the smallest average CAC of $274

50. The ideal Customer Lifetime Value (CLV) to CAC ratio is 3:1. Meaning that the value of a customer should be 3 times the cost of acquiring them.

51. The average monthly churn rate for SaaS companies ranges between 3 – 8 percent, and the average annual churn rate is 32 – 50 percent.

52. A Net Retention Rate (NRR) above 100 percent is ideal for SaaS and subscription-based companies 

53. SaaS businesses with a net retention rate higher than 100 percent experienced significant growth in the past year, with an average revenue increase of 54 percent.

54. In comparison, companies that retained 60-80 percent of their customers experienced modest growth of only 12 percent.

55. A 35 to 84 percent retention rate is great for SaaS companies, with 35 percent and higher over eight weeks being an excellent target.

56. Increasing customer retention rates by 5 percent can increase profits by up to 95 percent.

57. The average conversion rate from free trials to paid subscriptions for SaaS companies varies between 18.6 to 29 percent, depending on the industry.

58. For freemium SaaS models, the ideal conversion rate is around 2 – 5 percent, although this figure can range from 1 percent to 10 percent across different companies.

59. US SaaS companies serve about 59 million customers worldwide.

SaaS Productivity and Efficiency Statistics

SaaS solutions streamline the deployment and maintenance of enterprise software. Thanks to their automation features, IT teams spend less time and resources doing routine tasks. 

Ultimately, companies improve their operational efficiency. These pieces of SaaS research show how much impact these solutions have made in increasing productivity and cutting costs.

60. SaaS-driven automation reduces the volume of support requests by 38 percent.

61. 88 percent of IT professionals recognize the benefits of implementing a centralized SaaS management solution for business operations.

62. Using SaaS applications for automation improves employee satisfaction by 43 percent.

63. Workplaces powered by SaaS were found to be approximately 30 percent more efficient than those not using such services.

64. By 2024, nearly 80 percent of workplaces will leverage SaaS tools, up from 45 percent in 2021.

65. The Rule of 40, a principle in the SaaS sector, suggests that a company’s combined revenue growth rate and profit margin should equal or exceed 40 percent.  This benchmark is a clear indicator of sustainable profitability for SaaS companies.

66. About 25 percent of SaaS companies become profitable within 6 months.

67. Large businesses voted customer experience and improved operational efficiency as their top two reasons for using SaaS.

68. 78 percent of companies state that  SaaS solutions are beneficial for real-time governance and management.

SaaS Challenges and Opportunities Statistics

Although SaaS solutions help companies streamline processes and work smarter, they often pose different challenges. 

Whether it’s compatibility issues, operational limitations, or security concerns, you must prepare for the potential adverse effects of using SaaS.

69. Nearly all (99 percent) IT executives reported experiencing challenges managing SaaS applications in their daily operations.

70. 35 percent of companies struggle with managing SaaS configurations especially because too many users have the authority to change security settings.

71. About 94 percent of IT executives agree that relying on manual methods hinders effective SaaS spending decisions. 

72. 25 percent of IT teams state that they spend most of their time managing external vendors.

73. About 48 percent of businesses want to improve their SaaS management while 

74. 54 percent of companies want to optimize software expenses through savings 

75. Only 3 percent of IT leaders have full and real-time visibility into the SaaS tools they use.

76. Only 30 percent of employees believe they have the necessary tools to perform their tasks effectively.

77. A quarter of employees may consider leaving their jobs due to a lack of essential tools.

78. About 32 percent of your SaaS spend is underutilized or wasted.

79. 53 percent of enterprise apps are not managed.

80. SaaS misconfigurations cause 63 percent of security incidents.

81. 55 percent of IT professionals state that the main security concern in SaaS operations is locating sensitive data within the system.

82. Marketing and sales expenses continue to be the most significant costs for SasS companies typically consuming 50 percent or more of their revenue.

83. The second biggest challenge for SaaSOps is insider threats. 

84. Only 36 percent of traditional businesses plan their expenses on SaaS operations.

85. About 73 percent of SaaS companies in a survey stated their organization spends too much time manually planning and budgeting.

SaaS Emerging Trends and Technologies Statistics

Emerging technologies like AI, machine learning, and blockchain are transforming the SaaS industry in so many ways. These technologies help companies to automate processes and personalize customer service. 

86. The global AI software market is expected to grow from $10.1 billion in 2018 to $126 billion by 2025. 

87. Among SaaS businesses, 35 percent have already adopted AI, and 42 percent are planning to do so soon.

88. In 2022, the global machine learning as a service market was valued at $22.86 billion. Projections indicate that it will reach $626.64 billion by 2032.

89. The artificial intelligence as a service market was estimated at $7.79 billion in 2022 and is expected to grow at a CAGR of 37.4 percent from 2023 to 2030. 

90. The blockchain-as-a-service (BaaS) market is expected to grow from $632 million in 2020 to $11.52 billion by 2026 at a CAGR of 62.2 percent during the forecast period.

91. By 2026, public cloud spending is expected to surpass 45 percent of total IT expenditures.

92. About 15 percent of SaaS offerings have incorporated deep learning capabilities into their products.

93. As the SaaS market continues to evolve, no-code capabilities are expected to boost productivity and allow new players to come into the market.

94. About 82 percent of cloud companies offer SaaS products that leverage AI.

95. By 2025, 75 percent of enterprise-generated data will be processed outside the traditional centralized data center. Edge computing will be used to provide real-time insights.

96. Over 90 percent of organizations consider SaaS a facilitator of emerging tech adoption.

97. Environmental, social, and governance (ESG) initiatives are becoming increasingly important in the SaaS sector, with companies like Salesforce using 100 percent renewable energy for business operations

98. Technology firms that primarily focus on AI are expected to attain a milestone of $1 billion in annual recurring revenue, notably 50 percent faster compared to cloud-based service providers.

99. Machine learning and AI experienced 85 percent growth in the third quarter of 2023

100. Global AI software revenue is projected to hit $118.6 billion by 2025.

Powerful Insights and Trends

The SaaS industry is here to stay. Join the winning bandwagon by studying these stats and using the insights to improve your business. 

Also, remember that SaaS industry trends are dynamic. The market can shift at any time, so you have to be alert. Insightful tools like Mandala can help you keep up with trends daily.

With powerful real-time monitoring capabilities, Mandala helps you to uncover new trends as they unfold.

Sign up for a free account today and stay ahead of the curve.