We gathered the most recent SaaS market traits and insights that can assist you navigate the quickly altering market. Study the newest progress statistics to assist gas your innovation and acquire a aggressive edge within the $200 billion trade.
Right here, you’ll discover:
The $200 billion software-as-a-service (SaaS) market is a quickly evolving space of the tech trade. Because of this, the aggressive panorama could be troublesome to get a deal with on.
Learn on to get the most recent stats on the SaaS market so what to anticipate — and the right way to thrive.
The software-as-a-service market is sizzling within the U.S. but in addition fiercely aggressive. (Picture: Unsplash)
SaaS market highlights
When new SaaS platforms seemingly emerge every day, staying knowledgeable of the most recent traits and modifications is crucial to navigate and adapt.
- The U.S. has about 9,1000 SaaS firms and repair about 15 billion prospects worldwide. (Supply: Statista)
- 99% of firms shall be utilizing at the least one SaaS answer by the tip of 2024. (Supply: SaaS Academy)
- SaaS firms that enhance customer support and expertise can enhance buyer lifetime worth by 25%, which is important for the reason that SaaS mannequin depends on subscriptions for income. (Supply: McKinsey)
- 78% of Corporations Use Extra Than 4 SaaS Platforms. (Supply: HireDNA)
- Adobe Inc. is the highest publicly traded U.S. SaaS firm in 2024. (Supply: HireDNA)
- The worldwide SaaS market has a compound annual progress price (CAGR) of 27.5%. (Supply: Fortune Business Insights)
- In 2024 and past, synthetic intelligence and machine studying are prone to play a big function in purposes SaaS firms create (Source: Cyclr)
- SaaS adoption is highest in advertising and promoting, expertise, training, retail, monetary providers, ecommerce, and manufacturing. (Supply: SaaS Academy)
- SaaS companies’ common buyer churn price is 5%. (Supply: SaaS Academy)
- The healthcare SaaS market is predicted to hit a $50 billion worth by 2028. (Supply: Grand View Analysis)
- The banking SaaS market is predicted to hit $40 billion by 2029. (Supply: Fortune Enterprise Insights)
- Primarily based on enterprise measurement, the worldwide software program as a service (SaaS) market is segmented into small & medium enterprises (SMEs) and enormous enterprises. (Supply: Precedence Research)
- International SAAS Market measurement to USD 1298.92 billion by 2030, rising at a CAGR of 19.7% within the forecast interval (2023-2030). (Supply: Skyquest)
SaaS market measurement and progress statistics
1. Worldwide spending on public cloud providers is forecast to succeed in $1.35 trillion in 2027
Fueled by the pandemic, the SaaS market has grown explosively and this isn’t anticipated to gradual any time quickly.
In response to the Worldwide Information Company, 40% of this comes from SaaS, whereas different massive contenders within the public cloud providers realm embrace infrastructure as a service (IaaS) and platform as a service (PaaS)
The large end-user spending additionally speaks to the huge potentialities for SaaS suppliers. Any trade can be a part of the money-making wagon so long as it has the technical know-how and lives and breathes synthetic intelligence.
Authorized and accounting organizations like CLEO and FreshBooks are embracing SaaS software program for bookkeeping and authorized observe administration.
2. The U.S. has 9,100 SaaS firms
To place issues in perspective, the UK is available in second with just one,500 SaaS firms. The software-as-a-service market is sizzling within the U.S. but in addition fiercely aggressive. If you wish to stand out, you’ll must deliver your A-game.
Perhaps you supply a trip rental administration SaaS answer — we are able to assume of some rivals proper off the bat. Your prospects have tons of of choices, so you should stand out and persuade them you’re the most effective.
The first step? Critical model consciousness and daring UVPs.
“In terms of standing out, positioning, differentiation, and so forth., it’s necessary to think about your core worth propositions,” says Steven Dang, Progress and Technique VP at HawkSEM. “Know what they’re and distill them into an essence so you may assist your buyer understand how you’re totally different and what it’s a must to supply. Aggressive matrixes, video explainers, infographics, and buyer testimonials are simple methods of speaking your core worth propositions.”
That is the place search engine marketing (SEO) and PPC (pay-per-click) administration grow to be very important for at this time’s SaaS firms. Any slack in advert administration will dim your gentle in Google’s eyes, and rivals shall be all too wanting to overshadow you.
Our search engine marketing consultants method PPC management with a fine-toothed comb, serving to you strategize, handle, and execute a data-driven methodology that brings you extra visitors. For instance, the cloud monitoring SaaS area of interest is crammed with massive names like Azure Monitor and Amazon CloudWatch.
We helped our shopper Datadog take up more room, and double their lead volume, by fixing up their touchdown web page, monitoring URLs, and revamping their key phrases. Particularly, we seen long-tail key phrases have been extra related for Datadog’s integration companions.
3. 99% of firms are forecasted to be utilizing at the least one SaaS answer by the tip of 2024
With the rise of each distant work and competitors, firms rely more and more on SaaS options for environment friendly enterprise operations. Right now’s distant workplace has a full tech stack.
Listed below are some key gamers you’ll discover in at this time’s workplace SaaS roundup:
- Venture administration: Basecamp, Asana, Monday, Dubsado
- Accounting: QuickBooks, FreshBooks
- Collaboration and messaging: Slack
- CRM (Buyer relationship administration): Salesforce
- Direct automation: Zapier
- Cost administration: HoneyBook
- Dotting i’s: Grammarly
- Non-public cloud internet hosting: IBM, GlobalLogic, Microsoft, Oracle
1000’s of SaaS options exist for particular industries, too, additional selling the SaaS-powered office. Corporations want SaaS purposes for day-to-day operations and to compete on this bustling digital panorama.
Corporations should additionally leap on the automation practice if rivals are enhancing productiveness and engagement with SaaS tech.
4. SaaS firms that enhance customer support and expertise can enhance buyer lifetime worth by 25%
Your prospects don’t hope for accessible tech — they demand it. McKinsey tells us it’s very important for SaaS firms to make your entire buyer journey, from begin to end, as customer-friendly and streamlined as doable.
We’re speaking about simply accessible content material and directions, intuitive interfaces, and crystal-clear transparency on the place these subscription dollars go. Many massive SaaS firms see partnerships as a method to make sure prospects get what they want.
The extra handy you can also make issues on your prospects, the higher. A superb place to start out? Optimize your SaaS company website with brand-related key phrases, picture tags, and high quality content material.
5. 78% of Corporations Use Extra Than 4 SaaS Platforms
Information administration and evaluation are large motivators for SaaS subscriptions. In response to HireDNA, 96% of companies use at the least one SaaS platform whereas eight in 10 firms use greater than 4 SaaS platforms. Clearly, information is a distinguished curiosity throughout varied industries in selecting a SaaS answer.
What does that imply on your SaaS enterprise or startup? You can begin by on the lookout for data-focused audiences that would use your product and market to them accordingly.
Information options are frequent in most SaaS options—even Amazon Prime. Ever discover how the platform recommends exhibits that pique your curiosity simply sufficient to hit “play?” That’s based mostly on information collected out of your streaming behaviors.
6. Adobe Inc. is the highest publicly traded U.S. SaaS firm in 2024
Adobe is price a staggering $259.2 billion, with income steadily rising yearly. Adobe’s success crowns it with the very best SaaS market share. The well-known Adobe Inventive Suite sits middle stage in lots of firms’ advertising methods, providing design providers like Photoshop, Lightroom, and Adobe Premier.
Furthermore, Adobe has a preferred PDF editor that nearly each enterprise can use. Do you know Adobe invented the PDF in 1993, a dramatically revolutionary answer for firms going paperless?
Clearly, Adobe is a SaaS chief with increasingly providers to satisfy their viewers’s wants. The corporate can also be well-known for releasing open letters to their prospects earlier than vital modifications. These advertising strikes proceed to be crucial (and sensible) in solidifying belief with Adobe’s viewers.
Be aware: Some think about Apple the most important SaaS firm, not Adobe. Technically, Apple is price extra at $2.65 trillion. Nevertheless, the corporate is primarily a hardware model, promoting fashionable iPhones, laptops, and iPads.
Nevertheless, some consultants think about Apple within the SaaS dialog due to the corporate’s rising SaaS product base and rising paid subscriptions, similar to AppleCare, Apple Music, and Apple TV.
Residence in in your target market, and don’t be afraid to determine sub-niches for centered focusing on. (Picture: Unsplash)
7. The worldwide SaaS market has a compound annual progress price (CAGR) of 27.5%
Which industries contribute to this whopping statistic? Fortune Enterprise Insights offers credit score to a couple notable ones:
Retail, client items, and ecommerce
- Healthcare
- Training
- Manufacturing
- Journey and hospitality
- Provide chain administration
The report covers SaaS globally, analyzing market gamers in North America, Europe, Latin America, the Center East and Africa, and Asia Pacific international locations similar to China, India, Japan, and Vietnam. SaaS market progress is coupled with rising AI expertise, machine studying, and virtualization, assembly rising wants for productiveness, database administration, and safety.
The report additionally exhibits that rising public cloud computing providers throughout massive enterprises is likely one of the main elements that propel market progress and is a serious a part of fashionable Enterprise Useful resource Planning (ERP).
Extra enterprises are shifting to hybrid cloud and utilizing on-premises options, and main gamers within the recreation are supporting the shift. For instance, in 2022, Microsoft Azure hosted its first Market Sumit, which can assist impartial software program distributors and SaaS suppliers maximize market alternatives.
Is your model in any of the above industries? Strategic methods to leverage this potential embrace harnessing the most recent applied sciences to enhance your providers and utilizing cloud-based software program to broaden your providers to new international audiences.
8. New pricing fashions rising in 2024 to fight decrease budgets
Pricing has all the time been a barrier to entry for a lot of companies. In 2024, you may anticipate to see SaaS firms attempt to fight that by constructing extra flexibility into their fashions.
“The market will see a rise within the diversification of pricing fashions. As a result of firms don’t have as a lot cash as earlier than, they’ll be value aware and can attempt to minimize the surplus, resulting in extra personalized and granular pricing methods being run,” says Lucas Bédout, CEO and Founder of Hyperline.
However what are you able to do when the worth of a buyer is decrease than it was up to now? You would possibly lean extra closely in your search engine marketing and content marketing strategies whereas transferring away from extra pricey methods like paid search.
Writing useful content material that solutions frequent questions will cement your function as an professional. Draw new customers by way of detailed walkthroughs and complete guides that set you other than the rivals.
Let a content marketing agency take the reins and show you how to scale.
Professional tip: Questioning the right way to decide an company? All the time overview case research to confirm outcomes and visualize how they will help your enterprise.
9. SaaS adoption is highest in advertising and promoting, expertise, training, retail, monetary providers, ecommerce, and manufacturing
You don’t want us to let you know how simple it’s to overspend on Google Adverts and search engine marketing — the issue is spending the finances on the flawed methods (or on no technique to start with).
So, how do you maximize the worth of your gross sales and advertising finances? The purpose is to merge gross sales actions and use insights throughout a number of channels for a cohesive digital marketing strategy. McKinsey sees information assortment as key, coupled with synthetic intelligence and superior analytics. We agree.
Actually, these targets sound so much like what our proprietary advertising expertise, ConversionIQ, can accomplish. By gathering actionable insights from campaigns, we are able to higher goal high-value audiences. Listed below are some issues we use ConversionIQ to resolve:
- Siloed information
- Gradual account purple flags
- Unsure paths for scaling
- Lackluster reporting
- Low common order values (AOV)

Healthcare is an trade primed for digital transformation. (Picture: Unsplash)
10. The typical buyer churn price for SaaS companies is 5%
Buyer churn is an important metric for the SaaS trade to observe intently. It measures the speed at which prospects cease subscribing to your service — all that onerous work and advertising gone. Canceled subscriptions are a drag, however they inform you numerous about the place you may enhance.
For instance, at what level within the journey are prospects abandoning your enterprise? Is it after one month? Two months? Perhaps your onboarding is off.
CRM Dialer President Dimitri Akhrin tells Forbes in regards to the energy of re-engagement emails. After all, we are able to channel re-engagement by way of many remarketing techniques, together with emails and adverts.
The underside line? Buyer retention is simply as, if no more necessary, than acquisition. A bit of churn is regular, and even exceeding 5% could possibly be OK so long as it’s quickly a part of a progress stage. However something ongoing? It warrants an audit.
11. The healthcare SaaS market is predicted to hit a $50 billion worth by 2028
Healthcare is an trade primed for digital transformation. Revolutionary SaaS manufacturers like CitiusTech, Veeva Methods, and MindBody have answered by providing distinctive database administration capabilities for healthcare suppliers. MindBody differs barely by providing an appointment platform for sufferers within the health and remedy realms.
How will you scale a healthcare SaaS enterprise? Prioritize UX (person expertise) and thoroughly think about your viewers’s enterprise necessities. You would possibly want some assist gathering correct information to finest inform your PPC adverts.
12. The banking SaaS market is predicted to hit $40 billion by 2029
Additionally known as BSaaS (banking software program as a service), the chances are limitless. From dashing up buyer resolutions to visualizing information and rising safety, SaaS affords at this time’s financial institution the world on a silver platter.
Specialists at Fortune Enterprise Insights predict the shift closely favoring massive banks, with smaller ones taking part in catch-up. After all, FinTech continues to search out options not just for banking enterprise fashions but in addition shoppers.
Corporations like Wave and Stripe assist enterprise homeowners with clean cost processing, whereas Venmo enterprise accounts make getting paid for enterprise or informal occasions a complete lot simpler.
SaaS and AI predictions
It’s onerous to get away from the time period AI nowadays, however how will it have an effect on or change SaaS?
Elevated safety
Within the age the place it’s solely a matter of time earlier than an organization shall be hacked, AI will help SaaS companies improve their security. That is nice information for suppliers and prospects alike. Not solely will information safety stop your information from ending up all around the internet, it’ll additionally result in value reductions for the suppliers. Thus, resulting in general cost-effective options for all.
AI powered CRM and ERP programs will develop
Microsoft says we must be looking out for AI persevering with to rework the way in which folks work, particularly with regards to CRM and ERP programs. There shall be a rise in AI to broaden personalization, information pushed methods, and effectivity by way of automation.
AI shall be at work behind the scenes
AI will proceed to develop and help in varied processes. “I’m satisfied that SaaS options will more and more run on GPT, which we’ll begin to regard as ubiquitously as AWS. Utilizing LLMs to reinforce these options will not be seen as revolutionary however will grow to be the usual,” Caya (Jose Cayasso), CEO and Founder of Slidebean.
Low code will enhance in reputation
A whole lot of legacy systems will become obsolete and low code will start taking up. There are a lot of use instances for this, however interpretation of massive information shall be an excellent place for this to proceed to take maintain resulting from scalability and ease of use.
The takeaway
As these stats present, at this time’s SaaS firm faces limitless alternatives for progress and success, in addition to overspending and competitors.
One of the simplest ways to harmonize the entire channels and alternatives obtainable is thru a thoughtfully crafted, data-informed digital advertising technique. Equipping your self with these stats will show you how to higher navigate the ever-shifting tides of the SaaS market and be arrange for long-term progress.
What’s cramping your SaaS model’s model? Are there too many prospects caught in your free trial? Or maybe lots of visitors with out conversions. No matter your ache level, we’ve both confronted it or have the fitting tech and experience to blast by way of these obstacles and take your enterprise to the following stage. Wish to know extra?
This text has been up to date and was initially printed in November 2022.