What are some SaaS Facts, Statistics & Trends?

Knowledge Base > SaaS > What are some SaaS Facts, Statistics & Trends?

As Software as a Service (SaaS) continues to dominate the technology industry, it’s important to stay up-to-date with the latest facts, statistics, and trends. Understanding these insights can help businesses stay competitive and make informed decisions about their SaaS strategies.

Facts about SaaS:

  • SaaS stands for “Software as a Service”
  • SaaS is a cloud-based software delivery model
  • SaaS applications are accessed through a web browser or a mobile app
  • SaaS is a rapidly growing industry, with revenues expected to reach over $157 billion in 2024
  • SaaS providers typically charge on a subscription basis, which means customers pay a recurring fee to use the software
  • SaaS is a popular choice for businesses of all sizes because it offers flexibility, scalability, and affordability
  • SaaS offers a number of benefits, including lower upfront costs, increased collaboration, and faster deployment

Statistics about SaaS:

  • The global SaaS market size was valued at $158.2 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.7% from 2021 to 2028. (Source: Grand View Research)
  • In 2020, the top five SaaS companies by revenue were Microsoft, Salesforce, Adobe, Oracle, and SAP. (Source: Synergy Research Group)
  • The most common reason for adopting SaaS is to reduce IT costs, according to 66% of survey respondents. (Source: BetterCloud)
  • The most popular category of SaaS applications is communication and collaboration tools, followed by project management and marketing automation. (Source: Blissfully)
  • By 2025, the SaaS market is projected to reach $307.3 billion, driven by increased demand for remote work solutions and cloud-based software. (Source: MarketsandMarkets)
  • Small and medium-sized businesses (SMBs) are the largest users of SaaS, with 73% of SMBs using at least one SaaS application. (Source: BetterCloud)
  • The average SaaS company spends 30% of its revenue on sales and marketing. (Source: OpenView Partners)
  • Vertical-specific solutions
  • Low-code/no-code platforms
  • AI/machine learning integration
  • Customer experience focus
  • Hybrid/multi-cloud adoption
  • Collaboration/productivity tools
  • E-commerce/payment processing
  • Data privacy/security emphasis
  • Mobile-first solutions
  • Edge computing expansion

By keeping an eye on key SaaS facts, statistics, and trends, businesses can identify new opportunities, address potential challenges, and optimize their SaaS offerings for success in today’s rapidly evolving market.

Useful Links:

  1. 27+ Latest SaaS Statistics 
  2. The Top 12 SaaS Trends for 2023

Common Questions

  • What is SaaS?

    SaaS stands for Software as a Service. It’s a delivery model for software in which the software is hosted on a remote server and accessed through the internet, rather than being installed on users’ local devices.

  • What are some recent trends in the SaaS industry?

    Some recent trends in the SaaS industry include the increased adoption of artificial intelligence and machine learning, the growth of low-code and no-code platforms, the rise of vertical SaaS solutions tailored to specific industries, and the increasing importance of data privacy and security.

  • How big is the SaaS market?

    The SaaS market is large and growing rapidly. According to a report by Grand View Research, the global SaaS market size was valued at $158.2 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.5% from 2021 to 2028.

  • How are SaaS companies changing the way software is sold?

    SaaS companies are changing the way software is sold by offering subscription-based pricing models instead of one-time purchases. This allows customers to pay for software on a recurring basis, often monthly or annually, rather than making a large upfront investment. It also allows SaaS companies to generate more predictable and recurring revenue streams.

  • What is the future of SaaS?

    The future of SaaS looks bright, with continued growth and innovation expected in the coming years. Some experts predict that the SaaS market will continue to grow at a CAGR of over 20% through 2025, with increased adoption of AI and machine learning, the expansion of the Internet of Things (IoT), and the continued importance of data privacy and security driving growth.