SaaS stands for “Software as a Service” which is a business model that grants customers the ability to access software programs over the internet without installing them on their devices.
SaaS has grown into one of the most popular and fastest-growing sectors in the cloud computing market.
Due to benefits such as scalability, cost-efficiency, security, and flexibility offered by SaaS, it is widely used by clients all over the globe.
In this article, we will address the SaaS statistics for 2024.
Today, we’ll learn how large the sector is and the benefits, challenges, trends, and trajectory of the SaaS market.
The following statistics may shock you when you find out the absolute magnitude of the SaaS market and the elements that have resulted in its growth to monumental heights.
Let’s delve into the SaaS data you want to know.
Key SaaS Statistics
- Global revenue for SaaS in 2022 was $213.9 billion.
- 99% of companies are using at least one SaaS solution.
- Companies with over 1,000 employees use 177 SaaS applications on average.
- An average of $343,000 is spent on SaaS yearly.
- The median rate of growth for SaaS companies has reached 40%.
- The global SaaS sector is worth an estimated $3 trillion.
- There are more than 100 SaaS unicorns valued at more than $1 billion.
- SaaS in the U.S. employs two million people as of 2023.
- The top market players using SaaS include healthcare, finance, retail, and manufacturing.
- The most common SaaS solutions are CRM, ERP, CMS, and Project Management Software.
Top Saas Statistics in 2024
1. Global Revenue for SaaS in 2022 Was $213.9 Billion.
Globally, the SaaS market generated $213.9 billion (USD) in revenue in 2022.
The prediction for 2023 shows a rise to $253.9 billion (USD) at an 18.7% CAGR during the forecast period between 2022 and 2027.
This market is expected to grow to $344 billion (USD) by 2027.
(Techopedia)
2. 99% of Companies Are Using at Least One SaaS Solution.
In recent years, the SaaS market has experienced remarkable growth.
In fact, a recent study revealed that a whopping 99% of companies are using at least one SaaS to run their operations.
Another 38% said that all their operations are running on SaaS.
(Nanonets)
3. Companies with Over 1,000 Employees Use 177 SaaS Applications on Average.
Large organizations that employ over 1,000 employees use an average of 177 SaaS applications to operate their businesses.
Businesses with under 50 employees use an average of 16 SaaS programs and among those that employ between 50 and 99 workers use an average of 24 SaaS applications.
This tells us that the more employees, the more SaaS applications are used.
(Exploding Topics)
4. An Average of $343,000 Is Spent On SaaS Yearly.
On average, companies spend about $343,000 per year on SaaS.
The growth of SaaS includes spending among companies using these products and services.
What this says to us is that companies are becoming more reliant on SaaS and similar innovative technologies.
(ZipDo)
5. The Median Rate of Growth For SaaS Companies Has Reached 40%.
It’s already been mentioned that SaaS companies are among the fastest growing in the world.
Recent data suggests that the median rate of growth among 100 public SaaS U.S. companies have achieved a massive 40+%.
(McKinsey Digital)
6. The Global SaaS Sector Is Worth an Estimated $3 Trillion.
We know from previous statistics that the global revenue in Saas for 2022 was over $293 billion (USD).
However, in terms of SaaS valuation, this market is work an enormous $3 trillion (USD).
In addition, it’s estimated that this figure will reach $10 trillion (USD) by 2030.
(McKinsey Digital)
7. There Are More Than 100 SaaS Unicorns Valued at More than $1 Billion.
In a few short years, SaaS has managed to create over 100 SaaS unicorns worth over $1 billion (USD).
A Saas unicorn is how we describe a privately held startup with a value of more than $1 billion.
As of 2022, SaaS unicorns account for 100 companies and are rapidly growing.
(Onlysaasfounders)
8. SaaS in The U.S. Employs Two Million People as Of 2023.
The United States hires the most workers in the SaaS industry at 2 million employees working in SaaS companies.
India ranks second in SaaS people employed at 676,000 workers.
Singapore is third with 163,000 SaaS employees and the United Kingdom employs 158,000 SaaS workers.
(DemandSage)
9. The Top Market Players Using SaaS Include Healthcare, Finance, Retail, and Manufacturing.
In terms of industry usage of SaaS, the top industries that use SaaS include healthcare, finance, retail, and manufacturing.
The main suppliers of SaaS in these industries include Salesforce, Oracle, SAP, Workday, and ServiceNow.
SaaS has generated much success in a variety of industries.
(LinkedIn)
10. The Most Common SaaS Solutions Are CRM, ERP, CMS, and Project Management Software.
The most commonly used SaaS solutions include CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), CMS (Content Management System), and Project Managment software.
Likewise, SaaS solutions like Sales, Marketing, and eCommerce are widely used.
(ClickUp)
11. SaaS Is One of The Three Main Tiers of Cloud Computing.
We somewhat addressed that SaaS is part of the cloud computing market, but it’s one of three primary tiers of this market.
Besides Software as a Service (SaaS), there is also Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
(ClickUp)
12. The Top Three Cloud SaaS Platforms Are AWS, Azure, and GCP.
This data isn’t likely to surprise you since it involves companies that are at least somewhat familiar to almost everyone.
The “big” three cloud platforms that dominate the cloud Saas solution market are AWS (Amazon Web Services), Azure (Microsoft), and GCP (Google Cloud Platform).
(BMC)
13. AI is constantly Being Integrated Into SaaS Applications.
AI is constantly and increasingly being integrated into SaaS solutions.
For instance, when you call for customer service and speak with a virtual agent, or chat with a virtual agent in a chat support environment you are experiencing this integration.
Companies like Zoom use AI solutions from the SaaS sector to improve video quality.
Also, HubSpot helps with AI solutions for marketing.
(Radix)
14. Mobile-Friendly SaaS Solutions Are Becoming More Important in The Business Realm.
In this society where instant gratification is king, the necessity of mobile Saas solutions is greater than before.
In fact, there is an ever-increasing demand for mobile SaaS business solutions across the world.
Modern business owners understand the need to dependable and swift delivery of services via automation.
(AppsRhino)
15. The United States Has More than 8 Times the SaaS Companies.
We know that the United States is the leader in the number of SaaS companies.
In fact, the United States has more than 8 times the SaaS companies than any other country in the world.
Data shows that the U.s. has around 17,000 SaaS companies compared to 2,000 in the U.K. and the same in Canada.
Also, Germany, France, and India each have 1,000 SaaS companies.
(Exploding Topics)
16. Adobe Ranks Number One in SaaS Companies with A Valuation of $256.7 Billion.
Adobe Inc., (ADBE) has a valuation of $256.7 billion (USD) as of the final quarter of 2023.
In second place with a valuation of $215.8 billion (USD) is Salesforce, Inc. (CRM) and then Intuit Inc. (INTU) at $153.9 billion (USD).
ServiceNow, Inc. (NOW), Shopify Inc. (SHOP), and Workday, Inc. (WDAY) trial behind.
(UserGuiding Blog)
17. 72% of IT Professionals Think the Zero-Touch SaaS Automation Concept Is the Wave of The Future.
Naturally, we expect the SaaS industry to evolve and grow.
That said, the idea of zero-touch SaaS automation is the wave of the future according to 72% of IT professionals.
That doesn’t seem surprising to us. Does it surprise you?
(CloudZero)
18. SaaS Companies Using Mobile Responsive Interfaces Enjoy 30% Higher User Engagements.
We discussed the ever-increasing necessity for mobile SaaS solutions.
However, one of the reasons for that is the 30% higher engagement rates for SaaS companies that develop mobile-friendly interfaces that are highly responsive and efficient.
With the massive usage of mobile phones, smartphones, and tablets, this comes as no surprise.
(EnterpriseAppsToday)
19. In the U.S., SaaS Companies Service Around 14 Billion Global Customers.
Data from 2021 revealed that global organizations used an average of 110 Software as a Service applications, which is still growing.
SaaS companies in the United States provide services and products for around 14 billion customers all over the globe.
(Zippia)
20. 82% of Security Breaches in 2023 Were Related to Data that Is Stored in The Cloud.
There is no other time in history when data security is at an all-time high.
Cybercriminals who perpetrate cyberattacks commonly get access to multiple network environments.
Almost 40% of security breaches extend across multiple environments and result in costs of $4.75 million (USD). Top tier level security protocols for SaaS solutions are more important today than ever.
(Techopedia)
FAQs
What Is SaaS?
SaaS (Software as a Service) is a software distribution model where applications are hosted by a vendor/service provider that grants availability to customers over the internet.
SaaS eliminates the need to install and maintain software programs on their own devices and gives them access in a secure manner.
SaaS commonly includes automatic upgrades, updates, and support services.
What Are the Benefits of SaaS?
Software as a Service comes with many benefits to its users such as:
• Lower cost: SaaS offers better cost-efficiency over conventional on-site software options.
• Scalability: Due to changing business needs, SaaS is conveniently scalable so you can scale up or down as needed.
• Accessibility: Wherever you can connect to the internet, you will have access to your applications.
• Ease of use: Usually there is no specialized training required to use SaaS applications.
• Security: SaaS vendors are responsible for security, so you can feel confident that your data is safe.
What Are Some Examples of SaaS Applications?
There are more SaaS applications than we can put in one article, but here are some that you might be familiar with:
• CRM software (Customer Relationship Management)
• Email marketing software
• HR software (Human Resources)
• Accounting software
• Project management software
How Much Does It Cost to Use SaaS?
The cost of using SaaS depends on the vendor/service provider you use, the applications you use, and your specific needs for the applications.
Some SaaS applications are free, and others charge an annual or monthly fee.
Is SaaS Customizable?
Yes. SaaS is customizable just like convention downloaded and installed programs.
In fact, in most instances, it’s easy and faster to customize SaaS interfaces in terms of appearance.
Also, you can modify the application(s) to suit what you need for your business.
For instance, you can make changes to the data fields and images in the programs.
How Safe Is SaaS?
Most generally, SaaS applications are sufficiently secure.
That said, you need to know that these programs are still vulnerable to things like unauthorized access and data breaches.
When picking your SaaS vendor, make sure it has a good security track record in terms of using good security protocols.
You also need to do things yourself like using strong, 12-character or more passwords, change them regularly, and two-factor authentication (2FA).
Conclusion
Overall, we can see that the realm of SaaS shows extensive growth and future promise in 2023.
Moreover, it’s showing no signs of slowing down.
In fact, these statistics show us that the SaaS industry is continually evolving and growing.
That said, there are challenges to overcome in the SaaS industry that includes the major issues of data breaches.
As more businesses all over the world adopt SaaS technology, this problem is likely to increase.
Additionally, as SMBs are adopting SaaS solutions quickly, there is the issue of high costs and licenses not being used.
The future of SaaS is believed to be in the integration of AI into the systems.
However, this is still a limited option.
If you use SaaS or are considering it for your SMB, consider all the statistics you have read here and weigh your options.
Always protect your data and yourself by taking your own security steps to counteract or mitigate the risk of data breaches.
We hope you feel enlightened and informed enough after reading these SaaS statistics to choose a vendor and applications for your needs.
