Software-as-a-service (SaaS) has now turned out to be the talk of the town whenever it comes to technology and business. Actually, the SaaS industry has developed wildly in the past decades, and now, it has a far-reaching effect.
Year after year, the impact of this industry is growing and people are getting more interested in it. So, today, we are going to talk about 90 eye-opening SaaS statistics and facts that you should know in 2024.
We have categorized the facts and statistics into several types. Here, you may find some statistics that change every second. So, please consider the gap between the time I’m writing and you’re reading.
SaaS Statistics & Insights on Market Growth and Size
Image Source: Statista
1. In 2023, the worth of the entire SaaS industry was around $195 billion. Source: Gartner Forecasts Worldwide (2022)
2. In the last seven years, the growth rate of the SaaS industry has been approximately 500%. Source: BetterCloud (2020)
3. In the next three years, that means by 2027, The SaaS industry expects to have a huge market volume of $344 billion. Source: Statista
4. Right now, more than 80% of companies in the world are utilizing at least one SaaS application to operate their businesses. Source: O’Reilly (2020)
5. The number of SaaS vendors has increased by over 500% in the past seven years.
6. Currently, more than 70% of the company's software is solely developed by the SaaS industry. Source: BetterCloud (2020)
7. As-a-service Annual Contract Value of the Saas Industry has increased more than five times in the past six years. It reached $11.2 billion in Q2 2021. Source: Temenos announces sustained strong Q2-21 momentum (2021)
8. The cloud application market has been growing every year. Indeed, it has grown year-over-year since 2013.
9. The projected global revenue for 2023 was estimated to reach $253.90 billion. In that case, the annual growth rate is around 7.89%. Source: Statista
10. By 2025, the average number of SaaS apps used by a single organization is expected to reach 85%. Source: BetterCloud (2020)
11. In 2022, SaaS start-ups got more than $30 billion in VC investment. Source: Dealroom (2023)
12. Currently, the average customer churn rate of SaaS companies is around 5%. Source: Sixteen Ventures (2020)
13. The global SaaS market is predicted to reach $10 trillion by 2030. Source: Aleacp (2024)
14. Companies that invest in customer success can see an increase in CLTV by 20-40%.
15. The SaaS industry is expected to continue growing, with a focus on sustainability and efficiency in the coming years.
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Related Read: Best AI Website Builders
SaaS Statistics & Facts on Adoption and Usage
16. On average, large companies with over ten thousand employees utilize approximately 447 SaaS applications. Source: BetterCloud (2021)
17. Large companies where over 1,000 employees are working, generally use approximately 177 SaaS applications. Source: BetterCloud (2020)
18. Industry-specific (Vertical SaaS) solutions are used by 48% of organizations to meet specialized needs.
19. Over 88% of businesses are currently using cloud services in different forms. Source: O’Reilly (2020)
20. Companies usually use or get help from an average of 110 SaaS solutions annually. Source: B2B SaaS Sales Cycles (2023)
21. Organizations' use of SaaS applications has increased by 38% over the past year and around 1,275% since 2015. Source: BetterCloud (2021)
22. CRM is estimated to have a $50 billion market share by 2025. It includes accounting, CRM, and CMS apps which are considered the most-used SaaS apps. Source: CRM Search
23. Globally, more than 14 billion people use any of the SaaS products.
24. Mid-sized and small organizations have 45% of their software that is cloud-based.
25. Companies with fewer than 50 employees are currently using an average of 16 SaaS applications. Source: BetterCloud (2020)
26. North America leads in SaaS adoption, with 48% of global SaaS revenues coming from this region. Source: Fortune Business Insights (2024)
27. More organizations are shifting to remote work facilities to increase productivity by 22.3% CAGR in the phase of 2022 to 2028. Source: KBV Research
28. Corporate apps muster a huge 70% of open market investments in SaaS, which facilitates the blooming of cloud-centered remote workplaces.
29. SaaS-operated Companies commonly utilize approximately 212 applications. 93% of their software exists in the Cloud system. Source: BetterCloud (2021)
30. It is estimated that by the end of 2024, almost 99% of organizations will use SaaS solutions. Source: Statista
Also Read: Why Should SaaS Startups Choose No-Code Platforms
SaaS Statistics & Facts on Revenue and Financial Metrics
Image Source: Statista
31. In September 2023, the gross CAGR for SaaS services decreased to around 8.4%, while it was around 60% CAGR in the first phase of 2022. Source: Paddle (2023)
32. The EU SaaS industry is expected to generate a revenue of $69.82 billion by the end of 2024. Source: PSD2 (2024)
33. In 2022, big companies holding over 1000 working people managed over 60% of revenue in the SaaS sector worldwide. Source: Grand View Research (2023)
34. In 2022, the private cloud service providers held the lion's share of the SaaS market which was around 43% of SaaS revenue worldwide. Source: Grand View Research (2023)
35. The open market SaaS services hold an average of around 36000 consumers. Source: SaaStr (2021)
36. The private SaaS industry's midpoint net revenue generation rate is approximately 102%. Source: SaaS Capital (2023)
37. It is estimated that around 836 software-based companies' net worth is over a billion USD. Source: Cunchbase (2024)
38. In 2023, the median ARR per worker was around 112500 USD in the private SaaS companies. Source: SaaS Capital (2023)
39. The large corporate SaaS firms with over 20 million USD ARR possess the peak midpoint ARR per worker which is around 183932 USD. Source: SaaS Capital (2023)
40. In SaaS firms possessing under 1 million USD have the lowest midway ARR rate per worker. It is around 55183 USD per employee.
Statistics & Facts on SaaS Challenges
Image Source: Techopedia
41. SaaS firms should deal with security affairs and inept actions to thrive in the digital market.
42. Almost half of the firms spend around 10% of their yearly expenses on numerous applications and SaaS. Source: Oomnitza (2023)
43. The midpoint Customer Acquisition Cost had escalated approximately by 180% from 2021 to 2023. Source: Gartner Forecasts (2022)
44. The midpoint B2B SaaS sales circle is currently around 134 days which is an increase from early 2022 set around 107 days.
45. Around 24% of companies are anxious about completing the running services. Source: OpenView (2021)
46. More than 20% of firms are worried about lessening SaaS sprawl. Source: Statista
47. Around 64% of companies report that some shortcomings obstruct their capability to achieve operational excellence using automation. Source: Statista
48. The recouping of customer acquisition costs takes longer than before, as the CAC repayment time frame expanded by 150%. Source: Gartner Forecasts (2022)
49. The lifetime worth of the LTV/CAC ratio has decreased by 47%. Source: Gartner Forecasts (2022)
50. As of the BetterCloud survey, around 37% of corporations are anxious about securing their SaaS stacks. Source: BetterCloud (2020)
51. More than half of the enterprises dedicate over 10% of the total cloud allocation to unmanaged and irregulated resources. Source: ICD (2020)
SaaS Statistics & Facts on Security and Compliance
Image Source: RADIX
52. Almost half of the corporations do not have the essential resources to properly deal with SaaS operations at scale.
53. According to a survey, 43% of companies have at least one security problem related to SaaS mispositioning. Source: Cloud Security Alliance (2022)
54. Over 35% of the enterprises found that the key problem with SaaS misconfiguration is a vast amount of parties changing credentials of SaaS security settings. Source: Cloud Security Alliance (2022)
55. Around 46% of companies have limited bandwidth for regular checks into SaaS errors, and almost 5% of them don't have any intentions to check. Source: Cloud Security Alliance (2022)
56. Former employees having access to SaaS apps is a serious vulnerability. This aspect covers over 22%of security issues. Source: Security Boulevard (2022)
57. Last year almost 43% of IT expats added a SaaS application that collects delicate data. Source: BetterCloud (2023)
58. Around 70% of Annual Recurring Revenue (ARR) is wasted by firms holding over 1 million USD worth of ARR imposed to churn. The rest of the 30% is from the contraction. Source: Global Networking Trends Report Cisco (2023)
59. Approximately 63% of companies face security issues for mismanaging Saas. Source: Cloud Security Alliance (2022)
60. Over 42% of IT experts are having issues while securing SaaS user activity traces. Source: BetterCloud (2023)
61. According to a study conducted in 2022, 59% of the total respondents reported that most of the top SaaS concerns are offboarding employees. Source: Torii (2021)
Saas Facts and Statistics on Pricing Plans
Image Source: RADIX
62. Around 40% of SaaS companies are utilizing value-based pricing models aiming for flexible SaaS solutions.
63. Approximately one-fourth of SaaS businesses are inspired by their competitors' pricing strategies instead of developing a unique pricing model.
64. Around 73% of SaaS companies increased their prices by approximately 12% from August 2022 to August 2023. Source: Fortune Business Insights (2024)
65. Almost 45% of SaaS companies choose to publish their pricing and the rest used to keep their pricing model private. Source: OpenView (2021)
66. A substantial 79% of SaaS businesses review their pricing annually, and it's now a trend for both early-stage and late-stage companies.
67. Around 39% of SaaS companies utilize a value-based pricing model, and around 38% use a usage-based payment system. Source: OpenView (2021)
68. Yearly billing plans work the most among SaaS providers, even though most contract length isn't more than 1.3 years.
69. On average, SaaS organizations spend not more than six hours developing their pricing plans.
70. Approximately 68% of SaaS companies usually offer discounts which is not more than 25% of their deals, and 29% go for a minimal discounting system. Source: OpenView (2021)
Also Read: Effective SaaS Pricing Page Design
SaaS Statistics & Facts Regarding Covid Time
Image Source: TrustRadius
71. Since May 2020, SaaS application usage has risen by 17% due to remote work and lockdowns. Source: Cledara (2020)
72. With the COVID breakout in June 2020, SaaS tool usage rose by another 22%, with SaaS spending up by 16%. Source: Cledara (2020)
73. In 2021 Global SaaS Spending shows over 30% of organizations in the world increased their SaaS expenses in response to the COVID-19 time.
74. US and Europe SaaS Spending in COVID, the companies in these regions increased their SaaS spending by about 57%. Source: FinancesOnline (2021)
75. Virtual Healthcare in COVID time is projected to grow to $250 billion in US health insurance expenses, up from $3 billion, because of telehealth adoption during the pandemic.
76. In 2019-2020, during the lockdown period, SaaS portfolios' growth rate was approximately 62%. Source: Productiv (2022)
77. In the 2020-2021 COVID phase, the SaaS Portfolio Growth rate increased by an additional 28%. Source: Productiv (2022)
78. Zoom saw a rise to over 300 million regular meeting attendees during the pandemic, up from 10 million at the end of 2019. Source: Business of Apps (2024)
79. At the end of 2020, the collaboration apps were adopted on enterprise devices. The adaptation rate was 176%. Source Fortune Business Insights (2024)
SaaS Trends in 2024
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80. SaaS providers are more likely to integrate AI in Saas and machine learning to deliver more customized, responsive, and intelligent user experiences. Source: ResearchGate (2024)
81. There is an increasing focus on SaaS solutions tailored for specific industry verticals, offering specialized functionalities for niche markets.
82. SaaS companies prioritize security measures the most to protect customer data and also to mitigate cyber threats. Source: Founder Shield (2024)
83. Most SaaS providers are planning to transition to PaaS models to be more flexible and improve scalability.
84. The SaaS industry is anticipated to experience more mergers and acquisitions because larger companies are planning to expand their offerings and market share. Source: Aventis-Advisors (2024)
85. Companies are developing SaaS platforms that combine multiple functionalities into a single and comprehensive solution to reduce reliance on different specialized apps.
86. SaaS companies start prioritizing customer success and for that, they invest in onboarding, support, and retention strategies.
87. SaaS platforms start enhancing their low-code and no-code functions to customize and improve software functionalities even without additional programming skills.
88. Developers are making powerful API integrations that will facilitate seamless data exchange and connect different systems and applications.
89. New pricing models like usage-based or consumption-based pricing are getting more popular in recent times.
Wrapping Up
Every entrepreneur should have a clear idea of the SaaS industry. This industry has a bigger chance to learn about the world in the near future. Knowing the following SaaS statistics and facts will help you get a clear insight into this fact.
Especially, if you have a plan to open your own business in this section, be thoughtful about the mentioned facts. Think about your possibilities and competitors carefully in the SaaS section.
