Software-as-a-service, popularly referred to as SaaS, has taken over almost every industry worldwide, and its technology has become the foundation for global consumers and companies. It has transformed the way businesses work, as it eliminates the use of bulky hardware, manual updates, licensing costs, and complicated maintenance. Besides, with SaaS solutions, tasks that usually take hours to complete, like maintenance, are automated.
You will find SaaS solutions in almost every industry, from fintech to healthcare, e-commerce, retail, and others. They use these tools to increase security, scalability, and productivity while easily reaching their varying business goals. With the continuous global reliance on SaaS solutions, it is not surprising that the industry is worth a lot. In 2021 alone, the total SaaS spend was $152 billion.
This begs the question of how many SaaS companies are out there. In what industries are they prevalent? How many people use these companies?
This article will answer these questions and provide the necessary SaaS statistics. So, let’s get right to it.
SaaS General Statistics
- 99% of businesses employ at least one SaaS company.
- Microsoft is the number one SaaS provider, with over 15% market share.
- Financial services, analytics, and information technology and services are the major 3 SaaS industries.
- Microsoft is the largest global SaaS Company, with a market capitalization of $1.95 trillion.
- SaaS is said to be the most significant tech in business success.
- The total market value of the top ten SaaS companies is more than $1 trillion.
- Over 75% of businesses said that using a live chat tool increased customer loyalty, sales, and revenue.
- The average SaaS business has about 36,000 customers.
- SaaS stays the major public cloud market segment.
SaaS Growth Statistics
- The US SaaS industry saw over $90 billion invested across 4,459 SaaS deals.
- SaaS companies operate in more than 100 countries.
- The SaaS industry experiences an average annual growth of 18%.
- In Europe, private SaaS funding sees over three times YOY growth.
- The SaaS growth in Germany is the highest in the European Union.
- There were over 330 SaaS unicorns in the US in 2021.
SaaS Usage and Adoption Statistics
- Over 40% of small and medium-sized businesses have their business applications in the cloud.
- Startups start with an average of 29 SaaS apps and increase to over 100 apps when they are 3-6 years old.
- Over 90% of companies on the market use at least one SaaS tool to run their business.
- About 50% of US government organizations use a public cloud.
- More than 70% of small businesses invest in at least one SaaS solution.
- Most enterprises spend about 15% of their budget on SaaS solutions.
- Companies use an average of 34 SaaS applications.
- Approximately 93%ofbusinesses have a multi-cloud strategy.
SaaS Spending Statistics
- The total SaaS spend in 2021 was $152 billion.
- The end-user spend on SaaS applications is projected to exceed $172 billion in 2022.
- The overall spending per company on SaaS solutions is up by 50%.
- A company spends an average of $2,623 per employee yearly on SaaS Subscription expenses.
- Spending on analytics cloud solutions has increased by over 20% in the last five years.
- Companies spend an average of 25% of their budget on a public cloud and different SaaS solutions.
- Over 45% of companies expect their cloud maintenance bills to increase in the coming year.
- A medium-sized company spends an average of $343,000 yearly on SaaS solutions.
SaaS Regional Statistics
- The world’s leading countries with the most SaaS companies are the US, UK, Canada, and Germany.
- The US has the highest number of SaaS businesses worldwide, over five times more than the UK.
- The US has about 17,000 SaaS companies, while the UK has 2,000.
- India is the leading SaaS country in Asia.
- In 2021, Investments in Indian SaaS companies saw a 170% increase from the previous year.
- SaaS is the major startup model in Brazil, making up over 40% of all Brazilian startups in 2020.
- Over 25% of businesses in the EU use a public cloud.
- India’s SaaS industry has grown by over 70% in the past two years.
SaaS Churn Statistics
- 5.9% is the 2022 customer churn rate benchmark for SaaS businesses.
- The average churn rate of a SaaS company is 6-10%.
- Companies are churning over 30% of their apps yearly, increasing SaaS waste year-over-year.
- A SaaS startup may have about a 60% revenue churn rate.
- Over 60% of SaaS companies consider the number of customers when calculating their churn rate.
SaaS Company Statistics
- SaaS companies spend approximately 18% of revenue on sales initiatives.
- There were 25,000 SaaS companies globally in 2021.
- 30% of SaaS companies offer customers the opportunity to extend their functionality by paying an extra fee.
- The median valuation for a public SaaS firm is fifteen times the forward revenue today.
- Adobe Inc. was the largest SaaS Company in terms of market cap in June 2022, followed by Salesforce and Intuit.
- Visma is a leading SaaS company in the CRM market.
- LinkedIn was the first cloud company to reach a valuation of $1 billion.
- Azure is the leading SaaS usage company.
SaaS Customer Statistics
- Over 80% of customers will pay more for a SaaS product if they have a high-quality customer experience.
- Agility and flexibility are the primary reasons new customers switch to cloud-based solutions.
- Over 80% of new SaaS users pay for cloud services after a free trial.
- Over 10% of SaaS users use their services once a week.
- Software engineers are the primary users of cloud SaaS solutions.
SaaS Sales and Marketing Statistics
- SaaS companies spend the highest on marketing and sales, up to over 50% of their revenue.
- Freemium SaaS solutions convert over 20% more customers than free trials without sales.
- Over 30% of SaaS companies attract new users through educational blog content.
- More than 10% of SaaS businesses use HubSpot to spread their content on the internet.
- 54% of SaaS companies use WordPress as their content management system.
- Over 10% of companies make monthly payments to access a SaaS management platform.
- 48% of businesses have an average of one-year SaaS contracts, while 11% have contracts for three years or more.
- SaaS companies that do not require credit card info during sign-up will generate more paying customers.
SaaS Challenges Statistics
- Security, compliance, lack of staff training, privacy, cost, and vendor lock-in are the top challenges of using the public cloud for business.
- Over 50% of enterprise apps are not managed.
- It takes 7 hours to off-board a user across a company’s SaaS applications.
- Over 80% of enterprises report that their employees store clients’ sensitive information on third-party cloud services without permission.
- Over 40% of cloud security privileges are incorrectly configured.
- IT organizations don’t want to deal with SaaS because of the increased fear of data loss.
SaaS Trends and Projections
- Projections predict that the global SaaS market spend will be over $200 billion in value at the end of 2022.
- Public cloud spending is forecast to surpass 45% of all enterprise IT spending.
- The healthcare SaaS industry is expected to hit a $50 billion valuation by 2028.
- It is estimated that over 80% of business applications will be SaaS-based by 2025.
- Banks are expected to replace their application with SaaS solutions at a 90% rate by 2030.
- Germany is projected to experience the largest SaaS market growth among major markets by 2025.
- India’s SaaS industry is projected to reach $70 billion by 2030.
- The web and video conferencing SaaS market is estimated to reach $7 billion by 2026.
- The cloud market is predicted to grow to over $800 billion by 2025.