SaaS adoption has increased exponentially over the years, and today, an average company uses 371 SaaS applications.
This increased adoption was a result of fascinating results witnessed by the companies using SaaS tools.
One such example is Zendesk, a customer service SaaS platform that helped a leading travel agency boost its customer satisfaction score by 20%.
These numbers show how quickly SaaS can adapt to the changing scenarios.
Let’s take a detailed look at the latest SaaS statistics that will provide you with further insights into the usage of SaaS, its market, and more.
SaaS Statistics 2024: Top Picks
- There are currently 30,800 SaaS companies worldwide, and they are projected to reach 72,000 by 2024.
- The global SaaS industry is valued at $197 billion as of 2023 and is projected to reach $232 billion by 2024.
- The United States houses 17,000 SaaS companies alone.
- A SaaS company has an average of 36,000 customers.
- An average organization uses 371 SaaS applications.
- The SaaS industry has grown at the rate of 500% over the last seven years.
- SaaS spending is expected to grow by 20% in 2024.
- 47% of the venture capital was invested in SaaS startups in 2023.
How Many SaaS companies are there In The World?
The number of SaaS companies has increased rapidly over the past years. The majority of these SaaS companies are from the United States.
According to the predictions made, the number of SaaS companies will double in number in 2024.
1) There Are Over 30,800 Saas Companies Worldwide As Of 2023
17,000 of these SaaS companies are in the United States alone.
According to the predictions made by Ascendix, the number of SaaS companies will jump to 72,000 by the end of 2024.
Further, around 70% of these SaaS companies are in the United States.
Here is a table showing the countries with the most number of SaaS companies:
| Country | Number of SaaS Companies |
|---|---|
| United States | 17,000 |
| United Kingdom | 2,000 |
| Canada | 2,000 |
| Germany | 1,000 |
| France | 1,000 |
| India | 994 |
| China | 702 |
| Brazil | 647 |
| Australia | 631 |
Source: Statista.
How Many Customers Does the Average Public SaaS Company Have?
The number of Customers of public SaaS companies varies according to the services they provide. Further, the number also varies according to the market they are in.
This section will provide you with detailed figures about the number of consumers SaaS companies have.
2) On average, SaaS companies have around 36,000 customers
This number goes up to 85,000 customers for the public SaaS companies that mainly sell to small businesses.
On the other hand, public SaaS companies that sell in mid-market deals have around 13,000 customers, and companies that have reached the have around 1,500 customers.
From the above numbers, we can see that the number of customers of a SaaS company reduces as we go from companies dealing with small businesses to enterprises. A major reason for this is the type of consumers they deal with and the services they provide.
Source: SaaStr.
Saas Market Size
The SaaS market witnessed huge growth between 2017 and 2019. The SaaS market almost doubled during this time and crossed the value of $100 billion.
Here are further details about the Market size of the SaaS industry.
3) The global SaaS market is valued at $197 billion as of 2023 and is anticipated to reach $232 billion by 2024
The SaaS industry has grown from $31.4 billion in 2015 to $197.29 billion in 2023, a five-fold increase in seven years.
The increasing popularity of cloud computing, the growing demand for remote work, and the increasing affordability of SaaS applications are the major factors that contributed to this rapid growth.
The following table displays the Market size of the SaaS industry recorded over the years.
| Year | The SaaS Market Size |
|---|---|
| 2024* | $232.3 billion |
| 2023 | $197.29 billion |
| 2022 | $167.34 billion |
| 2021 | $146.33 billion |
| 2020 | $120.7 billion |
| 2019 | $102.1 billion |
| 2018 | $85.7 billion |
| 2017 | $58.8 billion |
| 2016 | $48.2 billion |
| 2015 | $31.4 billion |
Source: Statista.
4) The SaaS industry in the United States is expected to reach a value of $150.70 billion by 2024.
SaaS Revenue is expected to show an annual growth rate of 5.64% between 2023 and 2028, resulting in a market volume of $186 billion by the end of the projection period.
Most SaaS revenue will be generated in the United States in the upcoming years. Italy ranks second with $41.5 billion.
17,000 SaaS companies generated $401.6 billion in revenue in the United States in 2023.
The following table displays the countries with the highest SaaS revenue.
| Top Countries | Revenue Generated From SaaS Companies |
|---|---|
| The United States | $401.6 billion |
| Italy | $41.5 billion |
| The United Kingdom | $26.6 billion |
| Australia | $16 billion |
| India | $15.1 billion |
| Germany | $13.8 billion |
| France | $13.1 billion |
| Canada | $13 billion |
| Singapore | $10.5 billion |
| Netherlands | $9.5 billion |
SaaS Usage Stats
With the increasing popularity of the SaaS market, the usage of SaaS apps have also skyrocketed over tha past years. This has lead to increased invetements and adoption of the SaaS tools.
From small businesses to large enterprises, all businesses use these SaaS tools. Here are further details about it.
5) Organizations use 371 SaaS applications on average
The number of organizations using SaaS has grown by 32% since 2021.
Here is a detailed breakdown of the average number of SaaS applications used by different sizes of companies:
| Size of business | The Average Number Of SaaS Applications Used In 2023 | The Average Number Of SaaS Applications Used In 2021 |
|---|---|---|
| Small business | 253 | 242 |
| Mid-market business | 335 | 238 |
| Enterprise | 473 | 317 |
Source: Productiv.
6) The average business spends around $3,500 per employee on SaaS tools
Digging a bit deeper, a company with 10 to 100 employees has a total SaaS spend between $250k to $1 million spread over 50 to 70 apps.
Further, Gartner predicted that the spending on SaaS tools would reach $197 billion in 2023. This is an increase of 18% compared to 2022.
Source: Forbes.
7) SaaS applications have a 95% adoption rate
The SaaS adoption rate grew from 71% in 2018 to 95% in 2023. This is huge within a span of 5 years.
In recent years, 95% of organizations have implemented SaaS technology, while 67% have adopted IaaS technology.
Below is a list of other technologies that organizations have adopted:
- SaaS Applications- 95%
- Social Media- 79%
- Mobile Payments- 72%
- IaaS Environments- 67%
- PaaS Environments- 65%
- Internet of Things platforms- 40%
- DevOps- 35%
- Big Data Environment- 25%
- Containers/Docker Images- 15%
- Blockchain- 14%
Further, 4% of the companies worldwide said that they are looking forward to adopting SaaS applications in the next 12 months.
8) Over 55% of businesses have adopted SaaS tools for website optimization
Over half of the businesses have adopted SaaS usage for their websites. The adoption of SaaS tools for email optimization comes in second at 54%, followed by CRM at 21%.
Here are further segments where businesses have adopted the usage of SaaS worldwide.
- Website- 55%
- Email- 54%
- Communications- 26%
- Mobile Services- 23%
- CRM- 21%
- Productivity Apps- 16%
- ERP- 16%
- Data Analytics- 14%
- Document Management- 11%
- Database Server- 11%
9) Microsoft is currently the leading SaaS vendor, with the highest annual growth percentage of 45%
Oracle follows closely, in second place with 43%. In addition, Salesforce holds the fifth spot among the top SaaS vendors with 25% annual growth. Below is a list of the top 5 SaaS vendors:
- Microsoft- 45%
- Oracle- 43%
- SAP- 36%
- Adobe- 32%
- Salesforce- 25%
Source: Finance Online.
Saas Funding Stats
The Software as a Service (SaaS) industry attracts significant investment, with funding reaching over $90 billion in 2023. This section explores the latest SaaS funding trends, highlighting the growing appeal of SaaS companies among investors.
10) 47% of the venture capital was invested in SaaS startups in 2023
The venture capital invested in SaaS has increased rapidly over the past years. In 2017, the venture capital investments were recorded to be just 30%.
In the United States, SaaS startup investments reached $90 billion in 2021. This investment is equal to that combined for the past three years. The investment had a growth of 150% during this period.
Here are further details about the SaaS companies that received the highest funding worldwide as of 2023.
| Name | Funding | Lead Investor | Total Funding |
|---|---|---|---|
| Pulumi | $41 million | Madrona | $98.5 million |
| Transfix | $40 million | M Squared, New Enterprise Associates | $169 million |
| Harri | $43 million | Atalaya Capital | $112.2 million |
| Prophecy.io | $35 million | Insight Partners, SignalFire | $73.5 million |
| Klue.ai | $1.7 million | Firstminute Capital | $1.7 million |
| Warm.ly | $11 million | Felicis | $15.9 million |
| Intento | $8 million | Somersault Ventures | $11.9 million |
| Leucine | $7 million | Ecolab | $8.1 million |
| Creative Force | $8.9 million | Export and Investment Fund, Hearst Ventures | $17.9 million |
Source: Dealroom, Software Suggest.
SaaS Security Stats
The security of SaaS applications is a crucial topic, as businesses entrust sensitive data to these cloud-based solutions.
With the increase in cyber crimes worldwide, SaaS businesses have invested millions in their cybersecurity segment.
Here are further details about the security measures taken by SaaS businesses and the breaches witnessed by the industry.
11) 82% of security breaches involved data stored in the cloud in 2023.
These data breaches involved public, private, and multiple environments. Further, 39% of the breaches were spanned in numerous environments.
Source: Security Intelligence.
12) Cloud security is the fastest-growing segment in the IT security market
Gartner’s report on global IT security spending by sector covers various topics, with Cloud Security emerging as one of the primary sectors of interest.
The Cloud Security market experienced impressive growth, increasing by 41.2% from 2020 to 2021, making it the fastest-growing segment of the IT security industry.
Experts attribute this exponential growth to the COVID-19 pandemic, which led many companies to implement remote work policies, resulting in an increased reliance on cloud security.
Data security, infrastructure protection, and identity access management are projected to be the next-highest growth sectors in the IT security industry, with annual growth rates of 17.5%, 16.8%, and 15.6%, respectively.
13) 93% of the organizations expressed concern over their data security when using SaaS applications
Security concerns also evolve as organizations deploy more data into SaaS applications, IaaS, and PaaS environments.
According to the survey, the top concern for SaaS providers is the encryption of organizational data with keys managed by the service provider, with 38% of respondents selecting it as their primary concern.
37% of respondents selected it as The second most common concern is the encryption of organizational data with locally managed encryption keys.
Here are more concerns about SaaS security.
- Encrypt organization’s data with keys managed by the service provider- 38%
- Encrypt organization’s data and manage encryption keys locally- 37%
- Detailed security monitoring of the organization’s implementation-36%
- Written compliance commitments for relevant standards that apply to the organization-34%
- Data breach terms and agreements-33%
- FIPS certification for encryption and key management hardware-33%
- Configure data controls with configuration management-33%
- Support for key management as a service- 33%
- Detailed information on physical and IT architecture and security implementation-33%
- Support for HSMs – for a local key generation or cloud-based infrastructure rental-32%
- None of the above- 7%
14) Security is the top concern of 66% of organizations that use public cloud technology
According to a report by Startup Bonsai, security is the primary challenge for public cloud technology, with 66% of respondents indicating its importance. Governance and compliance are the second most challenging concerns of public cloud technology.
The same study also found that cost is the top challenge for 40% of organizations. Here is a list of the top concerns for public cloud technology:
- Security- 66%
- Governance and Compliance- 60%
- Staff lacks cloud experience- 58%
- Privacy- 57%
- Vendor lock-in- 47%
- Cost- 40%
- Lack of Visibility- 37%
- Unplanned outages- 31%
AI SaaS Stats
Artificial intelligence (AI) is revolutionizing the SaaS industry, empowering businesses with intelligent cloud-based solutions.
These AI-based SaaS solutions are predicted to be one of the significant drivers of growth in the SaaS industry. Hence, a large number of SaaS companies have invested in the adoption of AI.
Here are further details about AI in the SaaS industry.
15) Investments in AI SaaS Startups reached $43.0 billion in 2023
82% of the cloud companies worldwide have spent on AI-driven features in their SaaS products. In contrast, 18% have not yet spent on the AI-driven features for their SaaS products.
Furthermore, 35% of the SaaS businesses are already spending on AI, while 42% of the companies intend to use it soon.
Source: techjury, techipedia, Aigram.
16) The artificial intelligence SaaS market is forecasted to reach $1.54 trillion by 2030
The market was valued at 73.8 billion in 2020. Further, the market is expected to grow at a rate of 37.66% between the forecast period of 2022 and 2030.
Some of the major factors contributing to this growth are the rise in adoption of cloudbased solutions leading to an increase in requirement for artificial intelligence.
Source: Verified Market Research.
SaaS Trends 2024
As businesses increasingly embrace cloud computing and digital transformation, SaaS solutions are becoming more essential for operational efficiency and competitive advantage.
The SaaS market is expected to continue its rapid growth, driven by factors such as:
- The increasing demand for remote work solutions.
- The growing adoption of cloud-native applications.
- The emergence of new technologies, such as artificial intelligence (AI) and machine learning (ML).
Here are some of the SaaS trends that we will observe in the upcoming years.
17) More than 95% of the new digital workloads will be deployed on cloud-native platforms by 2025
This will be a massive leap from the 30% recorded in 2021.
72% of the IT specialists further said that zero-touch SaaS automation will be deployed in the future. 96% of the businesses are already working on automation SaaS applications.
Additionally, low-code or no-code platform usage will triple by the end of the year 2025.
Source: Gartner, Spice Works.
Top Players of SaaS
The Software as a Service (SaaS) landscape is dominated by a handful of prominent players, each shaping the industry’s growth and innovation.
Let’s take a look at the top SaaS companies globally, highlighting their diverse offerings and market impact.
1. Salesforce
- Founded in: 1999
- Valuation: $249.24 billion.
Salesforce generated a revenue of $31.4 billion in the fiscal year 2023. This was an 18% year-over-year growth in revenue.
Source: Salesforce.
2. Canva
- Founded in: 2012
- Valuation: $25.5 billion
Canva hit a revenue of $1.7 billion in 2023. 35% year-over-year growth was recorded for Canva in this year.
Further, Canva has 125 million users as of 2023.
3. Adobe
- Founded in: 1982
- Valuation: $278.86 billion
Adobe generated a revenue of $14.361 billion by the end of Q3 of 2023. This includes the total revenue generated through Adobe subscriptions, products, services, and others.
Source: Adobe
4. Hubspot
- Founded in: 2006
- Valuation: $26.02 billion.
Hubspot has more than 184,000 customers situated in more than 120 countries worldwide.
Further, according to the latest financial report released by Hubspot, the company’s total revenue is expected to be in the range of $2.144 billion to $2.146 billion.
Source: Hubspot
