80 SaaS Statistics and Trends You Shouldn't Ignore In 2025
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After over 20 years of development, the global SaaS market is worth billions of dollars. The growth shows no signs of slowing – the market is expected to be worth over $1 trillion by 2032.
Over the past decade, the SaaS market has seen a compound annual growth rate of 25%. The rapid changes in industry competition, product demand, and the continuous evolution of business models have led to new market opportunities that continue to arise.
No industry is left untouched; SaaS has become integral to most business operations, from tech and finance to productivity and healthcare.
There is nothing more satisfying than seeing the growth of the SaaS market through real, hard numbers. As a SaaS SEO and link-building agency, we’ve studied reports, websites, and statistics to uncover the most exciting findings about SaaS growth, usage, market, pricing, trends, views, and challenges.
These insights will help guide your SaaS product and marketing strategy for the coming year.
So, let's get started.
What We'll Cover:
Top SaaS Statistics - Editor's Pick
- By the end of 2024, 99% will use at least one SaaS app [34]
- Organizations use an average of 112 SaaS tools, down 14% from 2023 [5]
- By 2025, 85% of business apps will be SaaS apps [6]
- Larger organizations with over 10,000 employees use on average of 447 SaaS apps [32]
- The SaaS market is projected to have a valuation of $317 billion in 2024 [33]
- Between 2013 and 2020, the SaaS industry increased by around 500% [5]
- The world has over 30,800 SaaS companies, and the United States has the largest share [35]
SaaS Trends and Growth Statistics
1. Larger organizations with over 10,000 employees use an average of 447 SaaS apps. [32]
2. The SaaS market is projected to have a valuation of $317 billion in 2024. [33]
- Medium-SaaS apps drive the growth of new apps. Large enterprises use 410 apps, whereas medium enterprises use 192 apps. [3]
4.The SaaS industry market has grown over 16x since 2015. [3]
- In the coming years, all workplaces will be SaaS-powered. The enterprises served can be divided into three segments [2]:
- SaaS-Powered Workplaces – 96% of the apps used are SaaS-based.
- Workplaces in transition – 49% of the apps are SaaS-based.
- Traditional Workplaces – 13% are SaaS-based.
6. Automation will play a key role in the SaaS industry moving forward – it’s predicted that 64% of SaaS management tasks will be automated in 3 years. [5]
7. Gartner forecasts worldwide end-user spending on public cloud services – including SaaS products – will total $723.4 billion in 2025, up from $595.7 billion in 2024. [8]
8. By 2025, 85% of business apps will be SaaS apps. [6]
9. SaaS companies are seeing ARR growth slow in 2024, with over ARR predicted to be 19%, down from 22% in 2022. [41]
10. The best-in-class retention rate is at the 110% mark. If you are still determining if your SaaS tools are producing the results you are looking for, try calculating these SaaS metrics. [36]
11. In 2023, the SaaS market is expected to witness growth of 16.8%. [8]
12. In 2021, the global market for Artificial Intelligence as a Service (AIaaS) was estimated at $5,608 million, with an expected CAGR of 37.1% from 2022 to 2030. [1]
Usage Statistics for SaaS
13. Embracing SaaSOPs allows IT to support a large number of end users; SaaS-powered workplaces have one IT person out of every 83 employees; workplaces in transition have one for every 63; and traditional workplaces have one for every 59. [3]
14. 32% of IT professionals say SaaS automation improves operational efficiency, compliance, improves accuracy, reduces IT teams, and helps professionals spend more time on strategic projects. [3]
15. Organizations are investing heavily in SaaS management platforms (SMPs) – Through 2027, over 50% of organizations will centralize SaaS application management using an SMP. That’s an increase from less than 10% in 2024. [37]
16. 99% of IT enterprise apps are SaaS-based in SaaS-powered workspaces. [38]
17. Two-thirds of organizations currently host over 40% of their workloads across multiple clouds. Additionally, most organizations employ over two cloud providers, and most utilize over five SaaS providers. [10]
18. According to the 2022 Cloud Computing Survey by Foundry, key factors driving cloud investment for IT decision-makers include [11]:
- 40% aimed to facilitate disaster recovery and business continuity.
- 39% expressed a desire to replace on-premise legacy systems.
- 34% mentioned reducing the total cost of ownership as a motivator.
- 33% sought to enhance employee productivity.
- 32% aimed to bolster flexibility in responding to evolving market conditions.
19. Cloud providers top the categories with the highest expenditure. The combined spending on AWS, Google Cloud, Microsoft, and other cloud-native solutions equals the total spending on all other SaaS solutions. [12]
SaaS Market Venture Capital Outlook
20. SaaS's venture capital funding landscape has been through a downturn over the last few years. However, in 2024, it shows signs of recovery, with the global VC funding hitting a five-quarter high of $79 billion in Q2 2024. [39]
21. A key investment area will be emerging technologies like AI and Blockchain, with the global AI SaaS market expected to grow at a CAGR of over 37% from 2023 to 2030. [40]
22. The most significant investments in SaaS in 2024 were [39]
- Open AI – $10 billion
- Wiz – $1 billion
- Clio – $900 million
- Figma – $415 million
- Perplexity AI – $63 million
Top SaaS Apps by Category
Salesforce is the most prominent SaaS application by market cap, with a figure of $346.4 billion. It’s followed by Adobe ($243.4 billion), ServiceNow, Inc ($232.0 billion) and Intuit ($181.0 billion). [31]
Here is the list of the biggest SaaS businesses by category.
Top Marketing SaaS Apps
Top Engineering SaaS Apps
Top Customer Support SaaS Apps
Top DevOps SaaS Apps
Top Business Operations SaaS Apps
Top Finance SaaS Apps
Top IT and Security SaaS Apps
Global Market Statistics for SaaS
While a booming market means more opportunities for SaaS companies – it also means fierce competition.
You must have a solid SaaS marketing strategy to keep up with changing market trends and stay ahead of competitors. Let’s explore how the SaaS industry is growing worldwide.
China
23. China's revenue in the SaaS market is expected to reach $14.53 billion in 2024 and over $37 billion in 2029. [42]
24. China's SaaS revenue is predicted to grow at an annual growth rate (CAGR 2023-2028) of 16.48%, resulting in a market volume of US$31.16 billion by 2028. [21]
25. The average spend per employee in China's Software as a Service market was $18.28 in 2023. [21]
26. The top reason why China was keen on adopting cloud solutions was to scale fast to support growth, followed by increasing IT efficiency and resilience. [21]
US
27. Revenue from the US SaaS market is estimated to reach $187.20 billion in 2024. [22]
28. The US SaaS industry shows an annual growth rate (CAGR 2023-2028) of 5.64%, predicting the market volume to go above US$186.00bn by 2028. [22]
29. The US has 8x times more SaaS companies than any other country. It has approximately 9,100 SaaS companies. [23]
30. The average spend per employee in the Software as a Service market will reach $92.19 in 2024. [43]
31. In global comparison, most SaaS revenue will be generated in the United States (US$141,400.00m in 2023). [23]
India
32. India's SaaS industry is set to reach $50 billion by 2030 and create revenue of $20-25 million by 2025. [25]
33. The annual recurring revenue (ARR) for Indian SaaS firms has 4x to reach $12–$13 billion in 2022, with investments in this sector increasing sixfold to $5 billion over the past five years. (26)
34. The Indian SaaS market has exhibited a compound annual growth rate (CAGR) of 30-35%, surpassing 20-25% growth rates in the UK and 15-20% in the US markets. [26]
35. Indian SaaS businesses will have raised a record $5.1 billion in 2022, and 70% of investors expect to put more money into SAAS products. [25]
36. In 2022, Indian SaaS growth was $12-13 billion. That’s expected to rise to $35 billion in 2027. [25]
Others
37. In 2020, the UK SaaS market made over $7 billion in revenues. By 2025, projections indicate revenues will be over $20 billion. [28]
38. Germany is at the forefront of SaaS European market revenue, with a current figure of €6.85 billion, and it is anticipated to rise to €16.3 billion by 2025. [29]
39. The projected value for the Latin American SaaS industry is expected to exceed $45 million by 2030. [44]
40. In 2020, the SaaS sector comprised 41.12% of all startups in Brazil. By 2024, the SaaS sector revenue in Brazil is projected to reach $2.30 billion. [30]
Pricing Statistics for SaaS
41. A significant 81.2% of survey participants felt that the inability to provide flexible payment options hindered closing deals, with 47% strongly supporting this viewpoint. [7]
42. 85% believed introducing more flexible customer payment choices could substantially decrease churn. [7]
43. Negotiations regarding payment terms extend sales cycles by 2.3 weeks or 16 days. [7]
44. 64.4% believe the number of stakeholders involved in a deal has increased since H1 2022, with the average number of stakeholders at 2.7. Additionally, 44% of respondents reported that as many as 3 to 4 stakeholders are involved in each deal. [7]
45. Most of these stakeholders are high-positioned decision-makers, with around 59% of reported stakeholders being founders or CEOs. This indicates that key leaders are increasingly paying attention to where the money is going. [7]
46. Collections, reminders, billings, and reconciliation take up 28.2% of the average finance team's time. [7]
47. According to the State of Usage-Based Pricing by OpenView Partners, 44% of surveyed SaaS companies indicated the adoption of usage-based pricing. [13]
48. A 1% change in price optimization results in an average profit increase of 11.1% [13]
49. 54% of seed-stage companies charge less than $5,000 per year for an average customer, while this is the case for only 30% of expansion and growth-stage companies. [14]
50. Only 41% of seed-stage companies adopt a value-based pricing approach. The rest either emulate competitors (30%), rely on gut-based judgment calls (21%) or employ a cost-plus approach (7%). [14]
51. Competitor pricing is a commonly cited pricing strategy, followed by value-based and cost-plus. [15]
52. "Just right" discounts are what you need to grab solid customer growth. [15]
- The "Mid-discount" cluster of 10-30% sees revenue per customer grow by 4% per quarter.
- "Deep discount" of 30% and more for faster annual customer growth.
53. Free offerings are among the most common acquisition tactics in the SaaS world. The most common free offerings [14] –
- Premium-tier free trial (44%)
- Freemium offering (19%)
- Lowest-tier free trial (16%)
- Reverse trial (13%)
- No free offering (8%)
SaaS pricing can look complicated from the outset. It can get confusing with overwhelming pricing models, strategies, and tactics doing the rounds. You must understand various SaaS pricing models to increase sales and reduce unnecessary churn.
SaaS Adoption and Churn
54. 55% of businesses say they struggle with managing the SaaS sprawl even though there are fewer SaaS apps. [5]
55. 52% said there’s more scrutiny in SaaS purchasing than before. [5]
56. Data indicates that, on average, businesses with revenue exceeding $10 million experience a churn rate of 8.5%. In contrast, those with income less than $10 million are more likely to have a churn rate of 20% or higher. [16]
57. Avoidable customer churn costs businesses $136 billion a year. [16]
58. A 5% reduction in customer churn can result in 25% to 95% profit increases. [16]
59. 20-40% of customer churn is avoidable, such as failed, expired, and delinquent credit cards. This unnecessary churn represents one to two percentage points for businesses with a 5% overall churn rate. [16]
60. Even a churn reduction of 4% can double your MMR. [17]
61. A quarter of customers churn due to a lack of flexible payment options. [7]
62. Companies with best-in-class retention rates grew 1.8 times faster than their competitors. [9]
63. Companies in the top quartile with an Average Revenue Per Account (ARPA) exceeding $1,000 per month achieved a net retention rate of 110% or more. [9]
64. Conversely, among B2C businesses with an ARPA below $25 per month, the top quartile only achieved a 70% net retention rate. When assessing a SaaS company's gross retention, it's essential to consider its ARPA. [9]
To beat your competitors, you need to increase the number of users, retain them, and make them raving fans. We have proven strategies for reducing customer churn after assisting many top SaaS companies.
Challenges for SaaS
To succeed in the market, SaaS businesses must address security issues and inefficient operations, among other problems. We've compiled some SaaS statistics that shed light on these issues.
65. The present average duration of the B2B SaaS sales cycle is 134 days (equivalent to 4.4 months), in contrast to the 107-day (3.5-month) average recorded in the first half of 2022.
66. The median Customer Acquisition Cost (CAC) has surged by 180%, suggesting that companies must allocate significantly more funds to secure the same number of deals. This is a clear indication of challenges within the sales environment. [7]
67. The CAC payback period has been extended by 150%, signifying that the time required to recover the costs incurred in acquiring deals has considerably lengthened. This indicates a sales environment characterized by prolonged and costly sales cycles. [7]
68. The median decline of 47% in the Lifetime Value to Customer Acquisition Cost (LTV/CAC) ratio suggests that companies generate less revenue from customers despite higher acquisition costs. This points to the increased difficulty in securing profitable deals, leading many companies to grapple with a diminished pool of prospects. [7]
69. 37% of organizations are worried about securing the SaaS stack, 24% expressed concerns about keeping up with operational tasks, and 20% were anxious about mitigating SaaS sprawl. [3]
70. 64% of organizations report that the limitations hinder their ability to achieve operational efficiency gains through automation and visibility. [3]
71. 50% of enterprises waste at least 10% of their annual expenditures on software and SaaS applications. [18]
72. Over 50% of companies have allocated over 10% of their cloud budget to resources that are underutilized, unmanaged, or unaccounted for in the cloud environment. [18]
Security
73. In a typical workplace, over 65% of SaaS apps were unsanctioned—where users adopted apps without IT's knowledge or approval. [2]
74. The top three SaaS-related concerns that organizations have in 2025 are [5]:
- Unsanctioned apps that store sensitive data (34%)
- Sensitive files shared publicly (34%)
- Not knowing where sensitive data exists (31%)
75. 47% of organizations say they lack the resources to manage SaaS at scale. [3]
76. Approximately 70% of Annual Recurring Revenue (ARR) lost by companies with a total ARR exceeding $1 million is attributed to churn, with the remaining 30% stemming from contraction. [9]
Workforce Planning
77. 86% of organizations say new employees need access to necessary tools to do their jobs on Day 1, and another 35% say it takes more than a week. [9]
78. Over a third (36%) of SaaS companies were not offboarded within 24 hours of leaving the organization. [9]
79. 76.5% of organizations are worried cutting down on SaaS spending will impact employee productivity. [9]
80. 73% of businesses agree that Third-party SaaS application issues account for most employee IT troubleshooting. [9]
Putting SaaS Statistics and Trends into Practice
In this post, we've explored the outlook of the entire SaaS industry, highlighting various statistics and trends related to SaaS companies, SaaS adoption and the global SaaS market.
We hope you can use these insights to develop and guide your SaaS business model.
If you need help creating a strategy or want to refine your current one, MADX is a full-service SaaS SEO agency that does everything for you. From strategizing to creating content, our team has done it all for many SaaS clients.
Book an introductory call today if you want to discuss what we can do for you.
References
- The SaaS factor: Six ways to drive growth by building new SaaS businesses (McKinsey)
- 2023 State of SaaSOps (BetterCloud)
- Public cloud application services/software as a service (SaaS) end-user spending worldwide from 2015 to 2024 (Statista)
- 80+ SaaS Statistics and Trends (2023) (Exploding Topics)
- 2024 State of SaaSOps (BetterCloud)
- B2B SaaS Sales Cycles in 2023: New Insights and Data (CapChase)
- Gartner Forecasts Worldwide Public Cloud End-User Spending to Total $723 Billion in 2025 (Gartner)
- SaaS Benchmarks Report (ChartMogul)
- 2023 Global Networking Trends Report (Cisco)
- How SaaS is accelerating the digital transformation of organizations (Unit4)
- 2023 SaaS Spend Trends and Insights (CloudEagle)
- The usage based pricing playbook (Togai)
- Mastering SaaS Pricing (OpenView)
- The state of B2B SaaS pricing in 2023 (Paddle)
- Churn Reduction 101 (Custify)
- The Complete Guide to Customer Success for SaaS Companies (Process.st)
- 2023 Snapshot Survey: SaaS and Cloud Spend Optimization & Automation (oomnitza)
- COVID-19 Response: SaaS Supports Digital Transformation (IDC)
- SaaS Industry Statistics (Redline)
- Software as a Service - China (Statista)
- Cloud in China: The Outlook for 2025 (McKinsey)
- Software as a Service - United States (Statista)
- Leading SaaS countries worldwide in 2024, by number of companies (Statista)
- India’s SaaS industry to reach $50 billion by 2030, to generate revenue of $20-25 million: Report (The Hindu)
- India becomes the second-largest SaaS ecosystem globally; what’s driving this growth? (BusinessToday)
- India Saas Report 2023 – Saasonomics: Navigating Growth And Efficiency (Zinnov)
- From Cloud to Edge (Reply)
- Software as a Service – United Kingdom (Statista)
- Latin American Software-and Platform-as-a-Service Market, Forecast to 2022 (Research and Markets)
- Software as a Service – Brazil (Statista)
- The 50 Biggest Public SaaS Companies in the U.S. (Mike Sonders)
- 85 Important SaaS Software Statistics 2024: Market Share & Data Analysis (Finances Online)
- Software as a Service (SaaS) Market Size, Share & Industry Analysis (Fortune Business Insights)
- 46 SaaS Industry Stats and Insights for 2024 and Beyond (SaaS Academy)
- How Many SaaS Companies Are There in the World (Ascendix)
- Customer Retention Rate Formula: 5 Ways to Measure Retention (CustomerGauge)
- No Longer Optional: Critical Capabilities of an SMP (Torii)
- 21 SaaS Examples and Use Cases All Founders Should Know (SaaS Academy)
- SaaS Industry Trends Report 2024: A Comprehensive Overview (Omnius)
- Global Artificial Intelligence Market Size & Outlook (Grand View Research)
- KeyBanc Capital Markets & Sapphire Ventures SaaS Survey (KBMN/Sapphire)
- Software as a Service - China (Statista)
- Software as a Service – Worldwide (Statista)
- Latin America Saas Market Size & Outlook (Horizon)
