Software as a Service, better known as SaaS, is a delivery model for software where applications are hosted in a centrally located venue by its providers.
It’s accessed over the web through browsers or apps.
This article will address the Saas statistics you need to learn more about this robust model.
SaaS has become more popular in recent years due to its advantages like boosting productivity and lowering upfront costs.
SaaS also offers automatic updates and an easier way to scale your business.
We will discuss several statistics about SaaS to provide you with valuable insights into its size, growth, and the trends occurring within the market.
This information is for anyone in business regardless of size or industry.
It’s wise to understand the SaaS market landscape so you can make better decisions in terms of investing in SaaS and developing solid and effective SaaS strategies.
Let’s discuss the SaaS market and the most currently available statistics.
Post Contents
- 1 Key Statistics
- 2 Top Saas Statistics in 2024
- 2.1 1. The SaaS industry currently has an annual growth rate of 18%.
- 2.2 2. By 2024, the SaaS industry is expected to achieve $369.4 billion in revenue.
- 2.3 3. Globally, the SaaS market size is expected to reach $702.19 billion by 2030.
- 2.4 4. The SaaS industry is set to see its largest annual growth between 2022 and 2023.
- 2.5 5. The global SaaS market size was $237.48 billion in 2022.
- 2.6 6. The average SaaS churn rate in SaaS is about 5%.
- 2.7 7. In North America, the SaaS market accounts for 44% of the global share.
- 2.8 8. The private cloud segment accounts for a share of 43% in SaaS.
- 2.9 9. 38% of organizations found SaaS to be very important to their success.
- 2.10 10. The United States has over 17,000 companies using SaaS.
- 2.11 11. The large enterprise segment accounted for more than 60% of SaaS revenues in 2022.
- 2.12 12. 93% of survey respondents named data security concerns in SaaS applications.
- 2.13 13. Salesforce is the biggest SaaS company on the globe.
- 2.14 14. 86% of IT professionals say that automation is the key to SaaS operations management.
- 2.15 15. By the end of 2023, 99% of companies will be utilizing at least one SaaS service.
- 2.16 16. The Asia Pacific SaaS market may be the fastest growing region over the next 10 years.
- 2.17 17. The median growth rate among the public SaaS sector as of March 2023 is at 22%.
- 2.18 18. 63% of business security issues arise from SaaS misconfigurations.
- 2.19 19. Too many people having access to SaaS security settings lead to security incidents.
- 2.20 20. 59% of security concerns in SaaS operations are related to offboarding employees from applications.
- 3 FAQs
- 4 Conclusion
Key Statistics
- The SaaS industry currently has an annual growth rate of 18%.
- By 2024, the SaaS industry is expected to Achieve $369.4 billion in revenue.
- Globally, the SaaS market size is expected to reach $702.19 billion by 2030.
- The SaaS industry is set to see its largest annual growth between 2022 and 2023.
- The global SaaS market size was $237.48 billion in 2022.
- The average SaaS churn rate in SaaS is about 5%.
- In North America, the SaaS market accounts for 44% of the global share.
- The private cloud segment accounts for a share of 43% in SaaS.
- 38% of organizations found SaaS to be very important to their success.
- The United States has over 17,000 companies using SaaS.
Top Saas Statistics in 2024
1. The SaaS industry currently has an annual growth rate of 18%.
As of 2022, the SaaS market has an annual growth rate of 18%.
This model is growing rapidly as the demand for the services SaaS provides grows.
Companies are having to adapt and adopt new strategies to lower costs, boost productivity, and to attract new customers and retain existing customers.
(Bloom Group)
2. By 2024, the SaaS industry is expected to achieve $369.4 billion in revenue.
Expert analysts believe that the SaaS industry will reach $369.4 billion (USD) in revenue by 2024.
This data is significant for anyone using or thinking of deploying SaaS in their company.
It’s worth noting that in 2022, revenue in the SaaS industry was valued at around $186.6 billion (USD) at the mentioned 18% CAGR.
(Forbes, Zippia)
3. Globally, the SaaS market size is expected to reach $702.19 billion by 2030.
As we’ve already addressed, the demand for SaaS is continually increasing as it helps solve issues within global businesses.
The global SaaS market size in 2020 accounted for $121.33 billion (USD).
Now it’s predicted to reach $702.19 billion (USD) in market size by 2030.
This is calculated based on the CAGR of 18.82% between 2021 and 2030.
(PR Newswire)
4. The SaaS industry is set to see its largest annual growth between 2022 and 2023.
Between 2015 to 2022, the SaaS industry experienced growth from $31.4 billion (USD) to over $16 billion (USD).
In seven years, that figure represents a 5 times growth in the period.
It’s not expected that the SaaS industry will experience its largest annual growth ever since 2022 to reach $195.32 billion by the end of 2023.
(Exploding Topics, Synder)
5. The global SaaS market size was $237.48 billion in 2022.
According to data, the global SaaS market size accounted for $237.48 billion (USD) in 2022.
The market size of SaaS is expected to reach $273.55 billion (USD) by 2023 and then by 2030 its forecast to reach $908.21 billion at a CAGR of 18.7%.
Note that not all figures are the same as data analysts all have their own input.
This data came from a market study that considered SaaS users like Google Workspace and IBM Cloud Integration.
(Fortune Business Insights)
6. The average SaaS churn rate in SaaS is about 5%.
The most recent data revealed that the average churn rate in SaaS is about 5%.
For perspective, 3% is considered a good churn rate.
Some data suggests that the SaaS churn rate fluctuates from between 5% and 7% on average.
(Paddle)
Current data shows that the SaaS market in North America accounts for 44% of the overall global share in SaaS.
In 2022, North America’s 44% share accounted for $114.91 billion (USD).
This means that North American has the largest global share in the SaaS market.
(Vena Solutions Blog)
In terms of SaaS market segments, the private cloud accounts for a share of 43%.
This is likely because implementing SaaS allows organizations using the private cloud to enjoy a higher level of security and control over data.
It also helps to improve performance and reduces latency.
A further benefit is that SaaS improves compliance to rules and regulations.
(Grandview Research)
9. 38% of organizations found SaaS to be very important to their success.
In a Harvey Nash Group study/survey of 1,724 respondents, 38% said SaaS is very important to their success.
Another 35% said SaaS is quite important.
Combined, the survey revealed that 73% of businesses claimed that in 2020 SaaS was important to their business’ success.
(Harvey Nash Group Study, 2021)
10. The United States has over 17,000 companies using SaaS.
It should come as no surprise that the United States owns the largest share in terms of how many companies there use SaaS solutions.
The United States has more than 17,000 companies that use SaaS as of 2022.
(Fortune Business Insights, Vena Solutions Blog)
11. The large enterprise segment accounted for more than 60% of SaaS revenues in 2022.
In 2022, the large enterprise segment of the overall SaaS market accounted for over 60% of its revenue.
Large enterprises widely use hybrid-cloud and multi-cloud strategies, and more are adopting this tech every day.
It helps them to manage sophisticated tasks across various departments.
(Grandview Research)
12. 93% of survey respondents named data security concerns in SaaS applications.
In a Thales global survey from 2020, 93% of respondents cited security as one of their main concerns with SaaS.
The respondents had various kinds of security concerns with the highest from 38% who responded encryption of company data and keys stored and managed in the service provider’s infrastructure as a main concern.
It’s hard to entrust another service to store and manage your confidential data in today’s world of increased cyberthreats.
(Thales 2020 Global Data Threat Report)
13. Salesforce is the biggest SaaS company on the globe.
As of June 2023, Salesforce is the largest SaaS provider in the world.
It’s valued at $199.48 billion.
Salesforce is one of several SaaS service providers in the world.
It was established in early 1999 and has grown into the largest CRM company in the world.
At the end of the fiscal year, January 31, 2023, Salesforce reported a total revenue of $31. billion.
(Fortune Business Insights, Vena Solutions Blog)
14. 86% of IT professionals say that automation is the key to SaaS operations management.
BetterCloud’s 2023 State of SaaSOps report revealed that 86% of IT professionals think that automation is the key to SaaS operations management.
This survey included over 700 security and IT professionals.
However, 64% believe that SaaS lacks the insight and visibility to engage in effective automation.
(BetterCloud 2023 State of SaaSOps Report)
15. By the end of 2023, 99% of companies will be utilizing at least one SaaS service.
It’s been estimated that 99% of all companies will be using one or more SaaS service/solution by the end of 2023.
This will make SaaS a mainstream business essential instead of a niche industry.
That’s like saying it will be the rule rather than the exception.
(Zippia)
16. The Asia Pacific SaaS market may be the fastest growing region over the next 10 years.
It’s been predicted that the SaaS market in the Asia Pacific region will become the fastest growing region in the world over the next 10 years.
The CAGR is expected to be 16.1%.
It’s obvious that India and China are definitively contributing to the SaaS market with the rise of outsourcing becoming mainstream.
(Grandview Research)
17. The median growth rate among the public SaaS sector as of March 2023 is at 22%.
According to data, the median growth rate in the public SaaS sector is 22% and the highest of this growth is 88% as of March 2023.
The SCI (SaaS Capital Index) has seen increases as of late, but it’s still not close to the 16.2 times growth seen in 2021.
(SaaS Capital, Vena Solutions Blog)
18. 63% of business security issues arise from SaaS misconfigurations.
If you are using SaaS in your business, misconfigurations could put you at risk for security events.
In fact, 63% of business security issues come from misconfigurations in their SaaS system.
Another 43% of companies have experienced one or more such cyber incidents due to SaaS misconfigurations.
(TechBeacon)
19. Too many people having access to SaaS security settings lead to security incidents.
One of the problems cited about SaaS misconfigurations is that too many people across multiple departments all have access to the security settings in the company’s SaaS system.
As a result, this accounts for 35% of such incidents.
Moreover, the lack of visibility into changes made in the Saas security settings accounts for 34% of incidents.
(TechBeacon)
The Torii State of SaaS Visibility and Impact Report revealed that offboarding employees via applications accounts for 59% of security issues.
Moreover, 56% of security issues arise from remote workers who expose data intentionally or not.
Moreover, 69% of security concerns with SaaS involve Shadow IT.
(Torii)
FAQs
What is SaaS?
SaaS stands for Software as a Service, and it’s used for a variety of purposes across industries.
It comes as a licensed program that people and businesses must subscribe to and is usually accessed via a mobile app or web browser.
SaaS is categorized as one of the three primary forms of cloud computing models.
The other two include Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).
SaaS is the most popular of the main three models.
It’s an easy, efficient, and cost-effective method for implementing software applications.
What are Some Examples of Saas?
You will find examples of SaaS on websites like Dropbox, Google Workspace, Salesforce, Slack, Shopify, and HubSpot, which are all SaaS companies.
Adobe, Inc. is currently the largest SaaS company in the United States on the stock exchange.
SaaS companies offer assorted services which include data storage and sharing like Dropbox, a selling platform like Spotify, and Salesforce that offers customized and multiple options for businesses.
What Percentage of Software is Saas?
According to our sources, around 70% of all software used by companies is SaaS.
Expert analysts believe that by 2025, this percentage will be up to 85%.
That’s a lot of Saas software.
Why is So Much SaaS Being Used?
The main reason more companies are using more SaaS is that it has been proven to boost productivity.
As a result of increased productivity, companies have also lowered their costs.
Therefore, SaaS is more than a little appealing.
Conclusion
We have learned the significance of SaaS all over the world and across industries and segments.
We hope it helps you decide if SaaS is for your business.
If you are considering implementing SaaS solutions into your business, you will want to consider your budget, your needs, and how you will ensure your security.
Overall, SaaS is effective, efficient, and highly functional in today’s world across all industries and for various uses. Why might you need Saas?
After reading this article, we hope you feel more well informed from the SaaS statistics we researched and shared with you.
