The SaaS (Software as a Service) industry is booming, as you will see in the following SaaS statistics and industry trends resource guide.
In 2022, the global SaaS market was valued at $176.62 billion, and it’s projected to achieve $208.1 billion by this year.
This substantial growth is driven by factors such as the increased demand for cloud-based solutions, the adoption growth of mobile devices, and the growth in popularity of subscription-based models.
There are several key trends that shape the SaaS industry.
One is the increasing use of artificial intelligence (AI) and machine learning (ML).
AI and ML are being used to improve the functionality of SaaS applications.
Additionally, they are used to personalize user experiences. Another trend is the growth of micro-SaaS.
Micro-SaaS refers to small and specialized SaaS applications that target a specific niche in an industry.
It’s common for individuals or small teams to develop Micro-SaaS applications, which is why they are typically affordable.
Finally, the SaaS industry is becoming a globalized trend.
SaaS providers are now targeting customers all over the globe, and they are developing applications that are tailored to meet the needs of diverse cultures and markets.
Without further ado, let’s discuss the statistics and trends about the SaaS industry in 2025.
Key Statistics
- The SaaS market is expected to reach $369.4 billion by 2024.
- The SaaS industry is growing at a CAGR of 18%.
- There are currently over 30,000 SaaS companies around the globe.
- The U.S has the largest share of SaaS companies, at over 17,000.
- Salesforce is the largest SaaS company, with over $17 billion in annual revenue.
- The United States has an estimated 14 billion global customers using SaaS.
- Salesforce is the largest SaaS provider in the United States on the stock exchange.
- On average, 110 SaaS applications were used per company in 2021.
- The fastest-growing segment of the SaaS market is the small and medium-sized business.
- 51% of organizations are now using at least one standalone software to automate marketing efforts.
Top SaaS Statistics and Industry Trends in 2025
1. The SaaS Market Is Expected to Reach $369.4 Billion by 2024.
According to the latest statistics, the SaaS market is expected to achieve a whopping $369.4 billion by next year (2024).
This data comes from 2022 market research by Zippia.
This growth is said to have an annual growth rate of 18%, which is how they came to this figure.
(Zippia)
2. The SaaS Industry Is Growing at a CAGR of 18%.
As mentioned in the first SaaS statistic, this industry is currently experiencing a compound annual growth rate (CAGR).
What this means is that the SaaS industry is seeing an overall yearly growth of about 18%.
This percentage could rise or fall over the years, but it’s currently growing.
(Zippia)
3.There Are Currently Over 30,000 SaaS Companies Around the Globe.
The whole globe is home to more than 30,000 SaaS companies.
Around 337 of these SaaS companies are considered unicorns, which means the company has fewer than 10 years in the business, hasn’t been bought by a third party, isn’t listed publicly, and is valued at one billion or more.
Likewise, an estimated 15 are decacorns, which means they are valued at more than $10 billion.
(Exploding Topics, Zippia)
4. The United States Has the Largest Number of Saa S Companies, with Over 17,000 in Operation.
The United States has the largest share at more than 17,000 SaaS companies. This data comes from Statista in 2022.
Second to the United States Canada and the United Kingdom combined have an estimated 2,000 SaaS companies.
(Digital Guardian, Statista)
5. The United States has an estimated 14 billion global customers using SaaS.
As of 2021, an estimate of 14 billion global customers were using SaaS products and services provided by United States SaaS companies.
The United States ranks number one among the highest SaaS producing countries.
(Exploding Topics, Zippia)
6. Salesforce Is the Largest SaaS Provider in The United States on The Stock Exchange.
As of March 2023, Salesforce, Inc is the biggest SaaS company listed on the U.S. stock exchange. Its market cap currently accounts for $183.07 billion.
Over 2020 and 2021, Salesforce grew from a $161 billion to $251 billion market cap.
It’s bigger than Adobe ($152.3 market cap) and Shopify ($114.13 billion market cap) on the American stock exchange.
(Zippia)
7. On Average, 110 SaaS Applications Were Used per Company in 2021.
The growth of SaaS among organizations all over the world is seen through its usage from 2015 to 2021.
In 2015, an average of 8 companies were using SaaS. By 2016, that figure had risen to 12. In 2021, that figure was 110. That’s called significant growth.
This may have grown the most during the global pandemic.
(Zippia)
8. The Fastest-Growing Segment of The SaaS Market Is the Small and Medium-Sized Business.
In 2022, the SaaS market was valued at $261.15 billion. Its expected rate of growth is 13.7% between now and 2030.
The small- to medium-sized enterprise segments are expected to enjoy exponential growth during this forecast period.
The small- to medium-sized business segment has been and will continue to quickly adopt SaaS, which they can better afford, and it will allow them to compete with larger organizations.
Furthermore, it will improve their productivity and drive growth.
(Grandview Research)
9. The Most Popular Saa S Applications Are CRM, Project Management, and Collaboration Tools.
According to SaaS statistics and industry trends, CRM (Customer Relationship Management) is the most popular and largest SaaS application used.
In fact, this portion of the total market accounts for 24%.
Businesses have a common goal to drive growth by improving customer relations all over the world.
It should tell us something that CRM is the most popular SaaS service.
(Gitnux)
10. SaaS Applications Are Increasingly Being Used in The Healthcare, Education, and Government Sectors.
While any industry can benefit from the use of SaaS, there are sectors that are using it more than others.
The healthcare, education, and government sectors are increasingly using SaaS for productivity, driving growth, improving customer relations, and the other benefits that can be enjoyed from SaaS.
(Saviom)
11. The Top Three SaaS Providers Are Salesforce, Microsoft, and Adobe.
It shouldn’t be a shock that the top three SaaS service providers include Salesforce, Microsoft, and Adobe.
These three companies may be dominating the market right now, but there are others that are on the rise.
For instance, Zendesk and HubSpot are both widely used and popular CRMs that have arisen from SaaS services.
As for Human Resources, People HR and Bullhorn are two popular SaaS options. QuickBooks is a big one for billing and accounting.
Zoom and Slack are both SaaS companies used for communication and productivity.
Github and Basecamp are great for Project Management much like Trello.
WordPress and Shopify use content management. There’s more, but we think you get the idea
(Cyclr)
12. 51% of Organizations Are Now Using at Least One Standalone Software to Automate Marketing Efforts.
Just over half of the world’s businesses are using at least one standalone marketing software for automating the marketing process.
SaaS makes it more affordable, so they can invest in this technology and be successful in their efforts.
There is an increasing demand for this kind of SaaS.
(Gitnux)
13. COVID-19 Amplified SaaS Usage All Over the World.
According to McKinsey Research, the global pandemic compelled B2B sellers and buyers to move to the digital realm for doing business.
It happened quickly and in a big way. What began as a crisis in business became a “new normal” in the business world.
Over 75% of buyers and sellers now claim to prefer the digital, self-serve method and remote human engagement over in-person engagement.
(McKinsey & Company, UserGuiding)
14. On Average, the SaaS Churn Rate Is Around 5%.
The churn rate relates to the rate at which consumers unsubscribe from a service, or employees leave a job.
In this case, we are dealing with subscribing to SaaS.
The experts say that a churn rate of 3% or less is good. Therefore, a church rate of 5% is high, but not considered bad.
(Zippia)
One of the services where Google isn’t at the top of the game is in the SaaS market.
In fact, Google has only a small market share of the SaaS market at 3.8%.
However, Google’s cloud revenue did account for $19.21 billion in 2021, which we are sure was of benefit to Alphabet/Google.
Who knows where Google will be in just a few years?
(Exploding Topics, Google Report 2021)
FAQs
What is SaaS?
SaaS is short form for Software as a Service. It’s a software delivery model where applications are hosted on a cloud server and accessed over the internet.
SaaS providers typically charge a subscription fee for their services.
SaaS is also sometimes referred to as on-demand software.
What Are the Types of SaaS Applications?
There are a wide variety of SaaS applications available, covering a wide range of business needs.
Some of the most popular types of SaaS applications include:
• CRM: Customer relationship management (CRM) applications help businesses to track and manage customer interactions.
• Collaboration: Collaboration applications help businesses to share files, documents, and ideas.
• Productivity: Productivity applications help businesses to improve their efficiency and productivity.
• Security: Security applications help businesses to protect their data from unauthorized access.
What Are the Latest Trends in The SaaS Industry?
The SaaS industry is constantly evolving due to trends such as:
• The growth of mobile: More people are using mobile devices to access the internet, which is driving the growth of mobile-friendly SaaS applications.
• The rise of AI and ML: Artificial intelligence (AI) and machine learning (ML) are being used to improve the functionality of SaaS applications.
• The growth of micro-SaaS: Micro-SaaS refers to small, specialized SaaS applications that target a specific niche market.
• The increasing global reach: SaaS providers are now targeting customers all over the world, and they are developing applications that are tailored to meet the needs of diverse cultures and markets.
What Are the Benefits of Using SaaS?
There are many benefits to using SaaS, including:
• Cost savings: SaaS can save businesses money on hardware, software, and IT staff.
• Scalability: SaaS is scalable, which means that businesses can easily add or remove users as needed.
• Security: SaaS solutions usually have robust and dynamic security protocols in place to help protect consumer data.
• Ease of use: SaaS applications are typically easy to use and can be accessed from anywhere with an internet connection.
What Are the Challenges of Using SaaS?
While there are many benefits of SaaS, there are also challenges to using SaaS, including:
• Data security: Because SaaS applications are hosted on the cloud, there is always a risk that customer data could be compromised.
• Vendor lock-in: Once a business starts using a SaaS application, it can be difficult to switch to a different provider.
• Compliance: SaaS providers must comply with a variety of regulations, which can be complex and time-consuming.
How Do I Choose the Right SaaS Solution for My Business?
When choosing a SaaS solution, it is important to consider the following factors:
• Your business needs: What are your specific needs? What features are important to you? What customizations will you need?
• Your budget: How much are you willing to spend? How much can you afford?
• Your user base: How many users will need to access the application?
• Your security requirements: What security protocols are in place for data protection solutions.
• Your support requirements: What type of support is needed?
By carefully considering these factors, you can choose the right SaaS solution for your business.
Conclusion
The SaaS industry is a dynamic and rapidly growing market.
The statistics and trends addressed in this article are merely a few of the factors shaping and driving this industry.
As the SaaS industry continues to grow and evolve, it’s important for businesses to stay updated on the latest trends so that they can make informed decisions about their SaaS investments.
Businesses that want to stay ahead of the curve should consider investing in SaaS solutions.
SaaS solutions can help businesses improve their efficiency, productivity, and profitability.
They can also help businesses to reach new customers and markets.
If you are considering investing in SaaS solutions, it is important to do your research and choose the right solutions for your business.
There are a few factors to consider when choosing SaaS solutions, such as the size of your business, your budget, and your specific needs.
With so many SaaS solutions available, it can be difficult to know where to start.
However, by doing your research and choosing the right solutions for your business, you can reap the benefits of SaaS and help your business to grow and succeed.
We hope these SaaS statistics and industry trends for 2025 have helped you learn more about this industry.