The Software as a Service (SaaS) market is experiencing remarkable growth and expansion. In 2023, it was valued at $273.5 billion and is expected to increase to $1,228.87 billion by 2032.
Currently, there are over 30K SaaS companies globally, with approximately 17K of them headquartered in the United States.
Here we share the most important SaaS statistics (2024) from trusted sources, including:
- SaaS market size and growth
- Key market players of the cloud market
- SaaS market by region
- SaaS market by industry
SaaS Market & Revenue Forecast
📊 Software-as-a-service (SaaS) market size;
- was valued at $273.5 billion in 2023,
- is expected to reach $317.5 billion by 2024,
- is expected to reach $1,228.87 billion by 2032.
🔍 Conclusion: The SaaS market is expanding rapidly, with year-over-year value increases. The graph shows a growth of over 3x in just a few years. It is expected to grow at an annual rate of 18.7% between 2024 and 2030. The figures reflect a growing confidence in cloud technology across many industries.
📊 There are currently over 30.8K SaaS companies worldwide, and they are projected to reach 72K by 2024.
🔍 Conclusion: Every day, new SaaS companies and startups grow. An interesting fact is that the majority of them are constantly releasing new generative AI features and capabilities.
SaaS in the Cloud Market
📊 According to Gartner, worldwide spending on public cloud services is expected to reach $678.8 billion in 2024, up from $563.6 billion in 2023.
🔍 Conclusion: This demonstrates that the cloud market will increase by 20.4%. The growth of the cloud market encourages the demand for SaaS applications. As the cloud infrastructure grows, it becomes more efficient and cost-effective to develop SaaS apps.
📊 In 2024, global end-user spending on Software as a Service (SaaS) is anticipated to reach $243.9 billion, while spending on Platform as a Service (PaaS) is expected to hit $176.5 billion.
🔍 Conclusion: Platform as a Service (PaaS) and Software as a Service (SaaS) are two of key cloud market segments. In 2024, SaaS is expected to account for 35.94% of worldwide public cloud services end-user spending, while PaaS will represent 26.00%.
Together, these two services dominate the industry. Even with the current size of the cloud market, there is huge potential for growth. Especially considering the fact that Gartner predicts $3.79 trillion in global IT spending in 2019. SaaS is the most mature segment of the cloud market.
📊 As of April 2024, Salesforce, Adobe, and Intuit are the three most valuable U.S. SaaS companies by market cap.
🔍 Conclusion: In the U.S, Salesforce leads with a market cap of $266.1 billion, followed by Adobe at $213.9 billion, and Intuit at $178.2 billion. Other notable companies include ServiceNow at $148.6 billion and Shopify at $91.8 billion.
The list continues with CrowdStrike, Workday, Snowflake, Palantir Technologies, and Autodesk rounding out the top ten. These highlight the significant financial scale and industry impact of top SaaS companies.
📊 Companies using cloud-based software prioritize security. With 37% citing security breaches as their biggest SaaS stack management concern.
🔍 Conclusion: For companies using cloud-based software, data security is a top priority. This emphasizes the significance of strong security measures in the cloud setting, as sensitive data and business activities are being managed more frequently.
📊 In 2021, 45% of companies sold on cloud marketplaces. Recent reports predicted this would nearly double to 80% in two years.
🔍 Conclusion: Companies are engaging in selling their products or services through cloud marketplaces. This substantial rise highlights the increasing significance of cloud marketplaces as crucial platforms for businesses to expand their reach and simplify their sales processes in the cloud computing landscape.
SaaS Market Regional Insights
📊 In terms of global SaaS revenue, the United States will generate the most ($150.7 billion by 2024).
🔍 Conclusion: The US keeps having the most SaaS revenue globally. This shows how important it is for companies to invest in and develop SaaS solutions in the U.S. market and how powerful the country's position is in the tech industry.
📊 In 2023, the SaaS market size in North America was valued at $131.18 billion.
🔍 Conclusion: North America held a significant 48% of the global market share, because of the United States' well-established SaaS market players, advanced IT and cloud infrastructures, and the extensive availability of secure internet servers.
📊 In the United States, there were about 9,100 SaaS companies in 2023. Together, they had approximately 15 billion customers worldwide. Then, the United Kingdom takes the second place with 1,500 SaaS companies and 293 million customers.
🔍 Conclusion: This number has historically increased gradually; in 2020, for instance, there were fewer businesses, showing the market's rapid expansion in a short period of time. Additionally, the UK SaaS industry is expected to nearly double between 2020 and 2025.
Top 10 Countries by Number of SaaS Companies
Even though the number of SaaS companies and products continues to grow every day, the most current data available provides the following table:
| Country | Est. Number of SaaS Companies in 2023 |
| United States | 9,100 |
| United Kingdom | 1,500 |
| Canada | 992 |
| Germany | 840 |
| India | 711 |
| France | 684 |
| China | 443 |
| Australia | 408 |
| Netherlands | 402 |
| Brazil | 342 |
📊 The European SaaS market will also expand like other regions. It is predicted that Germany will record the biggest increase among the listed countries, rising from 6.85 billion euros to 16.3 billion euros in 2025.
🔍 Conclusion: SaaS market in Europe is notably smaller when compared to the United States, where the SaaS market is expected to generate significantly higher revenue. Still, broader adoption of cloud-based services is expected in some European countries.
Likewise, the growth rate will be high in the Asia-Pacific region, primarily due to growing IT sectors in nations like China and India and rising demand from SMEs.
📊 By 2026, half of the businesses that use multiple SaaS apps will collaborate on their SaaS app operations.
🔍 Conclusion: It highlights a significant shift towards more integrated and cooperative approaches in using cloud software, enhancing efficiency and streamlining workflows across various business functions.
📊 By 2025, 85% of all business applications will be SaaS-based.
🔍 Conclusion: The shift to SaaS not only reflects the growing preference for scalable and manageable IT solutions, but it also demonstrates how important digital agility has become for businesses looking to stay competitive.
SaaS Statistics by Industry & Funding
📊 Global SaaS CRM system market is expected to reach $44.6 billion by 2026.
🔍 Conclusion: Since SaaS CRM tools improve sales, marketing, and customer service teams with a single platform to view and manage customer interactions and data, they enable team members to work together more effectively. The leading SaaS CRM companies such as Salesforce, Microsoft, Oracle and HubSpot., extremely contributing to global SaaS CRM market.
📊 By 2027, the SaaS-based global retail and e-commerce market is expected to be worth $138.9 billion.
🔍 Conclusion: SaaS helps e-commerce retailers offer a more smooth and personalized shopping experience. SaaS tools provide consistent and tailored content to consumers, which improves customer retention and satisfaction from inventory management to CRM. The flexibility of SaaS e-commerce is also crucial for adjusting to consumer demand fluctuations and expanding into new markets.
📊 AI is a major SaaS marketing trend. The AI market is expected to reach $184 billion in 2024.
🔍 Conclusion: AI integration in SaaS marketing is growing, with 80% of companies using AI by 2025. The increase shows how AI improves customer experiences, data analytics, and automation of tasks. AI's ability to forecast customer behavior based on data trends enables SaaS businesses to anticipate market changes and customer needs.
While AI tools are often included within the scope of SaaS offerings, the application and influence of AI extend far beyond just being a component of SaaS products. The economic potential of AI stems from its ability to significantly increase productivity and stimulate the development of innovative products and services.
📊 38% of SaaS companies charge users based on software usage, while 84% offer pricing ranging from low to high.
🔍 Conclusion: A significant majority, 84% of SaaS companies use tiered pricing to meet the needs of diverse customers, from individuals to large enterprises. Meanwhile, usage-based pricing, favored for aligning costs with actual service use, appeals to those who prefer to pay only for what they need. Here's a comprehensive guide on common SaaS pricing models.
Conclusion
The SaaS market is clearly on an upward trajectory, with an increasing number of companies emerging in response to growing demand.
As the SaaS market expands, we're seeing more companies invest in SaaS to improve their operations and meet customer needs more effectively. This trend not only encourages innovation within the sector but also highlights the importance of SaaS solutions in today's digital landscape.
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