Companies offering Software-as-a-Service (or “SaaS” companies) have experienced unprecedented growth over the last few years due to the rise in remote work and digital transformation. The latest SaaS statistics reflect that – and much more.
Dive into such SaaS statistics across different markets and industries to unearth unprecedented trends, determine the market’s direction, and drive actionable game plans.
Top 8 Statistics for SaaS (Editor’s Pick)
- $33 million was the highest seed money raised by SaaS in Q4 of 2022.
- Indian SaaS startups raised over $5 billion in 2022.
- Indian SaaS industry will create $1 trillion in value by 2030.
- Enterprise SaaS accounts for 70% of the SaaS market’s revenue.
- The Healthcare SaaS market is expected to hit $50 billion by 2028.
- SaaS-based cloud platform usage in education will reach $8.7 billion by 2027.
- 9% of high-growth UK companies are SaaS companies.
- AWS and Google Cloud are the most popular platforms for SaaS deployment.
Infographic
<p><strong>Please include attribution to vpnAlert.com with this graphic.</strong><br><br><a href="https://vpnalert.com/resources/saas-statistics/" data-wpel-link="internal"><img src="https://vpnalert.com/wp-content/uploads/2023/01/saas-stats-by-editor.png" alt="SaaS Statistics" width="768" border="0" height="778.88" loading="lazy" fetchpriority="low" srcset="https://vpnalert.com/wp-content/uploads/2023/01/saas-stats-by-editor-768x779.png 768w, https://vpnalert.com/wp-content/uploads/2023/01/saas-stats-by-editor-296x300.png 296w, https://vpnalert.com/wp-content/uploads/2023/01/saas-stats-by-editor-1010x1024.png 1010w, https://vpnalert.com/wp-content/uploads/2023/01/saas-stats-by-editor.png 1200w" sizes="auto"></a></p>
SaaS Market and Revenue Statistics
1. As of 2022, the USA had 17,000 SaaS companies.
The United States has more SaaS companies than any other country. Both UK and Canada have 2,000 SaaS companies each. Germany and France each have 1,000 SaaS market players to tie in third.
2. Adobe is the most significant SaaS company listed on the US stock exchange.
As of January 20, 2023, Adobe Inc. (ADBE)’s market capitalization at Nasdaq is $163.2 billion. Salesforce (CRM) follows closely behind with $151.3 billion.
3. Adobe, Microsoft, and Google are the top SaaS companies of Q4 2021.
The revenue from SaaS solutions offered by these companies – Adobe’s Creative Cloud ($9.55 billion), Microsoft’s 365 ($7.5 billion), and Google’s Google Workspace ($4.63 billion) – has led to these providers being the top earners of Q4 2021.
<p><strong>Please include attribution to vpnAlert.com with this graphic.</strong><br><br><a href="https://vpnalert.com/resources/saas-statistics/" data-wpel-link="internal"><img src="https://vpnalert.com/wp-content/uploads/2023/01/saas-companies-by-revenue.png" alt="Top SaaS Companies by Revenue" width="768" border="0" height="771.2" loading="lazy" fetchpriority="low" srcset="https://vpnalert.com/wp-content/uploads/2023/01/saas-companies-by-revenue-768x771.png 768w, https://vpnalert.com/wp-content/uploads/2023/01/saas-companies-by-revenue-300x300.png 300w, https://vpnalert.com/wp-content/uploads/2023/01/saas-companies-by-revenue-1020x1024.png 1020w, https://vpnalert.com/wp-content/uploads/2023/01/saas-companies-by-revenue-150x150.png 150w, https://vpnalert.com/wp-content/uploads/2023/01/saas-companies-by-revenue.png 1200w" sizes="auto"></a></p>
4. In December 2022, 11 SaaS companies got seed VC funding.
Digital Marketing SaaS provider, SilkChart, raised the most significant seed amount of $5.2 million. Likewise, 8 SaaS companies scored Series A funding in the last month of 2022, with the legaltech platform LexCheck raising $17 million.
5. $33 million was the highest seed money raised by SaaS in Q4 of 2022.
Dataloop AI, the Data Management SaaS, raised the most seed capital in the last quarter of 2022. The funding amounted to $33 million and was provided by Alpha Wave Global and NGP Capital.
6. 3.3% of Q3 2022 US VC deals went to the SaaS market.
The fintech sector was the leader in early-stage VC deals in the US in Q3 of 2022. The SaaS sector only made up 3.3% of such deals, tied with the blockchain/crypto sector in the second spot for the share of capital deployed by VCs (8.1%).
7. Indian SaaS startups raised over $5 billion in 2022.
Uniphore Software Systems raised the largest amount ($400 million) in February 2022. This investment pushed the start-up into the unicorn category.
8. The UK SaaS market is expected to reach $16.47 billion by 2026.
In 2021, the UK SaaS market generated $10.2 billion. That figure is expected to increase and reach $16.47 billion by 2026.
9. UK AI-based SaaS businesses raised £1.06 billion in 2021.
That is slightly increased from the £1 billion raised by UK SaaS businesses in 2020. The $300 million raised by the AI start-up Patsnap is a significant part of this increase.
10. French SaaS revenue will reach approximately $7.4 billion in 2023
Thanks to the compound annual growth rate (CAGR) of 9.85%, it is expected to reach $10.7 billion by 2027.
11. Germany is forecast to have the biggest increase in SaaS revenue in Europe.
By 2025, the German SaaS revenue is expected to grow to €16.3 billion. That is an increase of almost €10 billion from 2020.
12. Indian SaaS industry will create $1 trillion in value by 2030.
By the same year, the Indian SaaS industry’s revenue is forecast to be between $50 – $70 billion. The country is expected to have 4-6% of the overall SaaS market.
<p><strong>Please include attribution to vpnAlert.com with this graphic.</strong><br><br><a href="https://vpnalert.com/resources/saas-statistics/" data-wpel-link="internal"><img src="https://vpnalert.com/wp-content/uploads/2023/01/indian-saas-market.png" alt="The Indian SaaS Market by the Numbers" width="768" border="0" height="309.65882941471" loading="lazy" fetchpriority="low" srcset="https://vpnalert.com/wp-content/uploads/2023/01/indian-saas-market-768x310.png 768w, https://vpnalert.com/wp-content/uploads/2023/01/indian-saas-market-300x121.png 300w, https://vpnalert.com/wp-content/uploads/2023/01/indian-saas-market-1024x413.png 1024w, https://vpnalert.com/wp-content/uploads/2023/01/indian-saas-market-1536x619.png 1536w, https://vpnalert.com/wp-content/uploads/2023/01/indian-saas-market.png 1999w" sizes="auto"></a></p>
13. China’s SaaS market is expected to grow to $13.8 billion by 2025.
In 2020, the Asian country’s SaaS market was valued at $4.2 billion. It is expected to more than triple in just five years after that.
14. Oracle’s cloud services made up 71% of its 2021 revenue.
Oracle’s cloud services, which include SaaS, accounted for $28.7 billion of its 2021 revenue. That represents 71% of its revenue for that year.
15. The SaaS market is getting more consolidated.
The growth of major SaaS platforms like Zoom, Shopify, and Adobe over the last couple of years is leading them to expand their offerings to new markets and businesses.
This consolidation and expansion, coupled with the strength of these major brands and the trend of reduction of software solutions by businesses, are blocking the rise of MicroSaaS platforms.
16. Enterprise SaaS accounts for 70% of the SaaS market’s revenue.
The increase in cloud deployment by SMEs is a significant contributor to the growth of the enterprise SaaS segment. Both the enterprise and productivity SaaS markets grew to $165.8 billion in 2021.
SaaS Usage and Adoption Statistics
17. 54% of companies use SaaS to increase productivity.
Cost-saving is the second most common reason companies turn to SaaS (35% of businesses). Increasing security (27%) and improving employee experience (23%) are in the third and fourth spots, respectively.
<p><strong>Please include attribution to vpnAlert.com with this graphic.</strong><br><br><a href="https://vpnalert.com/resources/saas-statistics/" data-wpel-link="internal"><img src="https://vpnalert.com/wp-content/uploads/2023/01/enterprise-saas-by-use-case.png" alt="Enterprise SaaS Deployment by Use Case" width="768" border="0" height="610.73558648111" loading="lazy" fetchpriority="low" srcset="https://vpnalert.com/wp-content/uploads/2023/01/enterprise-saas-by-use-case-768x611.png 768w, https://vpnalert.com/wp-content/uploads/2023/01/enterprise-saas-by-use-case-300x239.png 300w, https://vpnalert.com/wp-content/uploads/2023/01/enterprise-saas-by-use-case-1024x814.png 1024w, https://vpnalert.com/wp-content/uploads/2023/01/enterprise-saas-by-use-case-1536x1222.png 1508w, https://vpnalert.com/wp-content/uploads/2023/01/enterprise-saas-by-use-case.png 1509w" sizes="auto"></a></p>
Usage and Adoption by Industry
18. The Healthcare SaaS market is expected to hit $50 billion by 2028.
That will happen at a compound annual growth rate (CAGR) of 19.5%.
19. AI, API, and PaaS are the top three emerging healthcare SaaS trends.
SaaS moving to PaaS (platform-as-a-service) will allow medical practices to create custom apps, adopt NLP in AI that recognizes patterns, and integrate with APIs to harmonize data with the existing cloud structure.
20. The manufacturing SaaS market is forecast to grow to 88%.
The digital transformation and rise of IoT in manufacturing will increase SaaS adoption in manufacturing in the next 3-5 years. That increase is expected to reach 88%.
21. Increased agility, security, and reduced costs are key benefits of SaaS in the manufacturing industry.
Cloud-based SaaS can handle scaling and delivery of manufacturing operations without manufacturers spending a lot on processing power or building data centers. It also makes it easier for different divisions’ operations and systems to communicate and share data.
22. CRM, ERP, and QMS SaaS are essential to manufacturers.
In 2023, the emergence of IoT and other technology will allow manufacturers to scale and transform their operations. SaaS systems like CRM, QMS, RMS, ERP, and project management can help them stay on top of operations and customer relations to collect and process the necessary data efficiently and productively.
23. SaaS-based cloud platform usage in education will reach $8.7 billion by 2027.
The market for SaaS-based cloud products in the higher education industry is growing at a CAGR of 22%. By 2027, it is projected to reach $8.7 billion.
24. Affordability, ease of access, and reduced hardware reliance are critical benefits of SaaS adoption in education.
SaaS availability has made it easier for universities to access low-cost software solutions, which do not require reliance on expensive servers and can be accessed remotely. They also allow for better student collaboration and sharing of lesson plans.
Usage and Adoption by Region
25. North America is the most advanced SaaS market.
60% of SaaS companies are in the United States. As of 2022, they served around 59 billion B2B and B2C customers worldwide.
26. The US SaaS industry is expected to double by 2025.
The SaaS industry in the USA will reach $225 billion in market value. That is twice as much as it was in 2020 ($108.4 billion).
27. 9% of high-growth UK companies are SaaS companies.
Amongst such companies are the cybersecurity start-up Snyk, the events platform Hopin, and the fintech platform Wise (former TransferWise).
28. BugHerd, CampaignMonitor, and Canva are top SaaS companies in Australia.
The three Australian SaaS companies have a combined 2022 revenue of $1.03 billion. The cloud-based graphic design platform Canva’s earnings make up $1 billion of that revenue.
29. Postman is India’s most valuable SaaS company.
Postman, which allows developers to test APIs, is India’s most-valued startup, at $5.6 billion as of 2021.
SaaS Usage & Adoption Challenges Statistics, Facts, and Trends
30. Up ⅓ of SaaS apps can get under-utilized.
80% of organizations admit to wasting up to 40% of the budget on SaaS due to non-usage or lack of visibility. The potentially-wasted SaaS licenses are an issue for over 40% of companies.
31. User offboarding remains an acute SaaS adoption challenge.
32% of companies report that it takes longer than one week to offboard a former employee, which poses significant security risks. Over 60% of organizations consider access privileges and personal device management the most acute risks in such situations.
SaaS Technical Statistics
32. JS is the most popular language for SaaS development.
Almost 65% of SaaS are built using JavaScript as of 2021. HTML/CSS combination is a close second at 56%. Python (48%) and SQL (47%) are other popular programming languages for SaaS products.
<p><strong>Please include attribution to vpnAlert.com with this graphic.</strong><br><br><a href="https://vpnalert.com/resources/saas-statistics/" data-wpel-link="internal"><img src="https://vpnalert.com/wp-content/uploads/2023/01/popular-languages-saas-development.png" alt="Popular Programming Languages for SaaS Development" width="768" border="0" height="721.69146436962" loading="lazy" fetchpriority="low" srcset="https://vpnalert.com/wp-content/uploads/2023/01/popular-languages-saas-development-768x722.png 768w, https://vpnalert.com/wp-content/uploads/2023/01/popular-languages-saas-development-300x282.png 300w, https://vpnalert.com/wp-content/uploads/2023/01/popular-languages-saas-development-1024x963.png 1024w, https://vpnalert.com/wp-content/uploads/2023/01/popular-languages-saas-development-1536x1444.png 1276w, https://vpnalert.com/wp-content/uploads/2023/01/popular-languages-saas-development.png 1277w" sizes="auto"></a></p>
33. AWS and Google Cloud are the most popular platforms for SaaS deployment.
Over 54% of SaaS are deployed using Amazon Web Services (AWS) as of 2021. Google Cloud and Microsoft Azure each have a share of 31% and 30%, respectively.
34. Low-code SaaS development tools are increasingly popular.
The market for low-code tools is expected to reach $26.9 billion in 2023. And by 2026, such tools will be used by 80% of developers in non-IT departments.
35. Only 11% of SaaS invest in content marketing.
Surprisingly, investing in SEO and content marketing can boost SaaS engine search traffic by 68%.
36. Incorporating ML automation features into SaaS can significantly contribute to its scalability and market position.
Using machine learning technologies in SaaS can help reduce costs and development person-hours, as well as better engage with customers. These benefits allowed the emergence of MLaaS, which is expected to reach $19.86 billion in revenue by 2025.
Future SaaS Statistics and Predictions
37. The SaaS market is expected to reach $571.9 billion by 2027.
The most significant slice of that market will be occupied by the retail & e-com SaaS segment, amounting to over $138.9 billion in 2027. The banking, financial service, and insurance SaaS market is a close second, expected to reach $130.7 billion by 2027.
38. SaaS spending is predicted to reach $195.2 million in 2023.
This figure increases from the 2022 spending levels of $167 million. IaaS takes the second spot in cloud computing spending in 2023. Its spending is expected to reach $150.2 million.
39. 85% of B2B apps will be SaaS-based by 2025.
70% of companies were using SaaS in 2022. By 2025, SaaS will be used by an overwhelming majority of enterprises (85%).
40. By 2027, 40% of companies will centralize SaaS management.
This will solve the problems caused by SaaS fragmentation across organizations, centralizing management by 15% from 2022.
41. Most SaaS companies will adopt some form of usage-based pricing by 2027.
As of January 2023, 46% of SaaS providers have a usage-based pricing (UBP) model. And 31% of those companies use a hybrid pricing model, while the rest work with the “pay-as-you-go” model.
In the next 4-5 years, most companies will move to a hybrid model, and very few will have UBP in their offering.
42. AI for business will be a key SaaS trend.
75% of business SaaS are expected to integrate with AI.
43. Vertical and MicroSaaS will continue their momentum in the next few years.
Over the last year, the number of searches for MicroSaaS in the US grew by 141%.
44. 70% of enterprise apps will be created with Low-Code by 2025.
Low-code and No-Code technologies for building SaaS are expected to triple by 2025. By that time, 70% of business applications will be made using those technologies – up from 25% in 2020.
45. SaaS will likely integrate into the Metaverse.
The rise of the Metaverse won’t pass by the enterprise segment. For the digital twins of the company workers to interact and collaborate in the Metaverse (e.g., during meetings or at manufacturing sites during prototype testing in XR), scalable SaaS solutions will be needed.
Should Companies Invest in SaaS?
The B2B SaaS market has shown very high growth in potential in the last few years, and it doesn’t show signs of slowing down. However, the changes and advancements in technology, such as AI, must be considered before choosing a SaaS for your business.
How a SaaS solution will help your business will depend entirely on your industry, your business, and your team’s readiness.
For that reason, consider testing a SaaS before investing in it!
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