60+ SaaS Statistics and Trends: Exploration of SaaS Growth and Adoption in 2024 (Updated)

The SaaS Industry is mooning, and seems like it will continue to do so! 

HERE IS WHAT WE TALKED ABOUT THE SAAS INDUSTRY IN THE FORMER YEARS:

Even though many businesses have struggled through the COVID-19 Pandemic, cloud growth has been on a roll. For the very simple reason that cloud services are the solution for the new needs that appeared due to the pandemic, it is only natural that SaaS growth will also increase.

Gartner Forecasts:

Growing SaaS companies are all around us, and they can easily find their way into our lives due to our changing needs with the effects of COVID-19. Remote work, or remote interaction, if you will, has become one of the primary needs that put the SaaS Industry at the forefront of answering people's needs; therefore, SaaS businesses could achieve growth.

HERE IS WHAT THE SAAS INDUSTRY LOOKED LIKE PREVIOUSLY

To help you have a broader perspective on the SaaS market growth, Gartner forecasted end-user spending on public cloud services to reach $396 billion in 2022. They also expected it to grow by 21.7% to reach $482 billion in 2022.  

Former years' SaaS growth predictions were right and here was the prediction for 2023:

Gartner predicted that the worldwide public cloud end-user spending can reach almost $600 Billion in 2023.

Before we dive further into the SaaS statistics and trends, please keep in mind that this post has statistics from former years as well so that you have a reach to more data and can have a better idea about SaaS growth, statistics, and trends.

Now let's quickly look at the top SaaS companies and then move on to the latest SaaS stats and trends for this year.

Top 20 SaaS companies by market capitalization on U.S. Stock exchanges

Here is the list of the biggest 20 SaaS businesses:

1- As of this year, Salesforce is the biggest SaaS company with a valuation of more than $280 billion.

2- It is followed by the second largest SaaS company Adobe which has a valuation of $250 billion.

The Number of SaaS Companies by Country

Source

#1 USA 17,000

#2 UK 2,000

#3 Canada 2,000

#4 Germany 1,000

#5 France 1,000

#6 India 1,000

#7 China 707

#8 Brazil 662

#9 Australia 635

#10 Spain 511

#11 Israel 466

#12 Netherlands 402

#13 Singapore 327

#14 Sweden 286

#15 Ireland 270

SaaS Statistics and Trends This Year

There is a lot to catch up on within the SaaS world. The current situation requires businesses to take SaaS trends and statistics into consideration. The needs and expectations are changing rapidly, and the companies that can adjust to those situations and needs achieve their growth rates.

In a time when agility is one of the most important criteria that businesses take into consideration, you should constantly analyze SaaS stats and follow the trends to identify the changing needs so that you can react to them in an agile way.

The Hottest Trend in the SaaS World: AI (Artificial Intelligence)

Let's start with the most famous and mind-blowing statistic about AI:

3- ChatGPT reached 1 million users within the first five days.

4- It is estimated that the global AI market will reach $1.8 trillion by 2030.

5- AI market is estimated to reach $1.81 trillion by 2030.

6- This year, the first leading industry in Software-as-a-Service (SaaS) by number of customers is AI with almost three billion customers worldwide.

Now let's look at more SaaS statistics to dive into SaaS growth further!

Here is a look at the SaaS market growth in 2024:

7- With around 1.9 billion customers each analytics software, e-commerce software, and security software, respectively follow the AI industry.

8- In the first half of this year, the three leading industries in SaaS by total funding are financial services software, artificial intelligence software, and analytics software.

9- As of January, the average annual churn rate of SaaS companies is 5.2%.

Here is a look at the SaaS market growth in 2023:

10- The SaaS market worth was estimated to be $197 billion in 2023.

11- By 2024, the SaaS market is estimated to reach $232 billion.

12- In 2023, there were around 30,000 SaaS companies in the world, and this number is estimated to rise to 72,000. Including the AI companies, the number can even reach up to 175,000.

Here is a look at the SaaS market growth in 2021:

13- The SaaS industry was worth over $145 billion in 2021.

14- The SaaS industry was expected to reach a value of $171.9 billion between 2021 and 2022.

15- The annual growth rate of the SaaS industry was projected to surpass 17% in 2022.

16- 99% of organizations would be using one or more SaaS solutions by the end of 2021.

Here is a look at the Saas market growth in 2020:

17- The total market value of the top 10 companies exceeded $1 trillion for the first time.

18- The median value of the top 50 largest SaaS companies increased by 179%.

19- Shopify had the largest increase in value: $108 billion (+208%).

20- The average value is $38.1 billion, up 162% in the past year.

21- The top 10 biggest companies were worth 61% of the top 50.

22- Zoom had the highest growth rate with a 420% increase in value, which added $88 billion to its market cap.

23- The corporate mobile SaaS market was expected to reach $7.4 billion by 2021.

Company spending on SaaS and how they use SaaS products

Source

24- The overall spend per company on SaaS products is up by 50%.

25- On average, there are 4,406 app-to-person connections for an average company.

26- Companies use free apps three times more than paid ones.

27- SaaS spending is increasing faster than the use of unique apps. 

28- Customers stop using more than 30% of their SaaS apps every year.

SaaS Adoption Statistics

Source

29- The SaaS industry is currently growing by 18% each year.

30- 78% of small businesses have already invested in SaaS options.

31- SaaS adoption in the healthcare industry grows at a rate of 20% per year.

32- 70% of CIOs claim that agility and scalability are two of the top motivators for using SaaS applications.

33- As the numbers suggest, the growth of the SaaS industry is at another pace. This is due to its scalability and agility in answering emerging needs. 

34- 73% of organizations imply that nearly all their apps were to be SaaS by 2021.

SaaS Pricing and Freemium and Free Trial Model Statistics

Source

35- 44% of SaaS companies offer a free trial.  

36- 41% offer a 30-day  trial.

37- 18% of those companies offer a 14-day free trial. 

38- 17% of them use a freemium pricing model. 

39- 41% list their pricing on their website. 

40- 46% of these businesses have a "per user" pricing strategy.

IT and SaaS Statistics:

41- IT services spending is expected to reach $1.5b in 2024.

42-  40% of IT spending takes place outside of the IT department. 

43- 83% of IT professionals said that employees stored company data on unsanctioned cloud services. 

44- 76% of IT professionals consider unsanctioned apps as a security risk. 

45- 80% of employees have admitted to using SaaS apps at work without getting approval from IT. 

46- 33% of employees downloaded a personal application without IT approval, and 36% accessed work applications on a non-work device. 

47- 48% of employees use apps that are not distributed by IT. These apps include note-taking apps, project apps, and apps like WhatsApp and Dropbox regularly mentioned. 

The Importance of Onboarding/Offboarding in the SaaS Companies

48- Employees who felt their onboarding was on point are 18x more likely to feel committed to their company. 

49- 91% of those who received an all-around onboarding feel strong connectedness at work, compared to 29% of those who had an effective onboarding. 

50- 89% of those who received all-around onboarding felt firmly integrated into their culture, compared to 59% of those who received an effective onboarding. 

51- 20% of companies have had data breaches from ex-employees. 

52- 36% of employees continued to have access to systems or data from a former company once they left the job. 

Looking at these numbers, you can see that onboarding new employees is as crucial as user onboarding or onboarding customers. An excellent onboarding process will increase your work efficiency, bonding, and success. 

Therefore, using user onboarding tools can help you a lot in providing a better experience.

SaaS Industry during the Covid Era

McKinsey's analysis shows how the COVID-19 has impacted buyers and sellers:

Looking at the analysis, you can see that remote interaction or digital self-service is the new dominating way of interaction in B2B. Considering this increasing demand, you can better comprehend why the SaaS Industry continued its growth despite COVID-19. 

At some point, you can even say that it is thanks to COVID-19 the growth of SaaS increased its pace.

In short, the trend in SaaS right now is to create self-serve products that can answer customers' demands.

Three out of four B2B buyers suggest that they would rather self educate than learn about a product from a salesperson. 

Here is how remote interaction and self-service find their way into the SaaS trends:

These percentages show a huge demand that emerged from the effects of COVID-19 can be tackled by SaaS businesses to achieve satisfying growth rates.

How SaaS companies reacted to the effects of the COVID-19 regarding their pricing:

53- Nearly 30% of SaaS companies offered additional functionality for their customers.

54- 33% of mostly medium and large SaaS companies offered additional services.

55- Around 30% of companies offered price cuts.

56- 40% of SaaS companies are thinking of offering new pricing models when businesses recover. 

57-  50% of SaaS companies still depend on user-based pricing.

58- More than 50,000 SaaS vendors offer over 30% discounts.

59-  40% are planning to offer buying incentives. 

Further COVID-19 Statistics in SaaS

60- 64% of companies plan to retain the remote work setup after the pandemic. This is why cloud and management service spendings were expected to rise in 2021.

61- 56% of businesses are planning on updating their outdated IT infrastructure, 45% of businesses will prioritize IT projects, and 39% will focus on addressing security concerns.

62- 88% of businesses used the cloud in 2020. 25% of these businesses aimed to migrate all their business systems to the cloud by the end of 2021.

63- For about 70% of CIOs, agility and scalability are the top motivations for using cloud-based SaaS during COVID-19.

64- 76% of companies plan on long-term IT changes due to the COVID-19 disruptions.

Top SaaS Apps By Category

Source

Here are the lists of the top 10 companies of each category:

Top 10 Product SaaS Apps

By market share:

1. Typeform
2. Adobe Creative Cloud
3. Sketch
4. Zeplin
5. FullStory
6. Webflow
7. Dribble
8. Figma
9. Abstract
10. Noun Project

Top 10 Sales SaaS Apps

By market share:

1. Salesforce
2. Hubspot
3. Pipedrive
4. Yesware
5. Outreach
6. Gong
7. SalesLoft
8. Chorus
9. DocSend
10. InsightSquared

Top 10 Marketing SaaS Apps

By market share:

1. Mailchimp
2. Semrush
3. Canva
4. Mixmax
5. Clearbit
6. WISTIA
7. Marketo
8. ScreamingFrog
9. MOZ
10. SproutSocial

By spend share:

1. Adobe Creative Cloud
2. Authenticom
3. FullStory
4. Appcues
5. Alfresco
6. Sketch
7. Typeform
8. Algolia
9. Onshape
10. Zaplin

By spend share:

1. Salesforce
2. Hubspot
3. Outreach
4. Gong
5. Chorus
6. SalesLoft
7. PureB2B
8. DiscoverOrg
9. InsightSquared
10. Yesware

By spend share:

1. Marketo
2. Capterra
3. Clearbit
4. HipLead
5. Meltwater
6. Hubspot
7. Sendoso
8. Vantiv
9. Intent Media
10. Cloudinary

Top 10 Engineering SaaS Apps

By market share:

1. GitHub
2. IntelliJ IDEA
3. SendGrid
4. CircleCi
5. Pingdom
6. New Relic
7. BrowserStack
8. Ngrok
9. NPM
10. Docker

Top 10 Customer Support SaaS Apps

By market share:

1. Atlassian
2. Zendesk
3. Intercom
4. HelpScout
5. Front
6. Teamwork
7. Hiver
8. Five9
9. Gainsight
10. UserVoice

Top 10 DevOps SaaS Apps

By market share:

1. PagerDuty
2. Sentry
3. NameCheap
4. WPengine
5. DataDog
6. DigitalOcean
7. Cloudflare
8. BugSnag
9. Statuspage
10. Linode

By spend share:

1. Twilio
2. New Relic
3. SendGrid
4. GitHub
5. CircleCi
6. Gitlab
7. IntelliJ IDEA
8. Code Climate
9. Papertrail
10. Replicated

By spend share:

1. Zendesk
2. Five 9
3. Atlassian
4. Intercom
5. Gainsight
6. HelpScout
7. Fuze
8. Kustomer
9. Front
10. Hiver

By spend share:

1. DataDog
2. CloudFlare
3. Sumologic
4. PagerDuty
5. Fastly
6. MongoDB
7. WPEngine
8. Aprible
9. RedisLabs
10. Snowflake

Top 10 Business Operations SaaS Apps

By market share:

1. G Suite
2. Slack
3. Zoom
4. Office 365
5. Calendly
6. Confluence
7. 1Password
8. Asana
9. Lucidchart
10. Adobe Acrobat

Top 10 Finance SaaS Apps

By market share:

1. Bill.com
2. Avalara
3. Expensify
4. Intuit Quickbooks
5. Recurly
6. Intuit
7. Xero
8. PayPal
9. Baremetrics
10. ProfitWell

Top 10 IT & Security SaaS Apps

By market share:

1. Parallels
2. Solarwinds
3. KnowBe4
4. Fleetsmith
5. LogMeIn
6. Keeper
7. Mover
8. Jamf
9. Code42
10. Rapid1