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href="/blog/category/marketing/general-marketing/">General Marketing</a></li></ul></div><h1 data-test="heading-text" class="sc-kLwhqv fjCyHV sc-eXlEPa dEBvkJ">60 SaaS Statistics Related to Growth, Challenges, and More</h1><span data-test="text-content" class="sc-kLwhqv gEQrQk sc-fmciRz hfOGEl"><p data-test="author"><a target="_blank" rel="noopener" role="link" href="/blog/user/padrig-jones/">Padrig Jones</a></p><span data-test="date">Nov 14, 2024</span><span data-test="time-to-read">7 min read</span></span><span data-test="contributors" class="sc-kLwhqv dJgXij">Contributors: <a target="_blank" rel="noopener" role="link" data-test="contributor" class="sc-htJRVC bMoVP" href="/blog/user/205718513/">Christine Skopec</a>, <a target="_blank" rel="noopener" role="link" data-test="contributor" class="sc-htJRVC bMoVP" href="/blog/user/217785329/">Simon Fogg</a>, and <a target="_blank" rel="noopener" role="link" data-test="contributor" class="sc-htJRVC bMoVP" href="/blog/user/203169745/">Selina Scheumann</a></span></div><div class="sc-gKclnd jomabB sc-fIosxK ReiQc"><img src="https://static.semrush.com/blog/uploads/media/84/e1/84e146a5dd5430f39970cd9d49c5a209/2e65e4b46bcc75294527f82730301e2b/saas-statistics.svg" alt="SaaS Statistics" width="340" height="248" data-test="image"/></div></div></div></div><div data-test="container" class="sc-gKclnd dmOGYZ"><div data-test="template-article-base" class="sc-gKclnd iBtQsf"><div class="sc-jtXEFf jrBzsJ"><div class="sc-eldieg eYVFtH"><button class="sc-kiIyQV fqmceZ">Table of contents</button><button class="sc-kiIyQV fqmceZ"><svg aria-hidden="true" tabindex="-1" disabled="" class="___SIcon_pchrv_gg_ sc-cLpAjG cfZGuc" data-ui-name="Share" width="16" height="16" viewBox="0 0 16 16" data-name="Share" data-group="m"><path d="M11.707 1.293a1 1 0 1 0-1.414 1.414L12.586 5H7a6 6 0 0 0-6 6v3a1 1 0 1 0 2 0v-3a4 4 0 0 1 4-4h5.586l-2.293 2.293a1 1 0 1 0 1.414 1.414l4-4a1 1 0 0 0 0-1.414l-4-4Z" 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does the data say about SaaS growth rates? How much do companies typically spend on SaaS solutions? And what factors do brands consider when making SaaS purchases?</p><p>Let’s dive into the latest SaaS stats to find out.</p><h2 id="saas-industry-statistics-highlights">SaaS Industry Statistics Highlights </h2><ul> <li style="list-style-type:disc">The global SaaS market is set to generate nearly $819 billion in 2029</li> <li style="list-style-type:disc">The U.S. SaaS market is projected to surpass $445 billion by 2029</li> <li style="list-style-type:disc">Almost 50% of all venture capital investments were made in SaaS startups in 2023</li> <li style="list-style-type:disc">Microsoft is the SaaS company with the largest market capitalization (the total value of a company's publicly traded shares) in the world at more than $3 trillion</li> <li style="list-style-type:disc">Artificial intelligence (AI) software is the biggest SaaS sector based on customer count, with 3 billion global customers</li> <li style="list-style-type:disc">Organizations use 130 SaaS apps on average</li> <li style="list-style-type:disc">The average B2B SaaS churn rate is -1.59%</li> <li style="list-style-type:disc">Globally, the SaaS inflation rate is nearly four times higher than the market inflation rate</li></ul><h2 id="saas-overall-market-and-growth-statistics">SaaS Overall Market and Growth Statistics</h2><h3 id="general-saas-market-stats">General SaaS Market Stats</h3><p>The SaaS industry continues to expand rapidly, driven by increasing global demand and advancements in cloud technology. </p><p>Here are some key figures that capture the growth and scale of the worldwide SaaS market:</p><ol> <li style="list-style-type:decimal">Global SaaS market revenue is projected to reach $818.8 billion by 2029 (<a href="https://www.statista.com/outlook/tmo/public-cloud/software-as-a-service/worldwide#revenue" style="text-decoration:none">Statista</a>, 2024)</li></ol><figure class="easyimage easyimage-side"><picture><source srcSet="https://static.semrush.com/blog/uploads/media/32/73/3273e35cf94c50734de3a26a4ca42643/365c61a87e93385de5200efb83b141f1/AD_4nXehpr3ivZf8pC0CMriZHjXp5da8uQx9ZP8puzorMRHB7chLrg_ZJaRZ_lLoO3bLQ6rlEHhwv9BVJdSc0wVBkTkhHUBsiZOJ1MZhn3obbRHR7eJ4TyvnVVbliLAi2QbTJjn9gf618w.webp" type="image/webp"/><img alt="worldwide saas market revenue in billions shows a steady upward trend from 2017 to 2029" data-original="https://static.semrush.com/blog/uploads/media/32/73/3273e35cf94c50734de3a26a4ca42643/365c61a87e93385de5200efb83b141f1/original" height="1348" loading="lazy" src="https://static.semrush.com/blog/uploads/media/32/73/3273e35cf94c50734de3a26a4ca42643/365c61a87e93385de5200efb83b141f1/AD_4nXehpr3ivZf8pC0CMriZHjXp5da8uQx9ZP8puzorMRHB7chLrg_ZJaRZ_lLoO3bLQ6rlEHhwv9BVJdSc0wVBkTkhHUBsiZOJ1MZhn3obbRHR7eJ4TyvnVVbliLAi2QbTJjn9gf618w" width="1010"/></picture></figure><p class="note"><strong>Image Data Source</strong>: Statista</p><ol start="2"> <li style="list-style-type:decimal">The global SaaS market is expected to grow at a compound annual growth rate of 13.7% from 2023 to 2030 (<a href="https://www.grandviewresearch.com/industry-analysis/saas-market-report" style="text-decoration:none">Grand View Research</a>, 2023)</li> <li style="list-style-type:decimal">The North American SaaS market alone was valued at $131.18 billion in 2023 (<a href="https://www.fortunebusinessinsights.com/software-as-a-service-saas-market-102222" style="text-decoration:none">Fortune Business Insights</a>, 2024)</li> <li style="list-style-type:decimal">In 2022, the global cloud computing market was valued at $413 billion, and SaaS made up $185 billion of that total (<a href="https://www.statista.com/statistics/540525/worldwide-cloud-saas-revenue-share-by-vendor/" style="text-decoration:none">Statista</a>, 2023)</li></ol><h3 id="funding">Funding</h3><p>Venture capital is a major source of funding for the SaaS industry, with significant investments flowing into SaaS solutions across a range of sectors.</p><p>Here are some stats revealing where funding is being allocated within the SaaS space:</p><ol start="5"> <li style="list-style-type:decimal">Nearly 50% of all venture capital investing was in SaaS startups in 2023 (<a href="https://dealroom.co/guides/saas" style="text-decoration:none">Dealroom</a>, 2023)</li> <li style="list-style-type:decimal">The top-funded SaaS industries are financial services software and AI software—each having received nearly $40 billion in funding. Analytics software is in third place, with around $30 billion in funding. (<a href="https://www.statista.com/statistics/1447980/leading-industries-saas-by-funding-worldwide/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">Almost 90% of SaaS investment goes toward B2B companies (<a href="https://dealroom.co/guides/saas" style="text-decoration:none">Dealroom</a>, 2023)</li></ol><figure class="easyimage easyimage-side"><picture><source srcSet="https://static.semrush.com/blog/uploads/media/d5/ba/d5ba5162d1f46424c7023b8575de1293/e8150270d7898ae1231ffab580c1ca73/AD_4nXcgs1p6dXf5aSfqcy9aThBZ3q_pMOklUJUaqZLP46PxgkRE_5v1JLyY6xs_UHr9o2V0_XIJrl6aIE7WRz4jAlNhMPXvFuBoBgxdlQtderkuQ6yemDzctkHB5a-TfLvcLmmD3SSwvw.webp" type="image/webp"/><img alt="88% of saas investment share is b2b while 12% is b2c" data-original="https://static.semrush.com/blog/uploads/media/d5/ba/d5ba5162d1f46424c7023b8575de1293/e8150270d7898ae1231ffab580c1ca73/original" height="993" loading="lazy" src="https://static.semrush.com/blog/uploads/media/d5/ba/d5ba5162d1f46424c7023b8575de1293/e8150270d7898ae1231ffab580c1ca73/AD_4nXcgs1p6dXf5aSfqcy9aThBZ3q_pMOklUJUaqZLP46PxgkRE_5v1JLyY6xs_UHr9o2V0_XIJrl6aIE7WRz4jAlNhMPXvFuBoBgxdlQtderkuQ6yemDzctkHB5a-TfLvcLmmD3SSwvw" width="1010"/></picture></figure><p class="note"><strong>Image Data Source</strong>: Dealroom</p><ol start="8"> <li style="list-style-type:decimal">At $14 billion, fintech is the B2B SaaS category that’s received the most venture capital funding (<a href="https://dealroom.co/guides/saas" style="text-decoration:none">Dealroom</a>, 2023)</li></ol><h3 id="major-industries-and-individual-players">Major Industries and Individual Players</h3><p>SaaS spans a variety of industries—many of which contain a substantial workforce and extensive customer base. </p><p>Here’s a closer look at the major sectors and key players driving the SaaS market forward:</p><ol start="9"> <li style="list-style-type:decimal">The top SaaS industries by number of employees are financial services software, analytics software, and AI software. Each of these three industries has over 100,000 employees. (<a href="https://www.statista.com/statistics/1447983/leading-industries-saas-by-employees-worldwide/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">The top SaaS industries based on the total number of companies are AI software, analytics software, and financial services software. There are around 4,300 companies between these three industries worldwide. (<a href="https://www.statista.com/statistics/1447921/leading-industries-saas-by-companies/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">AI software is the top SaaS industry by number of customers, with almost 3 billion customers worldwide (<a href="https://www.statista.com/statistics/1447987/leading-industries-saas-by-customers-worldwide/" style="text-decoration:none">Statista</a>, 2024) </li> <li style="list-style-type:decimal">After AI software, the top SaaS industries by customer count are analytics software, ecommerce software, and security software—with around 1.9 billion customers each (<a href="https://www.statista.com/statistics/1447987/leading-industries-saas-by-customers-worldwide/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">Microsoft is the SaaS company with the largest market capitalization—over $3 trillion. Other major players include Apple, Alphabet, Oracle, Adobe, Intuit, IBM, and ServiceNow. (<a href="https://www.statista.com/statistics/1496279/top-10-saas-companies/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">Microsoft has the greatest share of the SaaS market revenue, with about 22% of the market (<a href="https://www.statista.com/statistics/540525/worldwide-cloud-saas-revenue-share-by-vendor/" style="text-decoration:none">Statista</a>, 2023)</li> <li style="list-style-type:decimal">Salesforce is the biggest company primarily focused on SaaS listed on the U.S. stock market (by market capitalization). Other top contenders include Adobe, ServiceNow, Intuit, and Shopify. (<a href="https://www.mikesonders.com/largest-saas-companies/" style="text-decoration:none">Mike Sonders</a>, 2024)</li></ol><figure class="easyimage easyimage-side"><picture><source srcSet="https://static.semrush.com/blog/uploads/media/fc/1b/fc1bcc250d69ec9f06ac1166d6caa76c/f20510f36ee281da6224b0defb1fbd64/AD_4nXe2DRBeGbNTCNqq1iV6-5cXIWsHxkiTwXYu53hM4jgUaaZMI_Cpgl0ArjxScxds0DCfclVYn_88a-9lgP_vCidCytlbjQ7KZFz__EniEJQiTw736aMY1Ilai-WPTNHdosJOb1dRlQ.webp" type="image/webp"/><img alt="bar chart showing top 10 saas companies on the us stock market with market cap in billions" data-original="https://static.semrush.com/blog/uploads/media/fc/1b/fc1bcc250d69ec9f06ac1166d6caa76c/f20510f36ee281da6224b0defb1fbd64/original" height="1600" loading="lazy" src="https://static.semrush.com/blog/uploads/media/fc/1b/fc1bcc250d69ec9f06ac1166d6caa76c/f20510f36ee281da6224b0defb1fbd64/AD_4nXe2DRBeGbNTCNqq1iV6-5cXIWsHxkiTwXYu53hM4jgUaaZMI_Cpgl0ArjxScxds0DCfclVYn_88a-9lgP_vCidCytlbjQ7KZFz__EniEJQiTw736aMY1Ilai-WPTNHdosJOb1dRlQ" width="1010"/></picture></figure><p class="note"><strong>Image Data Source</strong>: Mike Sonders</p><ol start="16"> <li style="list-style-type:decimal">Salesforce’s annual revenue reached almost $35 billion in its 2024 fiscal year (<a href="https://s23.q4cdn.com/574569502/files/doc_financials/2024/ar/salesforce-fy24-annual-report.pdf" style="text-decoration:none">Salesforce</a>, 2024)</li> <li style="list-style-type:decimal">Oracle’s annual revenue reached $53 billion in its 2024 fiscal year. Over $39 billion of this revenue came from the company’s cloud services and license support division. (<a href="https://investor.oracle.com/investor-news/news-details/2024/Oracle-Announces-Fiscal-2024-Fourth-Quarter-and-Fiscal-Full-Year-Financial-Results/default.aspx" style="text-decoration:none">Oracle</a>, 2024)</li> <li style="list-style-type:decimal">SAP—an enterprise software company based in Germany—generated €31 billion in revenue in 2023. Almost €27 billion of this came from cloud and software sales. (<a href="https://www.sap.com/docs/download/investors/2023/sap-2023-annual-report-form-20f.pdf" style="text-decoration:none">SAP</a>, 2023)</li></ol><p>If you’re a SaaS marketer, researching how your closest competitors acquire traffic can help you improve your own web strategy.</p><p>The <a href="https://www.semrush.com/analytics/traffic/" style="text-decoration:none">Traffic Analytics</a> tool allows you to dig into your competitor’s website data. You can see which of their pages drive the most engagement, where their traffic comes from, and the extent to which your online audiences overlap.</p><figure class="easyimage easyimage-side"><picture><source srcSet="https://static.semrush.com/blog/uploads/media/10/50/105018eb4eb370904bbffb21620b58f9/ea9d07a92f851d74bf9cc2249a9e6183/AD_4nXff8Q7GtLs_fkEJkDk7VYs3SSMX9sa5AQRXu1cCqyyYoWwqVWBtpTZQ6mw-Wls8z3P7Iun_5mJsdkiF0ydU4FLHTdO2LhmFAMyAWKKPtvKjQoe4vem1YiQ3jabOBd-C5suCr5cu.webp" type="image/webp"/><img alt="traffic journey chart shows site visited before landing on salesforce and where this audience went after visiting salesforce" data-original="https://static.semrush.com/blog/uploads/media/10/50/105018eb4eb370904bbffb21620b58f9/ea9d07a92f851d74bf9cc2249a9e6183/original" height="988" loading="lazy" src="https://static.semrush.com/blog/uploads/media/10/50/105018eb4eb370904bbffb21620b58f9/ea9d07a92f851d74bf9cc2249a9e6183/AD_4nXff8Q7GtLs_fkEJkDk7VYs3SSMX9sa5AQRXu1cCqyyYoWwqVWBtpTZQ6mw-Wls8z3P7Iun_5mJsdkiF0ydU4FLHTdO2LhmFAMyAWKKPtvKjQoe4vem1YiQ3jabOBd-C5suCr5cu" width="1010"/></picture></figure><h3 id="international-markets">International Markets </h3><p>SaaS continues to grow across global markets, with various regions contributing significantly to the industry’s expansion.</p><p>Here’s a look at some of the main regions driving SaaS adoption and revenue:</p><ol start="19"> <li style="list-style-type:decimal">North America dominates the worldwide SaaS market, claiming 44% of global revenue (<a href="https://www.grandviewresearch.com/industry-analysis/saas-market-report" style="text-decoration:none">Grand View Research</a>, 2023)</li> <li style="list-style-type:decimal">The U.S. SaaS market is forecast to reach $445.6 billion by 2029 (<a href="https://www.statista.com/outlook/tmo/public-cloud/software-as-a-service/united-states" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">There are around 9,100 SaaS companies in the U.S. and about 15 billion global customers among them, putting the U.S. in the lead (<a href="https://www.statista.com/statistics/1239046/top-saas-countries-list/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">The U.K. is next and has 1,500 SaaS companies. And Canada is third, with 992 companies. (<a href="https://www.statista.com/statistics/1239046/top-saas-countries-list/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">By 2029, the German SaaS market is expected to reach $38.9 billion (<a href="https://www.statista.com/outlook/tmo/public-cloud/software-as-a-service/germany#revenue" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">The Indian SaaS market is forecast to generate $26.4 billion by 2026 (<a href="https://www.statista.com/statistics/1187372/india-revenue-of-saas-companies/" style="text-decoration:none">Statista</a>, 2023)</li> <li style="list-style-type:decimal">China’s SaaS market is forecast to reach $29.8 billion in 2027 (<a href="https://www.statista.com/forecasts/1415225/apac-saas-revenue-by-country" style="text-decoration:none">Statista</a>, 2024)</li></ol><h2 id="saas-financial-statistics">SaaS Financial Statistics</h2><h3 id="company-revenue">Company Revenue</h3><p>Revenue and profitability vary widely across SaaS companies, along with funding sources and growth strategies.</p><p>These stats give a snapshot of how different types of SaaS companies perform financially:</p><ol start="26"> <li style="list-style-type:decimal">Almost 80% of bootstrapped companies are profitable or breaking even. This figure is just 37% for equity-backed companies. (<a href="https://www.saas-capital.com/blog-posts/spending-benchmarks-for-private-b2b-saas-companies/" style="text-decoration:none">SaaS Capital</a>, 2024)</li> <li style="list-style-type:decimal">In 2023, bootstrapped companies reported a median growth of 25%. While equity-backed companies reported a median growth of 30%. (<a href="https://www.saas-capital.com/research/private-saas-company-growth-rate-benchmarks/" style="text-decoration:none">SaaS Capital</a>, 2024)</li> <li style="list-style-type:decimal">High-growth SaaS companies spend 50% or more of their revenue on sales and marketing (<a href="https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/saas-and-the-rule-of-40-keys-to-the-critical-value-creation-metric" style="text-decoration:none">McKinsey & Company</a>, 2021)</li> <li style="list-style-type:decimal">The median revenue per employee for private SaaS companies is $125,000 (<a href="https://www.saas-capital.com/blog-posts/revenue-per-employee-benchmarks-for-private-saas-companies/" style="text-decoration:none">SaaS Capital</a>, 2024)</li> <li style="list-style-type:decimal">Equity-backed SaaS companies with $1 million to $3 million in annual recurring revenue (ARR) have a median ARR per employee of $73,333. This figure is $108,000 for bootstrapped companies. (<a href="https://www.saas-capital.com/blog-posts/revenue-per-employee-benchmarks-for-private-saas-companies/" style="text-decoration:none">SaaS Capital</a>, 2024)</li></ol><h3 id="user-spending">User Spending </h3><p>Businesses of all sizes continue to invest heavily in SaaS solutions, with recent price increases also contributing to the rise in spending.</p><p>Here’s a closer look at current spending patterns in the SaaS market:</p><ol start="31"> <li style="list-style-type:decimal">Global user spending on SaaS is estimated to reach over $295 billion in 2025. (<a href="https://www.statista.com/statistics/505243/worldwide-software-as-a-service-revenue/" style="text-decoration:none">Statista</a>, 2024)</li></ol><figure class="easyimage easyimage-side"><picture><source srcSet="https://static.semrush.com/blog/uploads/media/66/07/660740e9d80540723b04919d9b20d85a/a859fd9f6aca49b1e6611bd21759961a/AD_4nXdBh5M6syiVstuo1Q6_jchq9vWHjlFLF1RwqrZDKhtTsyxF7l2K5PmzFVL5i3965DPI7qMtFbdLfI27vfkQTT1urDRUArFMDRL3XPCN5FtASdo3KV7mw4IoZZwagqqH7kvLY8VVEA.webp" type="image/webp"/><img alt="global saas user spending chart shows a sharper curve upward trend in market spending in billions" data-original="https://static.semrush.com/blog/uploads/media/66/07/660740e9d80540723b04919d9b20d85a/a859fd9f6aca49b1e6611bd21759961a/original" height="1560" loading="lazy" src="https://static.semrush.com/blog/uploads/media/66/07/660740e9d80540723b04919d9b20d85a/a859fd9f6aca49b1e6611bd21759961a/AD_4nXdBh5M6syiVstuo1Q6_jchq9vWHjlFLF1RwqrZDKhtTsyxF7l2K5PmzFVL5i3965DPI7qMtFbdLfI27vfkQTT1urDRUArFMDRL3XPCN5FtASdo3KV7mw4IoZZwagqqH7kvLY8VVEA" width="1010"/></picture></figure><p class="note"><strong>Image Data Source</strong>: Statista</p><ol start="32"> <li style="list-style-type:decimal">Almost 35% of Businesses spend between $2.4 million and $12 million on SaaS solutions (<a href="https://www.statista.com/statistics/1472733/organizations-saas-annual-spend-globally/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">In 2024, businesses spend around $8,700 per employee on SaaS products. This is up from $7,900 in 2023. (<a href="https://www.vertice.one/l/saas-inflation-index-report" style="text-decoration:none">Vertice</a>, 2024)</li> <li style="list-style-type:decimal">About 45% of small- to medium-sized businesses (SMBs) report spending up to $600,000 annually on SaaS. While around 16% spent up to $2.4 million. (<a href="https://www.statista.com/statistics/1472790/smb-saas-annual-spend-globally/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">The cost of SaaS solutions has increased by 33% since 2021 (<a href="https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf" style="text-decoration:none">BetterCloud</a>, 2024) </li> <li style="list-style-type:decimal">On average, SaaS prices increased by 12% between 2022 and 2023 (<a href="https://www.vertice.one/insights/august-2023" style="text-decoration:none">Vertice</a>, 2023)</li> <li style="list-style-type:decimal">Globally, the SaaS inflation rate is almost four times higher than the standard market inflation rate (<a href="https://www.vertice.one/l/saas-inflation-index-report" style="text-decoration:none">Vertice</a>, 2024)</li></ol><h3 id="pricing-models">Pricing Models</h3><p>SaaS companies use a mix of pricing strategies to meet diverse customer needs and market demands. </p><p>Here are some of the key pricing trends shaping SaaS today:</p><ol start="38"> <li style="list-style-type:decimal">Of surveyed SaaS companies, 23% have usage-based subscription tiers. And 18% have a largely usage-based model (<a href="https://openviewpartners.com/blog/2023-pricing-data/" style="text-decoration:none">OpenView Venture Partners</a>, 2023)</li> <li style="list-style-type:decimal">Around 60% of surveyed SaaS companies make an effort to adapt their pricing to local markets (<a href="https://openviewpartners.com/blog/2023-pricing-data/" style="text-decoration:none">OpenView Venture Partners</a>, 2023)</li> <li style="list-style-type:decimal">About one-third of global survey respondents say per-user pricing is their preferred pricing model. Use-based pricing came in second place, with around 30% of votes. (<a href="https://www.statista.com/statistics/1452696/saas-product-pricing-model/" style="text-decoration:none">Statista</a>, 2024)</li> <li style="list-style-type:decimal">Only 45% of SaaS companies publish their pricing (<a href="https://openviewpartners.com/blog/saas-pricing-insights/" style="text-decoration:none">OpenView Venture Partners</a>, 2021)</li> <li style="list-style-type:decimal">Around 60% of SaaS vendors deliberately mask price increases (<a href="https://www.vertice.one/l/saas-inflation-index-report" style="text-decoration:none">Vertice</a>, 2024)</li></ol><h2 id="saas-use-and-adoption-statistics">SaaS Use and Adoption Statistics</h2><h3 id="use-and-purchasing-decisions">Use and Purchasing Decisions</h3><p>The decision-making process for SaaS purchases is influenced by several factors, from security concerns to productivity goals.<br/>Here are some stats to illustrate how organizations choose their SaaS solutions.</p><ol start="43"> <li style="list-style-type:decimal">Organizations use 112 SaaS apps on average (<a href="https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf" style="text-decoration:none">BetterCloud</a>, 2024)</li> <li style="list-style-type:decimal">Of surveyed businesses, 37% say boosting productivity is their main reason for buying new software. Other top reasons include addressing security concerns (30%), expanding product offerings (27%), and targeting new customers (26%). (<a href="https://emt.gartnerweb.com/ngw/globalassets/en/digital-markets/documents/2023-global-software-buying-trends-report.pdf" style="text-decoration:none">Gartner</a>, 2023) </li> <li style="list-style-type:decimal">More than 40% of businesses say that security is their top consideration when buying new software (<a href="https://emt.gartnerweb.com/ngw/globalassets/en/digital-markets/documents/2023-global-software-buying-trends-report.pdf" style="text-decoration:none">Gartner</a>, 2023)</li> <li style="list-style-type:decimal">More than 80% of software buyers take into account a vendor’s history with software breaches when studying software solutions (<a href="https://research.g2.com/2024-buyer-behavior-report" style="text-decoration:none">G2</a>, 2024)</li> <li style="list-style-type:decimal">For 33% of businesses, there are two to three people on the software buying committee (<a href="https://www.gartner.com/en/digital-markets/insights/state-of-software-investment-2024" style="text-decoration:none">Gartner</a>, 2024)</li></ol><figure class="easyimage easyimage-side"><picture><source srcSet="https://static.semrush.com/blog/uploads/media/5d/ae/5dae4eb0247c2ca83f1cf97a1bd36d1a/85a065242cf7123cd5ed70956d8b171d/AD_4nXfyB5QM79q7klhwrYqK45cNGBHQQmiFLu7YOOPWsCVYO1SoI3Tff98OfJgz2_ITemGMTRKKeGyNqAVu0WBt54ZrGZA7jRdw4wWJYeTs3Q3CglU6zT5DSp0dYnLy4aH9gnye7t9LtQ.webp" type="image/webp"/><img alt="the other third is 4-6 people on a software buying committee and the remainder is a mix of 7-10 people, more than 10 people, and 1 person" data-original="https://static.semrush.com/blog/uploads/media/5d/ae/5dae4eb0247c2ca83f1cf97a1bd36d1a/85a065242cf7123cd5ed70956d8b171d/original" height="993" loading="lazy" src="https://static.semrush.com/blog/uploads/media/5d/ae/5dae4eb0247c2ca83f1cf97a1bd36d1a/85a065242cf7123cd5ed70956d8b171d/AD_4nXfyB5QM79q7klhwrYqK45cNGBHQQmiFLu7YOOPWsCVYO1SoI3Tff98OfJgz2_ITemGMTRKKeGyNqAVu0WBt54ZrGZA7jRdw4wWJYeTs3Q3CglU6zT5DSp0dYnLy4aH9gnye7t9LtQ" width="1010"/></picture></figure><p class="note"><strong>Image Data Source</strong>: Gartner</p><ol start="48"> <li style="list-style-type:decimal">Almost 40% of businesses always involve the finance team in software purchase decisions (<a href="https://www.gartner.com/en/digital-markets/insights/state-of-software-investment-2024" style="text-decoration:none">Gartner</a>, 2024)</li> <li style="list-style-type:decimal">Over 50% of organizations scrutinize their SaaS purchasing decisions more than in previous years (<a href="https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf" style="text-decoration:none">BetterCloud</a>, 2024) </li> <li style="list-style-type:decimal">Around 40% of SaaS licenses are going unused (<a href="https://productiv.com/state-of-saas" style="text-decoration:none">Productiv</a>, 2024)</li> <li style="list-style-type:decimal">The average company wastes over $135,000 in unused software licenses (<a href="https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf" style="text-decoration:none">BetterCloud</a>, 2024)</li></ol><p>If you’re a SaaS marketer looking to gain more users, do thorough audience research to learn details about your ideal buyers that can boost your acquisition efforts.</p><p>You can browse resources like industry reports. Or, use Semrush’s <a href="https://www.semrush.com/analytics/one2target/" style="text-decoration:none">One2Target</a> tool. </p><p>It enables you to analyze audience demographics, socioeconomic data points, and identify key customer behaviors and preferences.</p><figure class="easyimage easyimage-side"><picture><source srcSet="https://static.semrush.com/blog/uploads/media/69/19/69198bfe46fbe0ecfc7375fa92af4161/6acf33b95b53015550f293e31d27a350/AD_4nXeLMfVPskYE_vLLd-bdJzNjK_A9uEN27MaPL0VbwkatVv0B3zozWurUpHjKdNVIRzkoMwz8FatOjJlU2YxnawF-xusZF4FuG1WBNV8mFtfatxpdsGtI88mcpFeymBBYNGznaZTXzQ.webp" type="image/webp"/><img alt="audience distribution by country" data-original="https://static.semrush.com/blog/uploads/media/69/19/69198bfe46fbe0ecfc7375fa92af4161/6acf33b95b53015550f293e31d27a350/original" height="644" loading="lazy" src="https://static.semrush.com/blog/uploads/media/69/19/69198bfe46fbe0ecfc7375fa92af4161/6acf33b95b53015550f293e31d27a350/AD_4nXeLMfVPskYE_vLLd-bdJzNjK_A9uEN27MaPL0VbwkatVv0B3zozWurUpHjKdNVIRzkoMwz8FatOjJlU2YxnawF-xusZF4FuG1WBNV8mFtfatxpdsGtI88mcpFeymBBYNGznaZTXzQ" width="1010"/></picture></figure><p>After you’ve conducted research, use what you learn to create targeted marketing campaigns that are more likely to attract and engage your ideal customers.</p><h3 id="churn">Churn</h3><p>Minimizing customer churn is a top priority for SaaS companies. </p><p>Here are a few insights into the current state of customer retention within the SaaS space: </p><ol start="52"> <li style="list-style-type:decimal">In March 2024, the average B2B SaaS churn rate was -1.59%. That’s 12% lower than in March 2023. (<a href="https://www.paddle.com/blog/saas-market-report-march-2024" style="text-decoration:none">Paddle</a>, 2024)</li> <li style="list-style-type:decimal">In 2023, 68% of businesses replaced software more frequently than in 2021 (<a href="https://emt.gartnerweb.com/ngw/globalassets/en/digital-markets/documents/2023-global-software-buying-trends-report.pdf" style="text-decoration:none">Gartner</a>, 2023)</li> <li style="list-style-type:decimal">Of B2B SaaS companies with knowledge of how their integrations affect churn, 92% report less churn by customers who use integrations (<a href="https://go.partnerfleet.io/2024-state-of-saas-integrations" style="text-decoration:none">Partner Fleet</a>, 2024)</li></ol><h2 id="saas-trend-statistics">SaaS Trend Statistics</h2><h3 id="ai">AI</h3><p>AI is rapidly transforming the SaaS industry, with AI-driven features becoming key growth drivers.</p><p>Here are some stats reflecting how AI might shape the future of SaaS:</p><ol start="55"> <li style="list-style-type:decimal">The AI SaaS market is valued at $71.5 billion. This is set to increase to $775.4 billion by 2031. (<a href="https://www.verifiedmarketresearch.com/product/artificial-intelligence-saas-market/" style="text-decoration:none">Verified Market Research</a>, 2024)</li> <li style="list-style-type:decimal">In 2023, 76% of surveyed SaaS companies had launched or planned to launch AI features (<a href="https://openviewpartners.com/blog/2023-pricing-data/" style="text-decoration:none">OpenView Venture Partners</a>, 2023)</li> <li style="list-style-type:decimal">Over 62% of survey respondents say they think AI is the emerging trend that will have the greatest impact on the global SaaS market (<a href="https://www.statista.com/statistics/1452697/saas-emerging-trends-impact/" style="text-decoration:none">Statista</a>, 2024)</li></ol><p><em><strong>Further reading</strong></em><em>: </em><a href="https://www.semrush.com/blog/artificial-intelligence-stats/" style="text-decoration:none"><em>78 Artificial Intelligence Statistics and Trends for 2024</em></a></p><h3 id="integrations">Integrations</h3><p>Seamless integration with existing systems is a critical factor for SaaS success, driving both customer satisfaction and revenue growth. </p><p>Here are some key insights into the role of integrations in the SaaS market.</p><ol start="58"> <li style="list-style-type:decimal">Nearly 40% of buyers say ease of use with existing systems is a top consideration when buying software (<a href="https://www.gartner.com/en/digital-markets/insights/state-of-software-investment-2024" style="text-decoration:none">Gartner</a>, 2024)</li> <li style="list-style-type:decimal">B2B SaaS companies say that 35% of upsells are driven by integrations (<a href="https://go.partnerfleet.io/2024-state-of-saas-integrations" style="text-decoration:none">Partner Fleet</a>, 2024)</li> <li style="list-style-type:decimal">The top 50 software companies’ marketplaces have 1,498 apps on average (<a href="https://offers.hubspot.com/state-of-platforms-2024" style="text-decoration:none">HubSpot</a>, 2024)</li></ol><h2 id="use-saas-statistics-to-plan-your-strategy">Use SaaS Statistics to Plan Your Strategy</h2><p>Because of the demand for scalable, cloud-based solutions that enhance business productivity and security, SaaS shows no signs of slowing down. </p><p>That’s great news if you’re in the industry.</p><p>And you can combine what you learned from the above stats with <a href="https://www.semrush.com/trends/" style="text-decoration:none">Semrush .Trends</a> to do audience and competitor research that’s likely to yield better results.</p><p>Try it today.</p><div></div></article><div class="sc-gKclnd gIVKXH sc-edERGn fvqybF"><span data-test="share-block-description" class="sc-kLwhqv bAMHOQ">Share</span><div data-test="share-block" class="sc-gKclnd jVrJcj"><div class="sc-giYglK fSiAZB"><a data-test="share-block-link-text-linkedin" class="sc-gsDKAQ iavqdd SLink sc-ezbkAF dnAKzL" 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More","preview":"The SaaS market is expected to be worth about $819 billion by 2029. Find more SaaS stats in this list.","previewImage":"https://static.semrush.com/blog/uploads/media/84/e1/84e146a5dd5430f39970cd9d49c5a209/2e65e4b46bcc75294527f82730301e2b/saas-statistics.svg","socialImage":"https://static.semrush.com/blog/uploads/media/be/e8/bee8ec748bc7133fa05ab993e04c2802/a834149bcabc0f9685604866a999717d/saas-statistics-sm.png","extraImage":"https://static.semrush.com/blog/uploads/media/84/e1/84e146a5dd5430f39970cd9d49c5a209/2e65e4b46bcc75294527f82730301e2b/extra.png","altPreviewImage":"SaaS Statistics","altSocialImage":"SaaS Statistics","hidePreviewImage":0,"publishedAt":1731595560000,"editedAt":null,"metaTitle":"60 SaaS Statistics Related to Growth, Challenges, and More","metaDescription":"The SaaS market is expected to be worth about $819 billion by 2029. Find more SaaS stats in this list.","schemaOrg":"{}","author":{"id":205747137,"alias":"padrig-jones","name":"Padrig Jones","photo":"https://static.semrush.com/blog/uploads/user/e1/40/e140fa015e79adce513bbda5b7084693/2e6754de573956d8a02680d3359befcc.jpeg","photoMask":"star","company":"Semrush","position":"Freelance Senior Content Writer","bio":"Padrig is a freelance copywriter for B2B SaaS and marketing companies, specializing in writing conversion copy and traffic-generating long-form articles. He has over ten years of digital marketing experience and holds a master‘s degree in decision science.","socials":{"webSite":"https://www.semrush.com","twitter":"","facebook":"","instagram":"","linkedin":"https://www.linkedin.com/in/padrigjones/"},"isPublic":true,"expertise":["content strategy","content writing","conversion copywriting"],"education":[{"establishment":"University College London","degree":"BA in Linguistics","link":null},{"establishment":"University College London","degree":"MSc Cognitive and Decision Science","link":null}]},"blocks":{"articleContent":{"code":"article-content","itemId":36112,"enabled":false,"value":[]}},"critical":{"article-content":{"id":36112,"content":"\u003cp\u003eIf you’re in the software-as-a-service (SaaS) space, understanding market dynamics is key \u003c/p\u003e\u003cp\u003eWhat does the data say about SaaS growth rates? How much do companies typically spend on SaaS solutions? And what factors do brands consider when making SaaS purchases?\u003c/p\u003e\u003cp\u003eLet’s dive into the latest SaaS stats to find out.\u003c/p\u003e\u003ch2\u003eSaaS Industry Statistics Highlights \u003c/h2\u003e\u003cul\u003e \u003cli style=\"list-style-type:disc\"\u003eThe global SaaS market is set to generate nearly $819 billion in 2029\u003c/li\u003e \u003cli style=\"list-style-type:disc\"\u003eThe U.S. SaaS market is projected to surpass $445 billion by 2029\u003c/li\u003e \u003cli style=\"list-style-type:disc\"\u003eAlmost 50% of all venture capital investments were made in SaaS startups in 2023\u003c/li\u003e \u003cli style=\"list-style-type:disc\"\u003eMicrosoft is the SaaS company with the largest market capitalization (the total value of a company's publicly traded shares) in the world at more than $3 trillion\u003c/li\u003e \u003cli style=\"list-style-type:disc\"\u003eArtificial intelligence (AI) software is the biggest SaaS sector based on customer count, with 3 billion global customers\u003c/li\u003e \u003cli style=\"list-style-type:disc\"\u003eOrganizations use 130 SaaS apps on average\u003c/li\u003e \u003cli style=\"list-style-type:disc\"\u003eThe average B2B SaaS churn rate is -1.59%\u003c/li\u003e \u003cli style=\"list-style-type:disc\"\u003eGlobally, the SaaS inflation rate is nearly four times higher than the market inflation rate\u003c/li\u003e\u003c/ul\u003e\u003ch2\u003eSaaS Overall Market and Growth Statistics\u003c/h2\u003e\u003ch3\u003eGeneral SaaS Market Stats\u003c/h3\u003e\u003cp\u003eThe SaaS industry continues to expand rapidly, driven by increasing global demand and advancements in cloud technology. \u003c/p\u003e\u003cp\u003eHere are some key figures that capture the growth and scale of the worldwide SaaS market:\u003c/p\u003e\u003col\u003e \u003cli style=\"list-style-type:decimal\"\u003eGlobal SaaS market revenue is projected to reach $818.8 billion by 2029 (\u003ca href=\"https://www.statista.com/outlook/tmo/public-cloud/software-as-a-service/worldwide#revenue\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003cfigure class=\"easyimage easyimage-side\"\u003e\u003cpicture\u003e\u003csource srcset=\"https://static.semrush.com/blog/uploads/media/32/73/3273e35cf94c50734de3a26a4ca42643/365c61a87e93385de5200efb83b141f1/AD_4nXehpr3ivZf8pC0CMriZHjXp5da8uQx9ZP8puzorMRHB7chLrg_ZJaRZ_lLoO3bLQ6rlEHhwv9BVJdSc0wVBkTkhHUBsiZOJ1MZhn3obbRHR7eJ4TyvnVVbliLAi2QbTJjn9gf618w.webp\" type=\"image/webp\"\u003e\u003c/source\u003e\u003cimg alt=\"worldwide saas market revenue in billions shows a steady upward trend from 2017 to 2029\" data-original=\"https://static.semrush.com/blog/uploads/media/32/73/3273e35cf94c50734de3a26a4ca42643/365c61a87e93385de5200efb83b141f1/original\" height=\"1348\" loading=\"lazy\" src=\"https://static.semrush.com/blog/uploads/media/32/73/3273e35cf94c50734de3a26a4ca42643/365c61a87e93385de5200efb83b141f1/AD_4nXehpr3ivZf8pC0CMriZHjXp5da8uQx9ZP8puzorMRHB7chLrg_ZJaRZ_lLoO3bLQ6rlEHhwv9BVJdSc0wVBkTkhHUBsiZOJ1MZhn3obbRHR7eJ4TyvnVVbliLAi2QbTJjn9gf618w\" width=\"1010\"\u003e\u003c/picture\u003e\u003c/figure\u003e\u003cp class=\"note\"\u003e\u003cstrong\u003eImage Data Source\u003c/strong\u003e: Statista\u003c/p\u003e\u003col start=\"2\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe global SaaS market is expected to grow at a compound annual growth rate of 13.7% from 2023 to 2030 (\u003ca href=\"https://www.grandviewresearch.com/industry-analysis/saas-market-report\" style=\"text-decoration:none\"\u003eGrand View Research\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe North American SaaS market alone was valued at $131.18 billion in 2023 (\u003ca href=\"https://www.fortunebusinessinsights.com/software-as-a-service-saas-market-102222\" style=\"text-decoration:none\"\u003eFortune Business Insights\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eIn 2022, the global cloud computing market was valued at $413 billion, and SaaS made up $185 billion of that total (\u003ca href=\"https://www.statista.com/statistics/540525/worldwide-cloud-saas-revenue-share-by-vendor/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2023)\u003c/li\u003e\u003c/ol\u003e\u003ch3\u003eFunding\u003c/h3\u003e\u003cp\u003eVenture capital is a major source of funding for the SaaS industry, with significant investments flowing into SaaS solutions across a range of sectors.\u003c/p\u003e\u003cp\u003eHere are some stats revealing where funding is being allocated within the SaaS space:\u003c/p\u003e\u003col start=\"5\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eNearly 50% of all venture capital investing was in SaaS startups in 2023 (\u003ca href=\"https://dealroom.co/guides/saas\" style=\"text-decoration:none\"\u003eDealroom\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe top-funded SaaS industries are financial services software and AI software—each having received nearly $40 billion in funding. Analytics software is in third place, with around $30 billion in funding. (\u003ca href=\"https://www.statista.com/statistics/1447980/leading-industries-saas-by-funding-worldwide/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAlmost 90% of SaaS investment goes toward B2B companies (\u003ca href=\"https://dealroom.co/guides/saas\" style=\"text-decoration:none\"\u003eDealroom\u003c/a\u003e, 2023)\u003c/li\u003e\u003c/ol\u003e\u003cfigure class=\"easyimage easyimage-side\"\u003e\u003cpicture\u003e\u003csource srcset=\"https://static.semrush.com/blog/uploads/media/d5/ba/d5ba5162d1f46424c7023b8575de1293/e8150270d7898ae1231ffab580c1ca73/AD_4nXcgs1p6dXf5aSfqcy9aThBZ3q_pMOklUJUaqZLP46PxgkRE_5v1JLyY6xs_UHr9o2V0_XIJrl6aIE7WRz4jAlNhMPXvFuBoBgxdlQtderkuQ6yemDzctkHB5a-TfLvcLmmD3SSwvw.webp\" type=\"image/webp\"\u003e\u003c/source\u003e\u003cimg alt=\"88% of saas investment share is b2b while 12% is b2c\" data-original=\"https://static.semrush.com/blog/uploads/media/d5/ba/d5ba5162d1f46424c7023b8575de1293/e8150270d7898ae1231ffab580c1ca73/original\" height=\"993\" loading=\"lazy\" src=\"https://static.semrush.com/blog/uploads/media/d5/ba/d5ba5162d1f46424c7023b8575de1293/e8150270d7898ae1231ffab580c1ca73/AD_4nXcgs1p6dXf5aSfqcy9aThBZ3q_pMOklUJUaqZLP46PxgkRE_5v1JLyY6xs_UHr9o2V0_XIJrl6aIE7WRz4jAlNhMPXvFuBoBgxdlQtderkuQ6yemDzctkHB5a-TfLvcLmmD3SSwvw\" width=\"1010\"\u003e\u003c/picture\u003e\u003c/figure\u003e\u003cp class=\"note\"\u003e\u003cstrong\u003eImage Data Source\u003c/strong\u003e: Dealroom\u003c/p\u003e\u003col start=\"8\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eAt $14 billion, fintech is the B2B SaaS category that’s received the most venture capital funding (\u003ca href=\"https://dealroom.co/guides/saas\" style=\"text-decoration:none\"\u003eDealroom\u003c/a\u003e, 2023)\u003c/li\u003e\u003c/ol\u003e\u003ch3\u003eMajor Industries and Individual Players\u003c/h3\u003e\u003cp\u003eSaaS spans a variety of industries—many of which contain a substantial workforce and extensive customer base. \u003c/p\u003e\u003cp\u003eHere’s a closer look at the major sectors and key players driving the SaaS market forward:\u003c/p\u003e\u003col start=\"9\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe top SaaS industries by number of employees are financial services software, analytics software, and AI software. Each of these three industries has over 100,000 employees. (\u003ca href=\"https://www.statista.com/statistics/1447983/leading-industries-saas-by-employees-worldwide/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe top SaaS industries based on the total number of companies are AI software, analytics software, and financial services software. There are around 4,300 companies between these three industries worldwide. (\u003ca href=\"https://www.statista.com/statistics/1447921/leading-industries-saas-by-companies/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAI software is the top SaaS industry by number of customers, with almost 3 billion customers worldwide (\u003ca href=\"https://www.statista.com/statistics/1447987/leading-industries-saas-by-customers-worldwide/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024) \u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAfter AI software, the top SaaS industries by customer count are analytics software, ecommerce software, and security software—with around 1.9 billion customers each (\u003ca href=\"https://www.statista.com/statistics/1447987/leading-industries-saas-by-customers-worldwide/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eMicrosoft is the SaaS company with the largest market capitalization—over $3 trillion. Other major players include Apple, Alphabet, Oracle, Adobe, Intuit, IBM, and ServiceNow. (\u003ca href=\"https://www.statista.com/statistics/1496279/top-10-saas-companies/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eMicrosoft has the greatest share of the SaaS market revenue, with about 22% of the market (\u003ca href=\"https://www.statista.com/statistics/540525/worldwide-cloud-saas-revenue-share-by-vendor/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eSalesforce is the biggest company primarily focused on SaaS listed on the U.S. stock market (by market capitalization). Other top contenders include Adobe, ServiceNow, Intuit, and Shopify. (\u003ca href=\"https://www.mikesonders.com/largest-saas-companies/\" style=\"text-decoration:none\"\u003eMike Sonders\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003cfigure class=\"easyimage easyimage-side\"\u003e\u003cpicture\u003e\u003csource srcset=\"https://static.semrush.com/blog/uploads/media/fc/1b/fc1bcc250d69ec9f06ac1166d6caa76c/f20510f36ee281da6224b0defb1fbd64/AD_4nXe2DRBeGbNTCNqq1iV6-5cXIWsHxkiTwXYu53hM4jgUaaZMI_Cpgl0ArjxScxds0DCfclVYn_88a-9lgP_vCidCytlbjQ7KZFz__EniEJQiTw736aMY1Ilai-WPTNHdosJOb1dRlQ.webp\" type=\"image/webp\"\u003e\u003c/source\u003e\u003cimg alt=\"bar chart showing top 10 saas companies on the us stock market with market cap in billions\" data-original=\"https://static.semrush.com/blog/uploads/media/fc/1b/fc1bcc250d69ec9f06ac1166d6caa76c/f20510f36ee281da6224b0defb1fbd64/original\" height=\"1600\" loading=\"lazy\" src=\"https://static.semrush.com/blog/uploads/media/fc/1b/fc1bcc250d69ec9f06ac1166d6caa76c/f20510f36ee281da6224b0defb1fbd64/AD_4nXe2DRBeGbNTCNqq1iV6-5cXIWsHxkiTwXYu53hM4jgUaaZMI_Cpgl0ArjxScxds0DCfclVYn_88a-9lgP_vCidCytlbjQ7KZFz__EniEJQiTw736aMY1Ilai-WPTNHdosJOb1dRlQ\" width=\"1010\"\u003e\u003c/picture\u003e\u003c/figure\u003e\u003cp class=\"note\"\u003e\u003cstrong\u003eImage Data Source\u003c/strong\u003e: Mike Sonders\u003c/p\u003e\u003col start=\"16\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eSalesforce’s annual revenue reached almost $35 billion in its 2024 fiscal year (\u003ca href=\"https://s23.q4cdn.com/574569502/files/doc_financials/2024/ar/salesforce-fy24-annual-report.pdf\" style=\"text-decoration:none\"\u003eSalesforce\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eOracle’s annual revenue reached $53 billion in its 2024 fiscal year. Over $39 billion of this revenue came from the company’s cloud services and license support division. (\u003ca href=\"https://investor.oracle.com/investor-news/news-details/2024/Oracle-Announces-Fiscal-2024-Fourth-Quarter-and-Fiscal-Full-Year-Financial-Results/default.aspx\" style=\"text-decoration:none\"\u003eOracle\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eSAP—an enterprise software company based in Germany—generated €31 billion in revenue in 2023. Almost €27 billion of this came from cloud and software sales. (\u003ca href=\"https://www.sap.com/docs/download/investors/2023/sap-2023-annual-report-form-20f.pdf\" style=\"text-decoration:none\"\u003eSAP\u003c/a\u003e, 2023)\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eIf you’re a SaaS marketer, researching how your closest competitors acquire traffic can help you improve your own web strategy.\u003c/p\u003e\u003cp\u003eThe \u003ca href=\"https://www.semrush.com/analytics/traffic/\" style=\"text-decoration:none\"\u003eTraffic Analytics\u003c/a\u003e tool allows you to dig into your competitor’s website data. You can see which of their pages drive the most engagement, where their traffic comes from, and the extent to which your online audiences overlap.\u003c/p\u003e\u003cfigure class=\"easyimage easyimage-side\"\u003e\u003cpicture\u003e\u003csource srcset=\"https://static.semrush.com/blog/uploads/media/10/50/105018eb4eb370904bbffb21620b58f9/ea9d07a92f851d74bf9cc2249a9e6183/AD_4nXff8Q7GtLs_fkEJkDk7VYs3SSMX9sa5AQRXu1cCqyyYoWwqVWBtpTZQ6mw-Wls8z3P7Iun_5mJsdkiF0ydU4FLHTdO2LhmFAMyAWKKPtvKjQoe4vem1YiQ3jabOBd-C5suCr5cu.webp\" type=\"image/webp\"\u003e\u003c/source\u003e\u003cimg alt=\"traffic journey chart shows site visited before landing on salesforce and where this audience went after visiting salesforce\" data-original=\"https://static.semrush.com/blog/uploads/media/10/50/105018eb4eb370904bbffb21620b58f9/ea9d07a92f851d74bf9cc2249a9e6183/original\" height=\"988\" loading=\"lazy\" src=\"https://static.semrush.com/blog/uploads/media/10/50/105018eb4eb370904bbffb21620b58f9/ea9d07a92f851d74bf9cc2249a9e6183/AD_4nXff8Q7GtLs_fkEJkDk7VYs3SSMX9sa5AQRXu1cCqyyYoWwqVWBtpTZQ6mw-Wls8z3P7Iun_5mJsdkiF0ydU4FLHTdO2LhmFAMyAWKKPtvKjQoe4vem1YiQ3jabOBd-C5suCr5cu\" width=\"1010\"\u003e\u003c/picture\u003e\u003c/figure\u003e\u003ch3\u003eInternational Markets \u003c/h3\u003e\u003cp\u003eSaaS continues to grow across global markets, with various regions contributing significantly to the industry’s expansion.\u003c/p\u003e\u003cp\u003eHere’s a look at some of the main regions driving SaaS adoption and revenue:\u003c/p\u003e\u003col start=\"19\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eNorth America dominates the worldwide SaaS market, claiming 44% of global revenue (\u003ca href=\"https://www.grandviewresearch.com/industry-analysis/saas-market-report\" style=\"text-decoration:none\"\u003eGrand View Research\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe U.S. SaaS market is forecast to reach $445.6 billion by 2029 (\u003ca href=\"https://www.statista.com/outlook/tmo/public-cloud/software-as-a-service/united-states\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThere are around 9,100 SaaS companies in the U.S. and about 15 billion global customers among them, putting the U.S. in the lead (\u003ca href=\"https://www.statista.com/statistics/1239046/top-saas-countries-list/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe U.K. is next and has 1,500 SaaS companies. And Canada is third, with 992 companies. (\u003ca href=\"https://www.statista.com/statistics/1239046/top-saas-countries-list/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eBy 2029, the German SaaS market is expected to reach $38.9 billion (\u003ca href=\"https://www.statista.com/outlook/tmo/public-cloud/software-as-a-service/germany#revenue\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe Indian SaaS market is forecast to generate $26.4 billion by 2026 (\u003ca href=\"https://www.statista.com/statistics/1187372/india-revenue-of-saas-companies/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eChina’s SaaS market is forecast to reach $29.8 billion in 2027 (\u003ca href=\"https://www.statista.com/forecasts/1415225/apac-saas-revenue-by-country\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003ch2\u003eSaaS Financial Statistics\u003c/h2\u003e\u003ch3\u003eCompany Revenue\u003c/h3\u003e\u003cp\u003eRevenue and profitability vary widely across SaaS companies, along with funding sources and growth strategies.\u003c/p\u003e\u003cp\u003eThese stats give a snapshot of how different types of SaaS companies perform financially:\u003c/p\u003e\u003col start=\"26\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eAlmost 80% of bootstrapped companies are profitable or breaking even. This figure is just 37% for equity-backed companies. (\u003ca href=\"https://www.saas-capital.com/blog-posts/spending-benchmarks-for-private-b2b-saas-companies/\" style=\"text-decoration:none\"\u003eSaaS Capital\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eIn 2023, bootstrapped companies reported a median growth of 25%. While equity-backed companies reported a median growth of 30%. (\u003ca href=\"https://www.saas-capital.com/research/private-saas-company-growth-rate-benchmarks/\" style=\"text-decoration:none\"\u003eSaaS Capital\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eHigh-growth SaaS companies spend 50% or more of their revenue on sales and marketing (\u003ca href=\"https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/saas-and-the-rule-of-40-keys-to-the-critical-value-creation-metric\" style=\"text-decoration:none\"\u003eMcKinsey \u0026amp; Company\u003c/a\u003e, 2021)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe median revenue per employee for private SaaS companies is $125,000 (\u003ca href=\"https://www.saas-capital.com/blog-posts/revenue-per-employee-benchmarks-for-private-saas-companies/\" style=\"text-decoration:none\"\u003eSaaS Capital\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eEquity-backed SaaS companies with $1 million to $3 million in annual recurring revenue (ARR) have a median ARR per employee of $73,333. This figure is $108,000 for bootstrapped companies. (\u003ca href=\"https://www.saas-capital.com/blog-posts/revenue-per-employee-benchmarks-for-private-saas-companies/\" style=\"text-decoration:none\"\u003eSaaS Capital\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003ch3\u003eUser Spending \u003c/h3\u003e\u003cp\u003eBusinesses of all sizes continue to invest heavily in SaaS solutions, with recent price increases also contributing to the rise in spending.\u003c/p\u003e\u003cp\u003eHere’s a closer look at current spending patterns in the SaaS market:\u003c/p\u003e\u003col start=\"31\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eGlobal user spending on SaaS is estimated to reach over $295 billion in 2025. (\u003ca href=\"https://www.statista.com/statistics/505243/worldwide-software-as-a-service-revenue/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003cfigure class=\"easyimage easyimage-side\"\u003e\u003cpicture\u003e\u003csource srcset=\"https://static.semrush.com/blog/uploads/media/66/07/660740e9d80540723b04919d9b20d85a/a859fd9f6aca49b1e6611bd21759961a/AD_4nXdBh5M6syiVstuo1Q6_jchq9vWHjlFLF1RwqrZDKhtTsyxF7l2K5PmzFVL5i3965DPI7qMtFbdLfI27vfkQTT1urDRUArFMDRL3XPCN5FtASdo3KV7mw4IoZZwagqqH7kvLY8VVEA.webp\" type=\"image/webp\"\u003e\u003c/source\u003e\u003cimg alt=\"global saas user spending chart shows a sharper curve upward trend in market spending in billions\" data-original=\"https://static.semrush.com/blog/uploads/media/66/07/660740e9d80540723b04919d9b20d85a/a859fd9f6aca49b1e6611bd21759961a/original\" height=\"1560\" loading=\"lazy\" src=\"https://static.semrush.com/blog/uploads/media/66/07/660740e9d80540723b04919d9b20d85a/a859fd9f6aca49b1e6611bd21759961a/AD_4nXdBh5M6syiVstuo1Q6_jchq9vWHjlFLF1RwqrZDKhtTsyxF7l2K5PmzFVL5i3965DPI7qMtFbdLfI27vfkQTT1urDRUArFMDRL3XPCN5FtASdo3KV7mw4IoZZwagqqH7kvLY8VVEA\" width=\"1010\"\u003e\u003c/picture\u003e\u003c/figure\u003e\u003cp class=\"note\"\u003e\u003cstrong\u003eImage Data Source\u003c/strong\u003e: Statista\u003c/p\u003e\u003col start=\"32\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eAlmost 35% of Businesses spend between $2.4 million and $12 million on SaaS solutions (\u003ca href=\"https://www.statista.com/statistics/1472733/organizations-saas-annual-spend-globally/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eIn 2024, businesses spend around $8,700 per employee on SaaS products. This is up from $7,900 in 2023. (\u003ca href=\"https://www.vertice.one/l/saas-inflation-index-report\" style=\"text-decoration:none\"\u003eVertice\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAbout 45% of small- to medium-sized businesses (SMBs) report spending up to $600,000 annually on SaaS. While around 16% spent up to $2.4 million. (\u003ca href=\"https://www.statista.com/statistics/1472790/smb-saas-annual-spend-globally/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe cost of SaaS solutions has increased by 33% since 2021 (\u003ca href=\"https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf\" style=\"text-decoration:none\"\u003eBetterCloud\u003c/a\u003e, 2024) \u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eOn average, SaaS prices increased by 12% between 2022 and 2023 (\u003ca href=\"https://www.vertice.one/insights/august-2023\" style=\"text-decoration:none\"\u003eVertice\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eGlobally, the SaaS inflation rate is almost four times higher than the standard market inflation rate (\u003ca href=\"https://www.vertice.one/l/saas-inflation-index-report\" style=\"text-decoration:none\"\u003eVertice\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003ch3\u003ePricing Models\u003c/h3\u003e\u003cp\u003eSaaS companies use a mix of pricing strategies to meet diverse customer needs and market demands. \u003c/p\u003e\u003cp\u003eHere are some of the key pricing trends shaping SaaS today:\u003c/p\u003e\u003col start=\"38\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eOf surveyed SaaS companies, 23% have usage-based subscription tiers. And 18% have a largely usage-based model (\u003ca href=\"https://openviewpartners.com/blog/2023-pricing-data/\" style=\"text-decoration:none\"\u003eOpenView Venture Partners\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAround 60% of surveyed SaaS companies make an effort to adapt their pricing to local markets (\u003ca href=\"https://openviewpartners.com/blog/2023-pricing-data/\" style=\"text-decoration:none\"\u003eOpenView Venture Partners\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAbout one-third of global survey respondents say per-user pricing is their preferred pricing model. Use-based pricing came in second place, with around 30% of votes. (\u003ca href=\"https://www.statista.com/statistics/1452696/saas-product-pricing-model/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eOnly 45% of SaaS companies publish their pricing (\u003ca href=\"https://openviewpartners.com/blog/saas-pricing-insights/\" style=\"text-decoration:none\"\u003eOpenView Venture Partners\u003c/a\u003e, 2021)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAround 60% of SaaS vendors deliberately mask price increases (\u003ca href=\"https://www.vertice.one/l/saas-inflation-index-report\" style=\"text-decoration:none\"\u003eVertice\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003ch2\u003eSaaS Use and Adoption Statistics\u003c/h2\u003e\u003ch3\u003eUse and Purchasing Decisions\u003c/h3\u003e\u003cp\u003eThe decision-making process for SaaS purchases is influenced by several factors, from security concerns to productivity goals.\u003cbr\u003eHere are some stats to illustrate how organizations choose their SaaS solutions.\u003c/p\u003e\u003col start=\"43\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eOrganizations use 112 SaaS apps on average (\u003ca href=\"https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf\" style=\"text-decoration:none\"\u003eBetterCloud\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eOf surveyed businesses, 37% say boosting productivity is their main reason for buying new software. Other top reasons include addressing security concerns (30%), expanding product offerings (27%), and targeting new customers (26%). (\u003ca href=\"https://emt.gartnerweb.com/ngw/globalassets/en/digital-markets/documents/2023-global-software-buying-trends-report.pdf\" style=\"text-decoration:none\"\u003eGartner\u003c/a\u003e, 2023) \u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eMore than 40% of businesses say that security is their top consideration when buying new software (\u003ca href=\"https://emt.gartnerweb.com/ngw/globalassets/en/digital-markets/documents/2023-global-software-buying-trends-report.pdf\" style=\"text-decoration:none\"\u003eGartner\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eMore than 80% of software buyers take into account a vendor’s history with software breaches when studying software solutions (\u003ca href=\"https://research.g2.com/2024-buyer-behavior-report\" style=\"text-decoration:none\"\u003eG2\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eFor 33% of businesses, there are two to three people on the software buying committee (\u003ca href=\"https://www.gartner.com/en/digital-markets/insights/state-of-software-investment-2024\" style=\"text-decoration:none\"\u003eGartner\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003cfigure class=\"easyimage easyimage-side\"\u003e\u003cpicture\u003e\u003csource srcset=\"https://static.semrush.com/blog/uploads/media/5d/ae/5dae4eb0247c2ca83f1cf97a1bd36d1a/85a065242cf7123cd5ed70956d8b171d/AD_4nXfyB5QM79q7klhwrYqK45cNGBHQQmiFLu7YOOPWsCVYO1SoI3Tff98OfJgz2_ITemGMTRKKeGyNqAVu0WBt54ZrGZA7jRdw4wWJYeTs3Q3CglU6zT5DSp0dYnLy4aH9gnye7t9LtQ.webp\" type=\"image/webp\"\u003e\u003c/source\u003e\u003cimg alt=\"the other third is 4-6 people on a software buying committee and the remainder is a mix of 7-10 people, more than 10 people, and 1 person\" data-original=\"https://static.semrush.com/blog/uploads/media/5d/ae/5dae4eb0247c2ca83f1cf97a1bd36d1a/85a065242cf7123cd5ed70956d8b171d/original\" height=\"993\" loading=\"lazy\" src=\"https://static.semrush.com/blog/uploads/media/5d/ae/5dae4eb0247c2ca83f1cf97a1bd36d1a/85a065242cf7123cd5ed70956d8b171d/AD_4nXfyB5QM79q7klhwrYqK45cNGBHQQmiFLu7YOOPWsCVYO1SoI3Tff98OfJgz2_ITemGMTRKKeGyNqAVu0WBt54ZrGZA7jRdw4wWJYeTs3Q3CglU6zT5DSp0dYnLy4aH9gnye7t9LtQ\" width=\"1010\"\u003e\u003c/picture\u003e\u003c/figure\u003e\u003cp class=\"note\"\u003e\u003cstrong\u003eImage Data Source\u003c/strong\u003e: Gartner\u003c/p\u003e\u003col start=\"48\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eAlmost 40% of businesses always involve the finance team in software purchase decisions (\u003ca href=\"https://www.gartner.com/en/digital-markets/insights/state-of-software-investment-2024\" style=\"text-decoration:none\"\u003eGartner\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eOver 50% of organizations scrutinize their SaaS purchasing decisions more than in previous years (\u003ca href=\"https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf\" style=\"text-decoration:none\"\u003eBetterCloud\u003c/a\u003e, 2024) \u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eAround 40% of SaaS licenses are going unused (\u003ca href=\"https://productiv.com/state-of-saas\" style=\"text-decoration:none\"\u003eProductiv\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe average company wastes over $135,000 in unused software licenses (\u003ca href=\"https://pages.bettercloud.com/rs/719-KZY-706/images/BetterCloud-State-of-SaaSOps-2024.pdf\" style=\"text-decoration:none\"\u003eBetterCloud\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eIf you’re a SaaS marketer looking to gain more users, do thorough audience research to learn details about your ideal buyers that can boost your acquisition efforts.\u003c/p\u003e\u003cp\u003eYou can browse resources like industry reports. Or, use Semrush’s \u003ca href=\"https://www.semrush.com/analytics/one2target/\" style=\"text-decoration:none\"\u003eOne2Target\u003c/a\u003e tool. \u003c/p\u003e\u003cp\u003eIt enables you to analyze audience demographics, socioeconomic data points, and identify key customer behaviors and preferences.\u003c/p\u003e\u003cfigure class=\"easyimage easyimage-side\"\u003e\u003cpicture\u003e\u003csource srcset=\"https://static.semrush.com/blog/uploads/media/69/19/69198bfe46fbe0ecfc7375fa92af4161/6acf33b95b53015550f293e31d27a350/AD_4nXeLMfVPskYE_vLLd-bdJzNjK_A9uEN27MaPL0VbwkatVv0B3zozWurUpHjKdNVIRzkoMwz8FatOjJlU2YxnawF-xusZF4FuG1WBNV8mFtfatxpdsGtI88mcpFeymBBYNGznaZTXzQ.webp\" type=\"image/webp\"\u003e\u003c/source\u003e\u003cimg alt=\"audience distribution by country\" data-original=\"https://static.semrush.com/blog/uploads/media/69/19/69198bfe46fbe0ecfc7375fa92af4161/6acf33b95b53015550f293e31d27a350/original\" height=\"644\" loading=\"lazy\" src=\"https://static.semrush.com/blog/uploads/media/69/19/69198bfe46fbe0ecfc7375fa92af4161/6acf33b95b53015550f293e31d27a350/AD_4nXeLMfVPskYE_vLLd-bdJzNjK_A9uEN27MaPL0VbwkatVv0B3zozWurUpHjKdNVIRzkoMwz8FatOjJlU2YxnawF-xusZF4FuG1WBNV8mFtfatxpdsGtI88mcpFeymBBYNGznaZTXzQ\" width=\"1010\"\u003e\u003c/picture\u003e\u003c/figure\u003e\u003cp\u003eAfter you’ve conducted research, use what you learn to create targeted marketing campaigns that are more likely to attract and engage your ideal customers.\u003c/p\u003e\u003ch3\u003eChurn\u003c/h3\u003e\u003cp\u003eMinimizing customer churn is a top priority for SaaS companies. \u003c/p\u003e\u003cp\u003eHere are a few insights into the current state of customer retention within the SaaS space: \u003c/p\u003e\u003col start=\"52\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eIn March 2024, the average B2B SaaS churn rate was -1.59%. That’s 12% lower than in March 2023. (\u003ca href=\"https://www.paddle.com/blog/saas-market-report-march-2024\" style=\"text-decoration:none\"\u003ePaddle\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eIn 2023, 68% of businesses replaced software more frequently than in 2021 (\u003ca href=\"https://emt.gartnerweb.com/ngw/globalassets/en/digital-markets/documents/2023-global-software-buying-trends-report.pdf\" style=\"text-decoration:none\"\u003eGartner\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eOf B2B SaaS companies with knowledge of how their integrations affect churn, 92% report less churn by customers who use integrations (\u003ca href=\"https://go.partnerfleet.io/2024-state-of-saas-integrations\" style=\"text-decoration:none\"\u003ePartner Fleet\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003ch2\u003eSaaS Trend Statistics\u003c/h2\u003e\u003ch3\u003eAI\u003c/h3\u003e\u003cp\u003eAI is rapidly transforming the SaaS industry, with AI-driven features becoming key growth drivers.\u003c/p\u003e\u003cp\u003eHere are some stats reflecting how AI might shape the future of SaaS:\u003c/p\u003e\u003col start=\"55\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe AI SaaS market is valued at $71.5 billion. This is set to increase to $775.4 billion by 2031. (\u003ca href=\"https://www.verifiedmarketresearch.com/product/artificial-intelligence-saas-market/\" style=\"text-decoration:none\"\u003eVerified Market Research\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eIn 2023, 76% of surveyed SaaS companies had launched or planned to launch AI features (\u003ca href=\"https://openviewpartners.com/blog/2023-pricing-data/\" style=\"text-decoration:none\"\u003eOpenView Venture Partners\u003c/a\u003e, 2023)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eOver 62% of survey respondents say they think AI is the emerging trend that will have the greatest impact on the global SaaS market (\u003ca href=\"https://www.statista.com/statistics/1452697/saas-emerging-trends-impact/\" style=\"text-decoration:none\"\u003eStatista\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cem\u003e\u003cstrong\u003eFurther reading\u003c/strong\u003e\u003c/em\u003e\u003cem\u003e: \u003c/em\u003e\u003ca href=\"https://www.semrush.com/blog/artificial-intelligence-stats/\" style=\"text-decoration:none\"\u003e\u003cem\u003e78 Artificial Intelligence Statistics and Trends for 2024\u003c/em\u003e\u003c/a\u003e\u003c/p\u003e\u003ch3\u003eIntegrations\u003c/h3\u003e\u003cp\u003eSeamless integration with existing systems is a critical factor for SaaS success, driving both customer satisfaction and revenue growth. \u003c/p\u003e\u003cp\u003eHere are some key insights into the role of integrations in the SaaS market.\u003c/p\u003e\u003col start=\"58\"\u003e \u003cli style=\"list-style-type:decimal\"\u003eNearly 40% of buyers say ease of use with existing systems is a top consideration when buying software (\u003ca href=\"https://www.gartner.com/en/digital-markets/insights/state-of-software-investment-2024\" style=\"text-decoration:none\"\u003eGartner\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eB2B SaaS companies say that 35% of upsells are driven by integrations (\u003ca href=\"https://go.partnerfleet.io/2024-state-of-saas-integrations\" style=\"text-decoration:none\"\u003ePartner Fleet\u003c/a\u003e, 2024)\u003c/li\u003e \u003cli style=\"list-style-type:decimal\"\u003eThe top 50 software companies’ marketplaces have 1,498 apps on average (\u003ca href=\"https://offers.hubspot.com/state-of-platforms-2024\" style=\"text-decoration:none\"\u003eHubSpot\u003c/a\u003e, 2024)\u003c/li\u003e\u003c/ol\u003e\u003ch2\u003eUse SaaS Statistics to Plan Your Strategy\u003c/h2\u003e\u003cp\u003eBecause of the demand for scalable, cloud-based solutions that enhance business productivity and security, SaaS shows no signs of slowing down. \u003c/p\u003e\u003cp\u003eThat’s great news if you’re in the industry.\u003c/p\u003e\u003cp\u003eAnd you can combine what you learned from the above stats with \u003ca href=\"https://www.semrush.com/trends/\" style=\"text-decoration:none\"\u003eSemrush .Trends\u003c/a\u003e to do audience and competitor research that’s likely to yield better results.\u003c/p\u003e\u003cp\u003eTry it today.\u003c/p\u003e\u003cp\u003e[create-campaign destination_url=\"https://www.semrush.com/trends/\" show_input=\"false\" header=\"Uncover Market Insights\" text=\"with Semrush .Trends\" button_text=\"Sign Up Now\" bg_images=\"https://static.semrush.com/blog/uploads/media/96/fd/96fd495930d058321d5f78f5554aff88/trial-superbanner-1.png\" bg_button=\"-success\"]\u003c/p\u003e","galaxy":"no_galaxy","team":"en_editorial_team","isReviewedByExpert":false}},"alternates":[],"category":{"id":339,"name":"General Marketing","slug":"general-marketing","lang":"en","description":"Whether you‘re new to marketing or a seasoned pro, our General Marketing category offers tips, tools, and expert advice to boost your marketing efforts. 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