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The software as a service (SaaS) sector has had exponential progress over the past few years, and in line with this, we have created a list of 20+ of the most important SaaS statistics to demonstrate how the industry currently dominates the market!
As of the year 2022, the value of the software as a service (SaaS) market is estimated to be more than a staggering $170 billion. This incredible figure represents an increase of more than 5 times the previous value of the market, which was $31.5 billion in 2015.
The global SaaS market size was assessed at $121.33 billion in 2020, according to Allied Market Research, and is anticipated to reach $702.19 billion by 2030, rising at a CAGR of 18.82% from 2021 to 2030.
According to the latest data released, there are approximately 30,000 SaaS companies all around the world with over 17,000 of them being based in the United States itself!
In the United States in 2022, there are approximately 17,000 software as a service (SaaS) companies. And all of them put together have approximately 59 billion customers across the world.
In light of this, the United States is the dominant nation in the software as a service (SaaS) market since it has around 8 times as many SaaS businesses as any other country in the entire world.
In spite of the widespread skepticism and doubt that existed over cloud services companies at the time of the industry’s creation, LinkedIn was able to prove that this sector in reality has the capability of breaking into the billion-dollar club.
In the year 2008, it was formally revealed that LinkedIn had a valuation of $1 billion, which led to the sector seeing its first privately held cloud company hit the billion-dollar valuation mark.
This figure has in fact skyrocketed over the course of the past several years, and at the moment, LinkedIn is estimated to be worth an astounding $10 billion.
The SaaS market has had such rapid expansion in recent years that it is now considered an essential component of almost all operational businesses.
And before you ask, yes, when we say almost every, we really do mean it! At the moment, one or more SaaS solutions are being used by 99% of all enterprises worldwide to improve the efficiency and effectiveness of their day-to-day operations.
Here the top 3 spots are reserved by:
These industries make up the maximum chunk of customers, almost at the 40 billion mark!
Here’s a quick view of the top 10 industries for SaaS brands:
Microsoft lifts the trophy when it comes to the “Largest SaaS Business” with a market capitalization of $1.80 trillion!
In the last 5 years, there has been an increasing trend in Microsoft’s market capital, marking the highest peak in Nov-Dec of 2021
According to Cobloom, a healthy SaaS churn rate benchmark for annual churn falls between 5% and 7%, and when it comes to the monthly churn, a number that is under 1% is considered to be a good number!
When it comes to the churn rate that is determined by the age of a firm, a desirable yearly churn rate for early SaaS startups and SMB-market companies falls between 10% and 15% for the first year, whereas their monthly churn rate should be in the range of 3% to 5%.
At the moment, SaaS software accounts for approximately 15% of each company’s total budget, and it is projected that expenditure on SaaS as a whole has climbed by an astounding 241% over the course of the last five years.
This demonstrates that the SaaS sector is expanding at a rate that is beyond anyone’s ability to grasp!
Here are the top 3 SaaS acquisitions done in the first half of 2021:
In the year 2021, a number of SaaS businesses made their debut on the investment market and entered the IPO sector.
When compared to the number of firms that went public for the first time in 2020, the number of companies that did so in 2021 showed a tremendous surge of 125%!
When compared to other leading providers of video conferencing software as a service, Zoom reported a 148 percent increase in revenue, going from $90 million in the first quarter of 2019 to $225 million in the first quarter of 2020.
According to multiple surveys done, a single company uses over 80 different SaaS tools to streamline every aspect of its business operations and improve customer experience, and about 61% of businesses have more than 100 SaaS app that their employees use.
Email, sales management, customer relationship management (CRM), financial management, human resource management (HRM), billing, and collaboration are just a few examples of the various business activities included.
Here are some of SaaS usage and spending stats:
According to a **survey,** roughly one-third, or approximately 29%, of the money spent on SaaS subscriptions is either wasted or underutilized.
Even in terms of expenditures, it has been reported that 31% of the money spent in this industry either isn’t put to good use or is wasted.
According to **Saastr,** the current average valuation price for a SaaS is projected to be in the neighborhood of $27 billion. This demonstrates why individuals are so interested in starting their own SaaS firm, and the number has been noted to be on the rise, especially in the last 5 years!
It is anticipated that by the year 2025, the size of the US SaaS sector would have increased by more than double its current size, thereby further solidifying its leadership position in the SaaS market.
It is projected that the value of the SaaS industry in the United States will climb from an anticipated total of $108.4 billion in 2020 to about $225 billion in 2025, representing an increase of more than 100 percent.
According to the findings of a study that was carried out by Tracxn, the number of SaaS firms in India has almost quadrupled in the time span between 2014 and 2019 — going from 3,000 in 2014 to 8,336 in May of this year.
This steady increase in size showed that the Indian SaaS market is on the cusp of smashing many more records very soon.
Having said that, it is anticipated that India’s software as a service (SaaS) sector will reach between $50 and $70 billion by the year 2030. Because of this new turn of events, it is now in a position to capture between 4% and 6% of the worldwide SaaS market by that time!
The use of SaaS is becoming increasingly popular, and a significant number of businesses are moving into this space and expanding at a phenomenal rate.
Here are some of the top 10 fastest-growing SaaS organizations and cloud-based SaaS companies based on various factors such as revenue churn, existing customer count, customer acquisition rate, customer satisfaction, among many other factors: