Nearly most businesses apply SaaS these days since it improves, helps, and advances the company more than what exists right now.
In order to be more helpful and more straightforward to you, we compile +100 SaaS statistics that you can apply to your business. That is how you can understand the meaning and the importance of SaaS, whether you want to work with or be one of the SaaS companies.
You do not need to worry about getting what SaaS is because we will explain it to you by describing details. However, if you have knowledge about what Saas is, you can choose the certain topic which you are curious about below from the table of contents!
SaaS is a method of hosting and using applications via the Internet through a subscription.
Typically, while you may need some confusing software stuff to deal with, SaaS helps you get rid of this.
You should know that it is not like a web application located on a server, but it is hosted on the cloud so you can reach it from anywhere, whereas a server needs the same network.
Especially with the effect of COVID-19, many people worldwide connect each other through the Internet, leading to the boost of SaaS.
SaaS is nearer than you think. The examples we share here are SaaS, and it has common purposes, including uniting, making something more manageable, and connecting.
Zoom: Zoom unites users around the world.
Canva: It is a tool to freely create content for the platforms you belong to and present distinct designs.
Box: No matter the distance, you can use Box to manage your business and its necessities like documentation, marketing, selling, and financing.
Netflix: By paying monthly or annually, you get more than what you demand, like movies, documentaries, short clips, etc.
Salesforce: As a CRM tool, Salesforce is a must to be mentioned because it is the market leader in public SaaS. Arranging, analyzing, and storing all that you have about your business can be controlled with Salesforce and it offers you a relief by doing so.
Slack: It is one of the cloud-based tools, and it provides a platform to connect with co-workers. Slack has made organizing and managing communication through the channels related to topics easier.
Nearly 40% of companies use SaaS almost entirely, and they are mostly satisfied doing so.
One of the most important reasons is that 70% of CIOs prefer using Saas for quickness and scalability.
SaaS has become accessible, and in a way, people are attracted to it because it is beyond the limits. With the help of SaaS, all boundaries and distances are destroyed.
Flexibility is a vital detail in business, so 37% of companies apply SaaS for it to improve their profession.
Technical professionals use SaaS solutions by 94% because SaaS gains more importance and demand.
Even around 2025, 80%of businesses organize themselves to change their systems to SaaS with the evolving world.
There are various pricing methods in the SaaS market, so sometimes, it has become more flexible as another stunning detail for those questioning SaaS.
When these all are taken into consideration, SaaS must seem appealing and logical to choose for your business.
Since there are many possibilities to use SaaS, it is good to know the categories of SaaS to apply.
So, here are the famous five :
1- Project Management SaaS: Monday, Trello
2- Workflow Automation SaaS: Zapier, IFTTT
3- Web Conferencing SaaS: Zoom, Slack
4- Forms SaaS: SurveyMonkey, MS Forms
5- Email Marketing Automation SaaS: Mailchimp, Customer.io
Before explaining the stats about SaaS churn, we need to explain what churn means.
Churn occurs when the service delays, has a problem in working or stops working. That is, if you experience churn with your business, it is no good sign.
As a business, if your churn rate is high, then it is also bad for your business’s future, and you should try hard to make things work and reduce the rate.
There are some reasons why churn rates can get high like:
High-growing companies separate as having low churn rates -around 39%- and high churn rates -approximately 34%-.
It would be best to be careful about churn because U.S. businesses spend $136 billion a year on avoidable customer churn.
A SaaS company’s net revenue churn must not be above 2%.
You may guess what we are trying to say when we talk about the importance and the statistics of SaaS.
Small businesses are interested in SaaS, and nearly 78% of them already deal with SaaS options.
However, we should emphasize the demand of the people by giving the fact that the SaaS industry is worth around $172 billion today .
Also, it seems that these high prices will not stop because the growth of the SaaS market is 18% each year.
Today, cloud-based business has gained so much importance that 84% of enterprises work with a multi-cloud strategy to manage their work more appropriately and better than the current conditions. That is how they can organize with the help of SaaS.
The companies who are aware of the impact of the SaaS generally use more SaaS than regular ones. Therefore, an average of 34 SaaS apps are used by these companies.
According to Gartner estimates, by the end of this year, the SaaS market is expected to reach $397.5 billion, which means that the current value of SaaS will continue to increase.
Moreover, around 2026 we will come across $1,025 billion in the global computing market on the predictions of the researchers.
Of course, not all companies are aware of the vitality of SaaS, so the distribution of SaaS companies is not equal.
Among the outstanding SaaS users, we encounter the United States of America since 80% of the top 100 SaaS companies settled in the USA.
Also, this rate refers to the fact that the US carries all before with over 8x more SaaS companies than the other countries.
According to the sources, the US has 17.000 companies and 59 billion customers.
Canada, Germany, and France are the three follower countries with relatively high companies, revenues, and customer rates.
By 2025, Germany is believed to have the largest and significant increase from €6.85 billion in 2020 to €16.3 billion among all SaaS companies.
On the Asia continent, India stands out with 983 companies and 2 billion customers.
Among the South American nations, Brazil gives utmost importance to SaaS as a startup model.
2 years ago, the SaaS market in Brazil was composed of Brazilian startups at 41.12%.
Just like the UK, China, India, and Brazil, SaaS industries are supposed to grow 2x from 2020 to 2025.
To focus on a specific area in the USA, Silicon Valley is where two-thirds of the top 100 SaaS companies are located.
California, Washington, New York, Massachusetts, and Utah are the first five top SaaS companies.
China has been growing year over year, and it gained ¥53.8 billion in 2020. It is also expected to grow more and more.
To use a SaaS service in China, it is a must that the server is located in China. Otherwise, it is illegal to maintain any SaaS service in China.
Japan did a lot to grow within the SaaS market. From 2017 to 2021, Japan achieved a growth of ¥1.22 billion, and it will continue to grow.
Based on the expectations, Japan will reach ¥1.67 billion by 2023 with such a growth rate.
It is obvious that SaaS has so much value because it provides many advantages for the companies that use SaaS.
Here are some more SaaS statistics:
Firstly, with the increasing significance of SaaS, it has become the most important tech in business success.
Another crucial point to focus on is the dispersion of SaaS applications. SaaS applications are mostly assigned based on;
Generally, most business owners -around 89%- highly care about personalization and choose tools that allow for personalization.
Agility is another most essential detail of SaaS, so 39% of business owners prefer SaaS since they see hope in enhancing their businesses.
When we change our perspectives to SaaS companies, they mostly -33% of them- tend to offer extra services since the rivalry is getting worse day by day.
Considering the financial part of Saas, the most common free trial period is 30 days.
Along with North America, Asia Pacific sees the good side and has the highest growth rate in the SaaS market .
We have mentioned why people choose to use SaaS with many significant points and statistics.
However, it can be good to take a look at the statistics of the people who use SaaS and the outcomes of it.
Adapting SaaS is quite critical when we regard the use of SaaS, and therefore 73% of businesses arrange themselves to correct their present use of the cloud.
By 2025, experts believe that the cloud will be the only source for 50% of enterprise software.
Turning to the statistics about the SaaS pricing, it is seen that the SaaS spending increased to 50% in 2020 for each company.
Flexera suggests that because of the COVID-19, more spending will be done on cloud usage than planned.
Also, from the resources of Flexera, the rate of growth in cloud usage and spending will increase at the same time.
There are a few points that can challenge using the public cloud for business, like:
SaaS is a game-changer. The Cloud computing market has a significant effect on the global business world.
Of course, SaaS was not alone while climbing the ladder because the COVID-19, which harmed nearly all the good things, helped SaaS rise and shine.
Only 39% of business owners claimed either a small negative impact or a positive result on the business budget.
SaaS is also interesting since the new visitors are from free trials- 84% of new SaaS customers.
Though many companies apply SaaS, 86% of businesses believe 80% of their software is required to face SaaS.
Even between the years of 2018 and 2020, SaaS apps were used and there appeared to be a 30% increase.
The distribution for the public cloud for some of the applications is as above:
SaaS apps can be observed in different categories. Therefore, we choose some apps and examine them with their specific statistics.
Let’s have a look!
As a public company founded by Eric Yuan, Zoom achieved great success.
Though at first, its impact can be underestimated, with the coming of the pandemic, Zoom has become one of the most popular SaaS and the fastest-growing apps.
Zoom has never stepped back since its foundation, and it had a 53% increase year-on-year when it generated $4 billion in revenue in 2021.
Though its loss was also high when the revenue was taken into consideration $400.6 million was never easy to reach on 31st January 2019.
Also, Slack has been one of the preferable choices for communicating with co-workers, and it affects the productivity of the working area.
Slack is a platform helping the teams feel more connected -84%-, believe in improvement -91-, and trust each other for work -75%-.
Salesforce has found a remarkable place among other SaaS companies.
From 2016 to 2021, there has been a lot in the revenue rates of Salesforce.
According to the sources, Salesforce starts worth $2.7 billion and reaches $5.19 billion in 2021 in terms of Salesforce Sales Cloud. In addition, overall revenue reached $21.3 billion in 2021.
In 2020, the overall CRM market witnessed Salesforce’s 19.5% claim by beating SAP, Oracle, Microsoft, and Adobe.
HubSpot is a Saas tool to help you grow your business piece by piece with advanced methods and technology.
By 2022, HubSpot has great aims like reaching the range of $1.73 billion.
With over 135.000 customers across more than 120 countries, HubSpot is an effective tool with many integrations attracting, engaging, and delighting.
Intercom is a SaaS chat tool to connect you with the customers as best as it can do.
Intercom had a revenue of around $89.9 at the beginning of 2019, and its value was around €842.9 million.
However, with over 600.000 users and more than 500 million messages, Intercom can be given as a successful SaaS example.
Working for the best customer service, Zendesk has cared about innovation, flexibility, and growth since 2017.
In 2019, Zendesk had 160.000 paid customers and $816 million in revenue .
However, when we turn to Zendesk’s own published data, it says that they currently have 486 million customers with a 90% customer satisfaction rate.
Building and hosting the codes, GitHub is the leader in the industry.
As of 2021, it is claimed that they have 73 million users, which is getting higher as time goes on.
With the choice of over 73 million developers and 4 million organizations, GitHub increases its aim and stands behind what they claim.
Twilio is a valuable step in uniting the developers and businesses to communicate through message, voice, and video, and they somehow connect for their software.
Also, we can consider Twilio as an ambitious company since its usage and popularity increased from 179.000 active customers in 2019 to 250.000 active customers in 2021.
Mailchimp is a tool used for more than one purpose. It unites the marketing part with the automation and email marketing part.
The number of users of Mailchimp was 13 million total users in 2021, and 2.4 million of them used the tool actively.
For 2019, the experts estimated that Mailchimp would increase its revenue to $700 million.
As the house of nearly all designs today, Canva is a platform that you can use to prepare, present, promote, or show.
According to their own statistics, over 30 million people used Canva in 2020, and with the effect of COVID-19, the rates increased so much that over 3 billion designs were created, 80 designs per second.
The valuation of Canva was $40 billion in 2021 based on what is reported with 75 million monthly active users.
Cloudflare deals with web analytics and boosts the performance of the websites caring for privacy.
As one of the key statistics, Cloudflare’s total customer number is 4.1 million, and 119.206 of them pay for the tool.
Also, in 2020 it was determined that the company’s revenue would be $431.06 million.
Adobe Creative Cloud is a complete package creativity tool with a few words.
Adobe Creative Cloud has also never retreated, and when we consider the subscription numbers, we see the rightness in it. The number of 12 million subscriptions in 2017 has been estimated to increase to 19.74 million by 2024.
In 2021, the revenue was declared as $9.55 billion, and it continues to rise.
Typeform is an online form builder, and it can create forms related to your needs. It has competitors like SurveyMonkey, Microsoft Forms, and Formstack.
177.485 sites use Typeform, and 120.381 of them are live websites. Among these websites, 55.367 are in the United States.
It is estimated that Typeform’s annual revenue is $112.5 million per year.
KnowBe4 is a platform that works for security awareness training. It helps you know if there is any weakness in your IT, and it offers you security solutions based on your belongings.
The revenue of KnowBe4 is $226.3 million, and it grows to 40.60% year-over-year.
The last announcement of KnowBe4 made in January 2019 presented that it had 23.000 customers and 647 employees.
LinkedIn is a business social media platform that helps millions of people find jobs, create networks, and discover new opportunities in their work fields.
According to LinkedIn, 810 million members from 200 countries use LinkedIn today.
Though the rates cannot compete with other social media platforms, like Facebook or Instagram, LinkedIn has its populace.
LinkedIn’s revenue was determined to be $8 billion in 2020, and 19% was the rate of increase year-on-year.
Namely is a powerful H.R. tool for mid-sized businesses, and it organizes your employees, devices, payrolls, and benefits.
With its 400 employees, Namely had $50 million in annual revenue in 2018.
Namely is used by 1300 clients across 134 countries and 50 U.S. States.
Bill.com saves your time, work, and effort by managing all your financial responsibilities, and it also offers you a specialized way of paying based on the size of your company and what you need.
Last year, Bill.com shared that its total revenue was $283.3 million by showing an increase of 51% from 2020.
In 2021, it was declared that 3.2 million network members used Bill.com showing an increase of 28% YoY.
PayPal is a tool for making online money transfers with great ease. All finance-related actions can be done with PayPal.
The annual revenue of PayPal touched $17.772 billion in 2019, showing a 15% growth from $15.45 in 2018.
To cover it all, we have collected many statistics to prove the importance and the impact of SaaS.
In the light of all these, you may want to apply to SaaS or not; however, we have offered you enough.
Also, we thought that SaaS could help you improve the current status of your business, or if you have already been using SaaS, you may want to use more to catch up with the statistics by believing the power of the statistics ;)