Data-Driven Business: +100 SaaS Statistics to Know in 2023

SaaS has become a go-to solution for businesses looking to improve and advance their operations.

To make things easier for you, we've compiled over +100 SaaS statistics that can help you understand the importance and benefits of SaaS for your business.

Whether you're already working with SaaS or considering it, these statistics will give you valuable insights.

Not sure what SaaS is all about? No problem, we'll explain it in detail. And if you already have a good understanding of SaaS, you can jump straight to the specific topics that interest you in our handy table of contents.

So don't miss out on this opportunity to learn more about how SaaS can take your business to the next level!

What is SaaS?

SaaS, short for Software as a Service, is a game-changing approach to accessing and using applications.

With SaaS, you can subscribe to software services and access them online without dealing with any complicated software installation procedures.

Unlike traditional applications that require servers to function, SaaS is hosted on the cloud, making it easily accessible from any location.

The COVID-19 pandemic has amplified the significance of SaaS, enabling individuals and businesses around the globe to communicate and collaborate remotely.

So, if you want to simplify your work processes, increase productivity, and streamline your business, SaaS is the way to go.

Some Famous SaaS Examples

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.

Why People Use SaaS

➤ 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.

SaaS Categories to Boost Productivity

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 :

SaaS Churn Statistics

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:

• budget problem
• Improper customer service
• Discovering a new supplier.

➤ SaaS companies’ medium annual revenue rate is 13.2%.

➤ 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%.

General SaaS Statistics

You may guess what we are trying to say when we talk about the importance and the statistics of SaaS.

➤ The SaaS market is growing! According to an Statista report it is estimated that by 2027, the SaaS market volume will reach US$344.00bn with an annual growth rate of 7.89% from 2023 to 2027.

➤ Small businesses are interested in SaaS, and nearly 78% of them already deal with SaaS options.

➤ 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.

➤ Moreover, around 2026 we will come across $1,025 billion in the global computing market on the predictions of the researchers.

SaaS Statistics Based on Location

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.

➤ The US is followed by the United Kingdom with 2.000 companies and 3 billion customers.

➤ The UK had a value of around €7.5 billion in 2020, which is forecast to double it by 2025.

➤ 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.

➤ 3 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.

The Most ... Attributes about SaaS

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:

• 12%- operating systems.
• 10%- security software
• 20%- virtualization
• 10%- productivity

➤ 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.

➤ Among countries, the most mature SaaS market in terms of adoption belongs to North America.

Along with North America, Asia Pacific sees the good side and has the highest growth rate in the SaaS market .

SaaS Usage Statistics

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:

• 66%- security
• 60%- compliance
• 58%- lack of staff experience
• 57%- privacy
• 47%- vendor lock-in
• 40%- cost

SaaS Business Statistics

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.

➤ 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:

• 55%- websites
• 54%- email
• 26%- communication systems
• 23%- mobile services
• 21%- CRM
• 16%- productivity apps

SaaS Apps by Categories

SaaS apps can be observed in different categories. Therefore, we choose some apps and examine them with their specific statistics.

Let’s have a quick look!

Business Operations SaaS Statistics

Zoom

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.

Slack

➤ Slack must sound safe and be good to use that more than 600.000 organizations choose to use it.

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%-.

Sales SaaS Statistics

Salesforce

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

HubSpot is a Saas tool to help you grow your business piece by piece with advanced methods and technology.

➤ HubSpot's total revenue in 2022 was $469.7 million, up 27% compared to Q4'21.

➤ With over 135.000 customers across more than 120 countries, HubSpot is an effective tool with many integrations attracting, engaging, and delighting.

Customer Support SaaS Statistics

Intercom

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.

Zendesk

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.

Engineering SaaS Statistics

GitHub

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

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.

Twilio is a supported platform hosting over 5 million developers and 150.000 companies.

➤ 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.

Marketing SaaS Statistics

Mailchimp

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.

Canva

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.

➤ In October 2021, Canva hit a noteworthy achievement by reaching 100 million monthly active users. This number continued to grow, and by the end of 2022, they had gained an additional 10 million users, resulting in a total of 110 million monthly active users.

➤ According to Financial reviewhe the valuation of Canva is estimated $25 billion dollars by some its investors.

DevOps SaaS Statistics

Cloudflare

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 2022 Cloudflare reached a total revenue of $290.0 to $291.0 million.

Product SaaS Statistics

Adobe Creative Cloud

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 2022, the revenue was declared as $17.606 billion, and it continues to rise.

Typeform

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.

IT & Security SaaS Statistics

KnowBe4

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.

NAKIVO

NAKIVO Backup & Replication is a comprehensive data protection for physical, virtual, SaaS and cloud environments. The NAKIVO VMWare backup solution is designed to protect VMWare virtual machines (VMs) and their data, ensuring fast and reliable backup and recovery workflows to greatly minimize downtime and data loss.

➤ As of Q1 2023, NAKIVO has 180 employees servicing over 25,000 customers in 181 countries.

➤ According to the company’s announcement in May 2023, NAKIVO boasts 28 consecutive quarters of double-digit growth and has experienced a QoQ growth rate of 26%.

HR SaaS Statistics

LinkedIn

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

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.

Finance SaaS Statistics

Bill.com

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

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.

➤ Today, PayPal has 429 million active users across 200 countries.

Wrap-Up

Thanks for taking the time to check out our comprehensive SaaS statistics blog post. We've gathered a ton of data to prove just how important and impactful SaaS can be for businesses of all sizes.

After reading through our post, you might be wondering whether or not SaaS is the right choice for your business. That's totally understandable!

But we've given you plenty of information to help you make an informed decision.

Whether you're considering making the switch to SaaS or are already using it and looking to optimize your strategy, we hope our statistics have been helpful in showing you the true power of this technology.

Frequently Asked Questions

What is the Prediction for SaaS Solutions by 2023?

86% of organizations expect the majority of the software involved in their business processes will be available as SaaS solutions by 2023. (Source: FinancesOnline)

Why are Business Leaders Moving to SaaS?

75% of business leaders have moved to SaaS as it helps to improve business agility. They also reported that SaaS implementation is fast and trouble-free, so they see no problems in moving to SaaS completely. (Source: Workday)

How Much Will the Transition to the Cloud Increase IT Expenses?

According to Gartner, the transition to the cloud will increase IT expenses by more than $1.3 trillion in 2022, and this number will grow to $1.8 trillion in 2025. Around 65.9% of spending on software is expected to go to SaaS technologies by 2025, up from 57.7% in 2022.

How Many Companies are Running on SaaS and How Many Plan to Switch to It?

Around 38% of companies claim they are running almost completely on SaaS, while 80% of businesses say that they are planning to switch all of their systems to SaaS by 2025, as per BetterCloud statistics.

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