Knowing exactly what’s going on in the software-as-a-service (SaaS) industry is vital if you want to thrive. This SaaS statistics article gives you all the information you’ll need this year.
SaaS is the cornerstone of most big business operations. It can power different areas of business, from payroll to customer relationship management.
As more companies start shifting toward a cloud-based model, the SaaS industry also continues to grow. There has never been a better time than now to dive into the most important SaaS statistics shaping the market.
This article presents 30 important SaaS statistics you should know. It shows how vital the industry has become in recent years.
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SaaS Statistics on Market Size and Growth
This entire section highlights the incredible growth of the SaaS industry and its immense role in modern business software worldwide. It’ll present key data on market value and geographical trends that will help you understand the scale, growth, and evolution of the global SaaS market.
1. The United States hosts around 9,100 SaaS companies, making it a significant location for the industry. From this group of SaaS companies, we can find big brands such as Google, Salesforce, Microsoft, and others.
United States is also the home of Silicon Valley, a reputable and well known hub for its innovative SaaS companies and startups.
2. A.I software is the top SaaS industry by number of customers, with almost 3 billion customers worldwide.
3. SaaS might make up more than 85% of all business software as soon as 2026.
4. Nearly 50% of all venture capital investment was in SaaS startups in 2023.
5. At least 95% of new digital workloads and projects will be deployed with the use of cloud-native platforms.
6. On average, big companies and enterprises use 112 SaaS apps to improve their workflow.
AI & SaaS Integration
As AI becomes more prominent, so does its integration and innovation with SaaS. This SaaS statistics section explores how intertwined AI is with SaaS and what this means for businesses worldwide.
These stats highlight development strategies. They show how AI boosts SaaS capabilities and how quickly it has been adopted in recent years.
7. ChatGPT currently sees around 400 million weekly visitors and is predicted to hit 1 billion before the end of the year. ChatGPT stands as the world’s leading AI SaaS platform. It has quickly become an essential tool for million of users all over the world.
ChatGPT has slowly integrated into more than just mundane life. Most companies use ChatGPT in their workflow to increase productivity and reduce tasks that might take take hours to complete.
8. 67% of SaaS businesses now offer AI features in their products.
9. 70% of organizations are certain they will need to invest in AI-powered software in the upcoming years.
10. At least 90% of organizations use different AI tools that are unmanaged.
11. 52% of SaaS companies find the uncertainty of legal frameworks surrounding AI as their biggest challenge.
SaaS Usage and Adoption
In this part of the SaaS statistics article, you’ll get to see how various industries are using and implementing SaaS solutions. It showcases the number of tools companies use and the average timeframe used to completely adopt them
This section really drives home the importance of SaaS and how deeply rooted it is in companies’ everyday operations.
12. SaaS spend per employee has gone up to $5,607 yearly, a 7% increase from 2023.
13. Implementing new software in a business website now takes around 7 hours, down from 57 hours a decade ago.
14. 75% of business leaders have said that their business workflow has improved after implementing pure SaaS.
15. 89% of businesses say that SaaS has helped them improve customer satisfaction and increase productivity.
16. Right now, more than 60% of apps remain unsanctioned, with ChatGPT being the top IT app.
17. More than 80% of businesses interested in software products consider software breaches when researching a SaaS company.
SaaS Financial Metrics
This SaaS statistics section highlights the economics part of running a SaaS business. It features some important financial benchmarks such as the yearly cost of SaaS to businesses worldwide, churn rates, and even upsell revenue.
For SaaS founders, business owners, and operators, these SaaS statistics are a must-have.
18. Most SaaS companies achieve 48% of their new revenue from upsells.
19. The average SaaS company has a churn rate of 5% to 7%
20. Most SaaS companies spend at least 35% of their revenue on sales and marketing. This is a considerably higher percentage compared to other industries.
Several factors contribute to this. SaaS tools are in essence intangible and often complicated, making it hard to showcase without a thoughtful message behind it. With the lack of a physical product to showcase, SaaS companies depend heavily on a strong digital marketing strategy that helps them explain their benefits in an interesting and exciting manner.
The elevated costs are partly due to an investment structure used by almost all SaaS companies. Their approach revolves around paying back acquisition costs early, long before churn rates reduce overall profitability.
It’s a dangerous and bold strategy that pays dividends when properly executed.
21. 66% of SaaS startups say that customer success initiatives help reduce churn.
22. 41% of SaaS buyers prefer onboarding webinars over written guides.
23. 59% of SaaS firms say that improving onboarding is their top priority for increased revenue.
24. 62% of SaaS businesses track customer lifetime value as a metric.
25. Salesforce is by far the biggest and most prominent company focused on SaaS in the U.S. stock market. Close on its heels are Intuit, Shopify, and Adobe.
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SaaS Operational Benchmarks
Operational efficiency is vital for SaaS. This SaaS statistics section highlights important internal metrics. You’ll find details on revenue per employee, cost distribution, and other key figures.
26. The average SaaS company generates $136,000 in revenue per employee.
27. The median percent spent on general and administrative costs is 11%, down from 15% in 2023.
28. Most SaaS companies spend 23% of their revenue on research and development.
29. The average company wastes 30% of its SaaS spend due to duplicate tools, orphaned subscriptions, and even underused licenses.
30. SaaS global spending is estimated to reach over $300 billion by the end of 2026. The entire SaaS market is expected to keep growing as more and more businesses around the world adapt and integrate SaaS solutions to their workflow.
The biggest SaaS functions being for customer resource management (CRM), web hosting, eCommerce, and most recently enterprise resource planning (ERP).
Get a custom SaaS Website that Converts With Blacksmith
Given the clear rapid growth of the SaaS industry, prioritizing a high-converting website is a must. your business needs a custom website that can attract your ideal audience, spark interest, and consistently drive sustainable growth.
Here at Blacksmith, we’re dedicated to creating custom websites that stand out from the crowd. This helps your SaaS company generate the leads and customer retention it deserves.
As a professional web development company, we have a group of seasoned web developers and web designers ready to create the perfect custom website for your business. We use the latest methods for conversion and keeping clients. These will boost your sales and improve customer satisfaction.
Best of all? You’ll get to see the whole website creation process from start to finish. No having to wait for weeks for a potential website with areas you don’t like.
With Blacksmith, you’ll get to pick and give your opinion on all aspects of your website.
Still not convinced that you need a brand-new SaaS website? Click here to schedule a call with us so we can audit your brand and show you how much more you could be making this year with a proper custom website.
