60+ SaaS Statistics and Trends [2025]

The Software as a Service (SaaS) industry is booming. Over 95% of businesses use SaaS solutions to achieve their business goals. Whether you’re a startup owner, marketer, or software developer, understanding the current stats in the SaaS industry is essential for success. 

This article covers 60+ most interesting SaaS statistics and trends in 2025 and beyond. 

Key takeaways

• In 2024, the SaaS market was estimated to be worth over $250.8 billion, 7x higher than in 2015.
• The US has the highest number of SaaS companies (16,500), 9x higher than the second leading market, the UK (1800).
• In 2024, 95% of businesses had implemented SaaS in their operations.
• Improving retention in the SaaS industry by just 5% can increase the long-term company valuation by 25% to 95%.
• The average annual churn rate for SaaS companies is 5.2%.
• 45% of SaaS companies consider AI accessibility to be the key factor in driving AI adoption.
• 92% of B2B SaaS leaders observed that customers using integrations are less likely to churn.
• It takes an average of 277 days to identify and contain a data breach.

State of the SaaS industry

Software as a service industry has witnessed unprecedented growth and transformation in recent years. Here are the recent statistics showing the current state of the SaaS industry:

SaaS industry growth statistics

In 2024, the SaaS market was estimated to be worth over $250.8 billion, about 7 times higher than in 2015. SaaS projection revenue for 2025 is expected to reach $390.50 billion. With an expected annual revenue growth rate of 19.38% (2025-2029), the SaaS industry market volume will reach $793.10 billion by 2029.

The US has the highest number of SaaS companies globally (16,500), about nine times higher than the second leading market, the UK (1,800). Canada and India follow with over 1200 companies.

Top 10 SaaS companies

Microsoft Azure and Google Cloud Platform (GCP) are now the top cloud business giants. Oracle, with its Oracle Cloud Infrastructure (OCI), is striving to become a cost-effective competitive alternative to the two SaaS giants.

According to Statista 2024 worldwide market capitalization data, Microsoft is the leading company with the highest market cap of over 3 trillion US dollars for their SaaS products. Alphabet, Google’s parent company, is the world’s second-largest technology company, with over 2 trillion US dollars.

Salesforce is among the top four in the SaaS arena and, thus, the leading SaaS company in Customer Relationship Management (CRM). Salesforce employed 79,390 employees in 2023. While there was an 8.23% decline in 2024, the total number of employees has increased by over 2,000% since 2009.

Challenges in the SaaS industry

Managing cloud spend is considered a primary challenge in the cloud computing industry. About 84% of cloud technology technical executives, managers, and practitioners said their biggest challenge is managing their cloud spend.

Another top challenge in the SaaS industry is data security. It takes an average of 204 days to identify and an additional 73 days to contain a data breach. A data breach in the finance sector costs an average of $5.85 million.

Long user onboarding and offboarding can be costly and tedious. About 35% of new users take over one week to access the necessary SaaS tools. More so, 51% of companies take over 24 hours to onboard and up to 7 hours to offboard a user.

Over two-thirds (64%) of IT professionals lack the skills to effectively automate, which is critical in managing SaaS operations.

Saas benefits: a benchmark on Cropink.com

According to 73% of tech experts, SaaS is considered the most important technology for achieving business goals. Here’s how SaaS plays a crucial role for modern businesses:

Cost effectiveness

SaaS solutions provide lower costs because of their multi-tenant or shared environments. These environments enable businesses to use software without the nuances of maintenance and the upfront cost of hardware and IT infrastructure.

SaaS companies can also provide freemiums to help millions of users access their services at no cost. Cropink.com offers access to all features for free for up to 100 product images. Google is also a perfect example using freemium models for many of its products and services. 

78% of businesses using SaaS significantly reduced their maintenance and infrastructure costs.

According to Forrester, SaaS can reduce IT costs by 30-50% compared to traditional on-premise software.

Pay-as-you-go SaaS pricing model saved 30% of annual expenses for organizations that would have used traditional software licensing.

Scalability

SaaS can scale up or down easily based on the user’s needs. For example, with Cropink you don't have to worry whether you have 20 or 2,000 catalog ad images to design. Regardless of your inventory size or the number of channels you’re managing, our design tool can handle dynamic product ad campaigns at scale and automatically.

70% of Chief Information Officers cite that agility and scalability are their primary reasons for using SaaS solutions.

Automation

Another benefit of SaaS is automation. A perfect example is Cropink. With reusable templates, timely updates, schedulers, rule-based management, and other automation features, Cropink.com can deliver fast catalog ad designs and effortless product feed management.

Over 86% of IT professionals consider automation critical for managing their daily operations.

75% of businesses prefer SaaS solutions with data-driven automation.

Better collaboration

SaaS solutions like Cropink provide robust collaboration features to boost productivity and get everyone on the same page.

Employees working online allocate 27% of their time to collaboration tasks. Improved communication and collaboration in SaaS technologies can increase productivity by 20-25%.

Average interaction workers spend 28% of their time managing and responding to emails and 20% looking for internal information or tracking colleagues to help them. SaaS solutions can reduce this time by 35% or more through better collaboration features and a centralized knowledge base.

SaaS usage and adoption statistics

The number of SaaS apps has increased ten times since 2015, and 85% of all business apps are expected to be SaaS-based by 2025.

By the end of 2023, 95% of businesses had implemented SaaS technologies, a 71% increase from 2018. 67% had adopted IaaS environments, and 65% used PaaS.

In January 2024, the average annual churn rate in the SaaS industry was 5.2%. This SaaS statistic shows that SaaS businesses have a high customer retention rate of about 95%.

Improving retention in the SaaS industry by just 5%, whether through customer success programs, churn analysis, value-driven pricing, or other strategies, can increase the long-term company valuation by 25% to 95%.

Companies between one and two years old often start out with an average of 29 SaaS apps. When they’re three to six years old, their total SaaS app usage increases to 103.

As businesses age and the number of SaaS apps they use increases, the need to consolidate apps grows. After 7 years in business, the average number of SaaS apps used declined as the companies opted for custom apps that merge solutions.

Companies with over 1,000 employees used an average of 177 SaaS apps, whereas those with less than 100 employees used about 40 SaaS apps.

Top B2B SaaS companies focusing on enterprises or mid-market businesses achieve a 115%—125% net revenue retention (NRR). A higher NRR of over 100% shows that these SaaS companies offer upsells or expanded usage to existing customers to increase their revenue.

Pricing stats for SaaS software

According to Invisia, annual subscriptions are the most popular billing periods, with an average contract length of 1.3 years. 42% of companies use both monthly and annual subscription models. 26% offer only monthly subscription plans, and 18% provide only annual plans.

Value-based pricing vs usage-based pricing had slight differences in preference for most SaaS companies. 39% say they prefer value-based pricing, while 38% prefer usage-based.

Pricing inflation in the SaaS industry is 8.7%, according to TechTarget. This statistic means that every year, SaaS companies are likely to hike their prices by almost 9%.

Approximately 40% of SaaS companies still use per-seat pricing models but consider shifting towards flexible pricing models.

57% of respondents in a recent McKinsey survey said that their companies lack adequate sales training to communicate and support price changes.

Over 15% of SaaS software companies have no pricing analytics capabilities. About 40% use seat-based metrics (based on the number of users) as their primary metric for their pricing strategies. 

SaaS sales and marketing stats

SaaS marketing spend dynamics is a puzzle that most SaaS companies have yet to solve. Spending less on sales and marketing initiatives stalls progress. Investing too much, on the other hand, dries your cash bank quickly.

Pre-product market fit companies, those in the seed and early startup stages, commonly spend 100% or more of their revenue on marketing. Why? With little to no revenue, coupled with their priorities for brand awareness and finding product-market fit, marketing makes up a huge portion of their expenses.

Mid-stage startups aiming to scale up sales and revenue typically spend 30–60% of their revenue on marketing. High-growth companies scaling towards $100M+ in revenue will spend 10–30%. Post-IPO and public companies in the mature stage will spend about 5–15% or less just to retain their market position.

Marketing Budget Allocation by Channel

While early-stage startups allocate 20–40% of their budget to content marketing channels, high-growth SaaS companies allocate the same share of their budget to paid social channels.

According to survey responses of over 1,500 SaaS companies, the median of how much the companies spend on selling costs is 10.5% and 8% on marketing. 

Customer support and customer success, which significantly increase user satisfaction and retention, received 10% share of the annual revenue.

Equity-backed SaaS companies spend 90% more on sales and 58% more on marketing than bootstrapped companies. Bootstrapped companies are those that started from the ground up without external help or capital.

SaaS trends for 2025

Trends in the SaaS industry are disrupting how businesses use software. With over 90% of organizations considering SaaS an enabler of emerging tech adoption, it’s best to explore the current trends that shape the future of SaaS.

AI in SaaS

The impact of AI on SaaS is undeniable. From AI-based SaaS applications to AI automation in daily SaaS business operations, SaaS-AI touchpoints are many. 

According to IBM Global AI Adoption Index 2024, 59% of IT professionals are deploying or exploring AI in their organizations. About 44% of SaaS companies are already working to embed AI into their current applications and processes.

Over 45% of SaaS companies consider AI accessibility the key factor in driving AI adoption. based on the number of survey responses, AI use cases driving adoption in SaaS business include the following selected key areas of business operations:

1. Automation of IT processes (33%)
2. Security and threat detection (26%)
3. AI monitoring and governance (25%)
4. Business analytics and intelligence (24%)
5. Marketing and sales (22%)
6. Fraud detection (22%)

While AI adoption is on the rise, some SaaS businesses may face challenges that can impede AI adoption in the SaaS industry. The top five barriers to successful AI adoption include limited AI expertise (34%), cost (29%), lack of resources (25%), integration issues (24%), and too much data complexity (24%).

Integrations

Another key SaaS trend is integrations in the SaaS ecosystem. SaaS’s ability to integrate with other apps increases its functionality and accessibility, leading to higher user satisfaction and adoption.

92% of B2B SaaS leaders observed that customers using integrations are less likely to churn.

84% of businesses strongly believe that integration is a key requirement for their operations, and only 1% think that it’s not important.

90% of B2B buyers said a vendor’s ability to provide integration capabilities with existing technologies strongly influences their consideration for a purchase. 

Zapier provides over 7,000 integrations. Half of enterprise companies have over 50 integrations, showing how critical interconnectedness is to modern businesses. 

Cropink.com integrates seamlessly with Figma, Feed Ink, and e-commerce stores for efficient catalog ad creation and management, making it highly effective for many e-commerce advertisers.

According to an Inbox Insight survey, 51% of B2B tech buyers consider poor integration with existing tech stack as a strong reason to explore new SaaS vendors.

Personalized user experiences

The rise of AI-driven personalization, vertical SaaS, micro SaaS, and other technologies providing tailored SaaS solutions is another trend that’s hard to ignore. With over 71% of B2C customers and 86% of B2B customers that expect personalization during an interaction with a brand, personalization is now a necessity in SaaS products. 

According to Loom, over 60% of users churn when a company delivers non-personalized experiences [28]. SaaS companies that provide personalized customer onboarding and support can reduce churn rates by up to 40%.

The recommendation engine that powers personalization in SaaS products is expected to reach $12 billion by 2025. In 2018, it was valued at just slightly over $1 billion.

92% of SaaS applications now include AI-driven personalization. According to a Gartner Survey, 44% of respondents said personalized SaaS product demonstrations can influence purchasing decisions.

Other factors like implementation and onboarding support (36%) and integration support (44%) can provide even better results when they’re tailored to every user.

Flexible pricing models

Market trends, product updates, and changing customer expectations are significant driving factors for flexible SaaS product pricing models. About 80% of SaaS companies adjust their prices annually to remain competitive and stay updated with market demands.

In 2018, only 27% of SaaS companies used usage-based pricing models. In 2023, 41% had implemented usage-based pricing, and 17% were actively testing it.

Nearly half (46%) of SaaS companies in 2023 opted for a hybrid pricing model. Hybrid pricing combines traditional fixed pricing models with usage-based to provide more flexibility and balance.

Only 39% of SaaS companies provide pricing information publicly. Companies keeping their pricing info private shows a SaaS trend towards more customized pricing for individual clients rather than one-size-fits-all plans for all clients.

FAQ

What is SaaS, and why is it important?

SaaS (Software as a Service) is a cloud-based solution where users can access software applications through the Internet instead of downloading and using them on their machines. SaaS is important because it is highly accessible, scalable, and cheaper than traditional software.

How big is the SaaS market in 2025?

The SaaS market is projected to be worth over $390.50 billion in 2025, with an expected revenue growth of 19.38% from 2025 to 2029.

Why is SaaS so popular?

SaaS is now popular because it is highly scalable, accessible anywhere, and saves costs, helping businesses connect with customers in ways that traditional models could not.

How is AI used in SaaS?

Common AI use cases in SaaS include personalization, automation, business intelligence, fraud and threat detection, and more.

What is one downside of SaaS?

One of the biggest drawbacks of SaaS is that users are highly dependent on the vendor’s infrastructure and internet connectivity to access solutions for their daily operations.

Wrapping Up

The current SaaS statistics and trends we covered in this article uncovered thousands of data and insights into the SaaS industry. Each SaaS statistic or trend illustrates the state or direction of SaaS, which can shape your perspective and guide your future decisions.

If you’re an e-commerce business and would benefit from automated catalog ad designs, check out how our ad design tool can boost your ad performance today.

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