The global SaaS market was valued at $151.31 billion (or $167.34 if looking at Statistas data) in 2022 and is expected to grow at 27.45% CAGR from 2023 to 2030. 1. As a result, the industry has gone beyond the market projections. Some of the largest ones in the US are Google Workplace, HubSpot, Slack, GitHub, Zoom and Figma, to name a few. The main reason for the high ratio is the result of the business model revenue lags behind investment. I give my consent to to be in touch with me via email using the information I have provided in this form for the purpose of news, updates and marketing. Copyright 2013-2023 colorlib.com | operated by Divilab LLC, SaaS Statistics (How Many SaaS Companies Are There?). About 100,000 software companies in market. How Much Do Companies Spend on SaaS in 2023? And they try to make it just as easy to purchase their SaaS products. Oracle then made software license updates & product support, new software licenses, and services hardware a focus between 2014 and 2017. Brazil is also highly prioritizing SaaS as a startup model, with 41.12% of SaaS companies being Brazilian startups just two years ago. Rok is a professional content creator, WordPress developer and enthusiastic marketer who spends most of his day behind the screen, working on ULTIDA, client projects and listening to black metal. The Currency You Show: You should be displaying your prices in the local currency. Look for data vulnerabilities. How Many SaaS Customers Do Companies Have in 2023? Looking to Build a Proptech SaaS Solution? In 2023, Salesforce is employing a whopping 79,390 employees, which is a 7.95% increase from 2022. The Latka Agency. SaaS Statistics: As you can see, the SaaS industry has been on a bull run for quite some time, and the COVID-19 has not been able to restrict it, per se. SaaS is an acronym for 'software-as-a-service', and SaaS businesses offer cloud-based software solutions to businesses and computers. BetterClouds report reveals that, on average, an organization spends 30% of its IT budget on SaaS applications, but this percentage can vary depending on the SaaS companies by size and industry. If you are looking for top SaaS development . But it all leads to a question: how big is SaaS in this post-globalization business world? Salesforce revenue has increased year-over-year for over a decade, gaining increasing momentum in recent years. A SaaS companys major selling point is how much more efficient it is to use their centrally managed applications rather than installing software onsite. We change everything WordPress. May 26, 2023 9 min Ascendix Insights SaaS In 2023, the world of SaaS is rapidly expanding. This figure is forecast to rise to 85% by 2025. Leading software as a service (SaaS) countries worldwide in 2022, by number of companies [Graph]. Here are the results: Insider threats in organizations using SaaS applications are more serious than you think. SaaS Sales and Marketing spendstands at 27% of annual recurring revenue, going up to 40% forWix and 50% for Smartsheet. There are 17,000 SaaS companies (like Salesforce) in the Customer Service Solutions segment, followed by Marketing Software (15,000), eCommerce (14,000), Data and Analytics (12,000) and Sales (11,000). For complicated software, there is often a learning curve. 44% of SaaS providers include a free trial program in their package. And is expected to almost double to 14.5 billion over the next 3 years. Heres a closer look at each of those five companies: With a 9.3% market share, Salesforce claims the largest piece of the SaaS pie. The industry has a total worth of $171.9 billion. Over the decades, however, the failure rate has been surprisingly consistent. Number of SaaS Companies by Region in 2023. Find out what happens when you are no longer a customer. The US has the largest proportion of SaaS companies ( around 60% ). Weve been at the forefront of SaaS Proptech for 16 years. Software as a Service is revolutionizing how businesses operate, making managing and maintaining everything cost-effectively, with lots of flexibility and adaptability. Hire Ascendix. How focused is the company on customer relationships and customer experience (you can even ask about customer retention rates). As soon as this statistic is updated, you will immediately be notified via e-mail. Despite this dominance, emerging markets such as Latin America and the Middle East are expected to see significant growth in the SaaS market. The employees who retain access to the organizations SaaS apps account for more than 20% of security incidents. As we learned before, the SaaS market is growing the fastest in the cloud computing space, with a CAGR of 17.6% annually. Some of the top brands are Microsoft, Salesforce, SAP, Oracle, Google and WordStream, to name a few. As the graph above shows, thats a significant and largest increase in history. But depending on your mailbox provider and settings, its possible it may get lost in the shuffletimeto time. Use Ask Statista Research Service. Since the 2011 to 2012 period, the rate of SaaS in healthcare has increased by 20% every year. Yup, all of this is software as a service industry! Microsoft was the SaaS leader in 2018, with an 18% share. SaaS companies can handle just about every business function. While all these are happening, around 31% of SaaS providers are not offering discounts to customers. Two-thirds of the top 100 companies are located in the Silicon Valley. Therefore, its recommended to allocate most of your resources towards S&M and outsource Research & Development to a reliable partner such as Ascendix. June 7, 2022. This number greatly exceeds the second place countries of Canada and the United Kingdom which both have around 2,000 SaaS companies. Get as much training and migration help as possible. to incorporate the statistic into your presentation at any time. At the forefront of this booming industry is the worlds largest SaaS company, Salesforce, which generated over $21 billion in revenue in 2021. Colorlib content is free. These companies have revolutionized traditional industries and transformed business practices. Heres the latest data on SaaS startups founded each year since 1998: In the last year (as of September 2022) 377 SaaS organizations have been founded. Find out what is the backup plan. Due diligence will help ensure the user experience matches expectations and promises. Here is a list of the top SaaS companies with the largest market share: Although no single company has a monopoly in the SaaS market, these five largest SaaS firms collectively hold a market share of approximately 33.3% as of 2021. More Data Protection Solutions from Fortra >, lower initial costs because they dont need to invest in expensive hardware, maintain the software and update it when needed, access to their systems from any device or location, Having SaaS services on demand can be costly, SaaS company's downtime could be your downtime, Data security is in the hands of a third party, best practices for choosing a SaaS company, What is Insider Data Theft? When you buy through links on our site, we may earn an affiliate commission. It is indicative of the impact SaaS products have on the regular transactions within an organization. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). The number of newly launched SaaS companies in 2020 is lower than in previous years due to the COVID-19 pandemics impact on the economy and business activity. Companies that have over 1000 employees use more than 150 SaaS applications. In almost 15 years, the number has crossed 10,000. Some of the companies do not even ask for a credit card to availing of this free trial. Not far behind Sap with a market share of 4% is Oracle. Your email address will not be published. Heres a closer look at SaaS companies by region: *Only includes countries inside the top 15. . While many companies revenues decreased (significantly) because of the COVID-19 pandemic, Zooms increased by 148%, going from $90 million in Q1 of 2019 to $225 million in Q1 of 2020. Figuring out how the software works and creating content to shed more light on the value it offers users is his favorite pastime. After that, the number of apps in use decreases because of consolidation. In addition to the general adoption trends, 93% of organizations believe that they should have a multi-cloud strategy. It just may be that without SaaS, you may be left (far) behind. The SaaS end-user spending value has gone up from 31.4 billion to 171.9 billion between 2015-2022. There are currently over 30,000 SaaS companies serving millions of customers. Let's not bury the lede: 97.25% have possible spelling errors; 94.37% have possible grammatical errors. They make the biggest headlines, of course, when things go wrong . Zepz is a UK SaaS company that specializes in P2P cross-border payments. However, each one of those five companies increased its 2020 market share by between 0.3% and 1.5% over the previous year. Top SaaS Companies. The answer that pops up most frequently is around 25,000. Dropbox has a market cap of $7.77 billion, and its year-over-year growth is 10.68% as of September 2022. To help ensureAscendixnewsletter gets delivered without any hiccups, we recommend following these quick steps: Gmail users: just move us to your primary inbox. It was because many organizations were transitioning to the hybrid model, and SaaS products became helpful. With these projections in mind, it is important for businesses to consider expanding into these regions if they havent already. As mentioned earlier, the United States has the largest share of SaaS companies in the world, approximately 17,000. ), Business Blogging Statistics (How Many Businesses Have A Blog? However, Ascendix predicts a massive jump to 72,000 SaaS companies by 2024. Initial projections were that SaaS revenue will hit the $100 billion mark in 2019. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Get our fresh posts and news about Ascendix Tech right to your inbox. Solvency A crucial aspect of the SaaS customers business depends on the SaaS company staying in business. Hey, we all benefit from SaaS in one way or another. We hope it gives you a better idea of the projects and services we can deliver. Learn about what a Software as a Service, or SaaS, company is and why it may make sense for your organization in this weeks Data Protection 101, our series on the fundamentals of information security. Regardless of the staggering growth, the public SaaS industry has to deal with issues like privacy, vendor lock-in, cost, compliance, and security. Amazing Cloud Adoption Statistics for 2023 Check out some of our fantastic cloud adoption stats to get you started. Sales come in at 11,500 companies (these estimations include AI companies). SaaS statistics show that Microsoft leads the way with an 18% market share when it comes to revenue. The Latin American SaaS market has seen a steady growth in value between 2017 and 2021. * SaaS data points include customer count, churn, revenue, customer acquisition cost, average contract values, and payback periods. Statistics do show that almost every organization in the world will be relying on at least one SaaS product by the end of 2022. Download the report today. This more than doubled to $8.92 billion in 2019. the UK SaaS sector was worth approximately 7.5 billion. SaaS Statistics and Trends (Highlights) The SaaS industry is currently worth around $242 billion. Theres no need to install and maintain software on their local computer. In less than 10 years, global spending has increased by over 5x to approximately $176.62 billion. But the number increases to 85,000 for public SaaS companies that sell primarily to SMBs. These numbers have dipped in recent years but look to be on the rise once more. Of those 73%, 38% said it is very important, and 35% said it is quite important.. But theyll have over one hundred apps when theyre six years old. by Chris Brook on Monday May 8, 2023. SaaS revenue in 2018 surpassed projections by over 10%. If this trend is to be followed, 2025 will be the year when we see that 50% of enterprise software products will be relying on cloud computing infrastructure instead of on-premises ones. It is one of the reasons for high retention rates as well. The UK and Canada have 2,000 companies in second place, and Germany and France, with 1,000 companies in third place. Thanks for signing up for Ascendix Newsletter. The fifteen leading SaaS companies had an insane $1.4 trillion market cap in 2020 and a revenue of $80 billion. Some of the world's biggest companies now offer software solutions as a . While many large technology companies are not "SaaS companies" they often offer SaaS products, such as Google Workspace, Google Cloud, and Adobe's creative cloud. Companies estimate 70% of the business apps they use today are SaaS-based. Salesforce has the largest SaaS market share at just under 10%. Perhaps too easy. For everyone else:follow these instructions. Back in 2008, the SaaS market was worth just over $5 billion. And is set to hit $168.6 billion by 2025. If you have a proptech project in mind or would like to have a second set of eyes to go through your existing proptech software, free to book a free consultation call here. Chart. Accessed June 02, 2023. https://www.statista.com/statistics/1239046/top-saas-countries-list/, The Latka Agency. Web Hosting SaaS Growth Metrics. At the time of writing this, companies say that 70% of the business applications they use are SaaS-based, but the percentage is likely to increase to 85% by 2025. Unlike the first three companies mentioned, Oracles revenue figures have remained largely unchanged over the last decade. [Online]. According to the report, the Asia Pacific area is forecasted to have the highest growth rate in the near future due to the rise of cloud-based technologies and the increasing number of SMEs in the region. The SaaS revolution has not restricted itself to the private sector, though. This number is expected to grow to 16.3 billion in 2025, a nearly 3x increase in five years. If you have any questions or feedback, dont hesitate tocontact us. Dallas, Texas 75251. Instead, you can see its impact on the government sector. As one of the three primary tiers of cloud computing, Software as a Service (SaaS) is very much on the rise. Amazon Web Services (AWS) is a comprehensive cloud platform that provides a wide range of solutions including SaaS offerings. In total, 21 cloud vendors were included in the survey, yet only three were predicted to see a decrease in business spending. Also, out of all those 30K+ companies, 337 are unicorns and 15 are decacorns. best known for its outer networking products as well and among the top SaaS companies of the world. While you're here, make sure to sign up to our weekly newsletter. Just how good is it when youre a paying customer? There are approximately 30,800+ SaaS companies globally The report by Statista shows that there are around 30,800+ SaaS companies around the world, with the most in the United States. But he never misses a daily workout to get the blood flow going. I hope it gives you a better idea of what proptech solutions are out there and how they can benefit the real estate market. 9. This infers that the software sits on a SaaS companys server while the user accesses it remotely. The report by Statista shows that there are around 30,800+ SaaS companies around the world, with the most in the United States. By comparison, data security came a distant second with 17.5%, followed by infrastructure protection with 16.8%. In 2020, the SaaS market was worth an estimated 107.5 billion ($113.8 billion). With a market capitalization of $249.1 million, Salesforce is ranked second. Some subscriptions are based upon how much data needs to be stored, the number of users who will access the application, or the level of technical support desired. The SaaS developers have hands-on experience in mobile applications, CMS, data storage, API, and software solutions of any complexity. This is by no means a small number, but if you were to search for SaaS companies in our global company database, you'd find approximately 175,000 companies associated with that industry label. You can count on our talented team when it comes to bringing you up-to-date information about the SaaS, CRM, ERP and other types of applications. But with an annual growth rate of 5.49% CAGR, it should be valued at around $167 billion by 2027. Speak with the onboarding team The next level is to get on a call or video conference with a rep(s). Have a plan for when the system is unavailable. By the end of 2023, there will be anywhere from 30,000 to 72,000 SaaS companies in operation. SaaS statistics are considered a valuable resource for understanding the current landscape of the SaaS market and tracking its development. It also means customers are willing to spend higher on high-quality services and products. The rate of growth was 26% higher than what was expected. Sources: The Latka Agency, SaaStr, Crunchbase, CardConnect. There are some predictions on how the pricing structure would travel in the coming years. Nowadays, SaaS providers are quite upfront about the price they charge for different plans and pricing models. This year, IT professionals have consolidated redundant SaaS apps, resulting in a slower growth rate. ), 10 Finest WordPress Typography Themes for 2023, 10 Multi-Functional WordPress Themes to Sell Creative Products, 10 Machinery WordPress Themes for Industrial Websites, 10 Inspiring Spiritual Teaching WordPress Themes. Numerous companies have ridden the SaaS wave, going from strength to strength off the back of the growing industry. 39% of business owners favor SaaS because there was an improvement in business agility. When looking at historical data, thats a nearly 7x increase since 2017 and a 14x increase since 2015. Implementation involves making adjustments to: The Price You show: Using the latest exchange rates, you should be converting your price to the local currency. It means they will be relying on not just multiple cloud computing providers for various needs that they might come across. It's no surprise, therefore, that the SaaS sector is an attractive field for entrepreneurs and investors alike. statistic alerts) please log in with your personal account. Data Protection 101 This option is popular among those who need maximum scalability. SaaS is one of the UK largest ICT markets, with the vast majority of enterprises realizing the value of investing in newer ICT segments to accelerate their productivity and growth. A SaaS company maintains servers, databases, and software that allow the application to be accessed over the internet most likely by web browsers. As of now, there are more than 10,000 private companies that cater to the needs of different industries. Companies that top the SaaS industry have achieved impressive growth in the past decade. 46% of SaaS companies are also noted for the inclusion of a per-usage payment strategy. Understand the prices. Last year, the projected market size of SaaS in China was =47.34 billion . Table of Contents Over the past several decades, the Software-as-a-Service (SaaS) market has seen tremendous growth, with the number of SaaS providers, products, and customers expanding at an exponential rate. The top 10 web hosting companies currently hold 25% of the entire market. The latest data suggests that approximately 30,000 SaaS companies exist worldwide. By submitting this form, you agree that we may process your information in accordance with these terms. According to BetterCloud, the average number of SaaS applications per company has increased from 110 in 2023 to 130., with a 5x increase over a period of 3 years and a total of 10x since 2015. Together, they had around 59 billion customers worldwide. List of Top 30 SaaS Companies #1) Salesforce #2) Adobe Creative Cloud #3) Microsoft #4) Google Workspace #5) SAP #6) HubSpot #7) Zendesk #8) Box #9) Slack #10) Toast #11) Oracle #12) ADP #13) Cisco #14) GoToMeeting #15) Atlassian #16) Intuit #17) Xero #18) Shopify #19) Zoom #20) Whatagraph #21) Solarwinds #22) GitHub #23) Dropbox #24) FreshBooks The seven trends that have made DLP hot again, How to determine the right approach for your organization, Selling Data Classification to the Business. Additionally, there are about 17,000 companies like Salesforce in the Customer Service Solutions segment, 15,000 in Marketing Software, nearly 14,000 in E-commerce, and 12,000 in Data & Analytics. Additionally, it indicates that larger organizations tend to use more SaaS applications compared to smaller ones. !function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r