SaaS in 2023 and beyond
The State of Saas in 2023:
Growth Trends and Statistics
General SaaS Statistics
SaaS has always been popular, but in recent years, it has become the standard as companies rush to adopt it. With this accelerating pace of digital transformation, the need for robust SaaS management is more important than ever before.
SaaS apps have seen a surge in adoption among businesses in recent years and there’s no turning back to legacy systems now. SaaS is the way of the future and to demonstrate it, here are some key SaaS statistics for 2022-2023.
The SaaS industry is worth $195.2 billion in 2023
The average company uses 254 SaaS apps
There are more than 32,000 SaaS companies worldwide in 2023
The average SaaS company is worth $27 billion
50% of the entire world’s digital data will be stored in the cloud by 2025
SaaS market size increased to $195 billion in 2023
The SaaS industry has seen record growth in recent years, driven by a shift towards automation over traditional manual processes and legacy software. This growth is supported by private and public investors, and continues to increase rapidly in key markets.
The global software as a service (saas) market size grew from $167,107 billion in 2022 to $195.208 billion in 2023.
Number of Saas Companies in 2023
SaaS companies are located all over the world, but the majority (17,000) are in the United States and they serve a customer base of 59 billion people worldwide. These companies have a customer base of around 59 billion people worldwide.
U.K and Canada come in second with around 2,000 SaaS companies each. Germany, France and India round off the top six with 1,000 each.
Leading SaaS providers by market capitalization
Software makes a lot of different things possible in today’s world. From creative endeavors to engineering feats to just helping us relax, there’s a good chance that there’s a company out there that has created the software to make your life easier.
SaaS (software as a service) companies are a big part of why we’re able to do the things we do today, and without them, our world would look quite different.
In 2023, Adobe is the world’s largest Software-as-a-Service (SaaS) company in terms of total market capitalization. Adobe’s market cap stood at 198.9 billion U.S. dollars, while the other major competitors in the market such as Salesforce, Intuit, and ServiceNow are valued between 90 and 180 billion dollars.
How many Saas apps do companies use?
The average company has a whopping 254 SaaS apps (with enterprises averaging 364 apps). This has increased from 110 SaaS apps in 2021. Since 2015, the number of SaaS apps used by companies has constantly increased.
SaaS is projected to make up 85% of the software organizations use by 2025 compared to 70% in 2023.
It takes 7 hours to deploy a SaaS app
It used to take an average of 54 hours to deploy a SaaS application, but now it can be done in a fraction of that time.
The Security, Engineering and IT departments use the most apps
The Security, Engineering and IT departments lead in average number of apps, with 78, 77 and 61 apps, respectively.
Top factors driving SaaS adoption
When it comes to cloud-based options for businesses, software as a service (SaaS) is the most popular choice. The main reason? SaaS is incredibly accessible – all you need is an internet connection and a browser. Plus, it doesn’t require much maintenance.
Deploying a business application has always been a tough task. But now, with cloud applications, it’s easier and faster than ever before. So you can save time and focus on other important tasks.
SaaS provides many benefits for companies, such as reduced upfront costs for commercial software, the ability to scale services with a business’s growth, integrations with other software, and instant updates for all users.
The majority of organizations use SaaS products to increase productivity. The most common reasons for using SaaS are to increase productivity (54%), reduce costs (35%), and increase security (27%).
Source: Clockwise
Churn Statistics in SaaS
SaaS churn is a metric that measures the number of SaaS customers who cancel their subscriptions in a given time period. This metric is important because it shows how well a company is retaining customers and making revenue. To have successful SaaS growth, businesses should maintain a SaaS churn rate between 3-8%.
However, it’s important to note that the churn rate varies depending on the industry. Therefore, every business should be aware of their industry benchmark.
Churn Statistics in SaaS
SaaS churn is a metric that measures the number of SaaS customers who cancel their subscriptions in a given time period. This metric is important because it shows how well a company is retaining customers and making revenue. To have successful SaaS growth, businesses should maintain a SaaS churn rate between 3-8%.
However, it’s important to note that the churn rate varies depending on the industry. Therefore, every business should be aware of their industry benchmark.
SaaS in 2023 and beyond
SaaS will soon be the norm for how software is used in nearly all organizations.
With new, cloud-based options that are more agile and user-friendly, businesses are making the switch and ditching the expensive and cumbersome legacy systems.
The automation of employee onboarding will become increasingly vital for all organizations.
A newly hired employee, supplied with their computer and the necessary SaaS tools from the onset, will experience a sense of welcome and greater confidence to begin working productively.
The future of SaaS is propelled by zero-touch automation
Zero-touch automation is driving the proliferation of SaaSOps as the go-to method for IT departments to uncover, oversee, and safeguard SaaS solutions across all organizations.
