📅 Last Updated: January 29, 2026 | New SaaS statistics added monthly
Looking for the latest SaaS industry statistics? The Software as a Service market continues its explosive growth trajectory, with the global cloud software industry projected to reach $908 billion by 2030. Whether you’re a B2B sales team selling to SaaS startups, an investor evaluating opportunities, or a founder building your go-to-market strategy, understanding these key statistics is essential.
This comprehensive guide compiles 51+ verified industry statistics covering market size, funding trends, adoption rates, pricing strategies, and workforce data. These insights will help you benchmark your performance, identify opportunities, and make data-driven decisions in 2026.
Quick Stats: SaaS Industry in 2026
- 📊 Global market size: $273.55 billion (2023), projected $908 billion by 2030
- 🏢 Total SaaS companies: 30,800+ worldwide
- 🇺🇸 US dominance: 17,000 software companies (55% of global total)
- 💰 Record funding: $90 billion raised in 2021
- 📈 Annual growth rate: 18.7% CAGR through 2030
- 🎯 Enterprise adoption: 85% of business apps will be cloud-based by 2025
Table of Contents
General SaaS Stats
1. The SaaS Market Will Be Valued at $273.55 Billion by the End of 2023
The worldwide SaaS industry, which stood at around $237.48 billion in 2022, reached approximately $273.55 billion by the end of 2023 according to Fortune Business Insights. Moreover, projections suggest it could soar to nearly $908.21 billion by 2030, indicating an annual growth rate of about 18.7% over the forecasted years.
This explosive growth makes cloud software one of the most attractive sectors for venture capital investors and presents massive opportunities for companies selling to funded startups.
2. There Are More than 30,000 SaaS Companies Worldwide
There’s an estimated total of over 30,800 software-as-a-service businesses around the world, as highlighted by a Statista study. A significant number of these companies are based in the United States.
Among the major US-based software players are names like HubSpot, Google Workplace, Slack, Zoom, GitHub, and Figma. For businesses looking to connect with recently funded startups, understanding which companies are in the SaaS vertical is crucial for targeted outreach.
3. The Majority of Software Companies Operate in the Customer Service Solutions Domain
The largest chunk of software businesses, around 17,000 of them, focus on Customer Service Solutions and CRM platforms, with Salesforce being a prime example. Marketing Software is next, with about 15,000 firms. This is followed by 14,000 in eCommerce, 12,000 specializing in Data and Analytics, and 11,000 centered on Sales.
4. The Most Significant Number of SaaS Businesses Were Established in 2015 and 2017
In 2022, 344 software-as-a-service businesses emerged, with 334 focusing on profit-making and the others being non-profit according to Crunchbase data. 2015 and 2017 witnessed the highest surge in the creation of new software companies, numbering 1,469 and 1,460, respectively.
The momentum of launching new SaaS firms slowed down in the years 2018, 2019, and 2020. Understanding these startup funding stages helps sales teams identify the best time to approach new companies.
5. Adobe is the 5th Largest SaaS Company
As of August 2023, Adobe boasted a roughly $246.8 billion valuation. Not far behind, Salesforce was valued at about $208.03 billion, while Intuit took the third spot with a market value close to $152.07 billion, according to Insider Monkey.
6. loud Software Is Vital for Business Success in the Modern Age
A recent poll highlighted that out of ten tech options, software-as-a-service topped the list as the prime enabler for reaching business objectives. Of the 1,724 participants, 73% viewed SaaS as somewhat important. 38% labeled it “crucial,” while another 35% rated it as “quite important” for their business growth.
For B2B startups and B2B SaaS companies, this underscores the importance of demonstrating clear ROI in your sales conversations.
7. Leading Sectors in the Cloud Software Arena: IT, Analytics, and Finance
Cloud software has made a significant impact across various industries, but it’s predominantly seen in the fields of information technology, data analytics, and financial services. Beyond these, sectors like communication, project management, and cyber security are also tapping into SaaS. Among these, the IT sector stands out with a whopping 37 billion users globally, thanks to giants like Google, Microsoft, and Salesforce.
SaaS Location Stats
8. The United States Is Home to Most SaaS Companies in the World
With a staggering count of nearly 17,000 software firms, the United States leads the pack. These companies collectively cater to an impressive 59 million users worldwide according to Getlatka. The UK and Canada come next, each with around 2,000 software-as-a-service firms. Close behind, Germany and France each boast about 1,000 of these businesses.
For sales teams targeting specific geographies, explore our lists of NYC startups, San Francisco startups, and Boston startups.
9. India Has More SaaS Companies Than Any Other Country in Asia
India stands out in Asia with the highest number of cloud software firms, totaling 994, while China closely follows with 702 businesses in the same sector. The Bangalore startup ecosystem alone accounts for a significant portion of India’s software innovation.
10. Germany’s SaaS Industry Is Growing the Fastest in Europe
Europe has seen steady growth in its cloud software sector since 2020. However, Germany stands out, with its market size rising from $7.56 billion in 2020 to an anticipated $18 billion by 2025 according to Statista. This number is projected to climb to nearly $18.83 billion in 2027.
11. U.S. Firms Lead in SaaS Expenditure
On average, businesses in the U.S. allocate about $20,000 annually for SaaS services. In contrast, UK companies typically spend roughly $17,500. A study revealed that French companies have an average outlay of about $15,400.
Meanwhile, Asian nations, especially China, spend the least, with businesses averaging around $7,500 yearly on software services.
12. Most Software-as-a-Service Unicorn Companies Are Based in the US
The US leads the world with the highest number of unicorn software-as-a-service companies. Currently, the US boasts 300 such companies, while China has 28, according to CB Insights.
Recent data suggests that more than 100 software companies are valued at over a billion dollars each. As more companies use these software services, this number is set to rise. Learn more about tracking these high-growth companies in our guide on how to find recently funded startups.
13. The Software Industry Is Growing Fastest in Latin America and Africa
Latin America tops the chart with the world’s quickest expansion in the SaaS and cloud computing sector, with an annual growth rate of 28% according to EBANX.
Following closely, Africa’s software and cloud services sector is growing at a rate of 25% annually, making it the second-fastest after Latin America. For sales teams, this represents untapped opportunities in emerging markets like Brazil and Mexico.
14. Software Requirements in China: Local Server Mandate
China’s cloud software market has been on an upward trajectory, with an impressive gain of CNY53.8 billion in 2020, and this growth trend shows no signs of slowing down, according to China Internet Watch. However, there’s a crucial regulation for software providers in China: they must host their servers locally. If not, offering a software service becomes unlawful in the country.
SaaS Funding Stats
15. B2B Companies Get the Most Funding in the Software Industry
Venture capital increasingly favors SaaS, with nearly half its global funds directed towards these firms according to Dealroom. Interestingly, 90% of the funds allocated to software companies are invested in business-to-business companies.
Check out our lists of recently funded companies including B2B SaaS startups, Series A startups, and Series B startups to identify the best prospects for your sales pipeline.
16. Average Software Startup in Europe Raised €2.2 Million in 2022 in Funding
In 2020, average software-as-a-service startups in Europe secured funding of €1 million during their initial stages. By 2021, this amount had increased to €2.2 million according to Paddle’s State of SaaS report.
17. European Software Investment Tripled in 2021
In 2020, Europe’s cloud software sector secured investments between $9 and $9.5 billion. However, this amount surged to about $30 billion the following year. Notably, private software startups in Europe received three times more funding ($11 billion) than those going public.
European markets like France, UK, and Switzerland are attracting significant investor attention.
18. Funding for Software Businesses in India Jumped Significantly by 170%
In 2021, Indian software firms attracted an impressive $4.5 billion in funding, marking a substantial rise from the previous year according to Economic Times.
19. Sequoia Capital Leads Software Investments with Stakes in over 1,200 Firms
Established in 1972 by Don Valentine, Sequoia Capital is a major player in the cloud software funding landscape. They’ve poured resources into a whopping 1,222 businesses, making them one of the most prolific SaaS venture capital firms.
20. Funding for SaaS Companies Hit a Record $90 Billion in 2021
Software firms secured a whopping $90 billion in funding according to Software Suggest. This amount surpassed the total funds raised across 2018, 2019, and 2020, setting an unprecedented benchmark.
21. Record $34 Billion Funding Boost for Early Stage Software Companies
In 2022, emerging software firms attracted an unparalleled $34 billion from venture capitalists. This was the most substantial surge in funding ever recorded in the software industry, particularly for pre-seed and seed stage startups.
22. 2023 Sees Robust Funding for Software Enterprises
Capital inflows into software businesses remain strong this year. Fresh data reveals that from January to May 2023, about 119 firms successfully secured funding through various investment rounds.
SaaS Trends
23. AI Will Bring Disruptive Change to the Software Industry
As with many different industries, software delivery will be affected by AI. Artificial intelligence is a pivotal tech innovation with the potential to transform cloud software. One standout advantage it offers is in-depth customization, ensuring that needs across B2B, B2C, or D2C markets are met seamlessly.
For companies in the AI startup space, integrating software-as-a-service delivery models is becoming increasingly common.
24. Machine Learning Is the Next Big Thing After AI in the Cloud Software World
Machine learning is another innovation made possible through AI, which is changing how platforms operate and serve their users. By understanding and adapting to the habits and preferences of customers, software companies are making their offerings more user-friendly.
Additionally, the ability to sift through vast amounts of relevant data gives companies a unique edge to fine-tune their market presence.
25. Integrations Are Becoming More Frequent than Ever
In the cloud software space, integration options were sparse. But today, many software providers offer enhanced integration features, appealing to businesses wanting a mix of cloud and on-site systems. Such integrations reduce human errors by automating certain tasks. Platforms like Zapier exemplify this streamlined automation.
26. Low-Code Apps Will Bring Desired Results
Low-code and no-code development tools have gained traction recently, and the software industry has taken note. Since these platforms cater to a broader audience, including those without a tech background, they pave the way for a broader range of startups and users.
SaaS Companies Stats
27. SaaS Companies Spend 50% of Their Revenue on Marketing and Sales
For software businesses, the bulk of their costs go into sales and marketing according to McKinsey research. They typically use up to half, sometimes even more, of their income on these efforts. This trend is primarily due to the nature of their business model, where returns come after hefty initial investments.
This makes understanding effective cold email outreach and B2B lead generation tools critical for software companies looking to optimize their customer acquisition costs.
28. Microsoft Is the Largest Software-as-a-Service Company in the World
In 2021, Microsoft held a commanding position in the cloud software market, claiming close to 17% of the market according to Statista. Salesforce and IBM trailed as the subsequent major contenders in this domain.
29. The Top 15 Software Firms Reached $1.4 Trillion in Market Value in 2020
In 2020, the collective market value of the 15 front-runners in the cloud software arena touched a staggering $1.4 trillion, with earnings hitting $80 billion according to History Computer. This elite group includes giants like Microsoft, Salesforce, SAP, Oracle, Google, and WordStream, among others.
30. 90% of Software Startup Companies Fail
Data indicates a challenging landscape for budding software-as-a-service companies. Research reveals that a whopping 90% of these startups don’t reach their anticipated success markers or produce significant income according to studies from Tech Times and Only SaaS Founders.
Understanding startup failure statistics can help both founders and sales professionals identify warning signs and opportunities.
31. Average Software Firm Serves 36k Clients
SaaS enterprises vary widely, with clientele ranging from mere hundreds to several hundreds of thousands. Yet, on average, a standard software business caters to 36,000 clients according to SaaStr. This figure jumps to 85,000 when looking at publicly traded software companies primarily serving small to medium-sized businesses.
32. Zoom’s Revenue Skyrocketed Amid the Pandemic in 2019-2020
During a time when numerous businesses faced dwindling revenues due to COVID-19, Zoom’s earnings soared. They witnessed a growth of 148%, jumping from $90 million in the first quarter of 2019 to $225 million in the same period of 2020 according to Statista.
Furthermore, by their 2022 fiscal year, Zoom had an impressive turnover of $4.1 billion.
SaaS Usage And Adoption Stats
33. By 2025, 85% of All Business Apps Will Be SaaS-based
The 2023 State of SaaSOps survey anticipates that by 2025, a dominant 85% of all enterprise applications will belong to software-as-a-service according to Insivia and BetterCloud’s 2020 State of SaaSOps Report.
34. App Usage Surges Based on Company Size
Businesses with a workforce under 500 typically utilize roughly 253 applications. Meanwhile, those housing up to 1,000 staff members operate with around 335 apps. Impressively, large-scale corporations with more than 10,000 employees have, on average, 473 applications.
35. Software Deployment Now Takes 7 Hours
Setting up tools has become incredibly efficient. While a new software setup once demanded 57 hours around ten years back, today, it can be done in merely 7 hours. This swift implementation aids in quicker market entry and enhanced value realization.
36. Healthcare’s Cloud Software Usage Surges by 20% Annually
The medical sector is showing keen interest in integrating cloud solutions, witnessing a steady annual growth of 20% in its adoption rate, according to BMC.
For sales teams, this makes healthcare startups an attractive vertical to target.
37. Almost 9 in 10 Companies Use a Cloud Solution
Close to 90% of businesses have adopted at least one cloud-based service. Moreover, many of these companies anticipate adding more services in the upcoming year.
SaaS Challenges Stats
38. About a Third of Companies Fix Cloud Security Issues in a Day
Roughly 28% of businesses reported resolving a security flaw within a day according to Statista. On the other hand, a small 1% mentioned they need over six months to address such issues, though such prolonged challenges are infrequent.
39. Nearly Half Struggle with Software App Overload
A recent poll targeted IT leaders from companies with over 500 employees, asking about their main hurdles in overseeing cloud applications according to Statista. The findings revealed that 49% saw the proliferation of too many apps as their primary concern.
Meanwhile, 26% were troubled by identifying unregulated applications. 14% cited concerns over unchecked expenditures, and 11% stressed the need for better guidelines and management strategies.
40. Former Employees Cause 1 in 5 Cloud Security Issues
Internal security threats within cloud-using organizations can be surprisingly high. In fact, ex-employees who still have access to company software tools contribute to roughly 22% of all security breaches according to Security Boulevard.
This underscores the necessity of promptly deactivating accounts of those no longer with the company to prevent potential risks and save time and costs.
41. Too Much Departmental Access Causes 35% of Software Errors
One major culprit behind software misconfigurations that can compromise security is excessive access by various departments. Additionally, not being aware of alterations in security settings ranks as the second leading cause of such errors.
SaaS Workforce Stats
42. More Than 70% of Software Companies Have Fewer Than 50 Employees
A mere 6% of software companies are giants in this industry according to LinkedIn data. And approximately 20% employ between 50 to 1,000 people, positioning them in the mid-market category. Meanwhile, the bulk of them, at 74%, are small businesses with a workforce of fewer than 50.
43. Salesforce Has More Than 79,000 Employees
In 2023, Salesforce, a major player in the cloud software industry, boasts a workforce of 79,390. This marks an almost 8% growth from the year before.
44. Software Professional Services Revenue per Employee Was $145,000 in 2022
In 2022, each employee in the professional services sector of software companies generated an average revenue of about $145,000 according to River SaaS Capital’s 2022 SaaS Industry Report. Interestingly, the revenue per employee in 2015 was $170,000 according to Statista. So, software professional services revenue was $16,000 less in 2022 than in 2015.
45. Peak Revenue for Software Professional Services in 2019
In 2019, every worker within the software professional services domain brought in an average of around $199,000. This marked the pinnacle in revenue generation in the years since the software sector became prominent.
46. The Average Software CEO Salary in the USA Is Around $322,000 in Base Wages
CEOs of software companies earn money from many different revenue streams, including salary, dividends, and bonuses according to Cowen Partners. When just looking at the salaries of software CEOs, the average is around $322,000. That said, many earn more than double this, and some earn much less as well.
47. CTOs of Software Companies Earn Up to 1M Pesos in Mexico
In Mexico, the annual salary of a Chief Technology Officer (CTO) can be up to one million pesos according to Statista. Meanwhile, senior software engineers typically earn about 900 thousand pesos, and those just starting as junior software engineers make close to 144 thousand pesos.
SaaS Pricing Stats
48. 44% of Firms Lean on Sales-Negotiated Pricing
In the B2B software world, 44% of firms lean on sales-negotiated pricing as their go-to strategy according to FastSpring. This is followed by set pricing at 34% and fluctuating pricing, which stands at 24%. However, a significant 64% anticipate adopting different pricing structures in the future, with a tilt towards variable pricing methods.
49. 42% of Software Firms Offer Both Monthly and Annual Plans
Over 40% of software businesses provide both monthly and annual subscription choices. Meanwhile, 26% lean towards just monthly subscriptions, and 18% focus on annual ones.
In the transparency department, 82% of these companies openly display their pricing. Additionally, 40% offer yearly discounts, and 48% feature a free subscription tier. When detailing their offerings, 42% mention added benefits, 36% underscore their top-selling plan, and a minimal 4% present a tool that suggests the optimal subscription plan.
50. 65% of Firms Leverage Customer Success for Upselling
A majority of software businesses, about 65%, rely on their customer success teams as their primary method for upselling according to River SaaS Capital. Other favored strategies include offering demos, trials, and open testing, as well as straightforward communication with potential buyers.
51. Typical Software Firm Dedicates 6 Hours to Price Structuring
On average, a software business allocates merely 6 hours to formulate its pricing strategy according to Invespcro. The prevailing trend indicates that they typically provide an average of 3.5 unique packages.
Frequently Asked Questions About SaaS Statistics
What is the projected growth rate of the SaaS market through 2030?
The global software market is projected to grow at a compound annual growth rate (CAGR) of 18.7% from 2023 through 2030. This growth trajectory will take the market from $273.55 billion in 2023 to an estimated $908.21 billion by 2030, representing more than a 3x increase. This explosive growth is driven by increased enterprise adoption, remote work trends, and the shift away from on-premise software solutions. For businesses building a sales pipeline targeting software-as-a-service companies, this represents a massive and growing addressable market.
What is the projected growth rate of the SaaS market through 2030?
The global software market is projected to grow at a compound annual growth rate (CAGR) of 18.7% from 2023 through 2030. This growth trajectory will take the market from $273.55 billion in 2023 to an estimated $908.21 billion by 2030, representing more than a 3x increase. This explosive growth is driven by increased enterprise adoption, remote work trends, and the shift away from on-premise software solutions. For businesses building a sales pipeline targeting software companies, this represents a massive and growing addressable market.
How much funding did SaaS companies raise in 2021?
SaaS companies raised a record-breaking $90 billion in funding during 2021, surpassing the combined total of 2018, 2019, and 2020. Early-stage software companies alone attracted $34 billion in 2022. While funding has moderated since the peak of 2021, software-as-a-service remains one of the most attractive sectors for venture capital investment. Sales teams can use our guide on how to find recently funded startups to identify companies with fresh capital to spend.
What percentage of business applications will be SaaS-based by 2025?
According to industry surveys, 85% of all business applications are projected to be SaaS-based by 2025. This represents a massive shift from traditional on-premise software deployments. Large enterprises with over 10,000 employees currently use an average of 473 different applications, most of which are cloud solutions. This widespread adoption creates opportunities for B2B lead generation across virtually every business vertical.
Which country has the most SaaS companies?
The United States dominates the global software landscape with approximately 17,000 software-as-a-service companies, representing about 55% of all SaaS businesses worldwide. The UK and Canada each have around 2,000 SaaS firms, while Germany and France each have approximately 1,000. In Asia, India leads with 994 SaaS companies, followed by China with 702. For sales professionals targeting specific geographies, check out our regional startup lists for NYC, San Francisco, London, and Berlin.
What is the average failure rate for SaaS startups?
Research indicates that approximately 90% of software startups fail to reach their anticipated success markers or generate significant revenue. This high failure rate is consistent with broader startup failure statistics across all industries. Common reasons for failure include poor product-market fit, inadequate funding, ineffective go-to-market strategies, and inability to achieve sustainable unit economics. For sales teams, understanding these challenges can help position solutions that address common pain points in the SaaS business model.
How much do SaaS companies spend on sales and marketing?
SaaS companies typically spend approximately 50% or more of their revenue on sales and marketing efforts. This high percentage is driven by the cloud business model, which requires significant upfront customer acquisition costs before realizing long-term recurring revenue. Understanding effective strategies like cold email outreach, email warm up, and leveraging sales trigger events can help optimize these substantial investments.
What are the fastest-growing SaaS markets geographically?
Latin America leads global software-as-a-service growth with a 28% annual growth rate, followed by Africa at 25%. In Europe, Germany’s software market is experiencing the fastest expansion, projected to grow from $7.56 billion in 2020 to $18 billion by 2025. India’s software-as-a-service market is also experiencing explosive growth, with funding jumping 170% in 2021 to reach $4.5 billion. These emerging markets represent significant opportunities for businesses looking to expand internationally or target high-growth regions.
How long does it take to deploy cloud software?
Modern software deployment has become remarkably efficient, now taking an average of just 7 hours compared to 57 hours a decade ago. This dramatic reduction in implementation time is one of the key value propositions of software-as-a-service solutions, enabling faster time-to-value and quicker market entry for businesses adopting new technologies. The simplified deployment process has been a major driver of SaaS adoption across enterprises of all sizes.
Conclusion
The cloud software industry continues to demonstrate remarkable growth and resilience, with projections pointing to a market value of over $900 billion by 2030. From the dominance of US-based companies to the explosive growth in emerging markets like Latin America and Africa, these 51+ statistics paint a picture of an industry in the midst of transformation.
For B2B sales teams, investors, and founders, understanding these trends is crucial for making informed decisions. Whether you’re selling to funded startups, building your go-to-market strategy, or evaluating market opportunities, these statistics provide the data-driven insights you need to succeed in 2026.
Looking to connect with SaaS companies? Growth List maintains the most comprehensive database of recently funded SaaS startups with verified contact information, updated weekly.
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