Top companies nowadays are implementing the use of cloud-based programs to achieve most of their business targets and goals. The cloud-based services are known as SaaS- Software as a service. With SaaS, companies can manage services such as finance management, organization of data, project management, and sales, among many others. In fact, a higher percentage (85%) of corporate applications will be SaaS-based in the next three years. These predictions are determined by SaaS market development and SaaS trends that are always taking a new dimension, thanks to the growing technology. In the year 2023, the SaaS market value is expected to rise up to 17.5% compared to the 2022 market value.
Both users and developers need to be updated on the SaaS statistics and emerging trends to enhance smooth adaptability to the changing markets. So, are you wondering about the best direction to take your business to succeed? Well, this is your ideal article. We have researched and included SaaS statistics that will ease your business-related decisions.
Top SaaS Statistics to look out for in 2023 and beyond
The US market has more SaaS companies than other countries.
Statistics prove that the US has about 17,000 SaaS-based companies, topping the market up to 8x more compared to the next market, the UK. Canada, Germany, France, and India and the next top markets with high numbers of SaaS-based companies, with figures 2000, 1000, and 1000 in that order. India tops the SaaS-based companies in the Asian market.
The SaaS market is set to grow 2x more in the US by 2025
Being the leading SaaS market globally, the US growth rate was approximately USD 108.4 billion in the ear 2020.
According to the trends and statistics, the figure is set to increase up o USD 225 billion by the year 2025, which is equivalent to a 100% growth rate. At this rate, the US market is likely to maintain the top position in SaaS evaluation for a long time.
The SaaS industry has grown up to an approximation of USD 172 billion
Since 2015, the SaaS market has attained a 5x growth rate over the past seven years. This approximation is from USD 31.5 billion (the year 2015) up to USD 171.9 (the year 2022).
The trend is set to keep growing over and over, improving the annual growth rate.
Establishments having more than 1000 workers use more than 150 SaaS apps
According to studies, the more an establishment has workers, the more such an organization has SaaS applications. An in-depth analysis of this statement is shown below:
- Biggest organizations, i.e., establishments with 1000+ employees, must have at least 177 SaaS apps.
- Organizations with fewer workers (less than 50) will require about 16 SaaS apps. Again, a medium organization with workers ranging between 50 and 90 needs to have about 24 SaaS apps.
- Now, a steadily growing establishment (one with about 100 to 499) workers will require double the number of SaaS apps a company with 50 to 99 workers users, which is about 47 SaaS apps.
The cloud application market has a positive growth curve
Since the year 2013, the cloud market has projected positive growth from USD 30.3 billion to at least USD 124 billion in the year 2019. The market is evolving and growing at a steady pace with no signs of slowing down. Statistics project that in the year 2024, the cloud application market value will rise up to USD 168.6 billion.
SaaS is the best technology for business success
While there are other technologies that help businesses attain their objectives, a recent survey showed that SaaS tech topped the list of the best business technologies.
In the survey, 73% of 1724 respondents chose SaaS to be of great significance to the business. Next, after SaaS is big data, a technology is known to also improve business by up to 72%. Other business technologies that follow, according to the survey respondents, are blockchain at 26%, VR-virtual reality at 25%, and AR-Augmented reality at 24%.
The biggest SaaS security concern is the encryption worries
Even though SaaS technology tops the list of best business technologies, it doesn’t imply that it is 100% perfect. The concerns raised, according to the survey, directly relate to encryption matters.
38% of the respondents noted that encryption of the establishment’s data within the SaaS infrastructure with key elements stored and managed by the service provider is the top concern.
Therefore, the top SaaS concern lies within data security measures at 32 %. Other concerns include HSMs- support for hardware modules as infrastructure for rent in the cloud or as a local generation.
The emerging SaaS app user retention methods
Every business has one ultimate goal; to ensure customer retention, i.e., continued use of a certain product or service. In this case, it is all about SaaS apps. Therefore, churn measures those clients who stop using a SaaS app, while user retention measures those clients who keep using the same SaaS application.
Therefore, the decrease in churn means increasing user retention. Companies using SaaS applications use user retention approaches like notifications and annual billing to improve customer service delivery.
Other older ways of customer retention strategies, including guide articles, simplified guides, and welcome emails, among others, don’t play a big role in retaining customers. The ever-advancing technology forces users to yearn for more personalized approaches to achieve their targets. For instance, personalized welcome videos, video tutorials, courses, regular updates of best practices, master classes, webinars, and customized templates for SaaS solutions.
One reason why SaaS user retention is significant is to always ensure the apps keep serving the desired purposes to end users while generating good revenue.
SaaS Growth Statistics
The SaaS industry is growing worldwide on all platforms. This is evident through the following statistics:
- In the UK, only 2% of businesses are not on the cloud, meaning many businesses have already adopted SaaS applications in their operations.
- SaaS services are available in 100-plus countries, and the trend is still growing and spreading to other countries.
- In Asia and the Pacific, over 90% of businesses are already using or planning to implement multi-cloud environments in their operations.
- Currently, the annual growth rate of the SaaS market is at 18%
Therefore, many companies are on the move, looking forward to using SaaS organizations to stay ahead of the market. The reason why SaaS is the best-preferred technology is due to low barriers to scalability, entry, and accessibility.
SaaS Pricing Statistics
Varied businesses implement varied pricing strategies that will meet the needs of their customers. The pricing statistics vary as follows:
- When a company recovers from a crisis, 40% of the companies prefer to implement new pricing models
- 30% of all SaaS companies use additional functionality as a way of meeting their goals.
- Clients get 30% discounts from over 50000 SaaS vendors as a measure to achieve a high retention rate.
- About 33% of both large and medium SaaS companies give extra services to their customer base.
- Clients get a free demo or free trial from 44% of the SaaS companies.
- About 50% of SaaS organizations are dependent on user-based pricing.
- The SaaS trial period is usually 30 days
There is no doubt that SaaS establishments play a crucial role in many business operations. With this in mind, SaaS is there to stay and grow different businesses.
From the statistics discussed above, it is evident that cloud-based services are among the emerging trends pushing businesses to attain more profits. Again, SaaS organizations have grown to extreme heights, and more is yet to come.
Finally, connect with SaaS development company to know more about SaaS sales and marketing statistics