SaaS (Software as a Service) is one of the most promising and financially attractive industries for entrepreneurs and technology startup founders today.
Despite any economic fluctuations or crisis periods, the global SaaS market continues to grow and is estimated to be worth tens of billions of dollars.
In this article, you will learn key statistics about the SaaS industry, such as market size, venture funding, breakdown by topic, interesting facts about popular products, and more.
How big is a SaaS market?
The global Software as a Service (SaaS) market size was valued at $266.23 billion in 2024 and is projected to reach $390.46 billion in 2025. — Statista
Globally, the United States will account for the largest share of revenue, with $221.46 billion in 2025.
By 2024, there will be over 337 unicorn companies in the global B2B SaaS industry. — Electroiq.com
How Many SaaS Companies are There in The World?
The most recent data shows that there are approximately more than 42,000 SaaS companies in the world. — Latka
Which Country Has the Most SaaS Companies?
The United States accounts for the largest share of the global SaaS market, with more than 17,000 companies. — AscendiX
The SaaS sector receives an average of $11.5 million in funding rounds. More than 31,400 investors contribute to this funding amount.
The SaaS sector in Germany is expected to grow from 6.85 billion euros in 2022 to 16.3 billion euros in 2025, a significant increase. — Statista
What is the World’s First SaaS Company?
Salesforce is considered the first SaaS provider and has led the way for other companies in the industry. In 1999, Salesforce launched its CRM platform as the first SaaS solution built from the ground up and has experienced record growth.
Approximately 42% of SaaS companies use both monthly and annual pricing strategies.
For SaaS companies targeting small and medium businesses, the annual attrition rate ranges from 31% to 58%. — Tomasz Tunguz
Among SaaS vendors, 44% offer a free trial. Within this category, 18% offer a 14-day free trial and 41% offer a 30-day free trial. — Pierre Lechelle
What is the Average Churn Rate for SaaS?
For a subscription business, the average annual churn rate is 5-7%, and a 4% monthly churn rate is considered a good benchmark. — Recurly Research
A 5% reduction in customer churn can result in a 25% to 95% increase in profits. This demonstrates the financial importance of improving customer retention. — Forbes
See How AI Affects the SaaS Industry
Artificial intelligence powers SaaS, and the two technologies together will play a significant role in shaping the software industry.
The global AI SaaS market is projected to grow at a CAGR of 37.66 percent between 2021 and 2030. It is expected to reach a value of US$1,547 billion.
Spending on SaaS products will grow more than tenfold between 2010 and 2020. — Cloudwards
Volodymyr Fedorychak
Search marketing consultant specializing in IT business and B2B SaaS. I help businesses and start-ups generate traffic, attract customers and build their brand online.
