The most recent data indicates that there are around 30,000 SaaS companies worldwide.
More than half (17,000) of SaaS companies are located in the United States and have around 59 billion customers worldwide. They are followed by 2,000 companies in the United Kingdom with 3 billion customers worldwide.
Leading SaaS Countries by Number of Companies and Total Revenue
| Country | Number of SaaS Companies | Total Customers | Total Revenue |
| United States | 17,000 | 59B | $398.9B |
| United Kingdom | 2,000 | 3B | $26.6B |
| Canada | 2,000 | 3B | $13.2B |
| Germany | 1,000 | 2B | $14.9B |
| France | 1,000 | 1B | $11.9B |
| India | 1,000 | 2B | $15B |
| China | 707 | 3B | $6.6B |
| Brazil | 662 | 686M | $3.5B |
| Australia | 635 | 233M | $16.1B |
| Spain | 511 | 1B | $3.4B |
| Israel | 466 | 201M | $1.3B |
| Netherlands | 402 | 967M | $9.5B |
| Singapore | 327 | 1B | $10.3B |
| Sweden | 286 | 1B | $1.7B |
| Ireland | 270 | 254M | $898.6M |
SaaS businesses have much potential for growth in the next few years. Keep reading to learn how you can make your Saas business grow and create solid marketing strategies.
General SaaS Companies Statistics
There will be roughly 30,000 SaaS companies that are active globally in 2022.
(Source: Exploding topics, AscendiX)
In 2021 the number of SaaS companies was about 25,000, according to AscendiX. Interestingly, more than 7,000 SaaS companies are in the marketing space alone.
The median annual revenue rate for SaaS companies is 13.2%.
(Source: Popupsmart)
Recently SaaS products have rapidly taken over nearly every industry because of how innovative and user-friendly they are. Consequently, it is not uncommon for companies in 2022 to use some form of SaaS products daily.
73% of companies are either in the process or plan to transition their systems to SaaS platforms.
(Source: Enterprise Apps Today)
The majority of firms are in the process or planning to transfer to SaaS systems due to the many advantages this system offers, such as pliable paying alternatives, better security, and standard updates.
80% of the best 100 SaaS companies are situated in the United States.
(Source: Popupsmart, Vendr)
Most of the top SaaS companies are headquartered in the US. Here are some of the states in which top SaaS companies are located: California, Washington, New York, Massachusetts, Utah,
Tennessee, Illinois, Colorado, Texas, Georgia, and others.
39% of business owners favor SaaS because there was an improvement in business agility.
(Source: Popupsmart)
Business owners have figured out that using SaaS can enhance their business. More security and stability are crucial to any business that wants to stay in the competition pool.
SaaS Industry Growth
In 2008 the SaaS market was valued at around $5 billion. However, by 2020 it has increased to $157 billion – a growth of over 28 times.
(Source: Exploding topics)
It is clear that in 12 years, the SaaS industry was growing. Many factors influenced the growth; the most obvious is global digitalization.
The global market size for SaaS is estimated to reach $702.19 billion by 2030.
(Source: CISION PR Newswire)
The SaaS platform is increasing in popularity in business because it provides a convenient way to manage various business tasks such as CRM, business intelligence, supply chain management, and e-commerce. It is genuinely flexible and can be applied on various platforms.
The worldwide market size for Saas is projected to grow at a CAGR of 27.5% from 2021-2028.
(Source: Fortune Business Insights)
According to Fortune Business Insights, the global SaaS market is predicted to proliferate in just seven years. Many industries and public sectors depend on IT-associated requirements and assistance. New startups are also popping up in every industry, mainly in the public sector, that needs cloud-related services.
In the next five years, it is projected that SaaS companies might double in the UK, China, and Europe.
(Source: Notify visitors)
According to Notify visitors, SaaS companies are growing more popular in Europe and Asia, but in South America their popularity is even higher.
The Saas market in Latin American countries is expected to grow at a CAGR of 24.79% from 2018 to 2023.
(Source: Saas Mag)
The SaaS market in Latin America is not just growing; it is flourishing. In only six months, Brazil has produced as many unicorn companies as it combined in the past 20 years.
By 2030, banks anticipate that SaaS will replace applications at a rate of 90%.
(Source: GMP)
Customers increasingly turn to more banking solutions as they become dissatisfied with traditional banking methods.
In 2021 the global SaaS market size was estimated at $165.9 billion.
(Source: Grand View Research)
The increasing trend of corporations moving away from an on-premises model to Saas because of the expensive cost of deploying on-premises software is projected to drive market growth in the following years further.
In 2021, North America was estimated to hold 50.0% of the Saas market share.
(Source: Grand View Research)
The US is driving market revenue growth with well-established companies such as Salesforce, Microsoft Corp., Google LLC, IBM Corp, and many others.
The SaaS market is projected to be worth $186.6 billion by 2022, growing at 18% per year.
(Source: Zippia)
In addition, high spending on cloud infrastructure and the availability of many secure internet services have contributed to enlarging the market. Also contributed to its dominance are innovations in mobile applications and the introduction of various intelligent devices.
The United States is home to the world’s most valuable SaaS sector, worth $108.4 billion.
(Source: Zippia)
Furthermore, the robust IT Infrastructure in the region allows for easy deployment of cloud-based virtual service, thereby boosting the SaaS market.
The SaaS industry is estimated to grow exponentially within the next few years, with 86% of organizations planning to move all their apps to SaaS after 2022.
(Source: Zippia)
More than a third of organizations run entirely on SaaS, and most small businesses have already invested in SaaS services.
SaaS Companies Market Shares by Region
(Source: Exploding topics)
| Region | SaaS Companies | Approximate Market Share |
| North America | 19,000 | 67% |
| Europe | 5,469 | 19% |
| Asia | 2,500 | 9% |
| South America | 662 | 2% |
| Oceania | 635 | 2% |
As can be seen from the table, the North American region holds the biggest market share and the majority of Saas companies.
SaaS Adoption Statistics
99% of all businesses use a minimum of one SaaS solution to run their operations.
(Source: Thrive my way)
SaaS solutions are one of the quickest modernizing segments in the IT industry.
An astonishing 92% of businesses are looking to cloud acquisition to elevate their current processes.
(Source: Thrive my way)
Software-as-a-service models are becoming popular among organizations because of their unfailing flexibility and low cost.
Almost 93% of enterprises have a multi-cloud plan.
(Source: Notify visitors)
Many companies want their software to be constantly updated, located on a remote cloud network, and being secure. That is why they are beginning to rely on SaaS models and options.
Largest SaaS companies
The ten biggest SaaS companies last updated in November 2022 on the US stock exchanges.
(Source: Mike Sonders)
| Company | Market Cap, billions |
| SALESFORCE | $139.8 |
| ADOBE INC. | $132.8 |
| INTUIT INC. | $101.8 |
| SERVICENOW INC. | $73.1 |
| SNOWFLAKE INC. | $42.3 |
| AUTODESK INC. | $41.8 |
| SHOPIFY INC. | $40.9 |
| BLOCK INC. | $35.5 |
| WORKDAY INC. | $34.0 |
| ATLASSIAN CORPORATION | $31.5 |
The companies that now dominate the enterprise software market will most likely hang onto their customer base since more and more people are able to take advantage of subscription-based pricing for the same product capabilities. However, the listed SaaS companies are presented on the US stock exchanges, but not all of them are based in the US.
SaaS Content Marketing Statistics
According to a study in 2013 of 34 publicly traded companies, 80%-120% of their revenue is spent on marketing and sales in the first 3 years.
(Source: Zenpost. Tomasz Tunguz)
The average business spends 10%-14% of its budget on marketing, but SaaS marketing comes at a higher cost. However, after the fifth year, for these 34 publicly traded companies, the revenue spent on marketing and sales was reduced to 50%.
SaaS companies spend a significant amount of money on content marketing every year, with some spending as much as $1,080,000 and even more.
(Source: Zenpost)
Two primary reasons for the increased marketing costs associated with SaaS companies are high competition and customer acquisition costs. SaaS companies spend millions of dollars on paid advertisement, and the numbers add up when you consider email marketing, webinars, Linkedin organic traffic, and PR costs.
SaaS brands that invest in high-quality content marketing can see an ROI of 448% or more.
(Source: Zenpost)
Many of the most successful SaaS firms use high-quality visuals and marketing expertise to increase traffic and get a higher ROI. While calculating marketing ROI can be difficult, some critical metrics with Google Analytics and other tools like BuzzSumo or Hootsuite can assist in measuring progress and return on investment.
Emily Byford’s study on content marketing for SaaS companies showed that:
(Source: Smashing Copy, Ek-byford)
- 23% of blogs received less than 500 views a month
- the average blog gets 1800 organic visitors per month
- the best blog posts receive only 321 organic visitors per month
Emily Byford’s search in 2019 showed that content marketing for SaaS industries was lagging. Part one of the study reviewed companies from 2017 to see how their content marketing has changed. The second part of the study looked at established SaaS companies and compared them with fast-growing SaaS startups to understand how content marketing approaches differ between the two companies.
According to a study done by the 50 largest SaaS Companies, it was estimated that 26.4% of traffic came from organic search.
(Source: Mike Sonders)
Even when we ignore the direct channel’s data, search engines are still by far the leading source of traffic for new visitors to popular SaaS websites.
Ten SaaS companies with the most organic traffic search in 2020.
(Source: Mike Sonders)
| SaaS Companies | Organic Search Traffic, millions |
| Zendesk | 21.0 |
| Dropbox | 16.0 |
| Shopify | 11.6 |
| HubSpot | 10.2 |
| Wix.com | 9.0 |
| Salesforce.com | 8.2 |
| Zoom | 5.9 |
| Okta | 4.9 |
| Atlassian | 4.7 |
| Square | 3.1 |
Conclusion
As work continues to evolve, SaaS technologies are overgrowing in all sectors. Automation tools and cloud-based software save business owners and managers time and money by reducing high costs and inefficiencies.
SaaS companies use cutting-edge technology like machine learning and APIs to stay ahead of the competition and better meet customer needs. The most successful SaaS firms offer a wide range of products and services to secure a larger share of their customers’ spending. According to all the projections for the Saas industry, a significant expansion is expected within the next decade, so SaaS companies are aiming to stay in the business market indefinitely.
FAQ’s
How much do SaaS companies spend on marketing?
Most Saas companies spend 15%-25% of their revenue on marketing, so those that spare less are at a disadvantage. While this is only a suggested amount, keep in mind that companies that spend on marketing more generally have higher growth rates. Firms should not assume that spending more money will result in higher sales, so expert opinions should be sought when allocating marketing funds.
How are Saas companies valued?
To value a SaaS business correctly is not a simple task, and you must understand and weigh many different metrics. When calculating the value of a SaaS company, there are several key metrics that investors look at, such as annual recurring revenue, income, valuation based on strategic default estimation, EBITDA-based valuation, growth rate, net retention rate, gross margin, profit margins, and revenues. Also, not to mention the company’s business model and sector intellectual property are of significant importance to investors.
How many Saas companies reach 1 million arr?
A mere 4% of SaaS companies manage to bring in $1 million annually, and a tiny 0.4% make it to the $10 million mark. Startups emphasize hitting $ 1 million or more in annual recurring revenue because it is a significant milestone. Even today, a $ 1 million ARR is considered by numerous people as one of the leading indicators that a company has figured out how to win and keep customers. In most cases, this scaling signifies a sizable investment amplifying marketing and sales efforts.
How many public SaaS companies are there?
A whooping 25,000 SaaS companies exist worldwide as of 2021, per Statista’s report on SaaS organizations by country. Furthermore, if that does not seem like a lot: consider this there are nearly 7000 of these types of companies in the marketing industry alone. SaaS products are popular, and you might be using one without even realizing it. Businesses are increasingly switching from traditional to SaaS solutions for many reasons.
How many B2C SaaS companies are there?
SaaS companies are multiplying, with an estimated 11,000 B2C SaaS worldwide in 2021. Those B2C SaaS companies have impacted millions of people by altering how we function in our everyday lives.
