50+ Key SaaS Statistics in 2024

50+ Key SaaS Statistics in 2024

The SaaS industry continues to be a hotbed of innovation and growth. We know that keeping ahead of the curve can be overwhelming, but understanding the latest SaaS statistics in marketing and sales isn’t just beneficial—it’s essential. You’ve found the right place if you’re eager to stay in the loop with the latest trends and numbers.

This guide will clearly show how sales strategies are shaping up this year. Similarly, a close look at marketing statistics will reveal what’s working and what’s not in SaaS. 

SaaS Marketing Statistics

SaaS Marketing Statistics

Here are the latest SaaS marketing statistics to keep you informed. Check out these numbers to see trends and forecasts for the industry:

  1. The SaaS market is expected to grow significantly. It’s projected to increase from $282.2 billion in 2024 to $374.5 billion by 2028.
  2. In 2023, the SaaS revenue growth rate was 17.4% compared to 2022. It’s projected to grow by 9.1% in 2024 and 7.0% in 2028.
  3. The compound annual growth rate for SaaS revenue is expected to be 7.3% from 2024 to 2028.
  4. As of January 2024, Adobe is the largest SaaS company listed in the U.S., with a market cap of $276.4 billion. Salesforce and Intuit follow closely.
  5. On average, organizations used 130 SaaS applications last year.
  6. The global SaaS market is anticipated to grow 28% year-over-year to $333.03 billion in 2023 and is expected to reach $819.23 billion by 2030.
  7. Over 84% of the SaaS market revenue comes from software rather than services.
  8. The median growth rate for public SaaS companies was 22% as of March 2023, while private SaaS companies had a median growth rate of 35%. Smaller B2B private SaaS companies (ARR under $1 million) saw the highest growth rate at 51%.
  9. 47% of SaaS companies found case studies very effective in boosting sales.
  10. To acquire $1 of annual recurring revenue from a new customer, the median cost is $1.32. This cost can drop to $0.71 when upselling to existing customers. The median startup spends about 92% of its first contract’s value on sales, with an 11-month payback period on customer acquisition costs.
  11. 48% of businesses reported having a typical contract length of 1 year, while 13% have month-to-month contracts.

SaaS Sales Statistics

SaaS Sales Statistics

Check out these key trends and figures in software sales with these essential SaaS sales statistics. Get the insights you need to understand this fast-growing industry.

  1. Venture capital funding to tech companies, including SaaS, fell by 53% from the first quarter of 2022 to 2023.
  2. Financial data influences business decisions more than 3x compared to customer data in surveyed businesses, which included SaaS companies.
  3. Sales data influences decisions half as much as financial data according to a survey by Vena, where 13% of respondents were SaaS firms.
  4. In a 2022 survey of business leaders and finance professionals, 39% said their businesses don’t practice agile planning for future readiness. However, 41% of respondents, including those from SaaS businesses, said they weren’t using organizational data to influence decision-making.
  5. The US SaaS industry, already the global leader, is projected to more than double to $225 billion by 2025, solidifying its top position.
  6. The UK SaaS industry, a significant market, is set to nearly double to €14.5 billion by 2025, reflecting strong global growth in SaaS.
  7. The median spend of Annual Recurring Revenue (ARR) on research and development is 22%, the highest revenue spending.
  8. Other median costs as a portion of ARR include selling (16%), administration (15%), customer success and support (11%), and marketing (10%).
  9. Equity-backed SaaS companies spend on average 70% more on administrative costs, 61% more on research and development, and 44% more on marketing compared to bootstrapped companies.

Customer Engagement Insights for SaaS

Here are some key customer engagement insights for SaaS businesses. These data points reveal how users interact with software services.

  1. Investing in digital customer engagement can lead to an average revenue increase of 90%.
  2. Companies with omnichannel customer engagement see a 9.5% annual revenue growth versus 3.4% for others.
  3. Improving customer experience can lead to an 80% increase in business revenue.
  4. A personalized approach to offers and recommendations influences 91% of consumers’ purchasing decisions.
  5. Nearly a quarter (24.6%) of marketers use CRM platforms to improve customer engagement.
  6. Enhancements in user onboarding can lead to significant increases in Monthly Recurring Revenue (MRR) after 1 year: Acquisition (+25%), Activation (+34%), Revenue (+25%), Retention (+31%), Referrals (+7%).
  7. In 2023, 79% of SaaS products still used a signup flow with some friction.
  8. Single Sign-On (SSO) features are used by over 53% of tools to reduce signup friction.
  9. As of 2023, 66% of SaaS products had a welcome screen, but only 29% used an in-app video, and 36% lacked any in-app guidance.

SaaS Churn Rate Statistics

SaaS Churn Rate Statistics

Here are the recent SaaS churn rate stats. These figures show how often customers stop using these services.

  1. The average yearly churn rate for SaaS companies is between 5-7%. This shows how many customers stop using the service each year.
  2. After the COVID-19 pandemic, 54% of company leaders changed their views on technology, leading to more use of SaaS software.
  3. Companies used around 130 SaaS apps on average in 2022, which is 18% more than in 2021.
  4. The growth of SaaS app usage slowed in 2022 as 40% of IT professionals removed overlapping applications.
  5. The average customer churn rate for SaaS companies is about 5%, which is higher than the typical 3% in most industries.
  6. As of January 2024, the average annual churn rate for SaaS companies was reported at 5.2%.

SaaS Funding Insights

SaaS Funding Insights

Here are the latest SaaS funding insights. These numbers highlight trends in investment and financial support for the sector.

  1. 47% of all venture capital funding in 2023 was directed to companies that operate on a SaaS business model.
  2. Early-stage SaaS companies secured over $30 billion in VC investment in 2022.
  3. The global SaaS industry is currently valued at over US$237 billion.
  4. The top 10 SaaS companies together have a market value exceeding US$1.3 trillion.
  5. It’s estimated that by 2025, 85% of business apps will be based on a SaaS model.
  6. By 2026, it is predicted that public cloud spending will account for over 45% of all enterprise IT spending.
  7. Marketing and sales are the highest expenses for SaaS companies, often consuming 50% or more of their revenues.
  8. Since 2020, end-users have spent more than $438k on SaaS subscriptions.
  9. From 2013 to 2023, the cloud market index EMCLOUD has seen a 524% growth, outperforming major indexes like NASDAQ, S&P 500, and Dow Jones.

SaaS Challenges Insights

Here are some key SaaS challenges insights. These points detail common hurdles and issues faced by businesses in the industry.

  1. Online data security is increasingly important, as 82% of data breaches in 2023 involved cloud-stored data.
  2. Approximately 22% of cybersecurity incidents stem from non-IT staff violating security policies.
  3. Almost half of all organizations faced security policy violations in 2023, often due to accidental breaches by poorly trained staff.
  4. SaaS sprawl, where companies use multiple SaaS products, is a new challenge, as reported by 59% of IT professionals. This sprawl can lead to confusion and unintentional security breaches.
  5. 76% of companies plan to adopt platforms that manage and organize all their SaaS products to mitigate security risks.

The Future of SaaS

Here’s a look at the future of SaaS. These predictions explore upcoming trends and developments in the software as a service industry.

  1. 9 out of 10 large SaaS companies use blogs as a key part of their content marketing strategy. This approach is a cost-effective way to connect with their audience, provide educational content, and integrate calls-to-action to advance leads.
  2. Marketing and sales remain major expenses for SaaS companies, accounting for about 50% of their total expenditure. With the SaaS market growing and competition increasing, these costs are likely to remain high as companies strive to maintain an edge.
  3. By 2025, it’s estimated that 80% of B2B SaaS sales will occur entirely online, highlighting the importance of online marketing and sales strategy to keep leads engaged.
  4. The SaaS market is experiencing rapid growth, with its value rising from $237.48 billion in 2022 to $273.55 billion in 2023, and it’s projected to reach $908.21 billion by 2030. This represents an 18.7% CAGR.
  5. Currently, 71% of companies use SaaS applications, making them a leading driver of digital transformation.
  6. In the near future, around 85% of all business products are projected to be SaaS apps, further solidifying the dominance of this model.
  7. By 2025, 65.7% of spending on software applications will be directed towards cloud services, underlining the shift towards cloud-based solutions in software spending.

Conclusion 

SaaS businesses continue to evolve and expand through innovative marketing and sales tactics. These statistics are essential for businesses looking to understand the current trends and future directions of the SaaS market. 

As you consider these SaaS trends for 2024, remember that the right strategy can make all the difference. Stratigia is ready to assist those looking for specialized guidance. Reach out to discover how our expertise in SaaS marketing can complement your business’s path forward.

    As the Founder of Stratigia, Abbas Sarfraz has helped hundreds of Software-as-a-Service (SaaS) companies acquire and retain customers. With hands-on experience in marketing and sales, business and product strategy, and operations for early stage SaaS companies, Abbas has perfected the art of successful SaaS Startups Launch and Growth.