Inside the SaaS Industry: 33 Statistics for Your Content
As we face a global pandemic, the ways in which we work, play, and care for ourselves have been disrupted. And, what we thought we knew nine months ago is all but nullified. SaaS leaders have been on a roller coaster that we never could have predicted (unless you believe the conspiracies, of course). The good news is that it looks like light at the end of the tunnel.
These statistics indicate that developing trends in areas that make up a large share of the SaaS market are more than just emergency responses to a crisis. While some platforms may have seen a dip in subscribers at the onset of the pandemic, we’re now seeing a steady incline that may signal a SaaS revolution that is here to stay.
Here’s what’s in store:
- Top SaaS Statistics (Most-Liked & Shared)
- SaaS Industry Benchmark Statistics
- SaaS Market Size Statistics
- SaaS Market Share Statistics
- SaaS Growth Rate Statistics
- Final Takeaway
Sprinkle these insights into your SaaS content to spice it up!
Top SaaS Statistics (Most-Liked & Shared)
1. The global SaaS market was projected to reach $157 billion in 2020, $16 billion higher than in 2019.
2. Since the onset of COVID-19, B2B companies say digital interactions are two to three times more important to customers.
3. In 2020, nearly 90% of sales moved to a teleconferencing model, and more than half of B2B companies believe this is as efficient or more efficient than traditional approaches.
4. The average startup’s marketing spend is equal to 92% of the revenue generated in the first year.
5. Oracle expects that the demand for Cloud-hosted SaaS and IaaS services will continue to grow.
SaaS Industry Benchmark Statistics
6. Typical freemium SaaS tools generate 33% more free accounts per website visitor than free trials.
7. Freemium SaaS tools convert 25% more customers without the need for sales than free trials.
8. Free trials reinforce a sense of urgency, which helps SaaS companies convert paid subscriptions faster than freemium tools.
9. SaaS companies only require credit card information at the time of freemium or free trial subscription 4-12% of the time.
10. More than 70% of SaaS companies require an email address and company name at the time of freemium or free trial subscription.
11. High-growth SaaS companies acquire most new users through organic traffic (45.8%), followed by sales (30.1%), and paid traffic (10.5%).
12. Low-growth SaaS companies acquire most new users through sales (41.1%), followed by organic traffic (31.4%), and paid traffic (19.3%).
13. High-growth SaaS companies retain 55.8% of users after the first month while low-growth companies retain only 37.1%.
14. In 2019, only 26% of SaaS companies used their product to qualify leads.
15. In 2020, 50% of SaaS companies use their product to qualify leads.
16. Sales teams still convert from free to paid SaaS subscriptions at a higher rate (10%) than success teams (8.5%), followed by conversions after no outreach (6.5%).
17. 79% of SaaS companies that offer a free trial or freemium product reach out to users during their first month and 81% of those companies use dedicated sales teams.
18. Hiring dedicated growth individuals or growth teams does not seem to have a significant impact on SaaS revenue.
SaaS Market Size Statistics
19. As of August 2020, nearly 127K SaaS companies are listed on SaaSHub, the leading SaaS business directory.
20. As of August 2020, there are 15.7K SaaS companies with funding profiles on Crunchbase.
21. With $29 billion in marketing and advertising spend and $14 billion in financing deal value globally, software is still one of the most active investment sectors.
22. SaaS leaders like Google and SalesForce continued to make substantial SaaS investments in Q1 2020, despite the uncertain times.
23. In Q1 2020, there were major acquisitions in the security sector, including Advent International’s $1.9Bn acquisition of Forescout Technologies, Hellman & Friedman’s $1.2Bn acquisition of Checkmarx, and Symphony Technology Group’s $2.1Bn acquisition of RSA.
SaaS Market Share Statistics
24. As of 2020, Saas accounted for 20% of the overall enterprise software market.
25. Niche SaaS market leaders typically own at least 50% of the market share while roughly 30% and 20% are owned by second and third place brands, respectively. For example, as of 2020, Zoom, Skype, and Cisco Webex owned 64%, 26%, and 10% of the market share for video conferencing.
26. 80% of the top 100 SaaS applications are located in the United States.
27. 25% of IT apps claim to be SaaS only.
28. Cisco predicts that 75% of professional workloads could be Saas only by 2021.
SaaS Growth Rate Statistics
29. In 2019, the SaaS market hit the $100 billion mark.
30. 159 new SaaS startups launched funding profiles on Crunchbase during the first six months of 2020.
31. The software sector performed better in the stock market than the S&P 500 during Q1 2020 at the onset of the Coronavirus pandemic.
32. In 2020, the 52 stocks on the BVP Nasdaq emerging cloud index grew an average of 15% while the S&P 500 dropped 11%.
33. The compound annual growth rate (CAGR) of IT & Security apps averaged 100% in 2018 and 2019.
Final Takeaway
In the face of the worst pandemic of our lifetime, there is a silver lining for tech founders and professionals. These statistics show that the global SaaS industry is on an upward trajectory, which gives tech founders one more thing to be grateful for in uncertain times.
Use these statistics to illustrate the power of SaaS in your blog posts, white papers, and reports. Stay safe, stay healthy, and keep your nose to the grindstone!
Statistic Sources:
| Statista | Insivia | McKinsey | Oracle | GCA |
| SaaSHub | Crunchbase | OpenView Partners | Bessemer Venture Partners | Blissfully |
- Inside the SaaS Industry: 33 Statistics for Your Content - August 28, 2020
- Have You Committed the #1 Deadly B2B Blogging Sin? - July 28, 2020
- 7 (Free) SaaS Growth Hacking Guides You Should Read Today - March 6, 2020
