From 84 companies to 30,000 in just 25 years – that’s the explosive growth story of the SaaS industry.
The SaaS industry has grown from 84 companies in 1998 to over 30,000 active providers today. This shift shows how businesses now prefer cloud-based software over traditional solutions. We break down the global SaaS landscape and market leadership trends across regions. From the US dominance of 60% market share to the path towards a $900 billion valuation, these insights will guide your SaaS business decisions.
Top 6 Employee Recognition Statistics (Editor’s Picks)
We’ve handpicked 22+ of the latest SaaS company statistics, facts, and trends. Here are 6 that we believe will blow you away.
| 1 | Approximately 30,000 SaaS companies operate globally |
| 2 | About 60% of global SaaS companies are in the US |
| 3 | SaaS platforms in the US see 54 billion customer interactions annually |
| 4 | The US contributed $97.4 billion to the SaaS market |
| 5 | By the end of 2024, 99% of companies will use SaaS |
| 6 | 95% of Businesses Use SaaS Applications |
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How Many SaaS Companies Are There?
Approximately 30,000 SaaS companies operate globally (Spendesk)
Globally, the number of SaaS companies has reached 30,000, emphasizing the industry’s rapid expansion. These companies provide subscription-based services for everything from communication to analytics.
SaaS platforms in the US see 54 billion customer interactions annually (Exploding Topics)
Including repeat users, SaaS platforms in the US account for roughly 54 billion customer engagements each year. This number reflects the widespread adoption of software tools for productivity, communication, and entertainment.
About 60% of global SaaS companies are in the US (Ascendix Tech)
The United States is home to roughly 60% of SaaS companies, solidifying its position as the leader in this space. With a strong focus on tech innovation, the US has nurtured the largest share of SaaS startups and giants alike.
Its success stems from continuous innovation, strategic acquisitions, and a strong focus on customer-centric solutions.
The average company now uses 112 SaaS apps (Backlinko)
Modern businesses rely on 112 SaaS apps on average, a figure that continues to climb yearly. These apps support critical areas like communication, project management, and data analysis.
SaaS market projected to hit $242.9 billion in 2025 (Statista)
By 2025, the SaaS industry is set to achieve a valuation of $242.9 billion, marking a notable increase in its global market size. This growth reflects widespread adoption of scalable, subscription-based software solutions across industries.
Number of SaaS Companies by Country
The United States is home to 9,100 SaaS companies (Ascendix Tech)
The U.S. dominates the Software-as-a-Service (SaaS) industry, with 9,100 companies operating in this space. This accounts for roughly 60% of all SaaS providers worldwide, showcasing the country’s leadership in tech innovation.
The United Kingdom has around 2,000 SaaS companies (Statista)
The U.K. is a key player in the global SaaS market, hosting about 2,000 companies. While smaller in scale compared to the U.S., the U.K.’s SaaS industry is growing steadily and contributes significantly to Europe’s tech ecosystem.
Canada’s SaaS sector includes nearly 2,000 companies (Ascendix Tech)
With 2,000 SaaS companies, Canada plays a key role in the North American software market. Its tech hubs and supportive innovation policies have made it an attractive destination for startups and established companies alike.
Germany has 1,000 SaaS companies across diverse sectors (Statista)
Germany’s SaaS ecosystem includes 1,000 companies, ranging from startups to established providers. These firms create solutions tailored to Germany’s key industries, like automotive and logistics.
France has 1,000 SaaS companies driving innovation across sectors (Ascendix Tech)
France boasts 1,000 SaaS companies leading innovation in industries like retail, finance, and healthcare. This ecosystem plays a critical role in supporting businesses with modern, cloud-based solutions.
Here’s a quick look at SaaS startup growth over the years:
| Year | No. of SaaS Startups Founded | Change Over Previous Year | Change Over Previous Year (%) |
| 1998 | 84 | – | – |
| 1999 | 199 | ↑ 115 | ↑ 136.9% |
| 2000 | 177 | ↓ 22 | ↓ 11.1% |
| 2001 | 191 | ↑ 14 | ↑ 7.9% |
| 2002 | 156 | ↓ 35 | ↓ 18.3% |
| 2003 | 151 | ↓ 5 | ↓ 3.2% |
| 2004 | 192 | ↑ 41 | ↑ 27.2% |
| 2005 | 221 | ↑ 29 | ↑ 15.1% |
| 2006 | 294 | ↑ 73 | ↑ 33% |
| 2007 | 375 | ↑ 81 | ↑ 27.6% |
| 2008 | 460 | ↑ 85 | ↑ 22.7% |
| 2009 | 542 | ↑ 82 | ↑ 17.8% |
| 2010 | 689 | ↑ 147 | 27.1% |
| 2011 | 832 | ↑ 143 | ↑ 20.8% |
| 2012 | 1083 | ↑ 251 | ↑ 30.2% |
| 2013 | 1197 | ↑ 114 | ↑ 10.5% |
| 2014 | 1247 | ↑ 50 | ↑ 4.2% |
| 2015 | 1469 | ↑ 222 | ↑ 17.8% |
| 2016 | 1308 | ↓ 161 | ↓ 11% |
| 2017 | 1460 | ↑ 152 | ↑ 11.6% |
| 2018 | 1196 | ↓ 264 | ↓ 18.1% |
| 2019 | 674 | ↓ 522 | ↓ 43.6% |
| 2020 | 114 | ↓ 560 | ↓ 83.1% |
SaaS Company Market Share Statistics
The global SaaS market is projected to reach $900 billion by 2030 (Colorlib)
By 2030, the Software-as-a-Service (SaaS) market is expected to approach a valuation of $900 billion. This growth is driven by increasing demand for scalable, subscription-based software solutions across industries.
Salesforce holds 21.8% of the global CRM market share (HIC Global Solutions)
Salesforce dominates the customer relationship management (CRM) market with a 21.8% share, making it the largest player in the industry. Its success is largely attributed to its cloud-based solutions and robust ecosystem of integrations.
The US contributed $97.4 billion to the SaaS market (Exploding Topics)
In the latest data, the United States accounted for $97.4 billion in SaaS revenue, cementing its position as the global leader in the sector. This represents the largest share of the $195 billion global SaaS market.
SaaS is responsible for 70% of company software use (Palo Alto Networks)
Seven out of ten businesses have transitioned to using SaaS solutions instead of purchasing and maintaining traditional software. This trend highlights the growing demand for tools that are accessible from anywhere and can scale with organizational growth.
SaaS spending per employee averages $1,000–$3,500 annually (Backlinko)
Businesses invest $1,000 to $3,500 annually per employee on SaaS applications, covering a range of productivity and operational tools. This reflects how central SaaS has become to daily workflows.
At 9.3%, Salesforce has one of the largest shares of the SaaS market (Exploding Topics)
Salesforce holds 9.3% of the SaaS market, securing its position as a key player in the industry. Its robust CRM solutions have become essential for businesses looking to improve customer management and drive sales growth.
Impact of SaaS in Business
71% of businesses are certain they’ll invest in AI-powered tools (Venture Beat)
According to recent data, 71% of organizations have expressed complete confidence in plans to adopt AI-powered software. This reflects a growing belief in AI’s ability to optimize workflows and solve complex challenges.
SaaS companies received 47% of 2023’s venture capital funding (Backlinko)
SaaS startups captured 47% of the total venture capital funding in 2023, dominating the investment landscape. This capital is enabling the development of advanced software solutions across diverse sectors.
Over 55% of businesses use SaaS tools for website optimization (Demandsage)
More than half of businesses—55%—leverage SaaS tools to enhance their website performance and optimization. These tools assist in improving page load times, user experiences, and search engine rankings.
By the end of 2024, 99% of companies will use SaaS (SaaS Academy)
By the end of 2024, nearly every company—99%—will have integrated at least one SaaS solution into their operations. This milestone highlights the rapid adoption of cloud-based software as a cornerstone of modern business strategies.
54% of businesses use SaaS for email optimization (Demandsage)
At 54%, SaaS tools for email optimization are the second most widely adopted category of SaaS solutions. Businesses use these platforms to streamline their email strategies and maximize outreach effectiveness.
SaaS adoption rate increased from 71% in 2018 to 95% in 2023 (Radix)
Over five years, the adoption of Software-as-a-Service (SaaS) solutions surged by 24 percentage points, with nearly all organizations now utilizing SaaS tools. This reflects a significant shift in how businesses rely on cloud-based platforms for operations, collaboration, and productivity.
Here’s a quick look at adoption rate by application:
| Technology/Application | Adoption Rate |
| SaaS Applications | 95% |
| Social Media | 79% |
| Mobile Payments | 72% |
| IaaS Environments | 67% |
| PaaS Environments | 65% |
| IoT Platforms | 40% |
| DevOps | 35% |
| Big Data Environment | 25% |
| Containers/Docker Images | 15% |
| Blockchain | 14% |
Conclusion
The numbers paint a clear picture: 30,000 SaaS providers serve a market where businesses average 112 cloud applications each. As we race toward a $900 billion valuation, the next frontier isn’t just about more software – it’s about smarter software. AI integration, advanced automation, and seamless connectivity will define the next generation of SaaS solutions, creating new opportunities and challenges for business leaders.
FAQ
How many companies are SaaS?
There are approximately 30,000 active SaaS companies globally, with about 9,100 operating in the United States.
Which country has the most SaaS companies?
The United States leads with 60% of all global SaaS companies, followed by the UK with around 2,000 companies.
What is the largest SaaS company in the world?
Salesforce is the largest SaaS company in the world, holding nearly 10% of the global SaaS market share. They dominate the CRM space with a 21.8% market share and have achieved their position through continuous innovation and strategic acquisitions. Cop
How many SaaS applications does the average company use?
The average company uses 112 SaaS applications across various departments and functions.
How much do companies spend on SaaS per employee?
Companies spend between $1,000 to $3,500 annually per employee on SaaS applications.
