51 SaaS Statistics and Trends: Exploration of SaaS Growth and Adoption

The SaaS Industry is mooning, and seems like it will continue to do so!

Even though many businesses have struggled through the COVID-19 Pandemic, cloud growth has been on a roll. For the very simple reason that cloud services are the solution for the new needs that appeared due to the pandemic, it is only natural that SaaS growth will also increase.

Growing SaaS companies are all around us, and they can easily find their way into our lives due to our changing needs with the effects of the COVID-19. Remote work, or remote interaction, if you will, has become one of the primary needs that put the SaaS Industry at the forefront of answering people’s needs; therefore, SaaS businesses could achieve growth.

To help you have a broader perspective on the SaaS market growth, Gartner forecasts end-user spending on public cloud services to reach $396 billion in 2022. They also expect it to grow 21.7% to reach $482 billion in 2022.

SaaS Statistics and Trends in 2022

There is a lot to catch up on within the SaaS world. The current situation requires businesses to take SaaS trends and statistics into consideration. The needs and expectations are changing rapidly, and the companies that can adjust to those situations and needs achieve their growth rates.

In a time when agility is one of the most important criteria that businesses take into consideration, you should constantly analyze SaaS stats and follow the trends to identify the changing needs so that you can react to them in an agile way.

The Effects of the COVID-19 on the SaaS Industry

McKinsey’s analysis shows how the COVID-19 has impacted buyers and sellers: At some point, you can even say that it is thanks to the COVID-19 the growth of SaaS increased its pace.

Looking at the analysis, you can see that remote interaction or digital self-service is the new dominating way of interaction in B2B. Considering this increasing demand, you can better comprehend why the SaaS Industry continued its growth despite the COVID-19.

Three out of four B2B buyers suggest that they would rather self educate than learn about a product from a salesperson.

Here is how remote interaction and self-service find their way into the SaaS trends: These percentages show a huge demand that emerged from the effects of the COVID-19 can be tackled by SaaS businesses to achieve satisfying growth rates.

In short, the trend in SaaS right now is to create self-serve products that can answer customers’ demands.

How SaaS companies reacted to the effects of the COVID-19 regarding their pricing:

1- Nearly 30% of SaaS companies have offered additional functionality for their customers.

2- 33% of mostly medium and large SaaS companies offered additional services.

3- Around 30% of companies offered price cuts.

4- 40% of SaaS companies are thinking of offering new pricing models when businesses recover.

5- 50% of SaaS companies still depend on user-based pricing.

6- More than 50,000 SaaS vendors offer over 30% discounts.

7- 40% are planning to offer buying incentives.

Further COVID-19 Statistics in SaaS

8- 64% of companies plan to retain the remote work setup after the pandemic. This is why cloud and management service spendings are expected to rise in 2021.

9- 56% of businesses are planning on updating their outdated IT infrastructure, 45% of businesses will prioritize IT projects, and 39% will focus on addressing security concerns.

10- 88% of businesses use the cloud as of 2020. 25% of these businesses aim to migrate all their business systems to the cloud by the end of 2021.

11- For about 70% of CIOs, agility and scalability are the top motivations for using cloud-based SaaS during COVID-19.

12- 76% of companies plan on long-term IT changes due to the COVID-19 disruptions.

Top 20 SaaS companies by market capitalization on U.S. Stock exchanges

Now let’s look at more SaaS statistics to dive into SaaS growth further!

Compared to the last year, which was a year of explosive growth in valuations for SaaS companies, these companies kept growing at a very satisfactory rate.

Here is a look at the Saas market growth in 2020:

13- The total market value of the top 10 companies exceeded $1 trillion for the first time.

14- The median value of the top 50 largest SaaS companies increased by 179%.

15- Shopify has the largest increase in value: $108 billion (+208%).

16- The average value is $38.1 billion, up 162% in the past year.

17- The top 10 biggest companies are worth 61% of the top 50.

18- Zoom has the highest growth rate with a 420% increase in value, which added $88 billion to its market cap.

19- The corporate mobile SaaS market is expected to reach $7.4 billion by 2021.

And here is SaaS market growth in 2021:

20- The SaaS industry is now worth over $145 billion.

21- The SaaS industry is expected to reach a value of $171.9 billion between 2021 and 2022.

22- The annual growth rate of the SaaS industry is projected to surpass 17% in 2022.

23- 99% of organizations will be using one or more SaaS solutions by the end of 2021.

Company spendings on SaaS and how they use SaaS products

24- The overall spend per company on SaaS products is up by 50%.

25- On average, there are 4,406 app-to-person connections for an average company.

26- Companies use free apps three times more than paid ones.

27- SaaS spending is increasing faster than the use of unique apps.

28- Customers stop using more than 30% of their SaaS apps every year.

SaaS Adoption Statistics

29- The SaaS industry is currently growing by 18% each year.

30- 78% of small businesses have already invested in SaaS options.

31- SaaS adoption in the healthcare industry grows at a rate of 20% per year.

32- 70% of CIOs claim that agility and scalability are two of the top motivators for using SaaS applications.

33- As the numbers suggest, the growth of the SaaS industry is at another pace. This is due to its scalability and agility in answering emerging needs.

34- 73% of organizations imply that nearly all their apps will be SaaS by 2021

SaaS Pricing and Freemium and Free Trial Model Statistics

35- 44% of SaaS companies offer a free trial.

36- 41% offer a 30-day trial.

37- 18% of those companies offer a 14-day free trial.

38- 17% of them use a freemium pricing model.

39- 41% list their pricing on their website.

40- 46% of these businesses have a “per user” pricing strategy.

IT and SaaS Statistics:

41- 40% of IT spending takes place outside of the IT department.

42- 83% of IT professionals said that employees stored company data on unsanctioned cloud services.

43- 76% of IT professionals consider unsanctioned apps as a security risk.

44- 80% of employees have admitted using SaaS apps at work without getting approval from IT.

45- 33% of employees downloaded a personal application without IT approval, and 36% accessed work applications on a non-work device.

46- 48% of employees use apps that are not distributed by IT. These apps include note-taking apps, project apps, and apps like WhatsApp and Dropbox regularly mentioned.

The Importance of Onboarding/Offboarding in the SaaS Companies

47- Employees who felt their onboarding was on point are 18x more likely to feel committed to their company.

48- 91% of those who received an all-around onboarding feel strong connectedness at work, compared to 29% of those who had an effective onboarding.

49- 89% of those who received all-around onboarding felt firmly integrated into their culture, compared to 59% of those who received an effective onboarding.

50- 20% of companies have had data breaches from ex-employees.

51- 36% of employees continued to have access to systems or data from a former company once they left the job.

Looking at these numbers, you can see that onboarding new employees is as crucial as onboarding customers. An excellent onboarding process will increase your work efficiency, bonding, and success.

Top SaaS Apps By Category

Here are the lists of the top 10 companies of each category:

Originally published at https://userguiding.com on October 29, 2021.