30 SaaS Industry Statistics [2026]: Trends + Analysis

Research Summary. The SaaS industry has rapidly transformed the landscape of software solutions, gaining substantial traction across the globe, especially in the United States.

Analyzing the revenue, growth, and adoption trends of SaaS solutions over the past several years confirms that the industry is set for continued expansion, potentially becoming the primary software solution utilized by businesses.

• As of 2025, the SaaS industry boasts a market size of $293 billion.

• The SaaS industry is projected to have an annual growth rate of 16%.

• 42% of SaaS companies utilize value-based pricing.

• The SaaS industry’s value is expected to reach $700 billion by 2030.

• SaaS revenue is forecasted to surpass $369.4 billion by 2026.

• SaaS growth can lead to annual recurring revenue (ARR) ranging from $5 million to $100 million.

• 99% of companies are projected to utilize one or more SaaS solutions by the end of 2026.

For further analysis, we categorized the data as follows:
Adoption | Company | Benefits | Trends and Projections

General SaaS Industry Statistics

• As of 2026, 54.5% of all SaaS companies are based in the United States.

  Out of the approximate 35,000 SaaS companies globally, the United States leads with around 19,000 companies. Other notable regions include the United Kingdom and Canada, each with 2,500 companies, while Germany, France, and India host about 1,500 companies each.

  SaaS Companies By Country

  Country	Number of SaaS Companies
  United States	19,000
  United Kingdom	2,500
  Canada	2,500
  Germany	1,500
  France	1,500
  India	1,500
  China	800
  Brazil	700
  Australia	650
  Spain	600

• The SaaS industry in the United States has a market value of $156 billion.

  This sector is anticipated to reach a market value of $225 billion by 2026, firmly establishing the U.S. as the leader in the global SaaS market.

• SaaS companies in the United States serve approximately 16 billion customers worldwide.

  Organizations globally are now utilizing an average of 130 SaaS applications, a number that continues to rise.

• The largest publicly traded SaaS company in the U.S. is Salesforce.com Inc, with a market cap of $236 billion as of March 2026.

  Other leading SaaS companies include Adobe Inc., valued at $182 billion, Intuit Inc at $134 billion, and Shopify Inc at $65 billion.

• As of 2023, organizations use an average of 130 SaaS apps.

  This reflects a significant increase from 12 SaaS applications in 2016 and just 8 in 2015.

General SaaS Adoption Statistics

• 99% of companies are expected to use one or more SaaS solutions by the end of 2026.

• 40% of companies operate predominantly on SaaS.

• 92% of organizations plan to migrate all their applications to SaaS by 2025.

• Nearly 82% of small businesses have invested in SaaS solutions.

SaaS Company Statistics

• 99% of SaaS businesses report positive outcomes from dynamic pricing strategies.

  This strategy adjusts pricing based on real-time market conditions, maximizing revenue potential.

• Approximately 8,000 SaaS companies target the marketing sector alone.

  In contrast, there are about 1,000 major SaaS companies operating in the healthcare software domain.

• Recent studies indicate that 54% of SaaS companies do not provide a free trial.

  Meanwhile, 46% offer a free trial, with varied durations from 14 days to 30 days.

• The average churn rate among SaaS companies is about 5%.

  A churn rate of 3% or less is typically considered excellent, although this can vary by industry.

• Enterprise SaaS companies often have an average contract value exceeding $120,000.

  Mid-market firms average between $15,000 and $120,000, while SMBs typically see contracts under $15,000 annually per customer.

• On average, SaaS companies allocate around 90% of their initial year’s revenue to customer acquisition.

  This typically amounts to nearly 11 months’ worth of revenue focused on acquiring new customers.

• Recent data shows that 50% of SaaS businesses report an average contract length of one year.

  Comparatively, 15% of companies operate on a month-to-month agreement, while 12% maintain contracts averaging three years or more.

Benefits of SaaS

• 75% of CIOs are drawn to cloud-based SaaS solutions for their agility and scalability.

• 90% of businesses using SaaS report significantly improved employee engagement.

• The key considerations for SaaS buyers include data security, brand trust, value for the price, availability, and usability.

• Companies leveraging cloud platforms report launching new capabilities to market approximately 25% to 35% faster.

SaaS Industry Trends and Projections

• A 2023 report indicated that SaaS app utilization across companies surged by about 35% between 2021 and 2022.

  This report analyzed data from over 1,200 companies, noting a similar 35% increase in the average number of apps used.

• The Compound Annual Growth Rate (CAGR) of the SaaS market for business applications is projected at 16.4% from 2023 to 2028.

  This reflects growth from $94.9 billion in 2022 to an expected $176 billion by 2028.

• By the end of 2026, 99% of companies are expected to use at least one SaaS solution.

  The rapid adoption of SaaS continues to redefine various industries, with healthcare witnessing a 25% annual growth rate in SaaS adoption.

SaaS FAQ

1. What are examples of SaaS?

   Examples of SaaS include Dropbox, Google Workspace, Salesforce, HubSpot, Slack, and Shopify. Currently, the largest SaaS company on the U.S. stock exchange is Adobe Inc.

   These companies offer a range of services; for instance, Dropbox focuses on storage and data sharing, whereas Shopify provides an e-commerce platform. While many of these companies are over a decade old, their popularity has surged in recent years.

2. What percentage of software is SaaS?

   Approximately 70% of total company software usage is attributed to SaaS as of 2023. This figure is anticipated to rise to 85% by 2026, indicating the growing prevalence of SaaS solutions.

3. What percentage of companies use SaaS?

   80% of companies currently use at least one SaaS solution. By the end of 2023, it’s predicted that 73% of all organizations will be using SaaS solutions predominantly or exclusively.

4. How much do companies spend on SaaS per employee?

   Companies spend an average of $2,800 on SaaS per employee annually. Employees also utilize around 8.5 SaaS applications each, which can lead to significant overall costs.

5. How large is the SaaS market?

   The SaaS market is valued at $293 billion in 2025, making it a significant financial sector. With an annual growth rate of 16%, it is projected to grow even larger.

6. Why are companies using more SaaS?

   Companies are increasingly adopting SaaS solutions due to their proven ability to enhance productivity. This improvement in productivity often results in reduced operational costs, making SaaS particularly attractive.

Conclusion

The SaaS industry is experiencing a transformative phase, marking significant advancements and growth. As of 2025, the SaaS market is valued at approximately $293 billion, with an annual growth rate of 16%. Projections indicate that SaaS revenue will reach $369.4 billion by 2026, suggesting the industry could more than double its value.

Furthermore, SaaS solutions have been widely embraced across diverse sectors. By the end of 2026, nearly all companies are expected to utilize at least one form of SaaS solution. An estimated 40% of businesses will operate entirely on SaaS, while 82% of small enterprises have already invested in these solutions. The trend shows no signs of slowing down, with forecasts indicating continued growth in the SaaS sector.

The United States holds the largest SaaS market globally, with a value of $156 billion, expected to reach $225 billion by 2026. Out of the estimated 35,000 SaaS companies worldwide, around 19,000 are based in the U.S. Comparatively, the United Kingdom follows with 2,500 companies. Moreover, U.S. SaaS companies collectively serve around 16 billion customers who utilize an average of 130 SaaS applications each.

With approximately 70% of company software usage attributed to SaaS, this trend is projected to grow exponentially in the coming years.

References

1. Statista. “Public cloud application services/software as a service (SaaS) end-user spending worldwide from 2015 to 2025”. Accessed on December 13, 2025

2. BMC. “The State of SaaS in 2023: Growth Trends & Statistics”. Accessed on December 13, 2025

3. Reforge. “How 1,800 SaaS companies are pricing their product”. Accessed on December 13, 2025

4. Gartner. “Global End-User Spending on Public Cloud Services Expected to Exceed $500 Billion Next Year”. Accessed on December 13, 2025

5. Eleken. “SaaS Business Model: Learn How It Works and How to Measure If It Does”. Accessed on December 13, 2025

6. Exploding Topics. “30 SaaS Statistics And Trends (2023)”. Accessed on December 13, 2025

7. Statista. “Leading software as a service (SaaS) countries worldwide in 2023, by number of companies”. Accessed on December 13, 2025

8. Mike Sonders. “The 50 Biggest Public SaaS Companies in the U.S.”. Accessed on December 13, 2025

9. BetterCloud. “State of the SaaS-Powered Workplace 2023”. Accessed on December 13, 2025

10. HireDNA. “See Why 99% of SaaS Businesses See Positive Results with Dynamic Pricing”. Accessed on December 13, 2025

11. Leftronic. “How many SaaS companies are there? Stats to know in 2023”. Accessed on December 13, 2025

12. Pierre Lechelle. “SaaS Free Trial: Everything you need to know”. Accessed on December 13, 2025

13. Profitwell. “What is a Good SaaS Churn Rate & Average Churn Rates by Industry”. Accessed on December 13, 2025

14. Tom Tunguz. “What Average Contract Value is Best for a SaaS Company”. Accessed on December 13, 2025

15. Single Grain. “SaaS CAC: A Guide to Customer Acquisition Costs”. Accessed on December 13, 2025

16. Key Bank. “KeyBanc Capital Markets Technology Group: 2023 Private SaaS Company Survey Results”. Accessed on December 13, 2025

17. Deloitte. “2023 global CIO survey, preface and chapter 1”. Accessed on December 13, 2025

18. IDC. “What You Need to Understand About SaaS Buyer Expectations”. Accessed on December 13, 2025

19. Blissfully. “SaaS Trends 2023 Apps Reign Supreme Across Departments, but Waste is Growing”. Accessed on December 13, 2025

20. McKinsey Digital. “How CIOs and CTOs can accelerate digital transformations through cloud platforms”. Accessed on December 13, 2025

21. BCC Research. “Software as a Service Market: Technologies and Global Markets Through 2028”. Accessed on December 13, 2025

22. Latka. “The Top Healthcare Software SaaS Companies”. Accessed on December 13, 2025

23. BetterCloud. “2023 State of SaaSOps The Impact and Implications of the SaaS Revolution”. Accessed on December 13, 2025

24. Insivia. “Top SaaS Purchase & Usage Statistics in 2023”. Accessed on December 13, 2025

25. Forbes. “SaaS Trends To Watch In 2023”. Accessed on December 13, 2025

26. SaaS Mag “2023 SAAS INDUSTRY OUTLOOK”. Accessed on March 13, 2026

27. SaaS Mag “2023 SAAS MARKET OVERVIEW”. Accessed on March 13, 2026

Author

Sky Ariella

Sky Ariella is a professional freelance writer, originally from New York. She has been featured on websites and online magazines covering topics in career, travel, and lifestyle. She received her BA in psychology from Hunter College.