U.S. companies dominated the Software as a Service (SaaS) market last year, with more than 17,000 contributing to the $261.15 billion global market. The global market is expected to grow to $333 billion this year, and more than $819 billion by the end of the decade.
That’s according to software vendor Vena, which published “51 SaaS Statistics, Trends, and Benchmarks for 2023“ last week. Some key findings from the guide:
- Large enterprises that employ more than 1,000 people accounted for over 60 percent of global Saas revenue in 2022.
- Private cloud companies accounted for 43 percent of global SaaS revenue in 2022, the largest market share among SaaS market segments.
- End-user SaaS spending is projected to hit $208.08 billion in 2023, adding up to 35 percent of all end-user public cloud spending.
- There are 175 SaaS companies with valuations greater than $1 billion and a collective value of almost $622 billion.
“The FED is predicting a slowdown in growth in the second half of 2023 and the first half of 2024,” said Felipe Cepero, Vena’s customer success manager. “Most would think that the SaaS market would be negatively impacted by this potential recession, but if it leads to a decrease in interest rates it may spark a much-needed boom in the industry with an increase in funding, hiring, and overall growth. The SaaS market is resilient and will continue to grow—even in the toughest markets.”
The publication explores the state of SaaS and how the market is changing by looking at key statistics and benchmarks. It also lists top challenges facing SaaS businesses and makes recommendations for overcoming them.
Read the entire guide here.