27 Eye-Opening SaaS Statistics In 2025
The SaaS (Software as a Service) industry is growing fast. In 2025, it’s worth $390.5 billion and is expected to double by 2029. On average, companies now use 106 SaaS applications, down 18% from the 2022 peak of 130. Despite this pullback, SaaS will still make up 85% of all business software by the end of 2025.
This blog breaks down key trends in the SaaS market, how many companies use it, what industries lead the way, the average number of apps businesses rely on, and the growing risks and costs. If you want a clear picture of where SaaS is headed and what it means for businesses, this guide covers the essentials.
Top Picks From The Post (TLDR)
- The worldwide Software as a Service market is valued at $390.46 billion in 2025.
- There are over 30,800 SaaS companies globally, and most of them are in the productivity and collaboration industry.
- Companies globally use 106 SaaS applications on average.
- By the end of 2025, SaaS is projected to account for 85% of all business software.
SaaS industry market size over the years
The worldwide Software as a Service market is valued at $390.46 billion in 2025. The market size is expected to grow at an annual rate of 19.38% till 202 to reach a valuation of $793.10 billion.
| Year | Global SaaS Industry Market Size |
| 2025 | $390.5 billion |
| 2026 | $466.0 billion |
| 2027 | $556.3 billion |
| 2028 | $663.8 billion |
| 2029 | $793.1 billion |
The ongoing shift toward cloud-based solutions and digital transformation enables businesses to reduce upfront IT costs, scale efficiently, and boost organizational agility. Hybrid and public cloud services have become the norm, with platforms like Microsoft 365 and Salesforce further solidifying SaaS’s critical role in enterprise operations.
Another pivotal factor is the shift toward remote and hybrid work, accelerated by the COVID‑19 pandemic. This raised demand for collaboration tools, virtual environments, and customer engagement platforms, pushing SaaS adoption to new heights. In tandem, enterprises now average 106 SaaS applications each, which gives a clear indication of how embedded these solutions are becoming in daily workflows.
Looking ahead, AI and machine learning are transforming the SaaS landscape. Major SaaS vendors are embedding intelligent agents and predictive analytics into their offerings. Firms like Freshworks and Salesforce are already leveraging agentic AI to improve automation, efficiency, and user experiences.
Source: Statista.
Number of SaaS Companies Globally
There are over 30,800 SaaS companies globally as of 2025, which is up by 23% from 2021, when there were 25,000 companies.
If we break it down by country, the US is home to 17,000 SaaS companies, which is 8.5x more than the United Kingdom (the country with the second second-highest number of SaaS companies).
Here is a table showing the Number of SaaS companies in different countries
| United States | 17000 |
| United Kingdom | 2000 |
| Canada | 2000 |
| Germany | 1000 |
| France | 1000 |
| India | 707 |
| China | 662 |
| Brazil | 635 |
| Australia | 511 |
| Spain | 466 |
Source: Ascendix.
Number of Saas companies by industry
| Industry | Percentage |
| Productivity & Collaboration | 23% |
| Customer Service | 16% |
| Marketing | 14% |
| E-commerce | 13% |
| Data & Analytics | 11% |
| Sales | 11% |
| Human Resources | 8% |
| Finance | 4% |
Average number of saas applications per company
Companies globally use 106 SaaS applications on average. down from 112 in 2023. That’s a 5% drop. Since the 2022 peak of 130 apps, usage has fallen 18%. This marks the second year of decline as businesses cut back on non-essential tools.
Average number of saas applications by company size
In 2024, companies with 75 to 199 employees used an average of 44 SaaS apps. Those with 200 to 749 used 96 apps, and companies in the 750 to 1,499 range used 116.
The highest drop was in mid-sized companies with 1,500 to 4,999 employees, where usage fell to 101 apps. Large enterprises with over 5,000 employees still used the most, averaging 131 apps.
Here is a table showing the number of saas applications by company size
| Company Employee Count | SaaS applications |
| 75 to 199 | 44 |
| 200 to 749 | 96 |
| 750 to 1499 | 116 |
| 1500 to 4999 | 101 |
| Over 5000 | 131 |
The SaaS market is growing fast, but companies are using fewer apps. Why? They’re done chasing every new tool. Budgets are tighter, teams are leaner, and businesses want value, not volume. They’re cutting out weak tools and sticking to fewer, stronger platforms that do more.
Source: BetterCloud SaaS Report.
Nearly Half of the SaaS software used in companies is not managed by the IT team
As of 2025, 48% of enterprise apps are shadow IT apps, meaning they are software employees use without the IT department’s knowledge or approval.
A survey in January 2025 found that 86% of companies say SaaS security is a top priority and plan to spend more on it. But still, 63% said they share data with outside parties through these tools, and 56% said employees upload sensitive info into apps that are not allowed. This shows a clear gap between knowing the risks and controlling them.
IBM’s 2024 report said that one out of every three data breaches now happens because of shadow IT. These breaches cost an average of $4.88 million each. Also, 75% of IT teams don’t have a clear view of what SaaS apps are being used or when subscriptions renew. This leads to paying for tools that no one uses and increases security risks.
Source: Productiv.
SaaS solutions will make up 85% of all business software in 2025
By the end of 2025, SaaS is projected to account for 85% of all business software. On average, companies already use 106 SaaS applications, and in large enterprises, that number can exceed 131.
While this adoption brings flexibility, it also introduces serious challenges. One of the most pressing issues is waste, studies show that nearly 50% of SaaS licenses go unused for 90 days or more. This not only leads to unnecessary spending but also expands the security attack surface.
Cost is another hidden pain point. While SaaS seems cheaper upfront, real costs pile up through integration work, onboarding, and vendor lock-in. Nearly 70% of organizations reported going over their cloud budgets in recent years, largely due to unanticipated SaaS spending.
Source: BetterCloud Report on SaaS.
SaaS churn rate in 2025
As of the first half of 2024, the average monthly churn rate in B2B SaaS has dropped to around 3.5%, showing significant improvement since its peak of 7.5% in late 2021.
For long-term, healthy growth, an annual churn rate below 5% is widely seen as a strong benchmark, though the ideal scenario is to achieve negative churn, where expansion revenue outweighs lost customers.
Churn rates also differ by company size. Small and mid-sized businesses (SMBs) typically see annual churn between 3% and 5%, while enterprise-level SaaS companies tend to have longer-term customer relationships, with churn rates closer to 1% to 2%.
Source: Vitally.io.
SaaS is one of the most important technologies for business success
A recent survey reveals that SaaS stands out as the top technology driving business success, ranking first out of ten different tech options. According to the findings, 73% of the 1,724 professionals surveyed believe SaaS plays a role in reaching business goals. Of those, 38% say it’s very important, while another 35% see it as quite important to their company’s success.
Trailing just behind is big data, with 72% of respondents acknowledging its value in achieving business outcomes.
On the other end of the spectrum, emerging technologies like blockchain, virtual reality, and augmented reality were seen as far less critical. Only 26% viewed blockchain as important, while virtual reality and augmented reality were seen as useful by just 25% and 24% of respondents, respectively.
Source: Harvey Nash.
