10 statistics that show SaaS is not going anywhere
At Enable, we’re passionate about the SaaS space having launched our rebate management software back in 2014. Since then, SaaS has been growing at rapid rates and we believe there is so much potential for companies open to the opportunity of moving to a SaaS model.
Being hosted, maintained and updated by a third-party provider in the cloud and made available to organizations or individuals to be accessed via a web browser, companies can get running with minimal time. The SaaS model also allows employees to communicate and collaborate in a consistent way and is often well known for its reliability, accessibility and cost-effectiveness.
SaaS models have been magnified by the pandemic, with an increase in remote working. A recent PwC report outlines the implications of the past year for tech adoption: “COVID-19 has acted as a catalyst for trends we expected to see later in the future. As a result, many companies are shifting to remote work for the longer term and need to pivot to SaaS-based offerings.”
Below you will find the most important statistics to help you understand where the SaaS industry currently stands and where it’s heading in the future.
- In a recent report by Gartner, global spending on SaaS and cloud services is expected to grow 18.4% in 2021 to $304.9 billion. That’s up from $257.5 billion in 2020.
- According to Insivia, on average, companies spend $2,623 per employee per year on SaaS.
- 73% of organizations will be using all or mostly SaaS solutions by 2021.
- 80% of businesses already use at least one SaaS application.
- It is estimated that 11,000 SaaS companies now operate worldwide.
- Recent reports by P&S Research have projected the value of cloud-based Supply Chain Management solutions to surpass $11B, by 2023.
- SaaS market is growing at 6.5x as fast as the world economy.
- According to Deloitte, 70% of CIOs are attracted to cloud-based SaaS for scalability.
- In the US specifically, the value of the SaaS market will reach around $121m in 2021.
- On average, almost half of IT budgets are allocated to a combination of on-premises software (22 percent), SaaS (7 percent) and IaaS/PaaS (18 percent). Together, the cloud spend across SaaS and IaaS/PaaS averages 25 percent.
If you want to learn more about the SaaS market take a look at this article our CEO has written for Forbes:
What To Expect From The Rapidly Growing (And Evolving) Software As A Service Market In 2021