The Software-as-a-Service (SaaS) industry continues to experience explosive growth, reshaping how businesses operate in 2025. With AI-driven automation, evolving pricing models, and an increasing shift toward cloud-native and mobile-first solutions, SaaS companies must stay ahead of emerging trends to maintain their competitive edge.

This report compiles 50+ essential SaaS growth statistics covering market expansion, customer acquisition, retention, churn, pricing models, and future trends to help SaaS businesses optimize their strategies.

Whether you’re a startup founder, a SaaS marketer, or an investor, these data-driven insights will help you navigate the ever-changing SaaS landscape in 2025.

SaaS Growth Statistics for 2025

1. SaaS Market Growth

• The global SaaS market is projected to reach $374.5 billion in 2025, up from $273.5 billion in 2023.
• The industry is expected to grow at a CAGR of 12.5% from 2023 to 2028.
• 99% of businesses will use at least one SaaS solution by 2025.

2. Revenue Trends

• SaaS companies generating $10M+ ARR grow at an average rate of 50-60% YoY.
• 70% of SaaS revenue comes from existing customers through upsells and expansions.
• The median gross margin for SaaS businesses is 78%, but top performers exceed 85%

3. Customer Retention & Churn

• The average SaaS churn rate is 3-8% annually, but high-growth companies aim for <5%.
• Increasing customer retention by 5% can boost profits by 25-95%.
• 80% of SaaS companies prioritize reducing churn over acquiring new customers.

4. Customer Acquisition & Sales

• The average Customer Acquisition Cost (CAC) for SaaS is $205-$600 per user.
• 57% of SaaS buyers prefer free trials or freemium models before purchasing.
• The average LTV to CAC ratio for successful SaaS businesses is 3:1.

5. Pricing & Subscription Models

• 85% of SaaS businesses offer a subscription-based pricing model.
• The average monthly SaaS subscription price is $58 per user.
• Usage-based pricing models are growing at 20% YoY as businesses seek flexibility .
• 57% of SaaS buyers prefer free trials or freemium models before purchasing.

6. SaaS Adoption & Trends

• 75% of businesses will rely on AI-powered SaaS tools for automation by 2025.
• Vertical SaaS (industry-specific solutions) is expected to grow 2x faster than horizontal SaaS.
• Security remains a top concern, with 73% of SaaS companies investing more in compliance.

7. Global SaaS Market Expansion

• The global SaaS market is projected to reach $247 billion by 2024, up from $197 billion in 2023.
• The SaaS sector is expanding at an annual rate of 11.96%, with over 16,000 startups contributing to this growth.
• The United States remains the largest SaaS market, growing from $108.4 billion in 2020 to a projected $225 billion by 2025.

8. Revenue and Growth Rates

• Over the past decade, the SaaS market has seen a compound annual growth rate (CAGR) of 25%.
• The SaaS industry is expected to reach $716 billion by 2030, with a CAGR of 18.3% between 2023 and 2030.

9. Adoption and Usage

• By the end of 2024, 99% of organizations will use at least one SaaS application.
• Organizations use an average of 112 SaaS tools, reflecting a 14% decrease from 2023.
• By 2025, 85% of business applications are expected to be SaaS-based.

10. Market Segmentation and Trends

• The Vertical SaaS market is estimated to reach $157.4 billion by 2025, expanding at a CAGR of 23.9%.
• The Asia-Pacific SaaS market is anticipated to grow at a CAGR of 16.1%, driven primarily by rapid growth in China and India.

11. Investment and Startups

• The SaaS sector receives an average funding of $11.5 million per funding round, with over 31,400 investors contributing to this amount.
• In 2024, Wayra, Telefónica’s venture capital division, invested €9.3 million in 37 startups, focusing on digitalization in sectors like banking, insurance, and health, with an emphasis on AI and SaaS systems.

12. Future Projections

• The global cloud market is expected to grow to $832.1 billion by 2025, with SaaS being a significant contributor.
• By 2025, an estimated 80% of B2B SaaS sales will take place online.
• Project management tools are predicted to be used by 50% of organizations by 2026 to centralize the management of SaaS applications.

13. Other Statistics

• Market Valuation : The global SaaS market is projected to reach $208 billion by 2025.
• Compound Annual Growth Rate (CAGR) : Between 2023 and 2030, the SaaS industry is expected to grow at a CAGR of 18.3%, aiming for a market size of $716 billion by 2030.
• Employment in SaaS : The SaaS sector employs approximately 2.2 million people worldwide, with an addition of 28,000 new professionals in the past year.
• Number of SaaS Companies : Globally, there are over 58,000 SaaS companies, with more than 16,000 identified as startups.
• Funding Rounds : The SaaS sector has completed over 6,500 funding rounds, supporting more than 15,000 companies.
• Investor Participation : More than 31,400 investors have contributed to the SaaS industry’s growth, with an average funding of $11.5 million per round.
• Patent Activity : The SaaS domain holds over 1,600 patents, with an annual growth rate of 18.48% in patent filings.
• Grant Support : The sector has received over 4,400 grants, accelerating research and development efforts.
• News Coverage : In the past year, more than 6,500 news stories have been published about activities in the SaaS sector, indicating heightened media attention.
• Search Interest : The SaaS sector has experienced a 14.21% annual growth in global search interest, reflecting increasing public and professional curiosity.
• AI Integration : By 2025, 75% of businesses are expected to utilize AI-powered SaaS tools to enhance automation and efficiency.
• Automation in SaaS Management : It’s predicted that by 2028, approximately 64% of SaaS management tasks will be automated, leading to more streamlined operations.
• Global Adoption Rates : By the end of 2024, 99% of organizations are expected to use at least one SaaS application, underscoring the near-universal adoption of cloud-based software solutions.
• Average Number of SaaS Applications per Organization : Organizations are utilizing an average of 112 SaaS applications, reflecting the deep integration of SaaS into daily business operations.
• Large Enterprise SaaS Usage : Enterprises with over 10,000 employees deploy an average of 447 SaaS applications, highlighting the scalability and extensive adoption in large organizations.
• Market Share by Country : The United States maintains a significant lead in the SaaS market, with revenues projected to reach $225 billion by 2025, up from $108.4 billion in 2020.
• SaaS Startups in the U.S. : The U.S. hosts approximately 9,100 SaaS companies, which is 8 times more than any other country, emphasizing its dominance in the sector.
• Cloud Workloads : It’s anticipated that by 2025, 95% of workloads will run in the cloud, indicating a significant shift towards cloud-based infrastructure.

FAQs on SaaS Growth in 2025

Sources :

MadX
EcommerceBonsai
Wearetenet
StartUsInsights
PatProGlobal
Statista