How Big Is the SaaS Industry?

How Big Is the SaaS Industry?

Let’s face it: there are a lot of things we can do on our own, but it’s much easier to get help and save ourselves the trouble. That’s why the global SaaS market has boomed so much over the years—and continues to grow! Why would companies take the time and resources to create or update software when another company with more experience can do it for them? If you are a part of the SaaS industry, you know exactly what we’re talking about.

SaaS is so widespread now, though, it’s not enough to merely provide SaaS. You have to offer cutting-edge technology and a niche product that solves pains other software solutions can’t. The key to staying competitive is to attend an innovative SaaS conference like Rally where you can learn how to experience some of that SaaS industry growth. Before we talk more about Rally, though, let’s take a look at where the SaaS industry is right now.

What Percentage of Software is SaaS?

In 2022, about 70% of software that companies used was SaaS. That number is expected to grow to 85% by 2025. Why do so many consumers, both individuals and companies alike, use SaaS? In a word: convenience. SaaS frees up a company’s IT team to work on other projects rather than having to build their own software to use. These teams also don’t have to deal with updating the software as demands change or technology becomes outdated because SaaS companies do that work for them.

As for individual consumers, SaaS makes watching television shows and movies, storing and sharing files, and even learning a new language easy. With SaaS solutions, consumers don’t have to buy extra equipment or products to make something work. They only need an internet connection, a device that connects to the internet, and a software subscription.

In addition to convenience, there are several other reasons why people and companies have both used SaaS solutions more and more:

  • Cost Savings: Consumers save money when they use SaaS because they don’t need traditional software licenses, don’t need to build or maintain the software themselves, and don’t need special equipment to use the software.
  • Scalability: Consumers can add or get rid of features as needs change as simply as contacting the SaaS provider.
  • Flexibility: Because SaaS is available on the internet, consumers can access it no matter where they are—as long as they have that internet connection.

What Is the Size of the SaaS Industry?

The current global SaaS industry consists of 30,000 companies, 17,000 of which are in the U.S. At the end of 2022, the global SaaS market share was $186.6 billion. Its value is projected to double in less than three years, reaching $369.4 billion by 2026.

While 7,000 of the 30,000 SaaS companies strictly focus on the marketing industry, SaaS has its appeal across industries. By the end of 2023, 99% of all companies are expected to be using at least one SaaS solution. Let’s take a closer look at some of the industries that use SaaS today.

Which Industries Use SaaS Most?

The industries that use SaaS the most include:

  • Marketing: Markets use SaaS to create graphics, track content performance, and manage customer accounts.
  • Retail: Companies in the retail industry use SaaS to track orders, process payments, analyze customers’ buying behavior, manage inventory, and so much more.
  • Healthcare: Similarly to the retail industry, companies in healthcare use SaaS to process payments. However, they also use it to maintain patient records and schedule patient visits.
  • Financial Services: Those in the financial sector use SaaS solutions to track investments, build customer portfolios, and—you guessed it—process payments.
  • Manufacturing: Manufacturers use SaaS for many of the same reasons as those in retail—to track what customers buy, to process payments, and to manage inventory.
  • Education: SaaS allows educational institutions to automate course registration and maintain student records.

The global SaaS market size continues to grow, and demand stretches far beyond the industries listed above. That’s why cross-sectional conferences like Rally are important. It allows SaaS professionals to meet and learn from leaders in other industries so that they can understand the innovations in those sectors and what SaaS solutions to create for them.

Expand Your SaaS Solutions at Rally

Rally is the world’s largest cross-sector conference. It targets six specific studios:

  1. Software
  2. Healthcare
  3. Ag and Food
  4. HardTech
  5. SportsTech
  6. Entrepreneurship

This conference allows professionals from across studios to network and learn from one another. You’ll have the opportunity to hear from over 200 speakers in attendance and learn about the latest and greatest innovations in these industries. Want some extra cash for a new SaaS idea you have? Rally will also have a pitch competition where we will invest $1 million into five different winners for their ideas.

To get a taste of what’s in store at this conference, view this year’s run of show here.