What Is the SaaS Industry Outlook for 2023

What Is the SaaS Industry Outlook for 2023

The Software as a Service (SaaS) industry has grown incredibly quickly—from its start in 1999 to its ubiquity today. And it’s only projected to grow even bigger—over 15% in 2023 alone.

Because SaaS has such a widespread effect across all industries, cross collaboration between SaaS and other fields is crucial. A SaaS conference with studios for other heavy hitting industries like healthcare and agriculture, like the upcoming Rally Innovation Conference, is the perfect place to keep your finger on the future of the SaaS industry.

What Is the Economy of SaaS in 2023?

Worldwide, the SaaS market is estimated to reach $197 billion USD by the end of 2023, growing from the 2022 total of $167 billion USD. 

Currently, over 70% of all software businesses use are SaaS solutions, and that number is estimated to grow to 85% by 2025. Businesses cite a variety of reasons for using SaaS, with the top three being: 

  • Increased productivity – 54% of businesses say this is the primary driver for SaaS adoption
  • Reduced costs – 35% of companies use SaaS to lower expenditures
  • Improved security – 27% of organizations utilize SaaS to increase their cybersecurity

What Is the Fastest Growing Segment of SaaS?

Because of the benefits SaaS offers, industries can grow in ways previously unimagined. SaaS is letting organizations break the mold and revolutionize industries at unprecedented speed. Industries have transformed how they operate thanks to disruptive SaaS businesses, meeting challenges in entirely new ways.

Some of the fastest growing SaaS sectors include:

  • Healthcare | Medical professionals use SaaS for patient records, appointment scheduling, billing, and behavioral insights.
  • Agriculture and Food | Farming and food distribution is completely transforming through advances in SaaS. These include improved farming sustainability, supply chains, market transparency, and tracking food borne illnesses. 
  • SportsTech | SaaS solutions are changing the way athletes perform—and how fans experience the game. Integrating the Internet of Things (IoT), artificial intelligence, 5G, and virtual reality mean viewers can be a part of sporting events in a way never thought possible, and players can hone their skills in a whole new way.
  • HardTech | Companies in manufacturing and industry 4.0 are using innovative SaaS to automate and streamline operations with AI and machine learning.

What Are Major SaaS Categories for Trends in 2023?

SaaS companies have already brought many innovative solutions to improve other industries. But there are future of SaaS 2023 trends that are expected to erupt, including:

  • Artificial Intelligence (AI) | AI lets SaaS companies harness more “brain power” than ever, increasing speed, personalization, marketing, and efficiency—both now and into the future.
  • Machine Learning (ML) | ML empowers SaaS to adjust and learn each time it performs a task. It can give more context to data, improve collaboration, and predict changing needs. 
  • Security | Data breaches and cyber attacks are on the rise and that’s not expected to change anytime soon. SaaS providers are developing and utilizing more and better security measures built in from the development stage, and SaaS can now provide Security as a Service option, too.

What Is the Future of the SaaS Industry? Find Out at the Rally Innovation Conference!

SaaS touches every industry that uses technology, which means it plays a part in everything in the modern world. SaaS companies have a lot of good information and experience to share with each other but stand to gain even more by collaborating with the industries they serve. Breaking down silos isn’t just a good idea within your business, it’s a good idea for fueling innovation as well!

This is why we launched Rally, to foster cross-sector collaboration. Rally is the largest global technology innovation conference, we are expecting over 5,000 attendees at this 2.5 day event, which features:

  • Keynote addresses
  • Presentations from top industry innovators
  • Panel discussions from technology visionaries 
  • 1:1 meetings between Investors and companies
  • Product demos
  • A pitch competition with up to $5M investments available

Learn more about all we have to offer in our agenda and register now while tickets are still available.