SaaS Market Statistics

Author:

Kyle Roof
March 11, 2024

Categories: 

The software-as-a-service (SaaS) market is growing exponentially, valued at over $197 billion globally in 2023, and expected to reach $232 million this year. In an environment of rapid expansion, implementing a comprehensive SaaS SEO strategy is more important than ever to stay ahead of evolving trends.

Innovations over recent years, such as cloud-based software hosting and advanced mobile connectivity, give SaaS businesses new opportunities to attract potential customers–but also entice new competitors.

Let’s look at some of the interesting statistics relevant to this sector and discuss how using an SEO strategy to stay relevant and competitive is a key component of ongoing success.

Recent SaaS Market Statistics

To understand the scale and speed of growth within this dynamic sector, we have collated some data points to demonstrate how SaaS continues to generate demand, and where the market is expanding most rapidly.

  • The SaaS market is forecast to continue expanding at a compound annual rate of 13.7% year-on-year until 2030.
  • US-based businesses dominated the sector according to 2022 studies, which show that North American enterprises accounted for over 44% of international revenues.
  • Software products and services accounted for 84% of the revenues recorded by SaaS companies in 2022, primarily due to the prevalence of remote and flexible working structures.
  • Niches within the SaaS sector anticipated to achieve the highest pace of growth include customer resource management (CRM), e-commerce, web hosting and enterprise resource planning (ERP).
  • There are roughly 23,000 SaaS businesses to date, with eight times more providers in the USA than in any other country worldwide.

Looking forward, there are strong indications that the SaaS space is on a sustainable trajectory, with 78% of corporations intending to increase their spending on SaaS services, products, and applications within the next year. As a standalone segment, the market for CRM systems alone is forecast to reach a global valuation of $44.6 billion by 2026.

How a Growth Market Attracts Greater Competition

All the above statistics show that SaaS is growing, innovating, and becoming in higher demand. While that is undoubtedly positive for SaaS businesses and service providers, it also means that the growth market is incredibly likely to drive greater competition.

Market growth rates show that demand and the total value of the market are increasing. Therefore, more revenue is up for grabs, and the larger that revenue, the more existing brands and enterprises will look to enter their products into the market.

The opportunity for existing SaaS businesses is compelling, where they have the capacity to invest resources into new customer acquisition, brand recognition, and achieving high-value brand equity–which puts them one step ahead.

Using SEO for SaaS Companies to Drive Customer Acquisitions

Strategic, tailored SEO can deliver remarkable outcomes for SaaS businesses, using a range of techniques from custom keyword research, website analysis, and competitor research to content development. High Voltage SaaS clients have reported increased organic visitor traffic of 90%, from 225,000 to 2.5 million visitors per month, and a 435% boost in high-ranking keywords–ensuring that their brands are visible, credible, and placed directly in front of engaged audiences.

Whether your core goals relate to improving your business valuation, attracting new visitors, converting a higher proportion of viewers into customers, or climbing the rankings to eclipse your competition, SEO can help. Get in touch with the SEO experts at High Voltage today for more information about any of the statistics mentioned here, or to explore our SaaS SEO programs and learn how our approach delivers!

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