Overall Market Size & Growth #
The global SaaS market is hitting $232B in 2024, up from $197B in 2023. We’re looking at a wild 349% projected growth through the decade, though things have definitely cooled from pandemic years.
B2B vs B2C vs B2G Breakdown #
B2B SaaS is the heavyweight, with North America repping 48% of global market share at $131.18B14
B2B growth rates are sitting at: #
<$1M ARR: 100% $1-5M ARR: 50% $5-20M ARR: 30% $20-50M ARR: 30% $50M ARR: 15%10
Software Stack Stats #
Companies are actually trimming the fat on their SaaS stacks for the first time in a decade26. Here’s the breakdown by company size:
- <50 employees: 16 apps
- 50-99 employees: 24 apps
- 100-499 employees: 47 apps
- 1000 employees: 177 apps21
Spending Patterns #
- Average SaaS spend per employee: $9,64320
- Bootstrapped companies spending 93% of ARR on software
- VC-backed companies spending 109% of ARR5
Growth Rates & Segments #
Current growth rates are way more chill than 2021-2022:
- B2B SaaS: 3.1% CAGR
- B2C SaaS: 3.3% CAGR28
Hottest segments: #
- HR tech (fastest growing)
- Healthcare
- Green tech12
Ad Network Spend #
Digital B2B ad spending is projected to hit $18.3B in 2024, up 14.9%. The social ad breakdown:
- LinkedIn: $4.21B
- Meta (FB/IG): $2.91B1
Fun Facts #
- 53% of SaaS licenses go unused (ouch)
- 78% of orgs store sensitive data in SaaS apps
- AI integration is huge: 87% of SaaS companies report better growth with AI-driven personalization4
Market Outlook #
The vibe for 2024 is definitely “efficiency over growth.” Companies are planning for 35% median growth19, but they’re being way more careful about it. We’re seeing the first-ever decrease in total number of SaaS apps per company, which is pretty wild after a decade of nothing but up and to the right.