80+ SaaS Statistics and Trends (2022) (2023)

This article is a list of 80+ insightful software as a service (SaaS) statistics and trends for 2022.

Organizations are increasingly using SaaS applications as part of their business operations.

But just how popular is SaaS? And how fast is the SaaS industry growing?

Discover more in our list of up-to-date SaaS stats below.

Click for a specific section:


  • Top SaaS Stats - Editor's Picks
  • SaaS Trends And Growth Statistics
  • Views On SaaS
  • Regional SaaS Stats
  • SaaS Category Statistics
  • SaaS Organization Stats

Top SaaS Stats - Editor's Picks

  1. As of 2022, the SaaS space is worth over $170 billion.
  2. The SaaS industry has increased in size by around 500% over the past seven years.
  3. SaaS is thought to be the most important tech in business success.
  4. The US has approximately 8x more SaaS companies than any other country.
  5. The fastest-growing segment in the IT security market is cloud security.

SaaS Trends and Growth Statistics

The SaaS industry is worth approximately $172 billion (Gartner)

Since 2015, the SaaS industry has grown from $31.5 billion to an estimated $171.9 billion. That equates to around 5x growth in only seven years.

The SaaS industry is projected to experience its largest annual growth between 2021 and 2022, reaching a value of $171.9 billion by the end of this year.

Overall, the SaaS space’s annual growth rate is projected to surpass 17% in 2022.

Organizations with more than 1,000 employees use 150+ SaaS applications (BetterCloud)

80+ SaaS Statistics and Trends (2022) (1)

A recent study shows that companies with more employees use more SaaS applications.

Companies with fewer than 50 employees use an average of only 16 SaaS applications. Meanwhile, companies employing 50 to 99 employees use an average of 24 SaaS applications - a 50% increase.

Organizations with 100 to 499 employees use almost 2x more SaaS applications than organizations with 50 to 99 employees (47 vs 24).

The largest organizations, those with over 1,000 employees, use an average of 177 SaaS applications.

SaaS applications make up 70% of total company software use (BetterCloud)

80+ SaaS Statistics and Trends (2022) (2)

The average number of SaaS applications used by organizations has increased rapidly in recent years.

This figure has increased year-over-year from an average of 8 apps in 2015 to 12 apps in 2016, and 16 SaaS apps in 2017.

Last year, the average number of SaaS apps used per organization stood at 80.

It is projected that 85% of software that organizations use will be SaaS by 2025.

“As-a-service” annual contract values have increased by over 5x in six years (Information Services Group)

Annual contract value (ACV) in the SaaS sector has steadily grown since 2015.

ACV of the as-a-service sector reached $2.1 billion in Q2 2015. This figure grew by almost 3x by Q2 2018 ($6.2 billion).

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As of Q2 2021, as-a-service ACV surpassed $10 billion, increasing from $9.9 billion in Q1 2021 to $11.2 billion.

The cloud application market has grown year-over-year since 2013 (Apps Run The World)

The cloud application is a growing market that shows few signs of slowing down. The market has grown from $30.3 billion in 2013 to over $124 billion in 2019.

It's projected that by 2024, the cloud application market value will reach $168.6 billion.

1 in 5 companies’ SaaS spending was unaffected by the pandemic (IDC)

According to 908 respondents, 22.5% reported no impact in organizational spending on SaaS as a result of the COVID-19 pandemic.

A total of 23.5% of respondents reported decreased spending on SaaS as a result of the pandemic. 11.9% of total respondents cited a slight 10% to 20% decrease in SaaS spending. While 11.6% reported spending over 20% less on SaaS as a result of the pandemic.

Interestingly, 30.4% of respondents claimed to spend more on SaaS due to the pandemic. Perhaps in response to the increasing prevalence of remote work.

Half of all companies using multiple SaaS applications will centralize management in the next five years (Gartner)

By 2026, it is predicted that 50% of organizations will centralize SaaS application management. This will include usage metrics of these apps using project management tools.

Views on SaaS

SaaS is considered the most important technology in business success (Harvey Nash)

A recent survey found that SaaS was voted the most important technology in helping achieve business goals (from a list of ten technologies).

In total, 73% of 1,724 respondents consider SaaS to be of some importance. Breaking down those figures, 38% deem SaaS to be “very important” to their business' success. While 35% consider SaaS to be “quite important”.

80+ SaaS Statistics and Trends (2022) (3)

Big data is considered the next most important technology for business success with a total of 72% claiming some importance.

The least important technologies for business success according to the survey were blockchain (26%), virtual reality (25%), and augmented reality (24%).

Encryption worries are the biggest SaaS-related security concern (Thales Group)

The two most common concerns from a list of surveyed SaaS security concerns are both related to encryption.

“Encryption of my organization’s data within the service provider’s infrastructure with keys stored and managed by the service provider” is a SaaS security concern for 38% of respondents.

Meanwhile, “Encryption of my organization’s data with the ability to store and manage my encryption keys locally” followed closely behind with 37% of respondents citing this as a concern.

All 10 security concerns listed received at least 32% of votes as a SaaS security concern. The least worrying security concern is “support for hardware modules (HSMs) - either for a local generation or as infrastructure for rent in the cloud” (32%).

Regional SaaS Stats

The US has over 8x more SaaS companies than any other country (The Latka Agency)

The US accounts for approximately 17,000 SaaS companies (that’s 15,000 more than the next leading market, the UK.)

80+ SaaS Statistics and Trends (2022) (4)

Canada (2,000), Germany (1,000), France (1,000), and India are the next highest countries.

India is currently the top Asian SaaS market.

80+ SaaS Statistics and Trends (2022) (5)

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Here is a breakdown of an assortment of leading SaaS countries:

CountryNo. of SaaS Companies
United States17,000
United Kingdom2,000
South Africa63
South Korea48

The US SaaS industry is set to grow by over 2x by 2025 (Reply)

The US SaaS sector is the largest in the world by a considerable margin. And was worth an estimated $108.4 billion in 2020.

This figure is forecast to increase to $225 billion in 2025. That’s an increase of over 100%.

It is predicted that the US will maintain its number 1 spot as the world’s largest SaaS market over that time span.

The UK SaaS industry is expected to almost double between 2020 and 2025 (Reply)

The UK is another major market for SaaS applications.

In 2020, the UK SaaS sector was worth approximately €7.5 billion. And is expected to almost double to €14.5 billion over the next 3 years.

Similarly, the SaaS industry in China, India, and Brazil is expected to grow by over 2x between by 2025.

SaaS industry value is expected to increase by over 2x in major European markets (Statista)

At €6.85 billion, Germany leads the way in SaaS European market revenue. This is set to increase to €16.3 billion in 2025.

France has the second-highest SaaS European market revenue with €4.75 billion last year. This figure is projected to rise to €11.05 billion in 2025.

Italy, the Netherlands, and Belgium make up the rest of the top five SaaS European market revenue countries, each forecast to generate between €1.6 billion and €4.1 billion by 2025.

Germany is expected to experience the largest increase in SaaS market growth from major markets by 2025 (Statista)

In 2020 the German SaaS market was estimated to be worth €6.85 billion.

This figure is set to rise to €16.3 billion in 2025 - a growth of almost 3x in five years.

End-user cloud SaaS expenditure is predicted to grow by almost $365 million in 2022 (Gartner)

Australian end-user spending on cloud SaaS has increased year-over-year from 2019 to 2021.

2019’s figure of approximately $243 million of end-user cloud SaaS expenditure increased by over $60 million (to $305 million) in 2021. And is set to increase by a similar value to reach $362 million in 2022.

The Latin American SaaS industry is forecast to surpass a value of $5 billion in 2022 (Research and Markets)

The SaaS sector is also expected to grow significantly in Latin America.

Between 2017 and 2021, the Latin American SaaS industry has grown year-over-year from a valuation of $1.48 billion to $4.11 billion.

The SaaS sector in Latin America is set to grow by over $1 billion in 2022 - a five-year high. It is forecast that the Latin American SaaS sector will be worth an estimated $5.31 billion.

SaaS is the leading startup model in Brazil (Associação Brasileira de Startups)

The SaaS startup model accounted for at least 2x more than any other startup model last year in Brazil.

In total, 41.12% of all Brazilian startups in 2020 were part of the SaaS sector.

80+ SaaS Statistics and Trends (2022) (6)

The next most popular startup model in Brazil was marketplace startups with a 19.4% share of all startups.

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China’s SaaS cloud market size has grown year-over-year over the past decade (China Briefing)

The SaaS market size in China has risen steadily since 2013 from ¥3.49 billion to ¥16.87 billion in 2017.

The projected market size for SaaS in China last year was ¥47.34 billion.

Japan’s SaaS market value is predicted to surpass ¥1.5 billion in 2023 (Yano Research)

Japanese SaaS market value has grown year-over-year since 2017. And is forecast to continue to grow year-over-year until 2023.

In 2017, the SaaS market value in Japan stood at approximately ¥430 million.

That figure has grown to approximately ¥1.22 billion in 2021. And is expected to reach ¥1.67 billion in 2023.

India’s SaaS industry has grown by almost 75% in two years (NASSCOM)

SaaS companies in India generated $2.1 billion in the 2018 financial year.

This figure grew by $1.4 billion to $3.5 billion in the 2020 financial year.

SaaS Category Statistics

Zoom increased market revenue by 5x between 2018 and 2020 (Statista)

Within the SaaS sector, certain conferencing companies have seen strong year-over-year growth.

Leading the way in this space is Zoom. The conferencing company generated $45 million in revenue in Q1 2018. This figure doubled to $90 million in Q1 2019. And rose further to $225 million in Q1 2020.

Other major conferencing SaaS companies have seen limited growth. An example of this is Cisco with the company generating $290 million in both Q1 2018 and Q1 2020.

Cloud security is the fastest-growing segment in the IT security market (Gartner)

A 2021 report shed light on global IT security spending by sector.

Cloud security is forecast to grow by 41.2% in 2021 compared to last year. This makes it the fastest-growing sector within the IT security industry.

Experts suggest this is heavily influenced by the COVID-19 pandemic and the increase in remote work.

Data security (17.5% growth), infrastructure protection (16.8%), and identity access management (15.6%) are the sectors in the IT security industry with the next-highest annual growth projections.

Visma generate approximately 3x more revenue than any other B2B SaaS CRM company (The Latka Agency)

Visma is the market leader in B2B Saas CRM revenue with $2.2 billion generated in 2021.

Qualtrics generated the second-most revenue in this space, racing a figure of $763 million in 2021.

This is followed by Zoho with $500 million generated. And Lime with $338.7 million earned from the B2B SaaS CRM market.

SaaS Organization Stats

Salesforce employs over 73,000 employees (Macrotrends.net)

80+ SaaS Statistics and Trends (2022) (7)

The largest publicly listed SaaS provider (as of July 2022) is Salesforce, employing approximately 73,000 employees.

That figure has increased by 29.92%, up from 56,606 employees in 2021. And has more than doubled since 2019 (35,000 employees.)

As of July 2022, Salesforce has a market capitalization of $167.36 billion.

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Salesforce is now the market leader in public cloud SaaS (IDC)

SaaS market share has become increasingly diverse in recent years.

Salesforce and Microsoft made up over 29.5% of the SaaS market share in 2017, but just 18% of the market share in 2021.

Microsoft was the SaaS market leader in 2018 with an 18% share. However, the multinational company’s market share has shrunk to 8.7% in 2020.

80+ SaaS Statistics and Trends (2022) (8)

Here is a breakdown of the top five SaaS market share leaders:

SaaS Company2018 Market Share2019 Market Share2020 Market Share

Microsoft generated over $15 billion in a 2021 fiscal quarter (cloudwars.co)

Microsoft is the leading cloud vendor in terms of revenue by the fiscal quarter this year. The tech giant generated $17.7 billion in its third fiscal quarter of 2021.

Amazon generated the second-largest revenue in this quarter by a cloud vendor ($13.5 billion).

In third place, IBM generated less than half of Amazon’s fiscal quarter revenue with a figure of $6.5 billion.

In total, seven different cloud vendors generated over $1 billion in a single fiscal quarter in 2021.

Adobe has a SaaS market capital of over $170 billion (Mike Sonders)

As of July 2022, the top public SaaS company on the US stock exchange by market capital this year is Adobe Incorporated.

The SaaS organization amassed $174.1 billion in market capital - approximately $6.7 billion more than any other US SaaS company.

Salesforce has a market capital exceeding $160 billion (Mike Sonders)

Salesforce ranks second on the list with a market capital of $167.4 billion.

Three other SaaS organizations have a market capital exceeding $50 billion. And a further 27 have a market capital exceeding $10 billion on the US stock exchange (as of July 2022).

Azure has a leading SaaS usage of over 35% in three major African nations (F5 Networks)

Azure is the leading cloud provider in Nigeria (50% usage), South Africa (49%), and Kenya (37%).

Google is the second-most prevalent provider in the selected African markets. 28% of Nigerian respondents, 29% of Kenyan respondents, and 25% of South African respondents claimed to use Google cloud services.

Over two-thirds of Oracle’s revenue is derived from cloud services (Oracle)

Oracle is a global brand that has turned its focus to SaaS in recent years.

From 2018, cloud services and license support made up over two-thirds of Oracle’s total revenue.

In 2021, cloud services accounted for $28.7 billion of Oracle’s total revenue.


That’s it for our list of SaaS statistics and trends.

As you can see, SaaS organizations are becoming increasingly prevalent in modern business. And are forecast to continue their steady growth.

A trend that ties many of these stats together is the fact that organizations are utilizing remote work more often. Which is likely to encourage further demand for cloud-based computing and apps.

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For more content on SaaS, we recommend: 11 Important SaaS Trends.


What is the SaaS industry outlook for 2022? ›

The global SaaS market size was estimated at USD 165.9 billion in 2021 and is expected to reach USD 186.6 billion in 2022.

What is the SaaS market size 2022? ›

The global software as a service (saas) market size will grow from $235.58 billion in 2022 to $253.62 billion in 2023 at a compound annual growth rate (CAGR) of 7.7%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term.

Is the SaaS market currently growing by 18% each year? ›

The SaaS industry is rapidly growing by 18% each year. With that, 38% of businesses are already running on all-SaaS, while 80% plan to be among their peers over the next 3 years (2025).

What is the 40 rule of SaaS? ›

The Rule of 40 is a principle that states a software company's combined revenue growth rate and profit margin should equal or exceed 40%. SaaS companies above 40% are generating profit at a rate that's sustainable, whereas companies below 40% may face cash flow or liquidity issues.

What are the top challenges facing a SaaS industry? ›

Challenges in the SaaS industry
  • Commoditization of SaaS. ...
  • Market consolidation. ...
  • Usage-based pricing and monetization reengineering. ...
  • Hybrid work and dispersed team management. ...
  • Service decentralization and unbundling. ...
  • Privacy and compliance changes.

What KPIs most important for a SaaS? ›

The most important SaaS KPIs are churn, monthly recurring revenue (MRR), customer lifetime value (CLV) and customer acquisition cost (CAC). These deliver essential insights into your customers, as well as your company's financial health and prospects.

Why is SaaS trend increasing? ›

SaaS trends in a summary

As more and more businesses turn to subscription-based or usage-based software solutions, the demand for B2B SaaS is rising. This trend is driven by the cost-effectiveness and scalability of these solutions and their ability to integrate with existing systems.

What's a good SaaS growth rate? ›

SaaS company growth rate depends much on a company development stage. On average, the revenue increase falls into the 15% to 45% year-to-year growth range.

What percentage of SaaS companies fail? ›

Over 90% of SaaS startups fail, only 35% get past the 10-year mark, and only 40% of these ever become profitable. To avoid product failure, don't launch without achieving product-market fit first. Good product positioning helps achieve customer fit and avoid customer dissatisfaction.

What is the projections for the SaaS industry? ›

Revenue in the Software as a Service segment is projected to reach US$253.90bn in 2023. The average Spend per Employee in the Software as a Service segment is projected to reach US$72.94 in 2023. The global market share of Other was 69.4% in 2021.

Is the SaaS market saturated? ›

The Challenge

The SaaS market is enormous, and several B2B and C2C companies are using this business format for capturing the market. It is hard to establish a new business in the SaaS market as it is already saturated.

What is the future of SaaS products? ›

SaaS business revenue is expected to reach somewhere around $716.52 billion by 2028, increasing at a compound annual growth rate (CAGR) of 27.5% since 2021. Like any expanding competitive market, customers have become spoiled with choices.

What are the top 3 most important aspects of SaaS? ›

Some of the must have or nice to have features and key characteristics of SaaS applications are the following:
  • - Multi-tenancy model.
  • - Automated provisioning.
  • - Single Sign On.
  • - Subscription based billing.
  • - High availability.
  • - Elastic Infrastructure.
  • - Data Security.
  • - Application Security.
Dec 21, 2022

What is the SaaS magic number? ›

The SaaS Magic Number is a ratio showing yearly recurring revenue growth gained for every sales and marketing dollar spent. It indicates the level of operational efficiency of a company, as well as the sustainability of sales and marketing expenditure.

What is the SaaS rule of 78? ›

78 is the magic number when it comes to SaaS, to predicting the MRR (monthly recurring revenue) you need to keep hitting month-in-month-out to reach your ARR (annual recurring revenue) goal for the next year. Simply subtract your target ARR from your last year's ARR and divide by 78. It really is that simple.

What are the 2 basic components of SaaS? ›

The essential SaaS components are: CRM system. Marketing automation.

What are the 5 key security elements of SaaS model? ›

Seven security risks to discuss with your SaaS supplier
  • Access management. Access management is critical for every SaaS application due to the presence of sensitive data. ...
  • Misconfigurations. ...
  • Regulatory compliance. ...
  • Storage. ...
  • Retention. ...
  • Disaster recovery. ...
  • Privacy and data breaches. ...
  • Risk assessment.
Dec 4, 2022

What are the 5 key indicators? ›

In general, five of the most commonly used KPIs include:
  • Revenue growth.
  • Revenue per client.
  • Profit margin.
  • Client retention rate.
  • Customer satisfaction.

What are the 7 key performance indicators? ›

We've defined seven key critical performance indicators to help you go about measuring performance in your team.
  • Engagement. How happy and engaged is the employee? ...
  • Energy. ...
  • Influence. ...
  • Quality. ...
  • People skills. ...
  • Technical ability. ...
  • Results.
Jan 30, 2014

What are the 4 key metrics? ›

Four critical DevOps metrics
  • Lead time for changes. One of the critical DevOps metrics to track is lead time for changes. ...
  • Change failure rate. The change failure rate is the percentage of code changes that require hot fixes or other remediation after production. ...
  • Deployment frequency. ...
  • Mean time to recovery.

Why companies are moving to SaaS? ›

Lower Cost: SaaS applications usually reside in a shared environment, so the hardware and software licensing costs are lower than traditional models. Another significant benefit is that you can scale the customer base, whether it's for small or mid-level businesses.

Is SaaS a growing industry? ›

Since 2015, the SaaS industry grew from $31.4 billion to an estimated $1617.1 billion in 2022. That equates to over 5x growth in only seven years. The SaaS industry is projected to experience its largest annual growth between 2022 and 2023, reaching a value of $195.2 billion by the end of this year.

How do SaaS attract customers? ›

11 Ways to Attract New Customers to Your SaaS Business
  1. Clearly Define Your Ideal Customer. ...
  2. Set SMART Goals. ...
  3. Determine The Best Acquisition Channels For Your SaaS. ...
  4. Publish Relevant, Useful Content. ...
  5. Ask For Referrals. ...
  6. Tap Into Your Network. ...
  7. Build A Community Around Your Product. ...
  8. Invest Into Email Marketing.
Jul 28, 2021

What is rule of 70 SaaS? ›

The rule of 70 is a calculation to determine how many years it'll take for your money or an investment to double given a specified rate of return. Investors can use this metric to evaluate various investments including mutual fund returns and the growth rate for a retirement portfolio.

What is a good profit margin for SaaS? ›

Understanding why gross profit margin is important and how it's calculated is good, but it means little without context. SaaS companies should achieve a gross profit margin of 75%, and anything below 70% may raise concerns for financial advisors, investors, VCs, and analysts.

What is the average SaaS monthly growth? ›

Compound monthly growth rate by MRR range

In the very early days (<$10k MRR), a SaaS startup grows on average by 4.4% every month. That's 68.0% annualized.

What is the survival rate of SaaS? ›

An estimated 92% of SaaS companies fail within 3 years despite growth and funding. So why do most SaaS startups fail? We take a look at some of the main reasons SaaS startups fail, and how to avoid them in the early days of building a profitable business.

What is the rule of 50 SaaS? ›

Stated simply, the Rule of 50 is governed by the principle that if the percentage of annual revenue growth plus earnings before interest, taxes, depreciation and amortization (EBITDA) as a percentage of revenue are equal to 50 or greater, the company is performing at an elite level; if it falls below this metric, some ...

What are sales biggest challenges in selling SaaS? ›

Read on to discover the roadblocks you face selling enterprise SaaS solutions, and how to overcome them.
  • Challenge 1: Product Is Complex.
  • Challenge 2: Sales Cycles Are Longer.
  • Challenge 3: Buying Committees Have Multiple Buyer Personas.
  • Challenge 4: Buyers Run the Sale.
  • Challenge 5: Qualifying Leads is More Complex.
Nov 13, 2022

What is the market size of SaaS in USA? ›

Software as a Service - United States

Revenue in the Software as a Service segment is projected to reach US$135.10bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 5.49%, resulting in a market volume of US$167.30bn by 2027.

Where do I find SaaS prospects? ›

4 Steps To Do SaaS Prospecting The Right Way
  1. Research Your Prospect To Determine Proper Fit. This is probably the most important step when doing SaaS prospecting. ...
  2. Prioritize Your Prospects. ...
  3. Personalize Your Pitch For Each Campaign.
  4. Identify The Rights And Wrongs In Your SaaS Prospecting Process.
Dec 2, 2022

How long is the average SaaS contract? ›

Most contracts are annual and many extend to between 3-5 years on the enterprise level.

Why do most SaaS fail? ›

This can include expenses such as software development, hosting, customer support, and marketing. Without proper financial planning, a SaaS startup may run out of money before they have a chance to generate revenue, leading to failure. Another reason why do SaaS startups fail is a lack of focus on customer retention.

Why do most SaaS companies fail? ›

22% of startups fail because of a poorly implemented marketing strategy; 18% of startups fail due to problems with the team and human resources; 16% of startups fail due to cash flow and other financial issues; 6% of startups fail due to technical issues such as poor cybersecurity and outdated solutions.

What are the most popular SaaS categories? ›

The most common types of SaaS solutions are Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Content Management System (CMS), Project Management Software, Sales, Marketing, eCommerce.

How do you measure success of a SaaS product? ›

Below, you'll find the eight most important customer success metrics for SaaS companies, plus details on how to measure them.
  1. Customer lifetime value. ...
  2. Repeat purchase rate. ...
  3. Customer retention rate. ...
  4. Customer retention cost. ...
  5. Churn rate. ...
  6. Net Promoter Score. ...
  7. Customer Satisfaction Score. ...
  8. Customer Effort Score.
Jun 2, 2022

What makes SaaS attractive investment? ›

Investors like SaaS companies because their subscription fees, which recur every month or year, make the revenues predictable. Well-run SaaS companies are also inherently scalable, as the cost of serving each customer goes down as SaaS companies grow.

What are SaaS multiples? ›

The ARR Multiple in SaaS calculates the ratio between a company's valuation and its Annual Recurring Revenue (ARR). This metric can be used to estimate the approximate value of a private SaaS company.

What is a good burn multiple? ›

Burn Multiple Defined

The higher the Burn Multiple, the more a company is spending to achieve each incremental dollar of ARR. The lower the Burn Multiple, the more efficiently your business is growing. A burn multiple <2 is good, anything >4 is concerning.

What is SaaS quick ratio? ›

What is SaaS Quick Ratio? SaaS quick ratio is a metric that assesses a company's ability to grow its recurring revenue despite the churn incurred. Essentially, the ratio compares the company's revenue inflows (new and expansion MRR) and its revenue outflows (churned MRR and contraction MRR) to show net revenue growth.

What is the rule of 72 SaaS? ›

72 ÷ interest rate = Years required to double investment

Assuming your rate of return is 12% year over year, your number would be 72 divided by 12, which equals 6 years.

What is rule of 40 in SaaS? ›

The Rule of 40 is a principle that states a software company's combined revenue growth rate and profit margin should equal or exceed 40%. SaaS companies above 40% are generating profit at a rate that's sustainable, whereas companies below 40% may face cash flow or liquidity issues.

What is a good customer lifetime value for SaaS? ›

Customer lifetime value is more valuable as a metric when you calculate its ratio to customer acquisition cost (CAC). In the SaaS industry, the benchmark for CLV to CAC ratio is greater than 3:1. This benchmark indicates a high ROI from your sales and marketing efforts.

Which sectors will boom in 2022? ›

  • Digital deals, R&D spends aid IT sector clock 15.5% growth in FY22: Economic Survey 22-23. ...
  • PE/VC investments declined by a third to USD 54.2 billion in 2022. ...
  • Real estate investments grew by 32% Y-o-Y to USD 7.8 million in 2022: Report.

What industry sectors are expected to grow in 2022? ›

Fastest Growing Industries in 2022
  • Health Care.
  • Digital marketing.
  • E-commerce.
  • Finance.
  • Software development and engineering.
  • Sales.
  • Customer service.
  • Retail.
Feb 1, 2022

What is the outlook for SaaS companies? ›

SaaS business revenue is expected to reach somewhere around $716.52 billion by 2028, increasing at a compound annual growth rate (CAGR) of 27.5% since 2021. Like any expanding competitive market, customers have become spoiled with choices.

How fast is the SaaS market growing? ›

Since 2015, the SaaS industry grew from $31.4 billion to an estimated $1617.1 billion in 2022. That equates to over 5x growth in only seven years. The SaaS industry is projected to experience its largest annual growth between 2022 and 2023, reaching a value of $195.2 billion by the end of this year.

What is a good operating margin for SaaS? ›

Based on our experience, a good benchmark gross margin for a SaaS company is over 75%. Typically, most privately held SaaS businesses we work with have gross margins in the range of 70% to 85%. Anything below 70% begins to raise a red flag for us and prompts us to do a deeper dive into several other metrics.

What will be the 5 fastest growing industries between now and 2022? ›

For those looking to diversify your portfolio in 2022, here are the top 10 emerging industries to keep an eye on:
  • Cloud Computing. ...
  • Biotechnology. ...
  • Data Analytics. ...
  • Artificial Intelligence. ...
  • Real Estate. ...
  • Green Energy. ...
  • Pharmaceuticals. ...
  • Internet of Things.
Feb 16, 2022

Which industry will grow in next 5 years? ›

List of the Top Sectors in India that are Most Likely to Provide Excellent Returns-
  • Healthcare and Insurance Sector. ...
  • Renewable Energy Sector. ...
  • IT Sector. ...
  • Real Estate Sector. ...
  • Fast Moving Consumer-Goods Sector (FMCG) ...
  • Automobile Sector.
May 19, 2022

Which sector will grow in next 5 years? ›

5 Future Industries in India That Have High Demand
  • Renewable energy sector in India.
  • Semiconductor sector in India.
  • ​Drone industry in India.
  • Artificial Intelligence (AI) sector in India.
  • Internet of Things (IoT) sector in India.
Oct 21, 2022

What is the fastest growing industry in 2022? ›

Top 10 Fastest Growing Industries in 2022
  • Manufacturing.
  • Artificial Intelligence.
  • Data Science and Analytics.
  • Biomedical and Biotechnology.
  • Mental health.
  • Tourism and Hospitality.
  • Digital and Internet Marketing.
  • Enrol with MDIS Singapore.
Oct 15, 2021

What are the top 3 sectors for 2022? ›

The Winners
  • Energy. Looking at the visualization above, it's easy to see which sector dominated this year. ...
  • Healthcare (Sort of) The healthcare sector was a mixed bag this year, but some winners did emerge. ...
  • Big Aerospace and Defense Companies. ...
  • Technology. ...
  • Automakers. ...
  • Real Estate.
Jan 3, 2023

What industry will boom in 2023? ›

The future of the global economy lies in Artificial Intelligence (AI). AI is expected to be one of the fastest-growing industries of 2023, already valued at $328.34 billion. AI has begun to revolutionize many industries, such as healthcare, finance and transportation.

Is the SaaS market oversaturated? ›

SaaS saturation is very real. As we discover new business problems and innovative ways to solve them, the market will continue to populate as tools emerge.


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