of new ARR
(OpenView, 2025)110% — Net revenue retention for top-tier SaaS companies (SaaS Capital, 2025)72% — Of SaaS revenue comes from annual/monthly subscriptions (Recurly, 2025)
Key takeaways
- The global SaaS market is worth $232 billion and growing at 18% annually
- Large companies use an average of 130 SaaS applications
- 70% of all company software is now SaaS-based
- Average SaaS spending is $3,500 per employee per year
- Top SaaS companies maintain net revenue retention above 110%
Methodology
Our team compiled data from industry-leading research firms, government publications, and reputable marketing organizations. Statistics are sourced from peer-reviewed studies, official company reports, and surveys conducted by organizations like HubSpot, Salesforce, Statista, Gartner, and McKinsey. We prioritize the most recent data available and note the publication year for each statistic. This page is updated quarterly to ensure accuracy.
Frequently asked questions
How big is the SaaS market?
The global SaaS market revenue reached $232 billion in 2025 and is growing at 18% annually. It's projected to reach $400 billion by 2028, with over 17,000 SaaS companies in the US alone.
How much do companies spend on SaaS?
The average company spends $3,500 per employee per year on SaaS tools. Large companies use an average of 130 SaaS applications, and 70% of total company software is SaaS-based.
What is a good churn rate for SaaS?
Top-performing SaaS companies maintain annual churn rates of 5-7%. Net revenue retention above 110% is considered excellent, meaning existing customers are spending more over time.
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