SaaS Market Report 2025: Innovations of the Year

The 2025 SaaS Market Report highlights how innovations in SaaS are reshaping global business operations, improving scalability, flexibility, and digitization. It explores trends like SaaS security, engagement analytics, and AI accelerators while examining market dynamics, investment patterns, and emerging startups driving growth. This report offers key insights for stakeholders, investors, and policymakers to navigate the industry’s future.

This report was last updated in January 2025.

Executive Summary: SaaS Market Report 2025

• Industry Growth Overview: The software as a service (SaaS) market size is projected to grow from USD 253.58 billion in 2025 to USD 308.37 billion in 2029 at a compound annual growth rate of 5.0%. On a granular level, the SaaS domain records an annual growth of 11.96% as per the Discovery Platform’s latest data.
• Manpower & Employment Growth: The sector employs 2.2 million people worldwide and has added 28 000 new professionals to its workforce in the past 12 months.
• Patents & Grants: 200+ applicants submitted over 1600+ patents related to developments in the SaaS sector. The sector additionally received over 4400 grants.
• Global Footprint: The US, India, the UK, France, and Germany are the leading countries for major activities in the SaaS sector. The top cities include London, New York City, San Francisco, Bangalore, and Tokyo.
• Investment Landscape: The sector receives over 6500 funding rounds which supports more than 15 000 companies. The average amount for each funding round is USD 11.5 million.
• Top Investors: Key investors like Sequoia Capital, Goldman Sachs, Accel, and more have contributed USD 5.6 billion to this sector.
• Startup Ecosystem: Innovative startups in the SaaS domain include Voomsway (cloud-based transport management system), WellWorth (financial modeling and analysis), Bionamic (antibody discovery & development), Intuos (aircraft operations management), and NXT:FWD (mobile data monetization).

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Methodology: How We Created This SaaS Market Report

This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 25 million companies and 20 000 technologies and trends globally, including detailed insights on approximately 5 million startups, scaleups, and tech companies. Leveraging this extensive database, we provide actionable insights on emerging technologies and market trends.

For this report, we focused on the evolution of SaaS over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

• Total Companies working on the trend
• News Coverage and Annual Growth
• Market Maturity and Patents
• Global Search Volume & Growth
• Funding Activity and Top Countries
• Subtrends within software as a service

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the software as a service market.

What Data is Used to Create This SaaS Market Report?

Based on the data provided by our Discovery Platform, we observe that the SaaS sector ranks among the top 5% in the following categories relative to all 20K topics in our database.

These categories provide a comprehensive overview of the sector’s key metrics and inform the short-term future direction of the domain.

• News Coverage and Publications: The newspaper and magazines published over 6500 stories regarding activities in the SaaS sector.
• Funding Rounds: Our database records over 6500 funding rounds within the domain.
• Manpower: There are 2.2 million people working in the SaaS sector currently and 28 000 more were hired last year.
• Patents: The domain has over 1600 patents, which demonstrates a strong inclination towards more innovations.
• Grants: The SaaS sector receives over 4400 grants. This financial support accelerates the development and research in the field.
• Yearly Global Search: The rising interest in the sector is evident in the 14.21% annual search growth rate.

Explore the Data-driven SaaS Market Report for 2025

As per the Business Research Company report, the software as a service (SaaS) market size is projected to grow from USD 253.58 billion in 2025 to USD 308.37 billion in 2029 at a compound annual growth rate of 5.0%.

The SaaS Market Report 2025 uses data from the Discovery Platform and encapsulates the key metrics that underline the sector’s dynamic growth and innovation.

The SaaS sector currently has 58 000 companies, out of which 16 000 are startups. There are 1600+ patents and it additionally received 4400+ grants. The field records an annual growth of 11.96%.

Credit: The Business Research Company

Further, 2.2 million people are working in the SaaS sector, and 28 000 more joined the workforce last year.

The leading countries for development and innovations in SaaS are the United States, India, the United Kingdom, France, and Germany. Leading cities in the SaaS space are London, New York City, San Francisco, Bangalore, and Tokyo.

The SaaS market in the Asia-Pacific region is anticipated to grow at a compound annual growth rate of 16.1%, driven primarily by rapid growth in China and India.

In addition, the European SaaS market is projected to reach approximately USD 65.19 billion by 2025, with growth expected in countries like Germany and the UK.

A Snapshot of the Global SaaS Market

The SaaS sector is expanding at an annual rate of 11.96% per year. This dynamic sector has over 16K startups. There are more 6300 startups in the early stages and 2600+ in mergers and acquisitions. More than 200 applicants filed over 1600 patents. The annual growth rate of patents is 18.48%.

The United States is the top issuer of patents with 700+ patents, closely followed by China with 600+ patents.

Explore the Funding Landscape of the SaaS Market

The SaaS sector receives an average funding of USD 11.5 million in the funding rounds. More than 31 400 investors contribute to this funding amount.

The sector closed over 6500 funding rounds, which assisted 15 000+ companies. It shows that investors see potential in a range of SaaS company formats and niches.

Moreover, by 2025, it is projected that 85% of business applications will be SaaS-based, showcasing the shift towards cloud solutions across various industries.

Who is Investing in the SaaS Sector?

Top investors in the SaaS field contributed USD 13.23 billion, which indicates a promising future for innovations.

• Sequoia Capital invested USD 2.2 billion in 96 firms. Sequoia Capital led a USD 150 million Series C funding round for Vanta, a San Francisco-based online security and compliance management platform.
• Goldman Sachs contributed USD 1.9 billion to 31 companies. Goldman Sachs announced the formation of the Capital Solutions Group within its Global Banking and Markets division.
• Accel has invested a total of USD 1.5 billion in 86 enterprises. Accel participated in a USD 700 million funding round for Nebius Group, an AI infrastructure firm.
• Baidu committed USD 1.4 billion to 11 firms. Baidu, in partnership with Geely, has been developing electric vehicles through their joint venture, Ji Yue Auto.
• Insight Partners spent USD 1.4 billion on 74 companies. Insight Partners led a USD 20 million Series A funding round for Agora.
• Bessemer Venture Partners invested USD 992.8 million across 57 firms. BVP led a USD 2.2 million seed funding round for Turneo, a hospitality technology company.
• GSR Ventures contributed USD 937.6 million to 17 firms.
• Index Ventures allocated USD 882.7 million among 52 companies. Index Ventures announced the launch of USD 2.3 billion in new funds, comprising a USD 800 million venture fund and a USD 1.5 billion growth fund.
• Chrysalis Investments invested USD 826.2 million in 4 companies. Chrysalis invested USD 6 million in Wefox, a digital insurance platform, to support its financial stability alongside other stakeholders.

Top SaaS Innovations & Trends

Uncover the emerging future trends in the SaaS sector along with their firmographic details:

• SaaS Security is one of the major trends in the SaaS space with more than 200 companies and an annual growth rate of 26.64%. 6000+ individuals are working in the field and 1000+ people were added last year to the workforce.
• The second major trend is Engagement Analytics with 300 companies utilizing it in their operations. There are 13 500 professionals in the field and 1500 more joined the sector last year. The annual growth for this trend is 52.02%.
• AI Accelerator technology records an annual growth rate of 32.7%. 200 companies are working in this domain, which supports more than 13 800 professionals. The trend further saw an addition of 1600 new professionals to its workforce.

 It is predicted that by 2028, approximately 64% of SaaS management tasks will be automated, indicating a trend towards efficiency and streamlined operations within organizations.

5 Top Examples from 16 000+ Innovative SaaS Startups

The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

Voomsway builds a Cloud-based Transport Management System

Nigerian startup Voomsway develops a transport technology solution for efficient ticket selling across the country. Users use the solution for personal online booking, and plan daily and future trips with an automated feature.

It further allows users to sell tickets digitally using E-ticket and generated Manifest .

The dashboard contains all the details about booking, which the user utilizes to compute expenses, automate logistics, and strategize.

The solution also provides data analytics and visualization reports about vehicles, trips, terminals, routes, and sales. Companies use it to automate travel activities and reduce operational costs.

WellWorth assists in Financial Modeling and Analysis

US-based startup WellWorth builds a cloud-based platform for managing net asset value (NAV) and corporate financial modeling for the oil and gas industry. The platform consists of three parts. The first part is the data input, where reserve and corporate data are fed.

The pre-built and configurable modeling logic then model reserves, schedule development, model corporate, and investments.

Finally, the output of the data is available in various forms including reserve economics, reserve dashboard, financial statements, investment returns, financial dashboard, and Excel add-in.

The output is used for managing amortization and depression (a&d), merger and acquisition (m&a), financial planning, analysis (fp&a), and more.

Financial teams at operating companies, mineral and royalty firms, PE firms, investment banks, hedge funds, research firms, etc use the platform to streamline the workflow.

Bionamic builds a platform for Antibody Discovery & Development

Swedish startup Bionamic develops a software platform for antibody discovery and development. The platform takes care of all data starting from target validation, antibody generation, screening, sequencing, cloning, production/purification, optimization, and clinical candidate nomination.

It is useful for analysis, data entry, track relations, maintaining workflows and scripting, and collaborations. The platform further enables the design of multispecific antibodies.

Life scientists access the data using a simple user interface (UI). The platform automates the workflow for bioinformaticians using advanced scripting.

It further combines data storage with statistics, sequence, visualization, sequence alignment, and more.

Intuos streamlines Aircraft Operations Management

Italian startup Intuos develops an AI-IoT software platform to manage aircraft operations and monitor flight data.

It builds a flight data monitoring (FDM) device, HIFU_FDM. It is a Hyperconnected InFlight Unit (HIFU) that uses an attitude and heading reference system (AHRS) and inertial measure unit (IMU) to track and record the orientation of the aircraft. The device records the data in 3D space and acceleration in real time.

This data supports GPS information, flight tracking, alert systems, ground-air-ground communication, safety event analysis, and more.

The management software, The Manager is a modular and integrated software, which manages all operational processes for aeroclubs, flight schools, commercial operators, airworthiness companies, maintenance operators, and more.

It further provides multiple modules that use a single database for efficient data entry and data quality.

NXT:FWD supports Mobile Data Monetization

Finnish startup NXT:FWD builds Simply Connect, a mobile data monetization software. The software consists of an app Simply Gift, which sells and markets data.

The sales portal provides real-time data about the operations and the care portal manages customer service.

The software also features a cloud-native server for enforcing it on top of the telco BSS/OSS stack. It integrates into any infrastructure as a cloud overlay and provides insights about real-time pricing, targeting, and marketing.

This monetization SaaS benefits the telecom operators by increasing revenues and decreasing churns.

Gain Comprehensive Insights into SaaS Trends, Startups, or Technologies

The 2025 SaaS market report reveals the innovations in the sector led by developing technologies and changing preferences of companies in running their operations. Trends like engagement analytics, SaaS security, and AI accelerators are also the main motivators of the developments occurring in the field.

Get in touch to explore all 16K+ startups and scaleups, as well as all trends impacting SaaS companies.