B2B SaaS Marketing Statistics, Studies, and Trends for 2024
Last updated: January 11th, 2024
As we step into 2024, you’re probably wondering what the year has in store for B2B SaaS. Reflecting on the past year’s data will give you these insights, helping you understand emerging trends and prepare for the shifts in the SaaS landscape.
In this article, we’ll run through some of the most important industry-wide SaaS statistics from 2023 and point you in the right direction for B2B marketing in 2024.
Whether you’re fine-tuning your existing marketing strategy or looking for new approaches, understanding these trends is essential to stay ahead in this ever-changing industry.
So, let’s summarize the general outline of the SaaS industry, the risks moving into 2024 and beyond, and the future growth predictions.
General SaaS Industry Stats
96% of companies are using at least one SaaS product and 72% of businesses plan to invest more in SaaS.
This stat highlights the widespread adoption and growing reliance on SaaS products in the global business arena, the major reasons being the lack of upfront capital required for a software investment and the flexibility of cloud-based software access.
A majority of tech leaders say that at least one-quarter of their business systems are SaaS-based.
But businesses aren’t stopping at just one SaaS product, they are investing in multiple products for different functionalities and areas of the company.
It’s estimated that by 2025, about 50% of the world’s data will be stored in the cloud.
There is a general global shift to the digital space, with SaaS cloud storage platforms rising in popularity. Naturally, there are issues surrounding sensitive data stored in the cloud but that doesn’t appear to be slowing the shift towards cloud-based products.
73% of businesses have seen a 20-40% increase in productivity as a result of incorporating SaaS products into their work.
And there’s a good reason for this – SaaS products can increase productivity by streamlining processes, making repetitive tasks faster and easier, and managing data more efficiently.
SaaS Industry Challenges and Risks
Online data security will become an even bigger industry considering that 82% of data breaches in 2023 involved data stored in the cloud.
SaaS is a growing industry but cyber security is growing in tandem to respond to the increasing threat of data privacy breaches. This data security threat is considered one of the largest stumbling blocks to adopting SaaS products in the workplace.
Around 22% of cyber security incidents are a result of a security policy violation by a non-IT staff member.
Almost half of organizations admit they have experienced security policy violations in 2023. Interestingly, the risk isn’t always malicious and external to the company. Many cyber security incidents are a result of accidents or simply misinformed, poorly onboarded staff.
59% of IT professionals say SaaS sprawl is becoming a new challenge.
Closely linked to app security is SaaS sprawl. Because companies are utilizing more than one SaaS product, this can cause confusion among employees and, in turn, lead to unintentional security policy breaches. Interestingly, 76% of companies say they’ll renew or subscribe to a platform that organizes and manages all their SaaS products in the future.
SaaS Growth Trends To Watch
The global SaaS industry is expected to grow in revenue from $197 billion in 2023 to $232 billion in 2024.
The SaaS market has been growing consistently and doesn’t appear to be stopping any time soon. The global SaaS market statistics show an expected CAGR growth rate of 18.7% from 2023 to 2030.
Low-code or no-code platforms will triple in usage by 2025.
User-friendly platforms that require little or no coding knowledge will only continue to increase in popularity.
The market for collaboration software is continuing to increase at a CAGR of 13.95%.
Although there are many reports of companies returning to the office, the popularity of remote work remains unchanged, and with that, the need for collaboration software. Recent surveys indicate remote work is likely to stay in some form, with over 68% of US workers indicating they prefer the remote work model.
50% of US government agencies are using the cloud.
It’s not just private enterprises getting in on the SaaS market. Cloud-based SaaS brings many benefits, like enhanced customer service and accessibility, which is why some governments, including the US government, are moving more and more of their services online.
82% of SaaS companies have invested in AI tech for their products.
AI is another thing that’s here to stay, with the AI tech industry predicted to grow to over $100 billion by 2025. This technology provides room for even more growth and technological advancement in the SaaS industry. By harnessing AI, SaaS products can process data faster than before, personalize services, and make more efficient use of automation systems.
The Future of SaaS Marketing
9 out of 10 large SaaS companies use blogs as part of their content marketing strategy.
Blogs are already well utilized by the top SaaS companies and will continue to provide an affordable marketing solution. They give these companies a platform to build a connection with their audience, educate, and integrate calls-to-action that encourage lead progression.
Marketing and sales costs currently amount to around 50% of total SaaS company expenditure.
Marketing and sales will likely remain the highest expense of SaaS companies. SaaS industry statistics show continued growth and, as a result, increased competition, so marketers will need to work harder to keep up.
By 2025, an estimated 80% of B2B SaaS sales will take place entirely online.
With the entire marketing and sales pipeline online, marketing and sales teams need to maintain a high standard to keep leads engaged.
A Marketing Strategy Fit for 2024
All the SaaS stats are pointing to continuing growth, but also more competition and tighter marketing budgets. This kind of pressure will send you back to the drawing board to redevelop your marketing strategy for the upcoming year.
Enter the 4 futures model, a marketing model that describes four possible future scenarios depending on the current actions you take. This model categorizes your SaaS business’s trajectory into four states: stalling, sustaining, scaling, or soaring. You won’t see short-term success with this model but rather a predictable steady growth over time.
In the long term, if you get your marketing strategy right, you’ll end up with a demand generation flywheel that will make your SaaS unstoppable. A demand generation flywheel will ensure you don’t see a plateau in lead generation but instead get a steady flow of leads that seem to self-generate, which, ultimately, is every marketer’s goal.
Overall, these B2B SaaS marketing insights show a positive outlook for 2024. The industry has been growing steadily over the years and will continue to grow at a healthy rate.
There are, of course, some challenges posed by the increased adoption of SaaS products and security concerns around data privacy in the cloud. But one thing is certain – SaaS will not lose popularity despite the possible risks.
Considering all this, now is the perfect time to scale your SaaS! Take our SaaS scalability score self-assessment today to find out the current potential of your business.
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