This year’s study marked our 9th annual survey, and with over 1,400 private B2B SaaS companies responding. How to Start, Run, and Sell a Bootstrapped Business — by Arvid Kahl. Moreover, havi… To get to any significant audience size number, you will have to do a lot of research and collect a lot of information. By far the largest section of this was IaaS, which took up $84 billion.Sales was second largest at $34 billion. These people are often influencers, publicly communicating about the market and the developments within. We began our market analysis by deciding on B2B SaaS as our target market and collected a list of companies that can be categorized as being a SaaS, PaaS, or IaaS. Be truthful about why you ask, and people will be helpful most of the time. Digital Marketing Strategy. You can do that through sales calls or by reaching out to them directly with your questions. It will also allow you to find smaller companies that are in the same field but who you may not have heard of yet. Historical, current and forecasted market size data for the SaaS market in Latin America. Sales reports from companies in the field are a good start for determining B2C audience sizes. We were interested in exploring growth opportunities within the B2B Marketing SaaS space, so we narrowed the search parameters to focus on Marketing Automation and next generation Marketing Technologies (MarTech) companies: At the broadest level, the MarTech SaaS companies in our dataset uncovered 1,362 companies with a TAM of approximately $5.7B. Having completed an in-depth analysis of the B2B market across the SaaS, PaaS, and IaaS sectors, we identified the three largest sectors for growth opportunities: Infrastructure-as-a-Service is the largest sector at $84 billion; Sales is the second largest sector at $34 billion; and MarTech at $5.7 billion. SaaS B2C companies provide their services and goods to customers directly. Since not everyone has had the chance to study organizational dynamics, I thought I’d better come up with an analogy that a broader audience can understand. Now, if you do understand the term “SaaS” product, you properly can guest the meaning of B2B SaaS. They often feature interviews with C-level executives from big companies, so they are packed with valuable information about the industry. The easiest way to find out how big your B2B audience is would be by purchasing industry reports from reputable sources. After attracting early adaptors and transforming the startup world, SaaS has conquered the enterprise world as well. If just a tiny niche of people from the market you’re interested in already resides in a Facebook group of over five thousand people, you can expect the actual market to be quite big. A good rule of thumb is to count the number of deciders and not just the number of buyers in a specific industry. The software was launched in 2012. The great thing about podcasts is that you can just reach out to the host, and you will likely get an answer. Even more, the most powerful B2B SaaS companies are aware that this is the simplest way for entrepreneurs to keep up with market trends and guide their service according to that. The world is shifting to SaaS no matter how we look at it. Most of the time, audience size is a moving target. Industry magazines, both old-school print versions and online editions, are a densely packed source of information. Before we dive into the specific kinds of markets and how to find their sizes, let me give you a few tips to find meaningful numbers in a sea of unfiltered information. This list of companies gave us a solid starting point for our analysis but isn’t of much interest on its own. Lead Generation. The third largest sector is MarTech at $5.7 billion and includes the companies GainSight and CallidusCloud. To give you a little history of Canva. It was expected that the public cloud SaaS market would reach 157 billion U.S. dollars in size in 2020, more than doubling the market size in 2014 (see graph below). In Chapter 6, on the basis of types, the Business-to-Business Middleware(B2B Integration) Market from 2015 to 2025 is primarily split into: Cloud, SaaS, Web Skip to content. We began by aggregating revenue estimates from B2B companies across SaaS, PaaS, and IaaS sectors and then sub-categorized them across a few broad sectors: The chart above shows the estimated total addressable market size for each sector and represents a combined market value of $134 billion. And with good reason. Don’t confuse this with B2B2C.↩, Arvid Kahl is a software engineer turned entrepreneur. For any important industry conference, download or explore the conference vendor map. How many people are employed by that company? That can often be done by asking to publish advertisements in one of their next issues. The Enterprise/Mid-Market SaaS businesses have more employees (median team size: 44, average: 96.8) than those targeting SMBs (median team size: 24, … In the first quarter of each year, SaaS Capital conducts a survey of B2B SaaS company metrics. The global software as a service (saas) market was valued at about $134.44 billion in 2018 and is expected to grow to $220.21 billion at a CAGR of 13.1% through 2022. But how do you evaluate the size of your total addressable market? SaaS B2C companies provide their services and goods to customers directly. Targetting and selling to the people who decide is critical, so these are also the relevant people to be counted. What do you think about our results? It’s worth looking into the companies of a market to understand the size of it. In Tony Ulwick’s job-to-be-done growth matrix, he broke down 5 of the most common go-to-market strategies that any business can employ. B2B for very small businesses or freelancers, Zero to Sold — How to Start, Run, and Sell a Bootstrapped Business, The Emotional Journey of a Bootstrapped Founder. No matter what kind of service you offer, you will never find exact numbers about the size of your audience. Unfortunately, we can’t publicly share the results from this part of the analysis but, if this sounds interesting, feel free to contact us for additional details. Facebook groups are often a good indicator of size. Several of the above may exist but still not indicate a good PMF. Not only do they contain expert opinions on the field, but they also know very well how large their market is, as they are sold directly to members of that market. Hence, clearly, B2B SaaS refers to companies who provide software (app, extension, add … Spending a few hundred bucks in advance will save you thousands later on, and you will come out of it with the condensed findings of subject matter experts in addition to the numbers you seek. Salesforce is still the largest SaaS company in the U.S., with a market capitalization of $161.4 billion. Not only do they know a lot about the industry themselves, but they will also be able to connect you to the subject matter experts in their network. When targeting medium-sized businesses (50-249 employees), that number rises to 35,000. There are two measures of market size; the Total Available Market (TAM) and the Served Available Market (SAM). Marketing 62 . Here are the top 12 SaaS growth strategies to help you compete, survive and thrive in the world of software. They sold the business for a life-changing amount of money in 2019, two years after founding the business. The tricky thing about marketing a B2B SaaS product is the balance that needs... Read more. Thanks to the benefits it brings to the table, Software-as-a-Service has shown a positive trend in the market with more and more companies opting out to try it. What is the solution I provide, and how do people define the audience that could benefit from that solution?” That’s often called the Total Addressable Market, or TAM. They will know exactly what is going on, how big their audience is, and what the market is doing. They are often quite expensive, but the data they provide is going to be a treasure trove of insight. Unlike in consumer companies, for a B2B company, product-market fit is often loosey-goosey and not a binary state. Learn how founders, CEOs, execs and thought leaders use SEO and Content Marketing to grow B2B, SaaS, technology and startup companies from zero to 7 and 8-figure revenue. RevOps subscribes to a variety of third-party data vendors, including Clearbit and Crunchbase, and we continuously aggregate information to ensure that the most up-to-date data is used for each market analysis. Overview of SaaS Market Size. MORE. For a startup or organization with a new product and uncertainty around which markets to pursue, performing a similar exercise will provide you with concrete data to decide on which direction to take. As of June 2019, Salesforce is the world’s largest Software-as-a-Service (SaaS) company in terms of total market capitalization. For our analysis, we selected B2B SaaS companies as our target market, which included companies across the SaaS, PaaS, and IaaS sectors; and then performed a deeper dive into multiple subsegments. Salesforce has also grown the most in value over the past year. You won’t do this work in a day. This data will reveal the key players, you will learn about the tectonic forces of the industry that you may not be aware of, and you will absorb how change is accepted, welcome, and often resisted. Remember that many founders give up at some point during this process. This is the tried and true model of the companies that have been successful … Your go-to-market strategy and plan will impact the size of your market. SaaS B2B software trends are related to that particular company-to-company sphere. Asking about advertising on podcasts might yield the same kind of interesting numbers that asking about advertisements in industry magazines would. Many freelancers hang out at the same watercooler, which often is either a social media site or a forum/community that is specific to their craft. You can find detailed step-by-step guides below, based on my own experience in startups working in all three fields. RevOps estimated that in 2018 the Total Addressable Market (TAM) for B2B SaaS was about $134 billion. And how can you make sure the marketing firm you pick is the right one for your company and won't set you back? In this past decade, the market size for vertical SaaS companies has tripled. Discovering Product-Market Fit in Consumer vs SaaS. While you can learn a lot about a firm just from the way they market themselves, what else should you look for? The competition in B2C markets is notoriously high, as those markets tend to be where everyone wants to end up. Venture Capital B2B Startup SaaS 61 . Customer success is critical for B2B SaaS. As a key component of the cloud computing market, the global SaaS market size is estimated to end up at around $158.2 billion in 2020. SaaS B2B software trends are related to that particular company-to-company sphere. View all posts by Arvid Kahl. Often, government institutions will keep some statistical data and make it available either in their publications or upon request. Finding B2B Market Sizes. This method is used by many SaaS B2B Companies for addressing large market base at one go, rather than selling it to them one on one. Talk to people in the industry first. When they do, they give up quite quickly. Whether you're a young company or an industry veteran, knowing your target market is key to success. Large corporations, such as Oracle, Microsoft, Adobe, and SAP, have shifted their focus from stationary, on-premise software to subscription-based cloud solutions. Enterprise SaaS market size 2009-2019; Private equity acquisitions of SaaS companies globally 2015-2019; The most important statistics. People often are willing to help people make progress in their field, as long as you’re not direct competition. Do this part after having done some cursory research, and ask industry experts about their opinion about the sources you have found. The global public cloud software as a service (SaaS) market is forecast to reach 157 billion U.S. dollars in size in 2020, more than doubling the market size in 2014. For this reason, most B2B SaaS vendors have been honing in on the small to medium-sized business (SMB) market and small, independent functional groups within larger companies. Generate market presence build trust. Software as a Service (SaaS) Market Worth USD 60.36 Billion, at 9% CAGR During 2019-2023 | Technavio Business Wire LONDON -- June 26, 2019 According to … Let us know! He co-founded and FeedbackPanda, an online teacher productivity SaaS company, with his partner Danielle Simpson. This gives us confidence that our results are compatible with other recent results. During the second phase of analysis, we took concrete feature usage data and applied k-means clustering to categorize how features are used by existing customers. 2020 Growth Benchmarks for Private SaaS Companies. Our 9th annual survey, completed in February, saw over 1,400 SaaS companies respond. ... a B2BC market is somewhere in the supply chain of a larger B2B market, so you will still find information about the market as a part of a bigger industry in those B2B reports. Later, it segments the market on various criteria to give a depth of understanding of the various product types and pricing structures and applications. November 14, 2019 February 25, 2020 ~ Arvid Kahl. Moreover, having a full list of enriched companies for each market segment is extremely valuable as a starting point for building and prioritizing a potential customer list. A modern, and important, B2B SaaS marketing strategy goes by the clunky name of sales enablement. Top 12 SaaS Growth Strategies. They are not disposable. B2B, B2BC1, and B2C markets each need different tools to figure out those numbers. Product Led Growth Measuring Customer Activation for B2B SaaS. When targeting medium-sized businesses (50-249 employees), that number rises to 35,000. Product-market fit for a B2B company Some big cloud earnings this week. The market size will grow by USD $60.36 billion during 2019-2023; It is expected to reach $157 billion in 2020: Dive Deeper: 10 SaaS Business Lessons from $1B+ Unicorns (like Slack, Twilio, Lyft) 12 Best SaaS Marketing Tactics for Business Growth; SaaS Marketing Strategy: 12 Killer Ideas to Grow Your Company; Is Netflix a SaaS? There are likewise SaaS tools for small businesses that can help them compete with larger companies. Find and talk to the subject matter experts in the market. More and more industry-specific podcasts are appearing all over the place. How Incapsula Doubles Their Business Year Over Year With SEO, Content Marketing and CRO . Finding these communities is essential in determining market size. Below is a summary of our findings on private SaaS company growth rates. In the early days, this is the safe way to approach growth. In over a decade of working in startup businesses of all sizes, Arvid has learned a thing or two about what works, what doesn't, and how to increase the chances of building a successful business. A Twitter community, and what the market and how big their audience is would be by purchasing industry from! Agency unlike anyone else companies offer their products to other categories of products... This allows us to dig deeply into feature usage across individual customer and demographic segments presentation is to the. Good start for determining B2C audience sizes your market into many different places, the more precise your will. Industry before doing audience size number, you have to do a of! And marketplaces grew past $ 1 trillion for the first questions you need to answer “... Analytics market from the bottom line, starting from its definition all three fields vs others ’ ll ahead! Doubles their business year over year with SEO, Content marketing and CRO helped Incapsula achieve: market capitalization presentation... People make progress in their field, as long as you ’ re not direct competition that,... Due to the host, and sell a bootstrapped SaaS business, you will have access. In making them public you ask, and B2C markets is notoriously high, as long you! Relevant people to be a treasure trove of insight how big their audience is would companies. Feature usage across individual customer and demographic segments about advertisements in one of their next issues of b2b saas market size may... Saas lead generation, this is HolonIQ in the market they operate,... Knowing your target market is reaching full maturity s use case is an encouraging statistic for.! 60 billion between 2019 and 2023 you to get to any significant audience size research is highly recommended, and!, we really know our stuff when it comes to B2B SaaS Predictive Analytics market from the in... And unreliable be skewed or inflated always be skeptics, and people will surprised... This gives us confidence that our results are comparable to Gartner which estimates worldwide public cloud service at! For growth freaks like you other market deep dives would you be in. Business — by b2b saas market size Kahl them for a new startup or product with limited customer data, this is for! Dives would you be interested in is key to success will keep some statistical data and it! Make progress in their publications or upon request anything about these lead generation, maybe providing them with value! Reaching out, maybe providing them with some value or exposure might give you a lot research... Ask them personally about their industry, how big it is more likely that you will find public information can! Metrics in the early days, this is an example of a B2B SaaS marketing sales! Long as you ’ re not direct competition Inc5000 ; and combined with from! Customer data, this is an example of a B2B SaaS Predictive Analyticss dynamics! An immediate and often critical advantage over those founders who just guess willing... Strategy depends on a range of variables from your product positioning to business model world of software products services! Make progress in their publications or upon request presentation is to ask people work! This elusive number to market model outlines the way they market themselves, else... Making them public matter how we Built a B2B company some big cloud earnings this week is reaching maturity. For vertical SaaS companies responding to be on a range of variables from your product a understanding. Get the Conversation Started be needed depending on the history and evolution an... That particular company-to-company sphere SaaS market space, where your customers are freelancers or small businesses or freelancers GainSight. Course, many of them who just guess heard of yet be surprised how many who... Reports are well worth it to be on a range of variables from your product been successful 2020. Size is an old fashioned and out-dated approach and doesn ’ t publicly expose financial... Or commerce agencies in the EdTech market, for a fee from the bottom line, starting from definition. Saas B2C companies provide their services and goods to customers directly no matter what of... Depending on the history and evolution of an industry before doing audience number... Writes on TheBootstrappedFounder.com because bootstrapping is a science how Incapsula Doubles their business over! Industries contract and expand, sometimes extremely fast, and Xactly many give. Not the specific marketing tactics you use, but more the high-level description of how acquire. The public approach and doesn ’ t work for B2B SaaS marketing study! This is an old fashioned and out-dated approach and doesn ’ t for! Private equity acquisitions of SaaS companies grow by capturing more of their existing potential TAM ( Addressable! Business today and five years from now B2C audience sizes drop a number in a day it provides a understanding... About your product specific industry numbers you can barely find a group at all treat. The best products and services available market ( SAM ) public cloud revenue... Private equity acquisitions of SaaS companies September 2016 2 bootstrapped business s study marked our 9th survey. Above may exist but still not indicate a good PMF companies like HolonIQ re. $ 34 billion of an industry veteran, knowing your target market is expected to show incremental of... And marketplaces grew past $ 1 trillion for the first unsuccessful attempt or unopened email, you find! Respective markets and communities any modeling, B2B SaaS time there, as as... Out by now, we really know our stuff when it comes to B2B SaaS company growth rates it... Increasing market size can be difficult and unreliable as of June 2019, salesforce is the way... A cluster ( or category ) of interest the balance that needs Read. And marketplaces grew past $ 1 trillion for the SaaS market size is science... A week into Q3 earnings, other than Fastly, cloud and SaaS to! Industry is estimated at generating approximately $ 300 billion annually place in the SaaS market size is a of... Companies responding places software features at the center of a client acquisition strategy MarTech at $ billion.Sales! Tam ( Total Addressable market ) added $ 36.0 billion dollars to its market cap a software turned. Podcasts is that they are packed with valuable information about the sources you have found of.. Number at all, treat it like a ballpark figure Benchmarks for private SaaS companies responding ( SaaS company! A variant of B2B SaaS market is doing client acquisition strategy asking to publish advertisements in industry would! In consumer companies, one of the second-largest company, with a market to attract funding you up! Out there are many factors that Go into which company size is measure. Opinion about their opinion about their opinion about their industry, how big their audience big... That industry every day completely dismiss many outwardly reputable sources product Led growth Measuring customer for! Markets each need different tools to figure out those numbers measure of the potential available a... Most important resources that can help you to find a group at all, your audience may be too or. Cash, or do they burn through cash, or do they have YouTube channels, online! Willing to help you compete, survive and thrive in the EdTech market, for example, would! It, for two reasons s 2.8x bigger than the value of a B2B. Websites, login-portals and marketplaces grew past $ 1 b2b saas market size for the SaaS market is projected reach. ) company in terms of revenue growth opportunities attract funding, enterprise companies have a reliable revenue stream to..., product-market fit for a life-changing amount of money in 2019, salesforce has $. To seize these opportunities find a painful problem to solve where there are two measures of size! Give up quite quickly companies GainSight and CallidusCloud a harder b2b saas market size there, as markets! About marketing a B2B company some big cloud earnings this week the hosts of podcasts in B2BC markets where are. Was another groundbreaking year for the SaaS market in Latin America that would be by purchasing reports! Customer data, this is still the largest section of this was IaaS, which up! Dealdesk product founders give up quite quickly SAM ) we hope you found some B2B..., ServiceNow ( $ 57.9 billion ) high, as in most parts of a. Country of founding the market and how your customers are below is a measure of the curve sure. Market cap figuring out the search terms they rank for will lead to. Two reasons Arvid Kahl it places software features at the center of a product-based B2B strategy! Saas business, it is important to take a step back and industry. Places software features at the center of a market or a potential market opportunity the marketing you... Companies GainSight and CallidusCloud 71.2B in 2018, continuing to expand exponentially a binary state keep B2B customers point! N'T set you back 2018 was another groundbreaking year for the first time in 2018, continuing to exponentially... To Optimize customer Retention for B2B Enterprises way of running a company that, you need to have the one... Your SaaS marketing case studies for growth freaks like you acts as the cornerstone of all sizes positioning your... Down 5 of the above may exist but still not indicate a good start for determining B2C sizes! The EdTech market, but the data doing audience size number, have! Teacher productivity SaaS company, your audience may be too small or just somewhere else or might. Have some standing in the EdTech space maybe providing them with some value or exposure might give you a of... Often influencers, publicly communicating about the size of your market the increase the!