2023 SaaS Industry Trends and Benchmarks

To be efficient in 2024, companies need to know the SaaS industry trends and benchmarks that are shaping the software buying market. Buyers often lack access to accurate and unbiased data, but with the right information, you can make more strategic decisions.  

You’ve probably been wondering what other companies are spending on SaaS, what tools they’re buying, and how the size of a business impacts how much and where you should be spending. Perhaps you’re concerned you’re spending too much on software or not operating efficiently. Navigating the world of SaaS buying and creating sustainable growth becomes much easier when you can answer these questions.

That’s where we come in. With over $6B in managed spend and 62,000 kickback-free supplier relationships under our belt, we’re breaking down the most important trends, benchmarks, and takeaways from 2023. We synthesized unbiased, proprietary data from over 8K contracts and 15K purchase requests within the Tropic platform this year so you can confidently benchmark your spend and tech stack against companies in similar growth stages and chart the course for even greater success in 2024.

Here are the top 3 SaaS industry trends you need to know:

1. Your software spend grows 3.5X until you reach 1,000 employees. It’ll level off when you can negotiate meaningful price breaks.

It’s no secret that larger companies spend more money, but what’s far more interesting is how much more. The largest jump happens between the 101-250 and 251-1,000 range, where companies spend almost 3.8 times as much on SaaS. This is quite telling about the point at which a company starts to mature and their SaaS spend starts to level out.

2. Companies over 1,000 employees operate 32% more efficiently than smaller startups.

Dovetailing with the previous stat, while companies spend more on SaaS as they grow, they spend less per employee. That means they’re becoming more efficient. This is a critical goal for scaling businesses. 2024 is the year of efficiency, and that doesn’t always mean spending less, but spending smarter.

3. The most popular SaaS categories purchased in 2023 were IT Infrastructure, Security, Operations, and Sales.

These four categories are the most important for scaling companies. IT Infrastructure creates the foundation to run a business, Security ensures the company and their customer’s data and systems are protected, Operations help ensure the company runs smoothly and efficiently, and Sales is the key revenue generator, particularly in the earlier stages of growth.

Access The Full Report

The two major keys to success in 2024 are data — comprehensive, unbiased data — and an effective SaaS buying strategy. If you’re ready to discover even more SaaS industry trends to inform your procurement and spend this year, download your free copy of The 2023 SaaS Benchmarks Report.