The Landscape of SaaS Companies in the United States

Understanding the size and scope of the Software as a Service (SaaS) market in the United States is crucial for both business owners and potential customers. The SaaS industry has exploded over the past decade, driven by advancements in technology and the growing demand for scalable, cloud-based solutions. In this article, we explore the current numbers of SaaS companies in the United States and how these figures are estimated.

Estimating the Number of SaaS Startups

Accurate data on the number of SaaS startups in the United States can be challenging to pinpoint due to the rapid and continuous innovation in the market. However, various sources provide estimates that help paint a clearer picture.

Tracking SaaS Applications

According to Cisco CloudLock’s CyberLab, which tracks over 150,000 SaaS applications, there has been a substantial growth in the number of SaaS startups. As of mid-2016, the lab reported over 150,000 applications, suggesting that the number of SaaS companies likely exceeded 15,000 by March 2017. This figure is derived from the unique applications being monitored by the lab, which indicates a diverse array of startups.

Database and Search Results

Other sources, such as the C-Radar search engine, provide insights into the number of SaaS companies. By searching for SaaS and SaaS-consulting companies, C-Radar returns approximately 26,000 companies and 8,513 for SaaS-consulting, respectively. Based on these results, it is reasonable to estimate that the total number of SaaS companies in the US is around 10,000.

AngelList, a platform for startups and investors, currently lists 7,112 SaaS companies in its database. While this figure is specific to a particular database, it adds to the overall understanding of the ecosystem's size.

Market Research and Estimates

Without exact data, estimates from market research and industry experts provide valuable insights. Lincoln Murphy, a well-known analyst, estimated that leading SaaS marketplaces have over 1,200 vendors participating. Given that these marketplaces cover approximately 25% of the market, he conservatively estimated that there are about 5,000 SaaS vendors with decent commercial products. With 2/3 of these being based in the United States, the final estimate is around 3,500 SaaS vendors in the US.

However, it's important to note that this is just one perspective. The dynamic nature of the SaaS market means that these figures can fluctuate rapidly. Future research and studies will aim to provide more precise numbers, helping stakeholders make informed decisions.

Conclusion

While the exact count of SaaS companies in the United States remains elusive, various data points and expert opinions converge to suggest a figure in the range of 10,000 to 15,000 companies, with a significant portion being based in the US. The growth of the SaaS market continues to drive innovation and transformation across industries, making it a critical area for ongoing research and analysis.

For businesses looking to enter the SaaS market or those seeking to understand their competitive landscape, staying informed about these numbers and trends is essential.