The SaaS (Software-as-a-Service) sector has seen incredible growth in the last few years.
According to The Data City, the SaaS sector has a turnover of £87.9bn currently, and has received £42.7bn of investment, growing at 25.9% per year.
With thousands of SaaS companies in the UK, some experts believe it might even double in market value by 2025 – making it an exciting sector to watch.
What Does SaaS Encompass?
Companies that provide SaaS services are those that can be accessed online instead of needing to be downloaded onto a computer or server. This makes them incredibly easy to use.
These services are typically delivered as subscriptions, allowing businesses to use them for as long as they need.
What Are Some Famous SaaS Companies?
Some of the most well-known SaaS companies are household names like Slack, Salesforce, Adobe, Shopify, Mailchimp, Zoom and Dropbox.
These are all services that businesses and individuals can use remotely, without needing anything downloaded onto a server. One of the great things about SaaS apps is that they can be updated and improved centrally, meaning they are constantly getting better without businesses needing to update anything themselves.
Another benefit is that they are easily scaled. For example, if a business is small and only needs 5 zoom seats, it can buy those. Once it gets bigger, it can simply increase its subscription based on its needs. The same goes for companies looking to cut costs.
This ease of use and scalability makes them a great tool for businesses, which explains the sectors’ fast growth.
To find out what 2025 holds in store for the SaaS industry, we asked the experts. Here’s what they had to say…
Our Experts
- Glenn Chisholm, Chief Product Officer at Obsidian Security
- Rodolphe Malaguti, Product Strategy and Transformation at Conga
- Demed L’Her, CTO at DigitalRoute
- Dr. Nicholas Wegman, Ph.D., Senior Director of Artificial Intelligence and Chief Scientist at Zebra Technologies
- Roderik Viergever, COO at Murena
- Ivan Nikkhoo, Managing Partner at Navigate Ventures
- Karan Bhakuni, CEO and Co-Founder at Poper
- Rupert Bedell, CEO at Fasthosts
- Tom Zsomborgi, Chief Business Officer at Kinsta
- Dave Holloway, Chief Strategy Officer at ISMS.online
For any questions, comments or features, please contact us directly.
Glenn Chisholm, Chief Product Officer at Obsidian Security
“As SaaS, PaaS, and other cloud-based applications become easier to deploy, more interconnected, and increasingly geared toward data sharing, people often connect them without IT oversight. The integration of these applications to critical tools like Google Workspace or Microsoft puts an organization’s most important and sensitive data at risk by complicating security oversight and expanding the attack surface.
“What’s worse is many of these connections might not need to exist at all—70% of integrations are inactive (no activity within the last 90 days), increasing exposure without any business benefit.
“This unchecked expansion of third-party applications and their interconnectivity to an organization’s most critical datasets will unfortunately result in more examples of business operations or sensitive information being compromised by attackers moving laterally due to the pervasive integrations between applications.”
Rodolphe Malaguti, Product Strategy and Transformation at Conga
“Similar to last year, there is still a lot of hype regarding artificial intelligence (AI). Most organisations will have invested heavily in the latest solutions and encountered issues when it comes to implementation, as their data systems are not configured to fully leverage or scale these tools. And, as we’ve seen in some cases, it can prove costly when it goes wrong. Whilst AI is a promising technology, it is by no means a ‘silver bullet.’ If there are bad processes in place, increased digitalisation will only accelerate these issues.
“Ahead of 2025, leaders will need to ensure that all their data architecture and systems are aligned if they want to maximise their performance and, ultimately, return on investment (ROI). Whilst technology spending is expected to increase next year, companies will also be reviewing their budgets – inhouse IT teams will need to be able justify their chosen solutions and outline real proof points.
“Integrating systems and streamlining processes should be the first priority. By establishing a unified data model, whereby all data is accountable, accurate and actionable, leaders will be able to better identify how AI – or any SaaS tool for that matter – can best support their business.”
Demed L’Her, CTO at DigitalRoute
“As a regular, often monthly, outlay for businesses, SaaS subscriptions can be one of the first places teams look when cutting costs. While, understandably, businesses don’t want to pay over the odds for a product they’re not getting the use out of, equally, SaaS businesses are under greater pressure than ever and can’t afford for margins to take a hit. SaaS businesses need to adapt to grow revenues and remain competitive.
“For many, the answer is introducing usage-based pricing. The increasingly popular pricing model brings significant benefits for the customer and SaaS provider alike.
“Businesses are constantly generating data from their digital activity that can be collated and monitored to offer valuable insights and opportunities for monetisation. Usage metering tools exist to allow users to define the consumption metrics they’d like to measure, whether it be active users, storage used, compute time, or something else.
“This data can be used to launch and optimise usage-based pricing and send detailed summary records straight to their existing billing system. With this accurate, comprehensive view of how customers are using the software, SaaS providers can implement effective control measures and create tailored pricing strategies.”
For any questions, comments or features, please contact us directly.
Dr. Nicholas Wegman, Ph.D., Senior Director of Artificial Intelligence and Chief Scientist at Zebra Technologies
“The labour shortages and rising costs experienced across many industries will continue to drive SaaS adoption, including vertical SaaS – software applications specially designed for a particular industry’s challenges and needs. I anticipate we’ll see businesses continue to invest in AI applications as part of their SaaS stack, particularly in areas where AI can provide data analysis, predictive and prescriptive analytics, and act as an assistant to frontline workers.
“The SaaS ecosystem will also need to develop as the AI race, including generative AI, continues into the new year. AI tools will increasingly be used across the software development lifecycle, from writing code to quality assurance. And we’ll see new AI-friendly APIs and software development kits (SDKs) that enable developers to build on SaaS solutions, adding new layers of value for users.
“And because we are talking about SaaS, cloud cost control will remain a priority for CTOs and IT leaders. Cloud investments may lead some to consider alternative ways to deliver applications, including a greater use of on-device compute alongside cloud-based applications, depending on use case.”
Roderik Viergever, COO at Murena
“There will be an increase in people moving away from Big Tech as people start to discover alternatives, as we saw with people leaving X after the US election, people are slowly awakening to shady practices hidden within realms of jargon-filled terms and conditions. I believe open source software options are going to become more mainstream, due to their transparency – their code can be vetted by anyone at any time and therefore, held accountable. This is not the case with big tech’s proprietary solutions and we’re already seeing end users become increasingly wary of sneaky updates to terms and conditions which ‘consents’ to user data being used for new purposes, like training AI models.”
Ivan Nikkhoo, Managing Partner at Navigate Ventures
“A new generation of SaaS startups is set to emerge, driven by a growing focus on AI integrity, security and governance. While many AI-enabled platforms today emphasise the “4 As” of AI-powered growth, Automated Tasks, Accelerated Productivity, Accelerated Creativity and Augmented Human Capabilities—the next wave of innovation will centre on ensuring ethical and secure AI usage. Startups addressing AI integrity, governance, privacy and transparency are poised to gain traction in 2025, especially as governments and policymakers introduce stricter AI regulations. This mirrors the trajectory of previous tech cycles, where standalone technologies initially flourish before becoming seamlessly integrated into existing applications. Venture capital investments in this space are expected to grow significantly, with newcomers tackling these challenges commanding substantial valuations.
“At the same time, vertical SaaS (VSaaS) is emerging as a game-changer for AI startups. As the AI hype cools, the spotlight is shifting to real-world applications. VSaaS, by targeting specific industries, offers a proven path to product-market fit, measurable ROI and sustainable growth. By addressing the unique needs of industries through tailored solutions, VSaaS bridges the gap between AI’s potential and practical implementation, making it a key driver of the next wave of SaaS innovation.”
For any questions, comments or features, please contact us directly.
Karan Bhakuni, CEO and Co-Founder at Poper
“As we approach 2025, SaaS will continue to be a key driver of digital transformation for businesses across industries. However, the focus will shift more towards AI-driven automation and personalization. Customers will demand more personalized experiences, and SaaS solutions that leverage AI to offer predictive analytics, behavioral targeting, and hyper-personalized content will see greater adoption.
“In addition, integration capabilities will become more crucial. SaaS companies that can integrate seamlessly with other business systems—whether CRM, marketing automation, or e-commerce platforms—will have a competitive advantage. Low-code/no-code platforms will also see significant growth, enabling non-technical users to build and customize their solutions without deep programming knowledge.
“Finally, the rise of data privacy and security concerns will push SaaS companies to adopt more robust encryption and compliance features. With growing scrutiny on data protection, those who prioritize security will gain customer trust and loyalty.”
Rupert Bedell, CEO at Fasthosts
“As net-zero targets loom and ESG compliance becomes increasingly focused on core aspects of businesses, switching SaaS suppliers to ones that adopt similar ESG practices is set to become an increasingly large part of sustainability strategies. We’re already seeing industry giants like Salesforce and Google pride themselves on their commitment to run on entirely renewable energy and even become carbon-free further down the line.
“This is sure to echo throughout the rest of the industry as 2025 progresses. The environmental and social values a SaaS provider holds have become as important as the product they provide, and smaller providers will need to not only adopt the latest sustainable practices but also pride themselves on them to compete with those that dominate the market. Businesses need providers that can give them both an immediate and continuous benefit to their own ESG compliance targets to increase their own standing with their customer base, so expect 2025 to be the year when we see the vast majority of the industry turn green not only to help the planet but also to help themselves stay relevant.”
Tom Zsomborgi, Chief Business Officer at Kinsta
“The rapid development of AI will transform how Saas businesses operate, evolve and grow in 2025. With enhanced AI integration, they will leverage it to provide predictive analytics, automate workflows, and offer personalized experiences. AI chatbots and virtual assistants will become more sophisticated. SaaS companies will invest in customer success teams to ensure retention and satisfaction. Chatbots are not there yet to resolve complex issues; businesses have to find the balance and maintain high-quality human support(interactions) with a combination of these new cost-effective tools.
“SaaS platforms will integrate more low-code and no-code capabilities, allowing non-technical users to build custom applications and workflows.
“Many SaaS providers will explore global expansion with localization next year as a new growth channel. To cater to global audiences, they will focus on offering multilingual support, localized content, and region-specific features, many of which are also made possible thanks to AI tools available on the market.
“Many businesses may also move toward consumption-based billing models, where customers pay for actual usage rather than flat subscription fees.”
Dave Holloway, Chief Strategy Officer at ISMS.online
“SaaS is gearing up for more big changes in 2025. While AI will continue to dominate headlines, two trends to watch closely are the rise of personalisation and the growth of micro-SaaS. Businesses and users alike are moving away from one-size-fits-all tools. They want solutions tailored to their specific needs, and SaaS providers are responding by going niche.”
“Micro-SaaS, small and focused tools often built by small teams, is thriving. These products address precise problems, cost less than big platforms, and integrate seamlessly into existing systems. 2025 will see more specialisation in SaaS as niche providers position themselves as the go-to solutions for specific customer pain points.”
“If your SaaS doesn’t feel tailor-made, you’re already behind. Personalisation drives engagement, satisfaction, and retention—all critical as SaaS pivots towards sustainable growth. In 2025, we’ll see more SaaS tools leveraging AI (yes, it’s unavoidable!) and behavioural data to deliver tailored, high-impact user experiences.”
“This shift towards specialisation and personalisation isn’t just a trend—it’s the future of SaaS. Companies that embrace these changes will build stronger customer relationships, deliver better ROI, and stay ahead in an increasingly competitive market.”