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Writer's pictureDana Rasmussen

The Future of SaaS: Trends to Watch in 2025

Did you know it’s estimated that by 2025, almost half the world’s data will be stored in the cloud? More than 65% of spending on software applications will be for cloud services! In a closely related statistic, 71% of companies are expected to rely on SaaS models of business by that year. It’s true, according to statistics quoted for this article on Medium


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But what does that mean as industries move forward? Surely these technological advancements and market demands will affect how SaaS trends will be adopted by businesses like yours, right?


They will. And to help you prepare, here are five trends we predict will impact the SaaS landscape going forward.


  1. Increased Adoption of Artificial Intelligence: AI is everywhere and it’s here to stay. We can see why! AI improves efficiency, streamlines workflows, and can be useful in virtually any business.  Have you interacted on a website and used its chat feature? That conversation was likely with an AI chatbot. Gone shopping online? With AI, brands are customizing algorithms to offer personal recommendations that influence your decision-making. AI also allows users to extrapolate deeper insights from their data, providing new or more effective ways of doing business. That’s why we’re going to see adoption of this technology and its related tools increase as the year goes on.

  2. Enhanced security: Data breaches and cyberattacks are happening everywhere. According to IBM’s 2023 report on the costs of data breaches, the global average cost of a data breach is a staggering $4.5 million.  SaaS platforms feature strong encryption and authentication factors that protect customer data, which in turn, helps establish a stronger client base as they feel their information is secure.  We’ll see companies across all industries reach for this security more and more.

  3. Industry-Specific and Vertical SaaS Solutions: If you haven’t heard of horizontal or vertical SaaS models, you’re not alone.  Horizontal SaaS models are used by businesses with products that are targeted to a wide variety of users regardless of their industry (think QuickBooks and CRM).  Vertical SaaS models are used when businesses have products that target a specific or niche market, so they can provide a narrow focus on a smaller market. Vertical SaaS models require fewer resources as they focus on a single industry.  We’ll see strategic diversification of these models and expect both to flourish. 

  4. Low- and No-Code Platforms: Two of the biggest tasks business owners face come in the form of software development and website creation. Oftentimes, both of those areas can go wrong. That’s why low- and no-code platforms are becoming a trend.  Low-code platforms are built with UI templates and pre-build components for the app development process. No-code platforms feature no coding whatsoever. Instead, no-code platforms focus on automating workflows.  Low- and no-code platforms are expected to make up 65% of all app development by the end of 2024, and that number could go higher as more low- and no-code platforms reach the SaaS industry. 

  5. Enhancing Sustainability: Being environmentally conscious is important for many businesses. Green SaaS solutions help businesses establish and manage their footprint using renewable energy and less data storage. With many businesses, sustainability measures help attract environmentally conscious customers, and green Saas solutions can be exactly what your business needs.


Technology is ever-changing and it can be difficult to keep up. However, staying on top of trends provides insight into what’s happening on a larger scale and could help impact change for your strategy or business needs.  Be sure to subscribe to the Wheels Up Collective monthly newsletter to stay current with ours!


We share expert opinions about marketing trends.

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