In this article, we discuss the 15 biggest SaaS companies in the world. To skip the detailed analysis of the SaaS market, go directly to the 5 Biggest SaaS Companies in the World.

SaaS refers to a software delivery and licensing method in which software is accessed online via a subscription rather than being bought and installed on individual computers. In our previous report, we stated that the SaaS industry was worth $96 billion in 2022 and is expected to reach $235 billion by 2028, with a CAGR of 15.9%. Adobe Inc. (NASDAQ:ADBE), Intuit Inc. (NASDAQ:INTU), and Salesforce Inc. (NYSE:CRM) are among the top performers in the industry.

A key driver of SaaS market growth is the rise of remote work. During the pandemic, nearly 70% of full-time employees worked from home. The new dynamics forced many companies to consider switching to remote work as organizational policy. In fact, an Upwork analysis established that over 60% of the companies surveyed were planning more remote work in the years after the pandemic. As more people work remotely, the demand for SaaS services expands because businesses will need to migrate most of their operations to the cloud.

In addition, the SaaS market has plenty of growth opportunities. For example, Gartner predicted in 2020 that 70% of customer interactions would involve SaaS-related technologies like machine learning (ML) applications and chatbots, up from 15% in 2018. This means the AI-powered customer service niche has plenty of room for growth. Other SaaS niches with room for growth are predictive analytics, personalized marketing, cybersecurity, and data management.

The SaaS market has several segmentations, each focused on a specific application of the “as a service” business model. One of the most popular segments is customer relationship management (CRM). The CRM segment is one of the largest in the SaaS market, with a projected market size of over $60 billion by 2025. It is also one of the fastest-growing segments; Grand View Research projects a CAGR of 14.0% between 2019 and 2025.

The human resources (HR) software market is another significant segment of the SaaS market. It is also fast-growing, with a projected market size of over $30 billion by 2028, and it should expand at a 10.10% CAGR from 2021 to 2028. Other segments of the SaaS market include accounting and finance, collaboration and communication, and enterprise resource planning (ERP).

Our Methodology

We researched the software services and Cloud industry and picked the biggest SaaS companies in the world based on market cap. The list is ranked in ascending order of market caps as of March 14.

15 Biggest SaaS Companies in the World

15. Workday, Inc. (NASDAQ:WDAY)

Market capitalization as of March 14: $47.52 billion

Workday, Inc. (NASDAQ:WDAY) is an SaaS company because it delivers its software application over the internet, and customers can access and utilize the software without having to manage the infrastructure or deploy the software on their own. Workday provides enterprise-level cloud-based software solutions for human resources, finance, and business planning. Workday has a large customer base of over 55 million, and they provide services to more than 50% of Fortune 500 companies. In 2022, the company generated revenue of $5.14 billion.

14. Shopify Inc. (NYSE:SHOP)

Market capitalization as of March 14: $55.61 billion

Shopify is an SaaS company that provides an e-commerce platform for online stores and retail point-of-sale systems. As an SaaS company, Shopify delivers its software application over the internet, and customers can access and use the software without having to manage the infrastructure or deploy the software on their own.

Shopify had over 2 million merchants using their platform to create and host online stores in 2022. The number of live websites built using Shopify is twice the number of merchants, indicating that each merchant creates an average of two unique Shopify websites. Several well-known brands, including Pepsi, Tesla, Nestle, and Staples, have Shopify websites, in addition to GymShark, Heinz, Lord & Taylor, and Crate & Barrel.

Baron Funds mentioned Shopify Inc. (NYSE:SHOP) in its Q4 2022 investor letter. Here’s what the firm said:

“Shopify Inc. (NYSE:SHOP) is a cloud-based software provider for multi-channel commerce. Shares rose 28.6% in the fourth quarter, reversing some of the declines from earlier in the year, as preliminary holiday results suggested a rebound in e-commerce activity. The company also reported solid third quarter financial results showing an increase in take rates, which points to a deeper adoption of its platform by merchants. We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth (it has less than 2% share of global commerce spending).”

13. Palo Alto Networks, Inc. (NASDAQ:PANW)

Market capitalization as of March 14: $55.82 billion

Palo Alto Networks, Inc. (NASDAQ:PANW) primarily provides advanced security solutions to protect networks, devices, and cloud-based applications against cyber threats. As an SaaS business, the company offers several solutions that provide advanced cybersecurity protection for networks, cloud-based applications, and endpoints. They include: Prisma Access, Prisma Cloud, Cortex XDR, WildFire, and GlobalProtect.

In its Q4 2022 investor letter, ClearBridge Investments highlighted a few stocks, and Palo Alto Networks, Inc. (NASDAQ:PANW) was one of them. Here is what the fund said:

 “Stock selection within the IT sector was the main detractor from relative performance during the period. In addition to rate hikes compressing the multiples of longer duration, high growth companies, recession concerns were also a headwind. IT companies which had proven resilient against customer budget reductions earlier in the year are starting to feel the impact of spending slowdowns as companies further scrutinize expenses in light of economic uncertainty. For example, Palo Alto Networks, Inc. (NASDAQ:PANW), which provides enterprise security solutions including next-generation firewalls and threat detection software, faced a challenging environment as customers delayed purchases and orders. However, we remain convinced of the company’s long-term growth prospects as an industry leader in a critical field and as digital attacks and ransomware continue to grow.”

12. ServiceNow, Inc. (NYSE:NOW)

Market capitalization as of March 14: $85.91 billion

ServiceNow, Inc. (NYSE:NOW) is primarily an IT solutions company. The company has offerings in several categories of the IT industry. They include IT Service Management (ITSM) IT Operations Management (ITOM), IT Business Management (ITBM), Security Operations, Customer Service Management, and field service management.

ServiceNow, Inc. (NYSE:NOW)’s workflow automation solutions have ensured a strong financial position for the company. In the latest financial results, the company revealed that total revenues grew 22% year-over-year to $1.94 billion. For the full year 2022, the revenue growth was 28% year-over-year. Following the strong financial performance, RBC Capital analyst Matthew Hedberg raised his price target on ServiceNow, Inc. (NYSE:NOW) to $510 from $500 barely 24 hours after Q4 2022 earnings release. He kept an ‘Outperform’ rating on the shares.

Here is what Polen Capital has to say about ServiceNow, Inc. (NYSE:NOW) in its Q4 2022 investor letter:

“ServiceNow, Inc. (NYSE:NOW) is an $80 billion market cap business based in California. Its purpose is to make the world of work, work better for people. Getting a job done in an enterprise (what the company refers to as “workflow”) usually requires different people in various functions of an organization to work together. Often, they rely on different technology systems and inefficient manual processes to complete each step of the job before moving on to the next.

ServiceNow believes the most effective digital transformation initiative utilizes tools that can integrate workflows across siloed systems, departments, processes, and people. The company is solving what is arguably the biggest pain point in the biggest profit pool in the world (enterprises). Consider the explosion in data growth and all the software point solutions emerging constantly. ServiceNow wrangles all this into a fully integrated dashboard on a global scale with global customers in every industry. Nearly 100% of revenues are subscription based with a 99% renewal rate, and the company currently has no direct competition, according to our research. ServiceNow started with an IT workflow, and today, ~40% of net new annual contract value is in non-IT workflows. Through constant innovation, the business has continued to expand its total addressable market, and we think it can grow free cash flow (FCF) at a 20%+ annualized rate for the next three to five years. At less than 30x FCF, we thought the valuation was attractive.”

11. Automatic Data Processing, Inc. (NASDAQ:ADP)

Market capitalization as of March 14: $89.16 billion

Automatic Data Processing, Inc. (NASDAQ:ADP) is another tech giant dominating the SaaS market. Primarily, the company provides human resources (HR) management software and services to businesses of all sizes. Its SaaS offerings include Payroll Processing, spanning automatic tax filing, direct deposit, and customizable payroll reports; HR Management, applicant tracking, background checks, and e-signatures for employee documents; Time and Attendance Tracking, mobile access, shift scheduling, and time-off accrual tracking; Benefits Administration, enrollment management, compliance tracking, and reporting; and Talent Management, learning management, goal setting, and career development planning.

Automatic Data Processing, Inc. (NASDAQ:ADP) boasts more than 1 million clients worldwide. In the most recent financial results, the company revealed a 9.9% revenue growth to $4.4 billion. The PEO Services segment grew the fastest, at 11%; this segment is deeply integrated into the SaaS market.

Hedge funds are loading up on Automatic Data Processing, Inc. (NASDAQ:ADP), as Insider Monkey’s data shows that 49 hedge funds held a stake in the company as of the end of the fourth quarter of 2022, compared to 48 funds at the end of the previous quarter.

Carillon Tower Advisers mentioned Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q3 2022 investor letter. Here is what the firm has to say:

“Despite a difficult macroeconomic environment, hiring trends have remained robust and Automatic Data Processing, Inc. (NASDAQ:ADP) shares reacted positively to strong quarterly earnings and guidance that was well above consensus expectations.”

10. Schneider Electric S.E. (EPA:SU)

Market capitalization as of March 14: € 88.54 billion ($93.51 billion)

Schneider Electric SE (EPA:SU) is a French multinational which specializes in energy management and automation solutions. On the SaaS front, the company offers solutions that help customers manage their energy usage and reduce costs. The solutions include: EcoStruxure™ Resource Advisor, a cloud-based software platform that provides real-time energy and sustainability data; EcoStruxure™ Building Advisor, which offers building performance analytics and insights; EcoStruxure™ Power Monitoring Expert, which provides real-time energy and power quality data; and EcoStruxure™ IT Expert, a cloud-based software platform provides remote monitoring and management of IT infrastructure.

9. Intuit Inc. (NASDAQ:INTU) 

Market capitalization as of March 14: $114.03 billion

Intuit Inc. (NASDAQ:INTU) primarily provides financial management, accounting, and tax preparation software for individuals and small businesses. The company’s primary SaaS products include QuickBooks Online, providing cloud-based accounting and financial management software for small businesses, and QuickBooks Self-Employed, designed for freelancers and independent contractors. Others are TurboTax Online and TurboTax Live, providing online tax preparation and e-filing services for individuals and small businesses.

8. International Business Machines Corporation (NYSE:IBM)

Market capitalization as of March 14: $113.01 billion

International Business Machines Corporation (NYSE:IBM) has substantial interests in the software and services sectors. International Business Machines Corporation (NYSE:IBM)’s SaaS offerings are mainly business-focused, or B2B. They include: Watson, an artificial intelligence (AI) platform that can be used to develop and deploy AI-powered applications; IBM Cognos Analytics and IBM Planning Analytics, which provide businesses with a range of data analysis and visualization capabilities; and IBM Sterling Supply Chain, a cloud-based supply chain management platform.

According to Statista, International Business Machines Corporation (NYSE:IBM) claimed 3% of the global cloud infrastructure market as of Q2 2022. This share enables International Business Machines Corporation (NYSE:IBM) to deliver software and other cloud-based services to millions of businesses worldwide. In Q2 FY2017, the SaaS segment generated $8.8 billion for IBM, representing a 32% year-over-year growth. The revenue reached $9.2 billion as of Q3 FY2022.

7. SAP SE (NYSE:SAP)

Market capitalization as of March 14: $140.43 billion

SAP SE (NYSE:SAP) is the sole non-American company among the ten biggest SaaS companies in the world. The German multinational provides enterprise software solutions to businesses of all sizes. The company’s SaaS offerings include its flagship product, SAP S/4HANA, a cloud-based enterprise resource planning (ERP) system that provides real-time analytics and insights to help businesses make data-driven decisions. Others include SAP SuccessFactors for human resources management, SAP Ariba for procurement and supply chain management, and SAP Customer Experience for managing customer relationships and sales.

According to Insider Monkey’s data, 18 hedge funds were long SAP SE (NYSE:SAP) at the end of the Q4 2022, compared to 17 funds in the prior quarter. Windacre Partnership of Snehal Amin had the largest interest in the company, with 2.15 million shares valued at $221.72 million.

Polen Capital commented on SAP SE (NYSE:SAP) in its Q4 2022 investor letter:

“SAP SE (NYSE:SAP) continues to make solid progress with its transition to the cloud. Total cloud sales grew 25% in the most recently reported quarter. Moreover, the current cloud backlog and the S/4 HANA current cloud backlog both accelerated, which points to ongoing strong cloud growth despite the tough environment. While the faster transition to the cloud has weighed on SAP’s margins for the past couple years, management reaffirmed its expectation for accelerated sales growth and 10%+ earnings growth in 2023. They also reaffirmed their 2025 mid-term financial targets, which means double-digit revenue growth in 2024 and beyond, with midteens earnings growth at the mid-point of their guidance.”

6. Adobe Inc. (NASDAQ:ADBE)

Market capitalization as of March 14: $152.93 billion

Adobe Inc. (NASDAQ:ADBE) is primarily known for its suite of creative software products, including Photoshop, Illustrator, and InDesign. Crossing over to SaaS, Adobe Inc. (NASDAQ:ADBE) is a major player in the market because of the following products: Adobe Creative Cloud, a subscription-based service that provides access to the company’s suite of software applications for creative professionals, such as Photoshop, Illustrator, and InDesign; Adobe Marketing Cloud; Adobe Experience Cloud; and Adobe Analytics Cloud.

Adobe Inc. (NASDAQ:ADBE) accounted for approximately 10% of the global SaaS market in 2019.

Andvari Associates made the following comments about Adobe Inc. (NASDAQ:ADBE) in its Q4 2022 investor letter:

“Adobe Inc. (NASDAQ:ADBE) is one of several software companies we own. Its suite of creative products (Photoshop, Illustrator, Acrobat, Lightroom, etc.) are the industry standard for creative professionals. Adobe also has a suite of customer experience products that help other businesses sell more easily to consumers. All of Adobe’s products have high switching costs and sold on a subscription basis.

Adobe’s business qualities enable extremely high margins and predictable, recurring revenues. The company had revenues of $17.6 billion in its last fiscal year with operating margins in the mid-30s. The company has also grown revenues at double-digit rates every year since 2015. Despite a good record of investing in its businesses, it still has an excess of cash on its balance sheet. As such, Adobe has returned cash to shareholders in the form of share buybacks. Since 2015 the company has returned a total of $24.5 billion.”

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Disclosure: None. 15 Biggest SaaS Companies in the World is originally published on Insider Monkey.