The Top 13 SaaS Trends for 2023

Vladislav Gavriluk

Vladislav Gavriluk

CEO & Founder at Arounda

The SaaS model has changed the way we use software once and for all. Statista predicts that the SaaS market will increase from $197 bn in 2023 to $232 bn in 2024. As a fast-developing industry, SaaS incorporates all the latest innovations and changes in a blink of an eye. Have you wondered how this domain will look in a year? 

As a design agency that works closely with SaaS providers, Arounda keeps tracking the tendencies in the industry. In this blog post, we’ve described the 13 most important SaaS trends 2023 and illustrated them with examples to give you a cohesive picture of the SaaS transformation. 

1. Personalization through AI

The capabilities of artificial intelligence promise to revolutionize SaaS in many aspects, including customer experience, speed of operation, security, and much more. The most apparent benefit is personalization, enabled by analyzing individual needs and behavioral patterns. 

Another vital advantage is automated data processing which can speed up various tasks. For example, the Ferretly social media screening platform incorporates AI to analyze posts and images across more than ten risk classifications. Imagine how much time would HRs and administrators need to check candidates manually. 

2. Machine Learning for Data Processing

Very often, the terms AI and ML are used interchangeably. To be precise, machine learning is a subset of the artificial intelligence domain that deals with the learning ability of the system and data processing algorithms. 

A good representation of ML powers in SaaS is the Einstein AI platform offered by Salesforce, a customer relationship management (CRM) platform. Einstein AI uses ML algorithms to analyze vast customer data and provide insights, predictions, and recommendations to help businesses improve their sales, marketing, and customer service processes.

3. Priority on Security 

Cloud security is one of the hottest issues in SaaS development. Software as a service operates with all kinds of data, including financial, medical, corporate, and other sensitive records. Nowadays, security doesn’t only mean protecting users’ information. It’s also about informing where this data goes and offering choices to direct the information flow. 

4. Availability of Integrations

Integrations are among the global SaaS trends. It allows customers to merge products and services from different providers and build their preferred tools. If the SaaS vendor allows plugging in the favorite instruments, this significantly increases customer loyalty and engagement. Slack presents a great example of handling integrations with numerous industry-leading software and custom apps. 


If you are developing a SaaS solution and want to deal with UI/UX design issues professionally.Let`s have a talk.

5. DaaS for Better Safety and Efficiency

Relevant and up-to-date data are the backbone of successful strategic decisions. However, collecting and keeping data in-house has become unproductive and unsafe. This is where data-as-a-service (DaaS) comes into play. This cloud-based software offers data collection, storage, integration, analytics, and more. The most prominent players in the DaaS market are Amazon Web Services (AWS), Google Cloud Platform (GCP), IBM Cloud, and Microsoft Azure. But as the trend gains popularity, smaller companies get the opportunity to join the market as well.   

6. Rise of Vertical SaaS 

Most SaaS that we encounter is of the horizontal type. They provide universal solutions which fit various industries and are easy to use. One of the SaaS future trends is vertical SaaS that caters to the needs of specific spheres like healthcare, insurance, logistics, etc. Vertical SaaS companies have a small target audience, a predetermined set of KPIs’ and metrics, and higher complexity compared to horizontal ones. It often provides high-quality service, focusing on a certain niche's needs.

For example, DocuSign provides a vertical SaaS solution for electronic signature and digital transaction management, while BioIQ represents a vertical healthcare SaaS.  

7. In-house SaaS APIs 

In the early years, SaaS companies used to redirect their clients to a third party to supply the specific APIs. However, designing an in-house API has become one of the influential SaaS trends that makes it easier for businesses to focus on their core activities rather than technology issues. 

On the other hand, APIs become the basis for the growth of a unique ecosystem within the SaaS platform. If new applications, plugins, or extensions are easy to interlink with the SaaS API, why not stay with the provider forever?

For example, Shopify API allows merchants to create their custom storefronts with the possibility to sell anywhere, even outside of Shopify. APIs work both for iOS and Android and offer developers an easy way to embed a Shopify store’s products into mobile apps.

8. Increasing Popularity of PaaS

Big SaaS vendors started proposing a Platform-as-a-Service (PaaS) option that empowers businesses to build custom apps and original solutions on top of platform functionality.

For example, Deliveroo has developed a fast-food delivery service, using the AWS platform to accept orders, transmit them to restaurants, and deliver meals to customers. As a result, the firm had more time to focus on its data and polish every part of the business using analytics and machine learning.  

9. Focus on Retention & Churn

Retention and churn rates are the primary metrics for customer success and satisfaction. At the same time, they define the revenue and profitability of the SaaS business model. No wonder SaaS companies focus on both parameters. 

Improving retention and extending the customer lifecycle may involve thoughtful management of customer relationships, delicate customer support, regular product updates, and improvements targeting user pain points. The core of this SaaS trend is to put the user value at the center of all innovations and changes.

10. Market Consolidation 

The SaaS market continues to grow, attracting new and new entities. Every new player must outcompete many peers for customer attention and sales. But will the customers' appetite remain the same from a midterm perspective?

From a customer perspective, SaaS companies simply have too many applications. Procuring, operating, and getting value from many propositions is becoming complicated. It would be much easier to deal with several solid providers. For example, when Salesforce offers integration with Slack joining the best CRM and smooth communication, isn’t it a win-win solution for both companies and their customers? 

Bigger companies will consolidate with smaller businesses, and the main question is, are you one to absorb or be absorbed? 

11. Advance of Super Apps

If we put it simply, a super app is a solution that mixes a bunch of different services in one application. Customers can not only use core SaaS features but access independently created mini-apps. For example, users of an AliPay payment app enjoy a bunch of services like shopping online, e-wallets, booking hotels, etc. As the functionality of a super app increases, it will provide a huge competitive advantage to its owners.

12. More Low-Code SaaS Platforms

Low-code SaaS platforms allow users to create software applications with visual drag-and-drop interfaces, in-built components, and minimal coding. Platforms like Appian or Docker give new ways to optimize human resources and let developers and product executives concentrate on innovation and more pressing issues. Cloud services for low-code will remain among the main SaaS trends in 2023.

13. Centralized Analytics

Businesses that want to stay ahead of the competition have to make informed decisions based on data and analysis. Thus collecting and analyzing data becomes crucial for almost every service-based cloud software platform. The first issue is that companies often receive data from multiple sources, such as user interactions, application logs, or external integrations. Another problem is the need to handle an ever-increasing amount of input data. 

A centralized analytics system allows businesses to process and compare data across different data sources and several products. Analytics helps to identify user behavior patterns, get insights, and dig down to thorough strategic solutions. Another benefit is the possibility of generating reports, dashboards, and visualizations, demonstrating the value of the SaaS solution to clients and stakeholders.

 Salesforce's cloud-based CRM platform with built-in analytics capabilities presents a great ecosystem for managing data for sales, marketing, and customer service purposes.     


The development of cloud solutions in 2023 shows several distinctive SaaS trends. The rise of AI and ML drives the change of services towards personalization and automation. A migration to PaaS proves to be a win-win tendency for big and small players. SaaS market consolidation is going to proceed. These trends are going to transform the landscape of software-as-a-service in the nearest future.

Arounda has been in product development for more than five years. Our experience with SaaS projects includes UI/UX design for the Canadian HR platform QTalant, redesign for the Metricly cloud cost management platform, and collaboration with WordPress,  

If you need assistance with UI/UX design, branding, or business strategy for a SaaS product, we are here for you!

Vladislav Gavriluk
Vladislav Gavriluk
CEO & Founder at Arounda
I make sure our clients get the high-quality result from the beginning stage of the idea discovery & strategy to the final digital product.

Frequently asked questions

  • What is the SaaS growth trend in 2023?

    In 2023, Gartner forecasts worldwide end-user spending on public cloud services to grow 20.7% to $591.8 billion, up from $490.3 billion in 2022, including 23.2% growth for PaaS and 16.8% for SaaS.

  • What is the future of the SaaS market?

    According to the Fortune Business Insights report, the global SaaS market is expected to grow from $251.17 billion in 2022 to $883.34 billion by 2029, increasing at a CAGR of 19.7%.

  • What is IaaS?

    IaaS stands for Infrastructure as a Service. In this model, a cloud owner hosts the infrastructure components usually presented in a third-party data center, such as servers, storage, and networking hardware. Along with SaaS and PaaS, Iaas is one of the three main categories of cloud computing as-a-service options.

Continue reading

Hungry for more?

Sign up to our newsletter to get weekly updates on the trends, case studies and tools