The SaaS sector is no longer the scrappy newcomer of tech—it’s now a powerhouse, both in the UK and globally. What was once a niche alternative to on-premise software is now the default model for organisations looking to innovate, scale, and stay competitive.

At Aaron Wallis Sales Recruitment, we’ve watched this transformation unfold not only through our 2025 SaaS market report, but also through the sharp increase in demand for SaaS sales professionals. From scale-ups to multinationals, the need for people who can sell, implement and support cloud-based solutions has never been greater.

As we settle into 2025, here’s a look at where SaaS stands today—and where it’s heading.

A £62 Billion Market—and Still Growing

Over the past decade, the SaaS market has surged ahead. In the UK alone, it’s expected to reach £62.4 billion by 2030, rising from just under £3 billion in 2015. Globally, we’re looking at a figure north of £550 billion.

But this isn’t just headline growth. Under the surface, the nature of SaaS is changing. Businesses are moving away from point solutions and adopting end-to-end platforms that can scale and adapt across departments.

What’s particularly interesting in 2025 is the growth in sector-specific SaaS. Healthcare, financial services, and retail are all seeing strong investment in platforms tailored to their needs—from compliance-ready CRM systems to AI-powered inventory management tools.

Meanwhile, enterprise software, collaboration platforms, and CRM remain dominant, collectively accounting for the majority of UK SaaS spend.

The Talent Conundrum: A Market with More Jobs Than People

While SaaS continues to scale, the talent pool is struggling to keep pace. As of this year, there are approximately 65,000 professionals working in the UK SaaS industry—a dramatic increase from just four years ago. But it’s not enough.

Our estimates suggest a skills gap of over 9,000 roles, with particular shortages in sales, customer success, and solution consulting.

This is creating a fiercely competitive hiring market, where candidates can afford to be selective. Companies that invest in onboarding, career progression, and flexible working are finding it far easier to secure the best people.

Sales Professionals: The Human Engine of SaaS

Sales teams are central to SaaS success—and their roles are becoming more strategic. Rather than just “selling software,” modern SaaS salespeople act as consultants, helping clients map out transformation plans and extract real value from technology.

Salaries reflect this shift. For example:

• Sales Directorsin SaaS can now command OTEs of £100k to £220k
• Heads of Salestypically fall between £70k to £110k
• SDRs and Customer Success Managersearn £45k to £55k, but often with fast-tracked career paths

These figures are a strong indication of how the industry values client-facing roles—not just in closing deals, but in nurturing long-term relationships and reducing churn.

Key Trends: From AI to ESG

The last few years have seen a wave of changes in how SaaS is built, sold, and used. Here are a few of the biggest trends shaping 2025:

1. AI Everywhere
   Machine learning is now embedded into everything from lead qualification to customer onboarding. Expect to see more automation in demo scheduling, pipeline forecasting, and even contract negotiation.
2. Consumption-Based Pricing
   Clients want flexibility. Subscription models are evolving into pay-as-you-go or usage-based billing. This shifts the emphasis from one-off sales to value over time, placing more pressure on account management and success teams.
3. SaaS Consolidation
   Buyers are fed up with juggling multiple logins and disconnected tools. Integrated suites and all-in-one platforms are becoming the norm, with a big push toward native integrations and single dashboards.
4. ESG and Ethical Tech
   A newer but fast-growing trend—clients are asking not just whata tool does, but how it does it. SaaS providers are being judged on data privacy, environmental impact, and inclusive design. It’s no longer enough to be functional; you also have to be responsible.

Start-Ups, Scale-Ups, and the Battle for Differentiation

While incumbents like Salesforce, HubSpot, and Sage still lead in market share, the UK remains fertile ground for SaaS start-ups—especially in fintech, healthtech, and green technology.

However, early-stage companies face an uphill battle: standing out in a crowded field. Feature parity is no longer a unique selling point. Instead, buyers are looking for exceptional onboarding, low time-to-value, and strong community support.

Interestingly, we’re seeing more partnerships between start-ups and enterprise vendors, particularly via API-based ecosystems and app marketplaces. These alliances allow smaller players to gain exposure while enabling big platforms to plug functionality gaps quickly.

Challenges to Watch

No market is without hurdles. In SaaS, some of the most pressing challenges for 2025 include:

• High churn rates: With more choice than ever, loyalty isn’t guaranteed. Companies need to build value from day one.
• Data and compliance pressure: Between GDPR, SOC 2, and sector-specific regulations, the compliance landscape continues to tighten.
• Rising CAC (Customer Acquisition Cost): Winning new business is more expensive, so the spotlight is on customer lifetime valueand retention strategies.
• Burnout risk: High-growth targets and aggressive sales cultures can take a toll on teams. Expect wellbeing and sustainable performance to take centre stage in 2025.

Is there any way to make it look like it was written by Rob Scott? like below

Written by Rob Scott, Managing Director at Aaron Wallis Sales Recruitment

Rob Scott is a veteran of recruitment and sales, bringing a wealth of hands-on experience to both fields. His insights have appeared in publications such as The Guardian, Financial Times, Daily Mail, and The Times, and he’s been featured in Winning Edge, the magazine of the Institute of Sales and Marketing Management. Rob also created the Career Success Masterclass e-book and podcast series, which offer practical advice on navigating the job market. He’s currently the Managing Director of Aaron Wallis Sales Recruitment, a UK-wide sales recruitment agency.