Where Are The Opportunities in Vertical SaaS? Picking Your Market in 2025
With 2022 census data now available, Bob Solomon, Founder of Software Platform Consulting, shares an updated look at which verticals are ripe for a SaaS solution.
Where are the opportunities in Vertical SaaS?
A few years ago, Dave Yuan, Founder and Partner of Tidemark, and I wrote a blog post to shed some light on this common question we both receive: which verticals are ripe for a SaaS solution? Our approach was straightforward; we used census data to identify industries that are large and mostly made up of SMBs rather than big enterprises. The team at Omers Ventures expanded on this analysis.
The data for that analysis was obtained from the 2017 business census, and with the 2022 census data now available, it is a good time to update the analysis. (Also, I now have my data science-enthusiast nephew, Matthew, helping me do in minutes (with Python and ChatGPT) what used to take me hours a few years ago.)
Methodology
We conducted the same analysis as last time, but this time at the 6-digit NAICS level instead of the 4-digit level. (This is the most detailed level available.) Although this increases the complexity of the charts, we chose to do it for two reasons.
- Vertical SaaS has become much more specialized in recent years. It’s no longer enough to target trade contractors; roofers often now receive different solutions than electrical contractors.
- Matt’s automated process made it much easier to play with the data!
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