36 usage-based billing statistics showing the momentum behind consumption pricing in SaaS

Usage-based billing is rapidly becoming a dominant revenue model across various industries, including telecom, utilities, finance, healthcare, and particularly SaaS, as it aligns charges with actual customer consumption, offering flexibility and expansion potential. A report projects the cross-industry usage-based billing market to grow from $9.4 billion in 2025 to $28.6 billion by 2034, with SaaS adoption surpassing 59% by 2025. The hybrid billing model, combining fixed subscriptions with usage-based components, shows the highest growth potential, with companies reporting a median growth rate of 21%. Cloud-based billing solutions are favored for their faster implementation and lower overhead, capturing 67.8% of the market revenue in 2025. Large enterprises contribute significantly to market revenue, emphasizing the need for robust billing infrastructure that can handle metering, invoicing, and reconciliation, as well as offer transparency and accuracy in billing processes. Despite the challenges of transitioning to a usage-based model, companies like Vercel and Stytch have successfully reduced billing-related engineering time and operational inefficiencies through specialized billing platforms like Orb, which supports metering accuracy and financial compliance.

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