Latvia's SaaS market in 2026 shows a steady increase in customer acquisition costs, reaching approximately EUR 1,200. This reflects heightened competition and increased marketing efforts to reach digital-savvy businesses. The churn rate remains low at 12%, indicating strong customer retention strategies. With an average revenue per user of EUR 85 monthly, Latvian SaaS providers are experiencing healthy profit margins amid the growing digital infrastructure.
Digital penetration in Latvia continues to advance, with 78% of the population online, fueling SaaS adoption across sectors. The market is expanding at a 9.5% annual growth rate, driven by increased demand for cloud services and digital transformation initiatives. Latvian SaaS companies are increasingly targeting export markets within the EU, leveraging digital maturity to enhance competitiveness and customer acquisition efficiency.