The Global Customer Data Platform Market size is expected to reach $20.5 billion by 2027, rising at a market growth of 34% CAGR during the forecast period. A customer data platform (CDP) is a software platform that assists in collecting and systemizing customer data across numerous touchpoints and thus, finds its application in other software, marketing efforts, and systems. This software aggregates and arranges real-time data into unique and centralized customer profiles. CDPs create customer profiles by incorporating data from various sources like first-, second-, and third-party. It also comprises transactional systems, web forms, Customer Relationship Management & Data Management Platform, website & e-commerce behavioral data, email & social media activity, and others.
There is a rise in the demand for studying consumer purchasing behavior across varied sectors due to which, the customer data platform market is witnessing a significant surge in its growth. In addition, several industries are pursuing a unified medium for managing data pertaining to their online and offline customers and determining apt marketing strategies for these categories, along with reducing redundancies in customer data. The growing adoption of account-based marketing among organizations is also anticipated to drive the market growth for the customer data platform.
Through the increasing usage of e-commerce channels, webs, blogs, and social media platforms by customers, the companies are able to collect insights from customer purchasing behavior. Using these insights, companies are able to analyze and understand the shifting preferences of customers to tackle and respond to the growing competition in the market. Companies take these efforts to stay in touch with their customers and to offer them personalized products. The process of gathering information about customers and then categorizing them manually is a long and time-consuming process, which also requires huge investment. To reduce such costs, the companies are focusing on adopting a data platform that automatically keeps customers engaged and provides them customized products.
The outbreak of COVID-19 has changed the working patterns of all industries. Also, it has highlighted the vulnerabilities existing in business models in several verticals. During the pandemic, there is a surge in the integration & adoption of technologies like artificial intelligence, machine learning, IoT, analytics, blockchain, and cloud. Due to the adoption and integration of such technologies, businesses across various regions have shifted to a digital platform. This shift towards digitalization has increased the volume of customer data generated from online platforms, which is anticipated to augment the growth of the customer data platform market.
Additionally, the pandemic and stringent government regulations forced people to stay inside their houses. This has compelled customers to spend their maximum time on the internet and led to an increase in sales through online platforms. A large number of customers have shifted their focus from conventional shopping to online shopping, which resulted in generating a huge volume of data across the world. This has compelled companies to adopt customer data platform solutions to smoothly perform tasks. This has also accelerated the demand for an omnichannel experience. Therefore, CDP solutions witnessed an upsurge in its demand during the pandemic, leading to a boost in the growth of the customer data platform market.
Omni-channel is a comprehensive and widespread approach for customer communications across varied channels exclusive of maintaining and saving customer data. This approach offers unified and easy customer communication over several channels and stores the overall customer data within the platform with the purpose that a third party or agent will be able to tackle their problems in an appropriate manner.
Digital marketing is spreading its footprints and is gradually growing. As a result, the organizations are putting heavy investment in this relatively new concept. Customer data platforms assist in defeating tactic fatigue and take the program to another level, recognizing the capability of paid media, email marketing, and addressable channels.
As the technologies are getting advanced with the pace of time, consumers’ expectations become high due to which, enterprises time-to-time update their customer engagement solutions to fulfill the expectations of their customers. Enterprises need to invest a huge amount for upgrading their solutions and that too for a short period because technology gets upgraded version frequently.
Based on Component, the market is segmented into Platform (Without Services) and Services. The services segment is anticipated to acquire the prominent growth rate over the forecasting years. These services are an important part of customer data platforms, as they help in functioning & facilitating swift and smooth implementation of CDPs, which is helping in accelerating the value of the company investments. The rise in the deployment rate of CDP is anticipated to fuel the deployment rate of managed and professional services.
Based on Application, the market is segmented into Personalized Recommendations, Predictive Analytics, Marketing Data Segmentation, Customer Retention & Engagement, Security Management and Others. Predictive customer analytics assist market players in choosing appropriate value, marketing spending, and energy that is needed to be invested into each customer segment. Examining the customer journey through decision trees would assist players to think about the process. This offers deep and valuable insights about those customers who are purchasing again & again and who do not want to purchase anything again, hence enabling enhanced workflows.
Based on Deployment Type, the market is segmented into On-premise and Cloud. Cloud segment would showcase fastest growth during the forecast period, owing to the large deployment of cloud-based solutions and services that assist companies to enhance their business performance and increase their productivity. Moreover, companies are highly adopting the latest technologies, due to the benefits offered by them and their cost-efficiency.
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The Large Enterprises market dominated the Global Customer Data Platform Market by Enterprise Size 2020. The Small & Medium Enterprises market is expected to witness a CAGR of 35.8% during (2021 - 2027).
Based on End User, the market is segmented into BFSI, Retail & eCommerce, Media & Entertainment, Healthcare, Travel & Hospitality, Telecom & IT and Others. BFSI segment is estimated to procure the highest market share over the forecasting period. This increase is due to the enhanced customer satisfaction, offer benefits like tailored solutions and risk management, and growing regulatory scrutiny.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 2.5 Billion |
| Market size forecast in 2027 | USD 20.5 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 34% from 2021 to 2027 |
| Number of Pages | 364 |
| Number of Tables | 573 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Application, Deployment Type, Enterprise Size, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia-Pacific would witness a prominent growth over the forecast period. There are lucrative opportunities for small customer data platform vendors to launch CDP solutions across various industries in this region. This factor is accountable to boost the growth of the regional customer data platform market. Moreover, enterprises are constantly focusing on enhancing consumer services to get more profit and to give tough competition to the regional competitors.
Free Valuable Insights: Global Customer Data Platform Market size to reach USD 20.5 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the major forerunners in the Customer Data Platform Market. Companies such as Upland Software, Inc., Acquia, Inc., SAS Institute, Inc. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include SAP SE, Oracle Corporation, Microsoft Corporation, Adobe, Inc., Salesforce.com, Inc., Teradata Corporation, Totango, Ltd., Upland Software, Inc., Acquia, Inc. and SAS Institute, Inc.
By Component
By Application
By Deployment Type
By Enterprise Size
By End User
By Geography
The global customer data platform market size is expected to reach $20.5 billion by 2027.
The growing investment by companies in advertising & marketing activities are driving the market in coming years, however, adoption of CDP needs huge investment have limited the growth of the market.
SAP SE, Oracle Corporation, Microsoft Corporation, Adobe, Inc., Salesforce.com, Inc., Teradata Corporation, Totango, Ltd., Upland Software, Inc., Acquia, Inc. and SAS Institute, Inc.
Yes, This shift towards digitalization has increased the volume of customer data generated from online platforms, which is anticipated to augment the growth of the customer data platform market.
The predictive analytics application is projected to procure maximum revenue share over the forecast years.
The North America market dominated the Global Customer Data Platform Market by Region 2020, and would continue to be a dominant market till 2027.
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