Email Marketing Software Market Size, Share and COVID-19 Impact Analysis, By Channel (Business-to-Business (B2B) and Business-to-Customers (B2C)), By Deployment (On-Premise and Cloud), By Enterprise Size (Large Enterprises, and Small & Medium Enterprises), By Application (Email Lead Generation, Sales Reporting, Customer Management, and Others), By Industry (BFSI, IT and Telecommunications, Healthcare, and Others) and Regional Forecast, 2021-2028

The global email marketing software market size was valued at USD 1.12 billion in 2020. The market is expected to grow from USD 1.24 billion in 2021 to USD 2.53 billion in 2028 at a CAGR of 10.7% in the 2021-2028 period. The global impact of COVID-19 has shown a slight decline market size, and it witnessed slow growth across all regions during the pandemic. Based on our analysis, the global market exhibited a growth rate of 10.0% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

In the scope of the report, we have included provider companies such as Qebot, Salesforce.com, Inc., Sendinblue, EmailOctopus, SendX and Zoho Corporation. These companies offer email marketing solutions to create new electronic mails and grow their businesses.

In today’s digital period, several SMEs and large scale organizations are focused on digital marketing and advertising campaigns. Advanced technologies such as e-mail marketing and marketing automation software are deployed to trigger the sale that has impressive results for business growth. E-mail systems are used to eliminate spam and trashed electronic mails. Email marketing is considered as an effective advertising and communication channel for business to customers (B2C) and business to business (B2B) marketers.

Increasing small scale start-ups and surge in the adoption of the advanced digital marketing solutions such as electronic mails and social media marketing have propelled the market growth. Further, owing to the growing number of start-ups, the electronic mail traffic and email generations have also increased at an exponential pace. For instance, according to the Radicati Group, Inc., globally, the total number of consumer and business emails received and sent per day reached around 306 billion in 2020. The consumer and business emails are projected to reach around 319.6 billion with an average 4.4% annual rate by the end of 2021.

COVID-19 IMPACT

Rising Investment for Product Promotions Marketing amid COVID-19 Inclined Growth

Email marketing software is deployed by organizations to monitor customer interaction and acts as a measurable medium. The software is considered as a strong communication medium during the COVID-19 pandemic. The software is used to generate effective custom responsive content.

The global pandemic has triggered variations in activities such as product launch, advertising, marketing, promotional, and media expenditure. Companies in the market are focusing on innovative product launches during the pandemic, by adopting various marketing strategies.

By March 25, 2020, according to McKinsey consulting firm, nearly every industry had shown an increase in engagement above the previous year's average. According to the Campaign Monitor, from February 2020 to March 2020 the average electronic mail opening rate by individuals and businesses across the globe have been increased by 19% for the marked rise in email sending volume. Thus, the market has shown slight increase in demand during the Covid-19 pandemic.

LATEST TRENDS

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Rising Demand for Email Software Automation Trend to Drive Market Growth

Automation of electronic mail marketing, also known as behavior-driven email marketing, is gaining popularity in every business globally. Automated email marketing allows users to send emails to bulk consumers on a predetermined time. Furthermore, mail automation enables automated follow-up with specific customers. Deployment of automated email software across various industries is increasing, owing to a surge in demand for emails services such as welcome series mails, nurture series electronic mail, and birthday or anniversary mails. Automated email marketing advances client interaction and also increases performance and personalization.

Several leading players in the market are launching advanced automated email software to conduct marketing campaigns and advertising for business growth. For instance,

• In September, 2020, Mailchimp electronic mail marketing solutions provider launched advanced AI-based automated email marketing tools to transform its marketing platform. AI-based tools help business owners to design visual assets and write subject lines for better consumer and business interactions.

DRIVING FACTORS

Increasing Demand for Targeting and Personalized Communication to Boost Market Growth

Sending relevant information to the appropriate prospect or client is critical to email marketing success. Greeting sequence, that delivers various messages to different addresses, is an example of targeted mail. Many businesses are using automated mail marketing systems to supplement their marketing efforts by focusing on potential customers. Rising demand by the customer-centric firms to send targeted emails to specific consumers have propelled growth of the market.

Email marketing software provides significant return on investment on every dollar spent for marketing. For instance, according to the Hubspot Company Survey in 2021, email marketing software and tools generated around USD 42 for every dollar spent. It can provide an astounding 4,000% of return on investment which makes it the most effective option for business growth.

Rising Demand for the Bulk Email Marketing to Aid Demand for Market Growth

Bulk email marketing is considered as a reliable, simple, and scalable medium for sending scalable and tailored messages. Bulk electronic mail marketing aids in the development of current client relationships and the adoption of software. It allows users to distribute relevant material to a large number of people. Bulk emails are more likely to be used as a marketing technique in situations such as e-commerce sites, promotions, newsletters, and other re-marketing activities. Furthermore, the market is projected to be driven by the flexibility, feature-richness, and integrating capabilities of this software.

Emergence of Artificial Intelligence (AI) Based integrated Software to Propel Market Growth

Major players in the market are launching software based on advanced technology such as AI, and cloud computing. This emerging strategy is expected to strengthen the market growth. For instance,

• In August 2019, Rezo.AI launched natural language processing and machine learning technology based ‘Email Automation’ platform product. The platform is based on feedback mechanism, predictive analytics, and other for automating enterprise workflows.


• In June, 2019, Aiozium, a multi-dimensional platform launched a SaaS-based Marketing Intelligence Tool called Crowdnik Networks. This tool is powered by machine learning and AI techniques that provides self-correction and self-learning for better email marketing campaigns with high ROI.

RESTRAINING FACTORS

Low Email Delivery Rate to Impede Adoption of Email Marketing Platforms

The percentage of messages delivered to the recipient's mailbox to the total number of messages sent by the sender is known as the deliverability rate. Consumers are concerned about the delivery rate of electronic mails when interacting with email marketing technologies. This factor will hinder the email marketing software market growth.

Further, email marketing requires constant change for engaging the clients and subscribers. Many servers have filters in place to reduce the quantity of spam emails a user receives in order to reduce the amount of unwanted mails they receive. This factor may hinder the market growth.

SEGMENTATION

By Channel Analysis

High Adoption by B2C Marketers to Aid Email Marketing Software Market

By Channel, the market is segmented as business-to-business (B2B) and business to customers (B2C).

Business-to-business (B2B) is expected to develop with the highest CAGR during the forecast period. In business-to-business (B2B), marketers create mails that emphasize quality, service, commercial value, and trust. Email marketing provides an analytical platform that monitors and analyses data in order to better understand customer issues and creates a solution to address them. Marketers may use email marketing to showcase products and services as a solution to business problems.

Email marketing systems and solutions used by B2C marketers help to reply to consumers in automated ways based on their preferences, and behaviors.

By Deployment Analysis

Cloud Deployment Model to Support Market Growth

By deployment, the market is bifurcated into on premise and cloud.

Cloud is expected to grow with the uppermost CAGR throughout the projection period. The ability of the cloud model to modify processing and storage capacity is projected to drive the cloud-based segment's growth. According to the IDC Predictions, spending on cloud IT infrastructure cloud deployment environments reached around USD 37.70 billion in 2020 and is expected to reach USD 105.6 billion by 2024.

On premise marketing models are limited to offer a flexible and scalable model, owing to which, customers tend to migrate towards cloud architecture.

By Enterprise Size Analysis

Rising start-ups and SMEs around Globe Aid Market Growth

By enterprise size, the market is divided into large enterprises and small and medium enterprises (SMEs).

Large enterprises are expected to dominate the market during the forecast period. Owing to huge budgets for marketing platforms such as social media marketing, video-based advertising, and others, large companies have the highest adoption rate of marketing software.

Small and medium enterprises are predictable to grow with the utmost CAGR throughout the prediction period. The start-ups and SMEs are sighted in tremendous economic development. Small and medium businesses are driven owing to the cloud-based, cost-optimized, subscription-based approach of email marketing.

By Application Analysis

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Email Lead Generation Application to Dominate Market throughout Forecast Period

By application, the market is classified into reporting and analytics, email lead generation, customer management, sales reporting, template management, and others.

During the forecast period, the email lead generation sales is expected to hold the largest share in the market. This is primarily attributed to its features such as high customer retention rate, and engagement with customers. Using electronic mail marketing, thousands of people are engaged during the different product purchasing cycles.

Other segments such as customer management, sales reporting, template management and reporting & analytics are rising at a significant CAGR during the forecast period.

End-use organizations are deploying marketing tools such as customer management, and reporting & analytics tools for making informed business decisions.

By Industry Analysis

Healthcare Industry Projected to Hold the Highest CAGR in Upcoming Years

Based on Industry, the market is divided into healthcare, IT & telecom, banking financial service and insurance (BFSI), retail, information technology enabled service (ITeS), consumer goods, travel and transportation, and others.

Among all, IT and Telecom is likely to dominate the market during the projection period owing to the end-users across the IT and telecom sector. These end-users have significant preference for electronic mail marketing for professional communication. The IT and telecommunication sectors are adopting email marketing software at a rapid pace due to the increase in the number of startups and SMEs around the globe.

With growing technological advancements, healthcare is shifting towards offering enhanced medical services to their patients. Patients can be targeted with tailored emails based on their interests and medical conditions via electronic mail marketing.

BFSI is expected to rise at a substantial CAGR during the forecast period. Email marketing plays a vital role across the financial sector to develop relationships with potential customers by leveraging a low customer acquisition cost approach.

REGIONAL INSIGHTS

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Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America is likely to lead the market during the forecast period. North America is at the forefront of active mail use for professional, commercial, and personal communication. As a result, marketers in the U.S. have begun employing email marketing platforms to improve their advertising efforts. The presence of a significant number of small and medium businesses will also contribute to market growth. For instance, the U.S. and Canada comprises several providers such as Constant Contact, Inc., Benchmark Internet Group, Martal Group, ConvertKit LLC, Jivox Corporation, Salesforce, Hubspot Inc., j2 Global, Inc. and others. These players contribute a significant share in the global market.

Asia Pacific is projected to have the fastest growth in the market, owing to the presence of large numbers of end-users across countries such as China, India, and others. The growing use of broadband internet services in the region has brought a large portion of the population online, which is projected to drive the demand for marketing software. The region's countries such as China, India and Japan have shown an increase in IT investment which is expected to boost the market development.

Additionally, organizations in the Middle East and African countries such as South Africa, the UAE and Saudi Arabia are adopting mail as an efficient advertising and campaign medium.

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Inbound marketing tools and social media platforms such as Facebook, Twitter, and Pinterest are widely adopted by the organizations across Latin America, which is expected to boost market progress.

KEY INDUSTRY PLAYERS

Salesforce.com, Inc. to Emphasize on Delivering Advance Customer Engagement and Personalized Solutions

Salesforce.com, Inc. is focusing on its marketing software product portfolio for improvising the customer’s relationship and engagement. The company provides different integrated cloud marketing software, platforms and tools for an effective Customer Relationship Management (CRM). The tool offers services for a better understanding of the customer's interests, purchase histories, behaviors, and demographic information. The major players in the market include HubSpot Inc., Campaign Monitor Pty Ltd., AWeber Communications, Sendinblue, and ConvertKit LLC. Mails offered by email marketing software providers are launching advanced technology marketing templates that improve customer engagement. For instance,

• September 2020 - HubSpot launched advanced features and updates for helping businesses to meet challenges during the COVID-19 outbreak for seizing new opportunities. CRM enterprise sale for scalable contacts and price model to give enhanced customization capabilities, among other aspects, are among the new features.

List of Key Companies Profiled:

• AWeber Communications (Pennsylvania, U.S.)


• Salesforce.com, Inc. (California, U.S.)


• Sendinblue (Paris, France)


• Campaign Monitor Pty Ltd. (U.S., Tennessee)


• HubSpot, Inc. (Massachusetts, U.S.)


• Constant Contact, Inc. (Massachusetts, U.S.)


• Benchmark Internet Group (California, U.S.)


• ConvertKit LLC (Idaho, U.S.) 


• Jivox Corporation (California, U.S.)


• j2 Global, Inc. (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021- SysTools launched Email Migration software and Cloud Data Migration Service for accelerating the digital transformation. This software easy processes and help to mitigate the risk of data loss and gives frictionless data migration experience for its customers.


• April, 2021- Oracle Corporation launched Eloqua automated B2B marketing tool. B2B marketing automation solution, Oracle Eloqua advanced Marketing tool offers lead scoring, campaign design, real-time integrated firmographic data, and sales tools.


• November 2019 – Salesforce.com, Inc. made partnership with Microsoft Corporation for enhancing its customers experience and productivity. Salesforce Inc. has been used Microsoft cloud Azure for marketing through cloud platform.


• November 2019 – Shopify introduced Shopify Email an electronic mail marketing tool that is designed for the growing e-commerce industry. The tool has customized email tracking and templates required for email marketing campaigns in the Shopify marketing.


• June 2019- Salesforce, Inc. launched a smart email marketing platform by leveraging Artificial Intelligence (AI) technology. The smarter email marketing platform is expected to optimize timely electronic mail marketing messages and increase customer engagement.

REPORT COVERAGE

An Infographic Representation of Email Marketing Software Market

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The email marketing software report offers qualitative and quantitative insights on the market and the detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape.

Report Scope and Segmentation