Email Marketing Software Market Size, Share & COVID-19 Impact Analysis, By Channel (B2B and B2C), By Deployment (Cloud-based and On-premise), By Enterprise Size (SMEs and Large Enterprises), By Application (Email Lead Generation, Sales Reporting, Customer Management, Template Management, Reporting and Analytics, and Others), By Industry (Banking, Finance, Security, and Insurance (BFSI), IT & Telecommunication, Retail, Information Technology-enabled Service (ITeS), Healthcare, Consumer Goods, Travel and Transportation, and Others), and Regional Forecast, 2022-2029

The global email marketing software market size was valued at USD 1.15 billion in 2021 and is projected to grow from USD 1.26 billion in 2022 to USD 2.76 billion by 2029, exhibiting a CAGR of 11.8%. North America dominated the global market with a share of 34.98% in 2021.

Email marketing is sending a business message to a group of individuals using email. It is currently promoted due to its communication standard for promoting products & services. The increasing initiative of companies to upgrade their customer base by executing enhanced marketing software has elevated the demand for email marketing software. In addition, the email marketing software plays a crucial role in maintaining client loyalty and improving customer relations.

COVID-19 IMPACT

Market Growth Propelled Due to Increased Demand for Email Marketing from Several Industries

Various government restrictions such as lockdown and social isolation have emphasized the importance of experimenting with remote work without preparation.

Companies invested time and money in developing, promoting, selling, and supporting complete and integrated email marketing solutions.

Email marketing software was installed by companies to evaluate customer communication and was considered a substantial communication standard during the COVID-19 pandemic. Furthermore, various government and private organizations implemented this marketing software.

• As per a survey by AWeber in 2020, 66% of small enterprises stated they used email marketing to support their business or connect with leads and customers. Further, the survey found that 79% of small enterprises quoted email marketing as crucial to their business strategy, while 60% stated their email marketing strategy to be efficient.

In the post-COVID-19 pandemic, the demand for the software would be higher than anticipated, reflecting strong business performance, which would drive revenue growth during the projected period.

LATEST TRENDS

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

Artificial Intelligence (AI) in email marketing has numerous advantages such as automation, personalization, higher conversion rates, and data analysis. The integration of AI in email marketing is rapidly increasing among email marketers, which is expected to propel market growth. In addition, this technology has simplified the email marketing procedure to maximize returns and reduce fault lines enabling machines to evaluate, understand, and process information.

Moreover, users are expected to view emails relevant to their needs. AI provides the ability to streamline personalization to an email as it helps to predict their interests based on their past behaviors and data. Also, it would aid in proposing those services or products based on clients' requirements. In digital marketing, optimization is crucial for attracting customers, which relies on how the users in the email list process their tasks. AI can update the email list by clubbing the database for outdated contacts.

Companies in the market launched software based on advanced technology such as AI and cloud computing. This strategy is expected to support market growth. For instance:

• In August 2019, Rezo.AI released a Machine Learning (ML) and Natural Language Processing (NLP) technology-based 'Email Automation' platform product. The platform is based on predictive analytics, feedback mechanisms, and others for automatizing enterprise workflows.


• In June 2019, Aiozium launched a SaaS-based Marketing Intelligence software, Crowdnik Networks. This software is driven by AI and machine learning techniques that offer self-learning and self-correction for better email marketing campaigns with high ROI.

EMAIL MARKETING SOFTWARE MARKET GROWTH FACTORS

High Demand to Produce Cost-effective Campaigns to Fuel the Market Growth

Email marketing prices are lower than other forms of marketing, with no printing, advertising fees, or media space expenses. It aids in fragmenting customers into various lists based on their preferences to deliver improved content. Email marketing software allows users to brand their emails quickly. It is used to draft emails that constantly offer valuable content to their viewers.

In addition, promoting the business through email marketing allows viewers to purchase from their laptops and mobile phones. Email marketing can be used for small enterprises to resell existing customers, drive referrals, and re-engage customers who haven't purchased.

The rising adoption of digital connectivity methods increases the product's adoption and boosts market progress. Personalized communication helps organizations use automated systems to fulfill customers' needs and help deliver better services to customers. For instance,

• According to a survey by the Hubspot Company, email marketing software produced around USD 42 for every dollar spent. Further, bulk emails aid organizations in maintaining client relationships and integrating cloud computing, Artificial Intelligence (AI), and other technologies to boost efficiency. These factors are likely to drive the email marketing software market growth.

In addition, growing awareness regarding the benefits of automated email amongst companies is expected to produce new opportunities for the market during the forecast period. Organizations focus on improving customer relationships by implementing email marketing that will support market expansion.

Hence, the increasing demand for cost-effective campaigns is expected to provide lucrative growth for the market.

RESTRAINING FACTORS

Low Email Delivery Rate and Spam Risks to Impede Product Adoption

The delivery rate is the ratio of emails sent to receivers' mailboxes to the total number of emails sent by the sender. Customers are concerned about email delivery speed when utilizing their email marketing technology.

Moreover, email marketing entails frequent variations to engage subscribers and clients. Various servers have filters to minimize the number of spam emails the users receive. However, the main obstacles are security and spam risks related to email marketing. Further, lack of understanding, crucial infrastructures, and data security, such as modern network connectivity, are expected to hamper the market.

Further, most packages limit the number of users, and if users require additional administrators, they would have to pay extra to obtain the additional features. This limitation can hit user budgets and even affect team productivity.

Thus, the factors mentioned above could hamper the email marketing software market growth over the forecast period.

SEGMENTATION

By Channel Analysis

B2B Segment to Record Highest CAGR Due to Rising Adoption

Based on channel, the market is classified into business-to-business (B2B) and business-to-customers (B2C). B2B is expected to develop with the highest CAGR during the forecast period. In B2B, marketers create emails emphasizing quality, service, commercial value, and trust. Email marketing offers an analytical platform that analyzes data to comprehend customer concerns better and creates a solution to fix them.

According to Adoric, about 93% of B2B marketers use email marketing to distribute content. B2B businesses highly invest in email marketing, and around 30% aim to increase email marketing spending.

Email marketing solutions used by B2C marketers aid in replying to customers in automated ways based on their behaviors and preferences.

By Deployment Analysis

Cloud Segment to Gain Traction due to Heavy Investments

Based on deployment, the market is classified into cloud-based and on-premise. The cloud-based segment is anticipated to grow with the highest CAGR throughout the forecast period. The capability of the cloud model to upgrade processing and storage capacity is projected to boost segmental growth. As per IDC Predictions, spending on cloud IT infrastructure deployment environments reached approximately USD 37.70 billion in 2020 and is projected to reach USD 105.6 billion by 2024.

On-premise marketing models are restricted to a scalable and flexible model, due to which customers tend to shift toward cloud architecture.

By Application Analysis

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Email Lead Generation Application to Dominate Market Owing to Various Features

Based on application, the market is divided into sales reporting, reporting and analytics, customer management, template management, email lead generation, and others. Amongst them, the email lead generation segment is expected to hold the largest share of the market. This is primarily attributed to its features such as a high customer retention rate and customer engagement. Further, email marketing helps thousands of individuals engage throughout various product purchasing cycles.

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

By Enterprise Size Analysis

SMEs Segment to Record Remarkable Growth Due to Soaring Popularity of Email Marketing

By enterprise size, the market is divided into large enterprises and Small & Medium Enterprises (SMEs). The software solutions are gaining traction among SMEs as email is one of the primary customer acquisition channels for SMEs.

• According to Emarsys, around 81% of SMEs rely on email for customer retention.


• According to Campaign Monitor, around 64% of SMEs use email marketing to reach customers.

Hence, SMEs are expected to hold the highest market share during the forecast period.

By Industry Analysis

Healthcare Segment Projected to Hold the Highest CAGR in the Forecast Period

Based on industry, the market is bifurcated into Banking, Finance, Security, and Insurance (BFSI), IT & telecommunication, retail, Information Technology-enabled Service (ITeS), healthcare, consumer goods, travel and transportation, and others. Amongst them, the retail segment dominated the market in 2021, and the travel and transportation segment is estimated to grow during the forecast period.

• According to Mailchimp, travel email marketing has an open rate of 20.69%, and nearly 84% of brands use email marketing to retain customers.

BFSI is expected to hold a significant email marketing software market share during the forecast period. Email type of marketing plays a vital role across the financial sector in developing relationships with potential customers by leveraging a low customer acquisition cost approach.

With growing technological advancements, healthcare is shifting toward offering enhanced medical services to its patients and is expected to grow at the highest CAGR over the forecast period. Patients can be targeted with tailored emails based on their interests and medical conditions via electronic mail marketing.

REGIONAL INSIGHTS

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In terms of region, the market is divided into North America, Latin America, Europe, the Middle East & Africa, and Asia Pacific. They are further segmented into countries.

North America dominated the email marketing software market with a share of 34.9% and was valued at USD 402.3 million in 2021. North America held the maximum market share due to the presence of a significant number of small and medium businesses will also contribute to market growth. For instance, the United States and Canada comprise several providers such as j2 Global, Inc., Constant Contact, Inc., Jivox Corporation, Benchmark Internet Group, ConvertKit LLC, Martal Group, Hubspot Inc., Salesforce, 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 a large number of end-users across 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 surge 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.

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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.

KEY INDUSTRY PLAYERS

Key Players Emphasize on Advanced Software to Strengthen their Positions

The global market comprises a vibrant startup ecosystem. Over 100 startups are anticipated to develop and innovate solutions for customers in the market. Such a market is projected to build robust competition, imposing current organizations to continuously update and implement new advances in email marketing software.

List of Key Companies Profiled in Email Marketing Software Market:

• Oracle Corporation (U.S.)


• Salesforce, Inc. (U.S.)


• HubSpot, Inc. (U.S.)


• Campaign Monitor (U.S.)


• Constant Contact, Inc. (U.S.)


• Klaviyo (U.S.)


• Jivox Corporation (U.S.)


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


• Mailjet (France)


• Mailchimp (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2022: Klaviyo collaborated with Shopify, with Klaviyo serving as the suggested email solution partner for Shopify Plus. Through this partnership, Klaviyo obtains quick access to new Shopify features, which aid Klaviyo in accelerating new technologies for retailers to navigate changes in online marketing. Further, the partnership focuses on strengthening additional opportunities for retailers to improve customer relationships in a dynamic marketing environment.


• October 2021: Mailchimp launched Content Optimizer, an AI-based tool focused on refining email marketing strategies for small businesses, entrepreneurs, and marketers with AI-based recommendations. The tool is available in English for premium and standard users of Mailchimp, with additional languages expected later.


• April 2021: Oracle Corporation launched Eloqua automated B2B marketing tool, which provides real-time integrated firmographic data, campaign design, lead scoring, and sales tools.


• February 2021: Benchmark Email, a software-as-a-service supplier of marketing and sales solutions for small and medium businesses, acquired Contacts+. The deal opened the opportunity to extend contact management software to small businesses and incorporate Benchmark’s products BenchmarkONE CRM.


• November 2019: Salesforce.com, Inc. partnered with Microsoft Corporation to enhance customer experience and productivity. This partnership allowed Salesforce Inc. to use Microsoft cloud Azure for marketing through the cloud-driven platform.

REPORT COVERAGE

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The market research report includes prominent areas worldwide to get a better knowledge of the industry. Furthermore, the report provides insights into the most recent industry and market trends as well as an analysis of technologies that are being adopted quickly worldwide. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

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