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The global customer data platform market size was USD 942.9 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with data solutions witnessing a positive impact on demand across all regions amid the pandemic. Based on our research, the global market exhibited a substantial growth of 22.1% in 2020 compared to the average year-on-year growth during 2017-2019. The market is expected to grow from USD 1,156.0 million in 2021 to USD 5,503.4 million by 2028 at a CAGR of 25.0% during the 2021-2028 period. The 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 study, we have included the following key players and their software and solutions offerings - Oracle’s Unity solution, SAP Emarsys Customer Engagement, Salesforce Customer 360 Audiences, Adobe Experience Platform, and Microsoft Dynamics 365 Customer Insights, among others. The market is expected to grow exponentially during the forecasted period. The growing awareness of the importance of customer satisfaction and the need for a better shopping experience will likely increase the platform's popularity. Furthermore, the focus of advertisers and marketers on providing real-time and personalized customer services is expected to drive the growth of the market.
With the global spread of COVID-19, many organizations encounter difficulties in providing their employees with appropriate access to high-quality data. To maintain business inflow, organizations should invest in infrastructure that allows access to the company's collected data. Depending on their services and products, different industries must develop their own remote working strategies. The consumer-facing organization relies heavily on customer data to acquire a new customer base and retain existing ones to maintain business stability.
However, the novel coronavirus acts as an accelerator for data solutions; owing to the pandemic, every sector, from the government to retail, has shifted toward digitalization to continue business operations.
The software provides members in various locations with access to data to maintain the business process. As a result, having a single, trustworthy source allows advertisers and marketers to appropriately target customers based on their preferences, location, and needs. The CDP's real-time data will ensure ROI via campaigns organized from remote locations by product developers and managers. In such crises, incorrect data can lead to the company's demise. As a result, ensuring accurate data about customers and their demands is critical today, which the platform can provide real-time and personalized solutions. As a result, demand for customer data platforms(CDP) is likely to rise in such an epidemic situation.
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Adoption of Artificial Intelligence and Machine Learning to Drive Market
With the increasing availability of Artificial Intelligence (AI) and Machine Learning (ML) technologies, the next generation CDP is becoming popular. It uses AI, machine learning, and natural language processing, among other things, to reduce the workload of marketing teams.
Technological advancement provides a platform for data analysis, and service providers could even offer personalized solutions and services to customers, which is likely to improve customer experience and maintain customer relationships. For instance, the platform analyses customer patterns and behavior across all channels. AI and ML generate data sets, evaluate and compare the relationships between these data, such as product or service preferences, purchase history, and so on, and then offer recommendations for the customer's next need and purchase plans. The marketer gains a better and deeper understanding of their customer base and purchasing patterns due to AI and ML.
With AI at the core of CDP, analysis and appropriate results would provide the next best action to improve the customer experience. For instance, customer data platforms, in conjunction with artificial intelligence and historical data on customer purchasing traits, will recommend the next best product based on their preferences. Advanced data analysis and intelligence are likely to rise platform adoption. This would also provide better predictions based on the customer's purchasing history and patterns, allowing for a more appropriate recommendation.
CDP's Real-Time and Personalized Data Analysis to Drive Market
The customer is now present on every channel or platform for everyday activities such as reading books, checking emails, online shopping for food and apparel, social media apps, online payments, and so on. As a result, the number of data sets has increased, along with the number of customers that enter, quit, or switch between apps frequently. Thus, keeping track of real-time engagement is critical. This database is being used by businesses to make valuable offers and recommendations to clients based on their app and website usage.
The marketer collects and analyses data with the help of a CDP before executing the marketing strategy. Previously, data was stored in a decentralized system, making it difficult and time-consuming to collect data in a single frame and analyze it. The solution stores the data on a single platform from which all analysis is carried out. When users enter any information about a customer, it provides personalized real-time data. This means that the analysis is provided in real-time, i.e., the moment the data is fed, it provides certain related analyses about the customer and its choices. This aids in increasing customer engagement and developing a suitable customer experience strategy.
Furthermore, the customer does not have to return to the website with the same preferences the next time they visit. The historical data about the customer will not be applicable at that time; instead, the platform will collect the customer's most recent choices and requirements to guide the business while providing solutions and services. For instance, based on preferences, brand, and price, the marketer can recommend related topics to the customers' most recent searches or the product offer the customer is looking for.
The transparency of the platform allows the marketing team to take quick actions and therefore can gain more customers loyalty. The platform improves relationships with vendors and partners through transparent, targeted interactions. This is likely to sustain the customer data platform market growth in the coming years.
Rising Importance of Customer Satisfaction and CRM in BFSI Sector to Aid Market Growth
Customers in any industry today communicate with businesses via various digital platforms such as e-mails, social media, websites, and more. BFSI has seen an increase in online client interaction in recent years. The increasing availability and affordability of the internet have encouraged customers to use numerous online channels to interact with banks, insurance firms, and other financial institutions. This has encouraged financial institutions to implement a customer engagement strategy. To engage customers online, a company must first understand all of its personal information and purchasing traits. As a result, the BFSI sector is heavily investing in customer engagement strategies and strategies for maintaining partnership and sponsorship.
With the increased pressure of online engagement, the BFSI industry focuses on providing personalized customer engagement across all channels. Through historical data searches and queries, banks could recognize prospective customers before logging in to websites using CPD.
For instance, a user visits an insurance company's website, accesses the medical insurance page, spends some time on it, and then leaves. The solution monitors the users' whole journey and analyses where they spend the most time and their search history. When a customer enters the website, offers linked to his previous experience, such as medical insurance, are displayed. The platform provides BFSI marketers foundation as well as a platform for delivering customer-centric experiences.
The market is being driven by the growing opportunity of customer experience in the BFSI industry.
Customer Data Privacy Concerns to Obstruct Adoption
Recently, major customer data providers encountered legal issues regarding the sharing of customer insights within organizations. Today's internet users are more concerned about the privacy of their personal information. With this growing concern, Europe's General Data Protection Regulation (GDPR) was enacted to protect the customers’ private data. Organizations do not have legal rights to their customers' data, according to the law. In addition, the customer has the right to know where and how his or her personal information is being used and for what purpose. This has restricted data sharing and is likely to hinder growth of the market
Services Segment to Grow Steadily During Forecast Period
The component is categorized into platforms and services. During the forecasted period, the platform is expected to obtain the most share of components. The need for software is growing in response to the rising need for customer satisfaction. The sectors are actively investing in marketing and advertising activities to provide individualized solutions to customers. The CDP vendors are providing services to the industries to install the platform. Big competitors like Oracle Inc. and Microsoft Corp. have also lately joined the industry by acquiring small and local vendors. These companies are investing in the platform's maintenance and AI and ML integration services. Dun & Bradstreet, for instance, acquired a local AI-powered customer data platform provider Lattice Engines based in the US. B2B enterprises will use the company's platform to improve their tailored and omnichannel marketing efforts. As a result, for the anticipated term, the services are likely to gain traction.
Industry Adoption of Customer Data Platforms to be Boosted by Cloud-Based Deployment
The deployment is categorized into the cloud and on-premises. On-premises is expected to have a large revenue market share. The user, i.e., advertisers and markets, manages the on-premises system. Still, some businesses prefer on-premises software because it gives them complete control over their data. With the development of cloud-based technology, CDP users are increasingly using it. A cloud-based platform provides more storage space and allows for more cost-effective expansion. The cloud-based technology provides data security as well as the capabilities needed to protect sensitive client information. On a cloud-based solution, data can be accessed in real-time. For instance, Teredata.com partnered up with Google LLC to deliver its CDP on the Google cloud. The firms will be able to access and analyze all data at low-cost storage owing to this agreement. Thus, cloud-based platforms are becoming more popular.
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Analytics Type to Grow Rapidly, owing to Rising Investment
The type is categorized into access, analytics, and campaign. The access type provides customer data across the organization and at customer touchpoints such as email, phone calls, and others. For the forecasted period, the access type is likely to have the highest market revenue share. The analytics provide granular insights into customer behavior, which aids in the analysis of the customer segmentation and the tracking of customers across channels. This type has also seen an increase in investment by organizations. Analytics goes beyond campaign-centric solutions by providing strategies that matter more, such as understanding a company's values and building a foundation of insights using first and third-party data. As a result, businesses will be able to engage with specific customers based on their needs. Thus, the analytics type is expected to grow at an exponential rate over the forecasted period.
Customer Data Platforms to be Widely Adopted in Retail & E-Commerce and Healthcare Industry
The industry is categorized into Banking, Financial Services and Insurance (BFSI), retail and e-commerce, Information Technology (IT) and Telecom, Media and Entertainment, Travel and Hospitality, Healthcare, and Others (Government, Education, etc.
In today's digital world, retail and e-commerce businesses quickly adopt marketing automation tools for business growth. Real-time marketing systems built on central platforms like CDP can take marketing strategies to the next level. The increasing competition in the retail and e-commerce markets is increasing the use of the platform to reach a suitable customer. One method of targeting a customer offline is to use his online data history. For instance, a customer visits a retail website and adds items to their cart before abandoning the cart and logging out. When the same customer visits the same brand's offline store, they receive offers based on his previous cart transactions, owing to real-time CDP. The customer receives an enhanced offline customer experience as a result of his previous purchasing history.
Retailers can improve customer experience and conversations with the help of solution. In this highly competitive market, CDP benefits the retailer who uses it and creates unified brand views.
Similarly, in the healthcare industry, personalized information leads to satisfied customers. It provides immediate assistance to the patient at the appropriate time. Recently, the explosion of data in the healthcare industry has created new opportunities for data monitoring. Without a central analytics platform, it is impossible to maintain the process of recording, analyzing, and updating data on patient medical visits and activity, hospital records, insurance specifics, and so on. Even a minor lack of data can result in incorrect diagnosis and treatment recommendations. It is designed with a centralized data storage capacity, allowing healthcare providers to respond quickly to emergencies.
Providence St. Joseph Health, a healthcare provider, implemented CDP to provide patients with a real-time call center experience. This enabled the health provider on the line to provide and assist with the caller's proper personal information. The platform shortened the time it took to collect data. This has resulted in increased productivity and a lower risk to a patient's health.
North America Customer Data Platform Market Size, 2020 (USD million)
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The global market scope is classified across five regions, namely North America, Europe, Asia Pacific, Middle East, and Africa, and Latin America.
According to our findings, North America dominates the global market, accounting for the largest market share. The majority of the major players have their headquarters in the US. The solution providers have made the most acquisitions and developments in the country. Retail, BFSI, and healthcare are among the industries in the US that are implementing the platform to increase customer satisfaction and enrich their experience through personalization.
Europe is the second-largest revenue contributor to the market. The European market witnessed an increase in the number of vendors in 2017 and 2018. More than half of the country's homegrown vendors are from the UK and France. With the implementation of GDPR, vendors in Europe are offering GDPR-compliant solutions.
Asia Pacific is expected to grow at a high rate during the forecasted period. India and China have the most and second-most internet users globally, respectively, with young users in India accessing the internet at least once a week. The need for such platforms is growing for brands to understand such a dynamic population. Retail and e-commerce, banking and finance, and healthcare are all advancing rapidly in these countries, with significant investments being made to better understand customer data. Japan is expected to grow steadily over the forecasted period. In Asia Pacific, growing digitalization, big data, and data analytics encourage marketers to invest in the market. Furthermore, rising government policies regarding customer data privacy have increased the platform's adoption by advertisers and marketers.
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For the forecasted period, the market in Latin America, the Middle East, and Africa are expected to grow moderately. Due to its real-time analysis, marketers and advertisers are now investing in these platforms; however, the country is not utilizing the platform to its full potential. Also, owing to the growing internet presence in Brazil and Mexico, the platforms have enormous opportunities.
Salesforce.com, Inc. is Focusing on Acquisitions of Other Players to expand its Reach in Market
Key providers are developing a wide range of solution offerings. The introduction of a cutting-edge customer data platform assists players in maintaining their business expertise. Furthermore, upgrading and expanding an existing product portfolio will strengthen a vendor's market position.
The key player in Customer Relationship Management (CRM), Salesforce.com, Inc. entered into the market to expand its core solutions and services along with technological expertise. With its platform, the company is focusing on improving customer relationships and experience management. Furthermore, the company is investing in the integration of customer 360 platforms with CDP. Salesforce Inc. intends to provide a solution for each industry. The company is dealing with and forming partnerships with providers of AI, cloud-based solutions and services, data analytics, and other services. The company focuses more on investments by completing acquisitions and mergers with regional and local players to expand its product portfolio. For instance, in February 2020, Salesforce acquired Evergage, a personalization and CDP provider, to expand its portfolio in the personalization engine.
June 2021- Dentsu and Merkle's customer experience management (CXM) service line revealed that Merkury, its identity resolution, and data platform, has been fully integrated into the Salesforce CDP. Salesforce users will be able to capture, unify, and activate customer data across all channels without relying on third-party cookies.
October 2020- SAP SE introduced the SAP Customer Data Platform, which aims to enable organizations to redefine the customer experience across all interactions, from commerce and marketing to sales and service.
An Infographic Representation of Customer Data Platform Market
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The customer data platform market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge of the market.
Value (USD million)
Component, Deployment, Type, Industry, Region
Fortune Business Insights says that the market was valued at USD 942.9 million in 2020.
Fortune Business Insights says that the market is expected to reach USD 5,503.4 million in 2028
Growth of 25.0% CAGR will be observed in the market during the forecast period (2021-2028)
The retail & E-commerce, and healthcare segment are expected to lead during the forecast period within the industry segment.
CDPs real-time and personalized data analysis is likely to drive the market.
Salesforce.com, Inc., Segment.io, Inc., Exponea s.r.o., Oracle Inc. are the top companies in the market.
The analytics type segment is expected to grow exponentially at the highest CAGR.
The revenue of the market in North America in 2020 was USD 600.2 million.
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