The global marketing automation software market size was valued at USD 3.35 billion in 2016. Marketing automation is a technology that helps companies build better customer engagement campaigns by eliminating repetitive tasks, thereby aiding marketing departments to focus on other critical aspects. The technology facilitates lead generation management, customer lifecycle marketing, and customer retention, among others.
Consumers across the globe have changed ways of perceiving information, sharing thoughts, and researching on products & services before purchase. They are now well-versed with the traditional strategies carried out by the sales & marketing departments andhave found ways to evade them. Consumers are increasingly becoming tech-savvy and largely rely on information available on search engines, blogs, and social media sites. This paves way for companies to build strong consumer relationship while offering them a delightful experience.
Global marketing automation software market, by enterprise size, 2014 - 2025 (USD Million)
Marketing automation forms an integral part of the CRM software market. The market is gaining traction and has attracted investments from new vendors, while the existing market players have been constantly innovating and upgrading new product. The solutions are widely adopted across the business to business (B2B) and business to consumer (B2C) business models. The business models have different functional requirements, for instance, B2B sells to other businesses, and engage more in customer base building and retaining activities. However, the B2C group depends more on the campaign and direct outreach efforts.
Further, the growing popularity of SaaS model for software deployment, followed by the increasing dependence on social media for information, and other similar significant trends are likely to promote the adoption of marketing automation technology.
Enterprise Size Insights
Earlier, the applications of the technology were limited only to large enterprises. However, after recognizing the importance of the technology, Small and Mid-sized Enterprises (SMEs) also started integrating them into their existing systems. Owing to their high adoption rate for the technology, SMEs are expected to become the largest segment in the market.
The early adopters of this technology were mainly Business-to-Business (B2B) industries, including manufacturing, software, and business services. However, with time, various Business-to-Consumer (B2C) industries, such as financial services, media & entertainment, healthcare, and retail, also adopted the technology at an increasing rate. The B2C segment is witnessing growing adoption of the technology due to the increasing need of software to track real-time approaches in attracting and retaining customers.
Deployment & Solution Insights
Cloud deployment is currently the most preferred way of deployment, due to which it is predicted to maintain its dominance over the next nine years. This can be attributed to the cost effectiveness offered by cloud deployment after eliminating hardware related expenses as well as the upgrading, installation, or other support costs. Moreover, this type of deployment also helps in improving customer interaction as it offers a single source of truth, which anyone in the organization can access.
On the basis of solutions, the market has been segmented into campaign management, email marketing, inbound marketing, mobile applications, lead management, reporting & analytics, social media marketing, and others.
Among these, email marketing acquired the largest market share of 30% in 2015. The automation of this channel is considered to be extremely effective for marketing as it has proven to trigger users’ actions. The solution is timely and personalized, due to which customers find them much more relevant.
Market automation has wide applications across various segments, such as Banking, Financial Services, and Insurance (BFSI), retail, healthcare, telecom & IT, and discrete manufacturing, among others.
The telecom & IT segment has exhibited the largest market share of over 23% in 2015. However, the discrete manufacturing segment is predicted to grow at the highest CAGR over the next nine years. The manufacturing industry is observed to benefit from marketing automation solutions as they help in aligning the office processes (both front and back office) with the ERP or CRM.
Global marketing automation market, by application, 2015 (%)
The North American region dominated the marketing automation software market and accounted for around 54% of the total market revenue in 2015. This can be attributed to the presence of a large number of leading market players in the U.S., due to which the region enjoys technological superiority.
However, Asia Pacific is expected to emerge as the fastest growing region over the forecast period. Emerging economies in this region, including India and China, have been experiencing a strong economic growth. Furthermore, the region comprises cultural, political, and economic diversity, which makes it even more critical to understand customer behavior. Additionally, companies in this region are struggling to increase their customer retention and loyalty levels. As such, spending in market automation is seen as a strategic investment rather than an additional expenditure.
The global marketing automation software market is highly competitive and fairly concentrated. Prominent vendors operating in the market include Act-On Software, Inc., Adobe Systems Inc., Cognizant Technology Solutions Corp., HubSpot, Inc., IBM Corporation, Infusionsoft, Marketo, Inc., Oracle Corporation, Salesforce.com, Inc., and Teradata Corporation, among others.
Players operating in the market carry out merger & acquisition activities to expand their product and service portfolios. For instance, in 2013, Salesforce.com acquired ExactTarget, a provider of cloud marketing platform, for approximately $2.5 billion. The acquisition was aimed at integrating ExactTarget’s digital marketing capabilities with the company’s sales marketing solution. Besides, the trend of integration marketing automation with another company’s CRM system has gained immense popularity.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2016 - 2025
Revenue in USD Million and CAGR from 2016 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, UK, Germany, China, India, Japan, Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
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Segments covered in the report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global marketing automation software market on the basis of solution, enterprise size, deployment, application, and region.
Solution Outlook (Revenue, USD Million; 2014 - 2025)
Reporting & Analytics
Social Media Marketing
Enterprise Size Outlook (Revenue, USD Million; 2014 - 2025)
Deployment Outlook (Revenue, USD Million; 2014 - 2025)
Application Outlook (Revenue, USD Million; 2014 - 2025)
Telecom & IT
Government & Education
Regional Outlook (Revenue, USD Million; 2014 - 2025)
Middle East & Africa
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