GVR Report cover Digital Marketing Software Market Size, Share & Trends Report

Digital Marketing Software Market Size, Share & Trends Analysis Report By Solution (CRM Software, Marketing Automation, Social Media), By Service, By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-3-68038-001-9
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global digital marketing software market size was valued at USD 56.52 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 19.1% from 2022 to 2030. The outbreak of the COVID-19 pandemic, which triggered a paradigm shift in the way individuals use different apps, has positively impacted market growth. As such, app developers have been particularly reviewing their advertising set-ups and improving their capabilities to push for more accountability and transparency with partners in the wake of the outbreak of the pandemic and the subsequent economic downturn. For instance, in September 2020, HubSpot, Inc. of the U.S. announced the introduction of new updates and features to its platforms for helping businesses in meeting the challenges posed by the outbreak of the pandemic. The additional features include enterprise sales CRM, an expanded personalization functionality, and scalable contacts pricing models.

U.S. digital marketing software market size, by solution, 2020 - 2030 (USD Million)

The growth of the market can be attributed to the growing preference among individuals for mobile devices to obtain information on the go and subsequently the continued transition from desktop PCs to smartphones. The growth can also be attributed to the proliferation of smartphones, which has triggered the consumption of digital media and is prompting marketers to push more online ads on social media and other digital platforms for a larger exposure and more visibility. The continued shift from wired communication to wireless communication and subsequently the growing adoption of wireless communication devices, which is expected to trigger the consumption of digital media, also bodes well for the growth of the market over the forecast period. Advertising companies are increasingly following digital marketing channels and providing publishers with advanced advertising capabilities.

Advertisers are increasingly turning to mobile advertising as smartphone usage rises and high-speed mobile networks continue to roll out. Retailers emphasize the use of location-based advertising services and offer shoppers individualized updates on items, offers, and discounts, resulting in an increase in the need for digital marketing. When visitors enter malls or shopping centers, location-based advertising sends them notifications on their mobile devices informing them of various discounts and offers. In other words, the increased use of smartphones has provided new chances for marketers to engage with customers and enhance their relationships. This is anticipated to contribute to the growth of the digital marketing software market in the forthcoming years.

Continued digitalization has revolutionized how organizations operate and execute their business strategies. Digital marketing software has mainly provided companies with an effective tool to connect with various stakeholders in the market through multiple channels, including email, instant messaging, and social networking. The unabated rollout of high-speed data networks and the growing popularity of social media are encouraging companies to spend aggressively on digital marketing, thereby driving the adoption of digital marketing software. Companies can leverage digital marketing software to enhance customer engagement through multiple channels, such as instant messaging, social networking, and mobile apps, among others. Digital marketing software also allows companies to integrate various digital channels and analyze advertising campaigns in real-time.

However, concerns over data security and privacy protection are expected to restrain the growth of the market. Malware injections, use of insecure Application Programming Interfaces (APIs), phishing attacks, and social engineering attacks are some of the major issues surrounding cloud-based digital marketing software. As enterprises have a large data repository of business and customer data, any of the above security issues could lead to events, such as data theft and identity theft, and culminate into major losses.

Solution Insights

The CRM software segment accounted for the largest revenue share of over 20% in 2021. The increasing adoption of CRM software by businesses to efficiently communicate with their customers is anticipated to fuel the growth. CRM software enables businesses to convert customer data into insightful content. CRM software provides various benefits, such as the ability to manage customer interactions at optimum levels, and the capability to handle large volumes of business and client information. The strong emphasis enterprises are putting on automating processes, such as sales, customer retention, and customer acquisition is further expected to drive the growth of the segment over the forecast period.

The growing popularity of social media has particularly transformed the channels organizations prefer using to build and strengthen relationships with customers. Furthermore, the growing usage of social media platforms, such as Instagram, Facebook, Snapchat, Twitter, and Pinterest, by the incumbents of the e-commerce industry to promote products is a major factor driving the growth of the social media segment. The continued integration of the latest technologies, such as big data analytics and AI, into social media platforms, is also driving the growth of the segment. For instance, Chatbots are being used aggressively to collect, analyze, and visualize customer-related data, such as responses to products and services.

Service Insights

The professional services segment accounted for the largest revenue share of over 65% in 2021. The growing need for skilled and accomplished professionals holding expertise in managing, installing, and troubleshooting software is expected to drive the demand for professional services. Professional services allow enterprises to ensure better utilization of resources, reduce administrative expenses, and augment profitability. Professional services also help enterprises in improving resource management by enhancing efficiency through increased collaboration, integrated knowledge management, and better planning, thereby driving the growth of the professional services segment.

The managed services segment is anticipated to register a significant CAGR over the forecast period. This growth can be attributed to the additional capabilities supplied as part of managed services, such as remote monitoring and cost-effective management of IT infrastructure through subscription-based pricing structures. Furthermore, increasing adoption of IoT-based solutions, retailers are increasingly getting concerned over the security of data and protection of privacy and are hence opting for managed services to maintain their expanding databases. The growing demand for cloud-based managed services and the increasing dependence of enterprises on IT assets to enhance their business productivity is also emerging as a major factor contributing to the growth of the managed services segment.

Deployment Insights

The cloud segment accounted for the largest revenue share of over 58% in 2021. Cloud-based deployment of digital marketing software adds to the flexibility and allows enterprises to customize products and services on a large scale. The cloud-based deployment also aids in cost reduction and setting up a control center to monitor, coordinate, and arrange various aspects of a digital marketing campaign. Organizations can also leverage cloud deployment to combine dedicated hosting infrastructure with virtual cloud servers.

The on-premise deployment segment is expected to register a considerable CAGR over the forecast period. Numerous businesses across the globe still prefer the on-premise deployment model owing to the security benefits offered. End users functioning in highly regulated industries, such as healthcare and BFSI, are more likely to select an on-premise deployment model, thereby driving the growth of the on-premise segment.

Enterprise Size Insights

The large enterprises segment accounted for the largest revenue share of over 54% in 2021. Increasing adoption of digital marketing software by large businesses to manage their massive customer datasets efficiently is anticipated to drive the growth. The growth can also be attributed to the increasing adoption of digital marketing software such as email marketing, content management, and CRM for efficiently managing huge databases of customers. Large enterprises are also leveraging digital marketing software to manage various information resources, such as websites, social media platforms, and emails.

The Small and Medium Enterprises (SMEs) segment is anticipated to register a significant CAGR over the forecast period. The promising growth prospects of the segment can be attributed to the rising number of SMEs in countries such as Singapore, India, and China. The increasing role of government authorities in the provision of capital to small and medium enterprises for embracing digitization is anticipated to propel the growth of the segment. The lower deployment costs of cloud-based digital marketing software are attracting small & medium enterprises, which bodes well for the market growth.

End-use Insights

The BFSI segment accounted for the largest market share of over 20% in 2021. Digital marketing software is widely adopted in the BFSI industry for applications such as statement generation and automatic notification. The use of marketing automation software allows brands to maintain an omnichannel presence by efficiently detecting the most preferred channels of a customer and sending tailored messages through only those channels. Financial institutions and retail banks are focusing on using location-based advertising for improving consumer engagement. These factors are expected to drive the adoption of digital marketing software in the BFSI industry.

Global digital marketing software market share, by end-use, 2021 (%)

Media and entertainment companies are also focusing on developing online advertising strategies as part of their efforts to cash in on the proliferation of smartphones and the continued rollout of high-speed data networks. For instance, Star India; Netflix, Inc.; and The Walt Disney Company are among the media and entertainment firms emphasizing the use of social media advertising to inform people about their latest films and shows. Incumbents of the gaming industry, such as Activision Publishing, Inc.; Rovio Entertainment Corporation; and Electronic Arts Inc.; are aggressively adopting video-sharing and social networking platforms for targeting potential customers. For instance, in December 2021, Rovio Entertainment Corporation announced featuring of Angry Birds on Netflix. These are some of the factors that are expected to drive the growth of the segment.

Regional Insights

North America dominated the market in 2021with a revenue share of over 44%. The dominance can be attributed to the presence of major brands and companies are finding a larger target audience to endorse their content and market their services and products online in the region. Consumers’ increasing preference for online shopping in the region is also anticipated to create opportunities for advertisers to market their services and products online. In the U.S., various organizations and associations such as the National Cloud Technologists Association and the Cloud Native Computing Foundation are encouraging the usage of cloud computing for the deployment of various high-tech solutions, such as content management, marketing automation, and CRM on cloud platforms.

Asia Pacific is anticipated to register significant growth over the forecast period. The region is characterized by a high population density, proliferation of smartphones, and continued rollout of high-speed data networks. Moreover, a large proportion of smartphone users in the region is accessing social media through their mobile devices. Hence, the region offers immense opportunities for online advertising. Promotional events, such as the Digital Marking Summit Asia, offering market players a chance to showcase their digital marketing software solutions in the Asia Pacific region are also anticipated to propel the market in the region.

Key Companies & Market Share Insights

There are several market players active in the market, including both established players with worldwide operations and regional and local market players catering to a limited number of clients. Hence, the digital marketing software market can be described as a highly fragmented market characterized by intense competitive rivalry. In response to the intensifying competition, some of the market players are upgrading their existing products and launching new products. For instance, in April 2021, HubSpot, Inc. expanded its CRM platform with the launch of Operations Hub. With this product, users can automate a variety of time-consuming operations easily while maintaining a clean database and, ultimately, taking a more active part in formulating the company's strategies. It helps to transform the role of operations professionals in the business world.

Market incumbents are tweaking their business strategies in line with the proliferation of smartphones and the growing preference for personalized advertising. They are also pursuing various initiatives, such as strategic partnerships and acquisitions, to remain competitive in the market. For instance, In April 2021, Adobe Inc. partnered with FedEx to increase e-commerce innovation. The integration of ShopRunner (an e-commerce platform and a subsidiary of FedEx Services) and Adobe Commerce is a multi-year initiative. It is expected to benefit Adobe merchants as they will be able to use FedEx's Digital and Physical Network to support e-commerce growth. Some of the prominent players operating in the global digital marketing software market are:

  • Adobe, Inc.

  • Hewlett Packard Enterprise Company

  • Hubspot, Inc.

  • International Business Machines Corporation

  • Marketo, Inc.

  • Microsoft Corporation

  • Oracle Corporation

  • Salesforce.com, Inc.

  • SAP SE

  • SAS Institute, Inc.

Digital Marketing Software Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 65.33 billion

Revenue forecast in 2030

USD 264.15 billion

Growth rate

CAGR of 19.1% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Solution, service, deployment, enterprise size, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil

Key companies profiled

Adobe, Inc.; Hewlett Packard Enterprise Company; Hubspot, Inc.; International Business Machines Corporation; Marketo, Inc.; Microsoft Corporation; Oracle Corporation; Salesforce.com, Inc.; SAP SE; SAS Institute, Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017to 2030. For this study, Grand View Research has segmented the global digital marketing software market report based on solution, service, deployment, enterprise size, end-use, and region:

  • Solution Outlook (Revenue, USD Million, 2017 - 2030)

    • CRM Software

    • Email Marketing

    • Social Media

    • Search Marketing

    • Content Management

    • Marketing Automation

    • Campaign Management

    • Others

  • Service Outlook (Revenue, USD Million, 2017 - 2030)

    • Professional Services

    • Managed Services

  • Deployment Outlook (Revenue, USD Million, 2017 - 2030)

    • Cloud

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

    • Large Enterprises

    • Small & Medium Enterprises (SMEs)

  • End-use Outlook (Revenue, USD Million, 2017 - 2030)

    • Automotive

    • BFSI

    • Education

    • Government

    • Healthcare

    • Manufacturing

    • Media & Entertainment

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • MEA

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