Market Research Report
Global Customer Data Platform Market By Component (Platform and Services), By Application, By Deployment Type, By Enterprise Size, By End User, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027
|Global Customer Data Platform Market By Component (Platform and Services), By Application, By Deployment Type, By Enterprise Size, By End User, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027|
Published: September 30, 2021
Content info: 364 Pages
Delivery time: 1-2 business days
The Global Customer Data Platform Market size is expected to reach $20.5 billion by 2027, rising at a market growth of 34% CAGR during the forecast period. A customer data platform (CDP) is a software platform that assists in collecting and systemizing customer data across numerous touchpoints and thus, finds its application in other software, marketing efforts, and systems. This software aggregates and arranges real-time data into unique and centralized customer profiles. CDPs create customer profiles by incorporating data from various sources like first-, second-, and third-party. It also comprises transactional systems, web forms, Customer Relationship Management & Data Management Platform, website & e-commerce behavioral data, email & social media activity, and others.
There is a rise in the demand for studying consumer purchasing behavior across varied sectors due to which, the customer data platform market is witnessing a significant surge in its growth. In addition, several industries are pursuing a unified medium for managing data pertaining to their online and offline customers and determining apt marketing strategies for these categories, along with reducing redundancies in customer data. The growing adoption of account-based marketing among organizations is also anticipated to drive the market growth for the customer data platform.
Through the increasing usage of e-commerce channels, webs, blogs, and social media platforms by customers, the companies are able to collect insights from customer purchasing behavior. Using these insights, companies are able to analyze and understand the shifting preferences of customers to tackle and respond to the growing competition in the market. Companies take these efforts to stay in touch with their customers and to offer them personalized products. The process of gathering information about customers and then categorizing them manually is a long and time-consuming process, which also requires huge investment. To reduce such costs, the companies are focusing on adopting a data platform that automatically keeps customers engaged and provides them customized products.
COVID-19 Impact Analysis
The outbreak of COVID-19 has changed the working patterns of all industries. Also, it has highlighted the vulnerabilities existing in business models in several verticals. During the pandemic, there is a surge in the integration & adoption of technologies like artificial intelligence, machine learning, IoT, analytics, blockchain, and cloud. Due to the adoption and integration of such technologies, businesses across various regions have shifted to a digital platform. This shift towards digitalization has increased the volume of customer data generated from online platforms, which is anticipated to augment the growth of the customer data platform market.
Additionally, the pandemic and stringent government regulations forced people to stay inside their houses. This has compelled customers to spend their maximum time on the internet and led to an increase in sales through online platforms. A large number of customers have shifted their focus from conventional shopping to online shopping, which resulted in generating a huge volume of data across the world. This has compelled companies to adopt customer data platform solutions to smoothly perform tasks. This has also accelerated the demand for an omnichannel experience. Therefore, CDP solutions witnessed an upsurge in its demand during the pandemic, leading to a boost in the growth of the customer data platform market.
Market Growth Factors:
Omni-channel experience witnessing high demand
Omni-channel is a comprehensive and widespread approach for customer communications across varied channels exclusive of maintaining and saving customer data. This approach offers unified and easy customer communication over several channels and stores the overall customer data within the platform with the purpose that a third party or agent will be able to tackle their problems in an appropriate manner.
The growing investment by companies in advertising & marketing activities
Digital marketing is spreading its footprints and is gradually growing. As a result, the organizations are putting heavy investment in this relatively new concept. Customer data platforms assist in defeating tactic fatigue and take the program to another level, recognizing the capability of paid media, email marketing, and addressable channels.
Market Restraining Factor:
Adoption of CDP needs huge investment
As the technologies are getting advanced with the pace of time, consumers' expectations become high due to which, enterprises time-to-time update their customer engagement solutions to fulfill the expectations of their customers. Enterprises need to invest a huge amount for upgrading their solutions and that too for a short period because technology gets upgraded version frequently.
Based on Component, the market is segmented into Platform (Without Services) and Services. The services segment is anticipated to acquire the prominent growth rate over the forecasting years. These services are an important part of customer data platforms, as they help in functioning & facilitating swift and smooth implementation of CDPs, which is helping in accelerating the value of the company investments. The rise in the deployment rate of CDP is anticipated to fuel the deployment rate of managed and professional services.
Based on Application, the market is segmented into Personalized Recommendations, Predictive Analytics, Marketing Data Segmentation, Customer Retention & Engagement, Security Management and Others. Predictive customer analytics assist market players in choosing appropriate value, marketing spending, and energy that is needed to be invested into each customer segment. Examining the customer journey through decision trees would assist players to think about the process. This offers deep and valuable insights about those customers who are purchasing again & again and who do not want to purchase anything again, hence enabling enhanced workflows.
Deployment Type Outlook
Based on Deployment Type, the market is segmented into On-premise and Cloud. Cloud segment would showcase fastest growth during the forecast period, owing to the large deployment of cloud-based solutions and services that assist companies to enhance their business performance and increase their productivity. Moreover, companies are highly adopting the latest technologies, due to the benefits offered by them and their cost-efficiency.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The Large Enterprises market dominated the Global Customer Data Platform Market by Enterprise Size 2020. The Small & Medium Enterprises market is expected to witness a CAGR of 35.8% during (2021 - 2027).
End User Outlook
Based on End User, the market is segmented into BFSI, Retail & eCommerce, Media & Entertainment, Healthcare, Travel & Hospitality, Telecom & IT and Others. BFSI segment is estimated to procure the highest market share over the forecasting period. This increase is due to the enhanced customer satisfaction, offer benefits like tailored solutions and risk management, and growing regulatory scrutiny.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia-Pacific would witness a prominent growth over the forecast period. There are lucrative opportunities for small customer data platform vendors to launch CDP solutions across various industries in this region. This factor is accountable to boost the growth of the regional customer data platform market. Moreover, enterprises are constantly focusing on enhancing consumer services to get more profit and to give tough competition to the regional competitors.
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the major forerunners in the Customer Data Platform Market. Companies such as Upland Software, Inc., Acquia, Inc., SAS Institute, Inc. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include SAP SE, Oracle Corporation, Microsoft Corporation, Adobe, Inc., Salesforce.com, Inc., Teradata Corporation, Totango, Ltd., Upland Software, Inc., Acquia, Inc. and SAS Institute, Inc.
Recent Strategies Deployed in Customer Data Platform Market
Partnerships, Collaborations, and Agreements:
Jul-2021: Salesforce collaborated with Proof Analytics, a powerful marketing analytics platform. Together, the companies launched Proof BusinessGPS for RevOps, a full-scale revenue optimization analytics platform that allows revenue operations teams to continuously expand, assess, and adjust several varied analytical models to analyse the interaction of their campaigns & revenue consequences, all in the regularly changing marketplace conditions, their changing brand & reputational power, and competitor actions.
Jun-2021: Salesforce came into partnership with Dentsu and Merkle, Dentsu international's customer experience management (CXM) service line. Under this partnership, Dentsu and Merkle's identity resolution and data platform named Merkury integrated with Salesforce Customer Data Platform (CDP). This integration enabled Salesforce CDP to unify, capture, and activate their customer data over all channels without reliance on third-party cookies.
Jun-2021: Teradata teamed up with Deloitte, a multinational professional services network. Under this collaboration, the companies aimed to assist their mutual customers to shift from their on-premise data management & analytics environments to the Teradata Vantage multi-cloud data platform. In addition, this collaboration would help to make data migration easy & provide enterprises with the modern potential of the future on the cloud.
May-2021: Teradata partnered with Google Cloud, a suite of cloud computing services. Together, the companies introduced a group of improvements for Teradata Vantage to facilitate Teradata consumers to utilize the Google Cloud services they prefer in a Consumption pricing model. In addition, the platform improvements display Teradata's objective to its Google Cloud offering and its commitment to offer Vantage customers the consistency, integration, and choice they want to leverage their latest data platform in the cloud.
Apr-2021: Adobe came into partnership with Epsilon's CORE ID, the industry's most accurate, stable, and scalable identity solution. Under the partnership, the companies intended to allow Adobe's users to improve their first-party data with Epsilon's CORE ID to build the strongest customer profiles.
Apr-2021: Adobe formed a partnership with Capgemini, a French multinational information technology services and consulting company. Through this partnership, the companies aimed to introduce more solutions, which allow customers to become more data-centric & build value by having a good understanding of customer journeys.
Mar-2021: Oracle came into partnership with Red Bull Racing, the four-time Formula 1 World Champion team. Under this partnership, Red Bull would leverage the machine learning & data analytics potentialities of Oracle Cloud Infrastructure (OCI) to improve the way data is utilized across its business; from on-track activities to give more information to the Team's global fan base.
Nov-2020: Microsoft came into partnership with IBM, along with Tech Data. Together, the entities focused on enabling customers to more quickly build a strong information architecture by allowing faster and easier access to IBM Cloud Pak for Data, a combined data & AI platform, which offers cost-efficient and containerized services for augmenting the journey to AI.
Aug-2020: Teradata joined hands with ThoughtSpot, a leader in search and AI-driven analytics. Under this collaboration, the companies aimed to launch ThoughtSpot Embrace for Teradata Vantage to allow joint customers to manage search-driven analytics queries directly in Teradata's data & analytics platform, escalating access to data-driven insights without transferring data between sources.
Acquisitions and Mergers:
Mar-2021: Upland Software acquired BlueVenn, a leading cloud-based customer data platform (CDP). Through this acquisition, Upland customers would securely combine their consumer data, along with unlocking insights that are required to build Omni channel digital engagement strategies to expand their business, all from a single vendor.
Jan-2021: SAS completed the acquisition with Boemska, a privately held technology company specializing in low-code/no-code application deployment and analytic workload management. Through this acquisition, SAS would improve its SAS Viya, which is a cloud-native, advanced analytics platform through a rich set of potentialities, which fuel SAS' objective of supporting the overall analytics life cycle & ensuring customer migration to the cloud.
Nov-2020: SAP SE took over Emarsys, a leading Omni channel customer engagement platform provider. Through this acquisition, SAP would be able to adopt valuable customer customization technology that would enable SAP to offer improved online experiences through linking different data and touch points to have a good understanding of the consumer.
Product Launches and Product Expansions:
Aug-2021: SAS introduced SAS Customer Intelligence 360 Marketing Cloud Instance in Mumbai. Through this launch, the company aimed to provide its Indian customers with the best service, which provides data sovereignty, low latency, local support, and data privacy. This would allow SAS customers to support their marketing initiatives to make satisfying, relevant, and valued customer experiences customized to each unique customer's journey.
Jun-2021: Adobe launched an AI-powered live search for Adobe Commerce. Through this launch, the company focused on offering their shoppers suitable and customized search outcomes according to their needs.
May-2021: Salesforce launched the latest series of innovations for its customer data platform (CDP). These update to the platform assists organizations to prioritize their first-party data and utilize it to enhance the customization of each customer interaction.
Apr-2021: Adobe unveiled the next generation of its Real-time Customer Data Platform (CDP). Through this launch, the company aimed to assist brands to activate known & unknown customer data to control the overall customer profile & journey smoothly in one system, without the requirement for third-party cookies.
Mar-2021: Oracle launched its new service. This service provides a single point of contact for all technical delivery & eliminates crucial skill barriers for services. In addition, customers can get access to Oracle cloud engineers and premier technical services.
Jan-2021: Acquia launched Acquia Digital Commerce. This solution facilitates marketers to combine content, digital merchandising, commerce, and data into a single data layer to offer a seamless Omni channel experience across the customer lifecycle. Through this launch, the company is focusing on providing real-time, customized, shoppable experiences at each customer touch point.
Dec-2020: Microsoft unveiled Azure Purview, a new data governance solution. Through this launch, the company aimed to automate the generation of data & cataloging along with reducing compliance risk and helping customers in mapping all their data, no matter where it is present, to offer an end-to-end view of their data estate.
Nov-2020: Adobe released CDP for B2B (business to business) customers. This launch would help organizations in building, controlling, and activating combined customer & account profiles and would assist teams to manage consistent account-based experiences across several channels and teams at scale, as per the overall understandings of customers.
Oct-2020: SAP SE introduced SAP Customer Data Platform, a next-generation customer data platform (CDP). Through this launch, the company focused on enabling enterprises to redefine the customer experience over each engagement, from commerce & marketing to sales & service.
Market Segments covered in the Report:
By Deployment Type
By Enterprise Size
By End User
Unique Offerings from KBV Research
List of Figures