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Marketing Automation Software Market size is estimated to grow by USD 2,707.36 million between 2022 and 2027 accelerating at a CAGR of 11.98% during the forecast period. The growth of the market share depends on several factors, including the growing need for lead nurturing, an increased need for improved customer digital experience, and the rising adoption of social, mobile, analytical, and cloud (SMAC) technologies.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing need for lead nurturing is notably driving the market share. Lead nurturing is the process of developing relationships with customers at every stage of the sales process. Successful lead nurturing anticipates the needs of the buyer based on who they are, using profile characteristics, such as title, role, and industry, and understands customers' needs and provides the information they need by focusing on target marketing and communications. For effective lead nurturing, marketing and sales departments need to collaborate on several aspects. The lead nurturing feature enables marketing companies to focus more on sales and bring in new businesses and profits.
For example, the right CRM software will allow enterprises to automate a lot of the nurturing strategies which are used to expand their business. Some strategies for nurturing leads include email marketing, content marketing, social media marketing, and conducting surveys. Hence, with time, there would be a considerable requirement for nurturing a lead, which would help marketers to know their customers at a personal level and adopt marketing strategies that would eventually result in the growth of market size through 2027.
The emergence of location-based marketing is a key trend in the market. Location-based marketing involves gathering information about the locations of a company's customers and utilizing it to market products and services effectively. It uses global positioning system (GPS) technology to locate the customer's smartphones and deliver multimedia content to potential customers based in targeted locations.
Location-based marketing also uses the location of a customer to create unique, personalized content for every customer. The created content will be managed using content management software, which will eventually aid in allocating marketing assets. This personalized marketing helps companies earn more customer loyalty and brand awareness. Hence, with the emergence of location-based marketing, the market size is expected to grow significantly through 2027, from which marketers can benefit from having an improved connection with their audience and businesses can use this to their own advantage to better consumer and business relationships.
The high cost of marketing automation software is the major challenge impeding market growth. Marketing automation software rarely integrates with third-party systems. The interoperability issues extend to database compatibility as it is now not effortless to get the right of entry to purchaser information until it is stored in the database supplied by the advertising automation vendor.
As of 2022, large enterprises are likely to spend more of their IT budget on various application purchases in the coming years from 2023-2027, including both on-premises and cloud-based ones. Companies often do not have a comprehensive integration strategy to streamline business processes and create customized solutions for each business challenge. This leads to a hard-to-manage and costly-to-maintain heterogeneous enterprise environment. The major players in the market use several approaches to mitigate the effects of related interoperability issues. Hence, with the rise in interoperability issues and lack of comprehensive integration strategy, the market size is expected to get lower significantly through 2027, which occurs as numerous vendors are offering the same service with less differentiation.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Salesforce.com Inc. - The company offers marketing automation software for Flow Orchestration, OmniStudio, and Flow RPA as its key offerings. Under this segment, the company focuses on delivering customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce from anywhere.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on deployment, the market is segmented into cloud-based and on-premises. The market share growth by the cloud-based segment will be significant during the forecast period. The cloud-based marketing automation software helps enterprises operate faster and more efficiently. Many vendors have started delivering software-as-a-service (SaaS) solutions to leverage the growing adoption of cloud-based systems. The increase in adoption is mainly because of the extensive use of the Internet and advantages such as scalability, reduced cost, and easy upgrading over traditional implementation procedures. Hence, the cloud-based marketing automation market is anticipated to witness growth during the forecast period as organizations are focused on decreasing IT infrastructure costs and improving the flexibility, agility, and efficiency of advertising operations.
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The cloud-based marketing automation market is expected to increase during the forecast period as enterprises are more focused on reducing IT infrastructure costs and improving the flexibility, agility, and efficiency of marketing operations. The rapid changes in the global marketing landscape and the proliferation of content and channels compel marketers to adopt scalable and consistent solutions and help in better control of quality. Cloud-based marketing automation solutions are scalable and help to manage all brand assets and streamline workflows centrally. These benefits will facilitate segment growth.
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North America is estimated to account for 39% of the global market share growth during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is growing at a significant rate because of the high rate of internet penetration and the increasing use of online search engines. Almost all businesses are adopting digital media and are moving their operations online. The high rate of advanced technology adoption and mobile penetration among the masses will lead to the growth of the market in focus. With more than two-thirds of the population actively using the Internet, the region is the major revenue driver for the market. Spending by advertisers to expand their customer base and increasing penetration of smartphones and smartphone-based video and music streaming services are also driving the adoption of the software by companies.
The market experienced growth in recent times, where government officials also used the software to spread awareness about the recent scenarios in 2021-2022. Industries such as automotive and retail invested in marketing automation software for digital marketing campaigns and to gain online traction. Such factors are expected to contribute to the growth of the market in the region during the forecast period.
The Marketing Automation Software Market witnesses significant investment as businesses focus on customer retention through digital marketing tools like lead management, sales automation, and campaign management. Marketing teams seek relief from tedious tasks with integrated software suites and cloud technologies. However, a shortage of skilled individuals poses challenges, particularly for smaller businesses. The market trends towards data-driven promotion, AI, and mobile-optimized marketing, with notable competition among prominent vendors like Marketo, Salesforce Pardot, and HubSpot. This industry's growth is fueled by digitization, innovation, and the demand for personalized marketing services.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.98% |
Market growth 2023-2027 |
USD 2,707.36 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
11.14 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acoustic LP, Act On Software Inc., ActiveCampaign LLC, Adobe Inc., ClickDimensions LLC, EngageBay Inc., GetResponse Sp zoo, HubSpot Inc., International Business Machines Corp., Intuit Inc., Lead Liaison LLC, Madgicx Ltd, MarketXpander Services Pvt. Ltd., Net results, Ontraport, Oracle Corp., Salesforce.com Inc., SAS Institute Inc., Sendinblue SAS, SharpSpring Inc., SimplyCast, and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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