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The transactional and marketing emails market size is estimated to grow by USD 35.17 billion at a CAGR of 13.61% between 2023 and 2028. Market acceleration is driven by several factors, such as heightened emphasis on audience engagement via email marketing, the substantial return on investment (ROI), and cost-effectiveness of email campaigns, coupled with the expanding user base of email. These elements collectively propel market expansion, influencing strategies and investments in digital marketing. The growing focus on engaging audiences underscores a shift towards personalized and targeted communication strategies, optimizing customer interactions and enhancing brand visibility. Email campaigns continue to demonstrate their effectiveness in delivering measurable results and fostering direct customer engagement, making them a preferred choice for marketers seeking efficient promotional avenues. As the number of email users rises, businesses capitalize on this pervasive communication channel to reach wider audiences and achieve marketing objectives with greater efficiency and precision, further fueling the accelerated growth of the email marketing market.
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The market caters to diverse needs in the digital marketing landscape, where transactional marketing focuses on immediate transactions at the point of sale, while relationship marketing builds long-term customer relationships and fosters emotional connections. Ideal for engaging ideal customers through personalized content, marketing emails serve as a powerful promotion tool, offering product demos and valuable business model insights. In the hospitality sector, hoteliers utilize emails to manage guest interactions and booking processes, employing pull marketing strategies to attract guests through compelling offers and push marketing to promote deals. With a focus on consumer relationships and short-term relations, email campaigns in this market emphasize creating meaningful connections and executing effective long-term strategies to enhance customer loyalty in the competitive hotel industry. Our researchers analyzed the data with 2023 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 focus on engaging the audience through email marketing is the key factor driving the global market growth. Marketing emails are becoming primary communication channels and offer an efficient advertising platform for business-to-customer (B2C) and business-to-business (B2B) marketers to expand the reach of their products and services. The growing focus of SMEs and large enterprises on implementing advanced marketing strategies through the optimum utilization of digital technologies is accelerating the use of marketing email platforms.
Furthermore, companies across the globe are finding email marketing strategies significantly beneficial in fulfilling their key marketing objectives, especially those that focus on client conversion, brand awareness, and customer retention. An increasing number of organizations are adopting marketing email services to manage their marketing campaigns and to directly engage with their audience, which has driven revenue growth in the market and this is expected to continue during the forecast period.
The growing use of interactive elements in marketing emails is the primary trend shaping market growth. The use of interactive email is increasing among organizations to provide their targeted customers with an immersive experience as well as to make their emails more accessible and engaging. These interactive emails use HTML and CSS to create engaging animations, images, and interactive elements that are typically used across web pages. These emails also contain mailable microsites and links that allow the user to browse through different pages or components within the email by using icons and tabs.
Furthermore, interactive emails aid business organizations in providing additional details about the product and in showcasing different products and services to targeted customers. Owing to the growing applications and uses of interactive emails, market player are increasingly focusing on updating the features and interactive elements of emails to bring significant differentiation to their software and tools, which is expected to drive market growth during the forecast period.
The presence of stringent user data protection regulations is a major challenge that affects market growth. Adherence to stringent regulations that govern the use of the personal data of customers, as well as the information and content in emails, poses a major challenge for vendors offering transactional and marketing email services. The personal data of customers is critical for both vendors and business organizations that use transactional and marketing email services.
In addition, non-compliance with regulatory requirements can lead to the threat of data leakage. In addition, the risk of misuse of customer data and its unauthorized use is also a major concern. To overcome such issues, regulatory authorities frequently update their regulatory standards that business organizations and vendors must adhere to while offering any services involving the use of customer data. Thus, such factors will hinder market growth during the forecast period.
The market research 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the marketing segment will be significant during the forecast period. Marketing emails are generated and sent programmatically. Marketing emails are used to promote products and services and to incentivize loyal customers while developing a relationship with existing or potential customers. Market players provide a range of services through marketing emails, including the designing and building of a marketing email template, email optimization, consultation services to earn maximum ROI, and the customization of tools.
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The marketing segment showed a gradual increase in market share with USD 7.15 billion in 2018. The growing focus on the personalization of marketing emails has driven the application of data analytics and AI in marketing emails. Market players are also offering consultation services to optimize the use of big data and the information collected from customers to provide them (customers) with an immersive and engaging experience while reading marketing emails. Thus, such factors will boost the growth of the marketing segment in the global transactional and marketing emails market during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period. APAC is the fastest-growing region in the global market, with China, Japan, South Korea, and India as the key revenue-generating countries. Rapid growth in the number of email users and rising Internet penetration are driving end-users to opt for digital marketing strategies, such as marketing email services.
In addition, the adoption of online payment portals and the online purchase of goods have increased across emerging markets, such as China, India, Malaysia, and Australia, which has spurred the demand for hosting transactional email services. Furthermore, the proliferation of low-cost smartphones has resulted in the higher adoption of email accounts among people to secure their data or to gain access through the verification process. As a result, access to email through smartphones is increasing across APAC. Hence, such factors are expected to drive market growth in this region during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
E-mail Encryption Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Japan - Size and Forecast
Marketing Automation Software Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Japan - Size and Forecast
Digital Payment Market by End-user, Component and Geography - Forecast and Analysis
The market thrives on engaging ideal customers through personalized messaging and blogs, showcasing product demos and promotions via email. This direct source of communication fosters emotional connections and supports loyalty programs designed to enhance customer satisfaction and nurture long-term relationships. Customer service teams leverage courtesy calls and traditional marketing tactics to manage single transactions and cultivate repeat business through special deals and discounts. Hotels optimize occupancy periods with targeted promotional tactics, encouraging direct bookings and boosting customer lifetime value with added services like room upgrades and spa treatments. By tailoring the guest experience and exceeding expectations, businesses enhance guest satisfaction and loyalty, supported by comprehensive marketing strategies and personalized guest journeys across digital and traditional channels. Organizations use blogs and product demos to create an emotional connection with their ideal customer, fostering long-term strategy and encouraging them to switch to their brand through strategic engagement strategies.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.61% |
Market Growth 2024-2028 |
USD 16.59 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.61 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ActiveCampaign LLC, AlternativeTo, Amazon.com Inc., Constant Contact Inc., DMi Partners Inc., Elastic Email Inc., Ignite Visibility LLC, Inbox Army LLC, Intuit Inc., Klaviyo Inc., MailerSend Inc., MessageBird BV, MH Digital Consulting Group LLC, Netcore Cloud Pvt. Ltd., Oracle Corp., Salesforce Inc., SAP SE, Sendinblue SAS, Twilio Inc., and Sinch AB |
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 market forecast period. |
Customization purview |
If our 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
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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