The global customer data platform market size was valued at USD 1.2 Billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 27.9% from 2022 to 2030. The customer data platform market is expected to grow at a significant pace. This is due to the growing demand for cloud-based solutions. The rising need for omnichannel experience is expected to drive the market. Also, the growth of e-commerce industry is expected to be a major factor driving the growth of the market. Furthermore, the increasing adoption of account-based marketing is also anticipated to provide a significant boost to the market.
Global Customer Data Platform Market: Regional Insights
The global customer data platform market is regionally divided into North America, Latin America, Asia Pacific, Europe, and Middle East & Africa.
Among regions, North America is expected to account for a dominant share in the global customer data platform market over the forecast period. This growth can be attributed to growing focus on innovations in the countries such as Canada and the U.S. across the region, increasing expansion of conventional companies, rise in adoption of self-service analytics, and massive data generation from all the industries in the region. The rate of infrastructure growth is significantly high in the region, and the growth of data from several industrial sector is also increasing, this in turn is expected to support growth of the global customer data platform market over the forecast period.
Moreover, Asia Pacific is also anticipated to witness robust growth in the global customer data platform market over the forecast period. The growing adoption data analytics, rise in use of cloud, IoT, and smart technologies are the factors diving the data generation in the region, which in turn is creating high demand for customer data platforms across Asia Pacific. For instance, a report by Cisco, called The Future of Cloud in Asia Pacific, by 2024, the overall cloud spending is likely to reach US$ 200 billion in the region. Thus, these factors are in turn driving growth of the global customer data platform market.
Figure.1: Global Customer Data Platform Market Share (%), By Region, 2021
Global Customer Data Platform Market Drivers:
Rise in importance of maintaining customer satisfaction and relationship is major growth driver
Metrics such as customer satisfaction determine how efficiently services or products of a company fulfill the expectations of its customers. Such metrics predict the future purchases and customer loyalty of a company. This in turn helps in growth and revenue of the business. Several companies make use of CDPs for increasing customer satisfaction, CPS efficiently isolates data as it creates a unified approach for storing and accessing customer data. When the customer data gets stored and arranged in a single customer view, it allows the user to create hyper-specific segments aiding in development of more effective marketing campaigns, reinforcement of outreach efforts and improvement of product launches. Thus, growing importance of maintaining customer relationships is driving the market growth.
Growing analysis of real-time and personalized data to augment the market growth
The adoption of customer data platform is increasing due to rise in demand for personalized and real-time analytics. With the increasing availability of real-time data collection and analytics, several organizations are leveraging the potential for real-time data analytics and are focusing on incorporation of real-time data in their advertising, engagement, and marketing strategies. This in turn is creating high demand for customer data platforms, which in turn is anticipated to augment growth of the global customer data platform market over the forecast period.
Global Customer Data Platform Market Opportunities:
Growing awareness regarding customer satisfaction and increasing demand for better shopping experiences is anticipated to offer multiple business opportunities in the global customer data platform market over the forecast period. Moreover, rise in focus on providing real-time and tailored customer care by marketers and advertisers is also creating several growth opportunities in the market. For instance, in May 2021, Salesforce revealed that it has modified its customer data platform service for helping organizations prioritizing first-party consumers more personally.
Outbreak of Covid-19 pandemic has also created many growth opportunities in the global customer data platform market. The pandemic played a major role in rise in data solution demand. During this period, the retail and government shifted towards digitalization for keeping their business operation running without any difficulties. The amount of data generated during this period was large all over the world. Thus, demand for customer data platform increased due the pandemic.
|Base Year:||2021||Market Size in 2021:||US$ 1.2 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||23.97%||2030 Value Projection:||US$ 8.3 Bn|
Zeta Global Corp, Oracle Corporation, mParticle Inc., Salesforce.com Inc., BlueConic, Adobe Inc., Tealium, SAP SE, Acquia Inc., and Segment.Io Inc. (Twilio)
|Restraints & Challenges:||
Global Customer Data Platform Market Trends:
Growing adoption of Ai for providing personalized services and solutions to customers is a major trend
The use Ai-enabled tools allow the providers to offer personalized services and solutions, which also helps improve customer relationships. For example, the platform analyzes pattern and behavior of customers across all the channels. Artificial intelligence is capable of analyzing and comparing relationships between data points such as purchase history, product or service preferences, further need of customers, and purchase plans. Thus, the adoption of Ai solutions is increasing all over the world, further creating demand for customer data platforms. This trend is likely to continue in the market over the forecast period.
Rise in demand for omnichannel experiences is a growing trend in the market
Omnichannels use a customer-centric approach that can enhance user experience. With this approach businesses get a wider experience of customer behavior in order for them to implement their strategies for marketing more efficiently. Thus, the demand for omnichannel experiences is increasing among several organizations around the globe, which in turn is expected to propel growth of the global customer data platform market over the forecast period.
Global Customer Data Platform Market Restraints:
Growing concerns regarding data privacy and security to impede the market growth
Due to digitalization, all the activities are being carried out online, due to which number of cybercrimes is increasing all over the world. The rising cybercrimes threaten the safety of data of people which leads to financial or other losses. The privacy and security of data is essential, as the data is generated by Billions of users all over the world. However, affording such security measures can be a challenge for some enterprises. Thus, this in turn is expected to hinder the demand for customer data platform in some sectors. Nevertheless, the market players are seeking the development of solutions to overcome these challenges, which in turn is likely to support the market growth.
Lack of flexibility of customer data platforms to hamper the market pace
Most of the customer data platforms are developed on rigid data model that can clash with the data architecture of a company. Businesses are required to adhere to their schema if they need to use these platforms. The data team requires to work for longer time to re-architect their data in order to meet the specific models of customer data platforms. Thus, due to all these issues occurring from rigidity of CDPs, businesses hesitate to adopt these solutions. And this in turn is expected to hinder growth of the market.
Figure.2: Global Customer Data Platform Market Share (%), By Segment, 2021
Global Customer Data Platform Market Segmentation:
The global customer data platform market report is segmented into Deployment Mode, Organization Size, and End User.
Based on Deployment Mode, the market is segmented into Cloud, On-premise. Out of which, Cloud is expected to dominate the global market over the forecast period and this is attributed to the growing use of cloud-based solutions resulting into widespread adoption of data loss prevention practices by enterprises.
On-Premise segment is also expected to witness significant growth in the near future and this is owing to the growing demand. Deploying on-premise customer data platforms offers higher security and privacy of the collected consumer data, as the organization can completely control the data, privacy, and security.
Based on Organization Size, the market is segmented into Small and Medium Enterprises, Large Enterprises. Out of which, Small and Medium Enterprises is expected to dominate the global market over the forecast period and this is attributed to the growing demand for PaaS, SaaS, and IaaS solutions in SMEs leading to increased adoption of customer data platforms. SMEs have to face unique challenges during the operation of their own complex IT infrastructure. Thus, demand for solutions of IaaS, SaaS, and PaaS is increasing among these enterprises, which in turn is boosting adoption of customer data platform.
Large Enterprises segment is also expected to witness significant growth in the near future and this is owing to the rise adoption of strategies such as partnerships with CPD providers among large enterprises. Several large enterprises are entering into partnerships with CDP providers for integrating customer data platforms for digital transformation. For instance, in August 2022, Recipe Unlimited with mParticle, deployed the customer data platform of mParticle as a foundation component of their digital transformation.
Based on End User, the market is segmented into Retail and E-commerce, BFSI, Media and Entertainment, IT and Telecommunication, Healthcare, and Other (Transportation, Hospitality, Government, and Education). Out of which, Retail and E-commerce is expected to dominate the global market over the forecast period and this is attributed to the growing digitalization of retail industry. Due to growing digitalization in retail industry, multi-channel operations are increasing being developed and the solutions for retail analytics are increasing advancing. Thus, the demand for customer data platforms is has also increased in this sector, which in turn is likely to support the market growth.
Media and Entertainment segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of customer data platforms in the sector. The cost required for constantly storing media and egressing it from public cloud is high. A more cost-friendly approach for this is keeping bulk of media on premises in a low-cost object-based and a highly scalable system. Thus, customer data platforms are growing demand in media and entertainment sector.
Global Customer Data Platform Market: Key Developments
In August 2022, Oracle Corporation announced that it has renewed its strategic agreement witth AT&T to aid in gaining new capacities and capabilities in the database and application workloads in Oracle Cloud. With this renewal of the agreement the use of Oracle Fusion Cloud Customer Experience (CX), Oracle Fusion Cloud Enterprise Resource Planning (ERP), Oracle Cloud Infrastructure along with other cloud services will be expanded for AT&T.
In June 2022, Adobe upgraded its customer data platform (CDP), Adobe Real-Time CDP, for assisting brands in turning from third-party cookies to first-party data. With the adoption of Real-Time CDP by companies from all sectors, Adobe will be delivering enhanced customer profiles with commerce, Ai-powered targeting, added privacy and security capabilities, and segment match around the world.
In May 2022, Segment. IO. Inc., and Talon.One expanded their partnership with a major update to its integration. The partnership will be fulfilling the increasing demand for seamless SaaS solutions enabling companies to change their IT sacks easily and swiftly.
In February 2022, Acquina, Inc. and Bounteous in collaboration released Customer Data Platform (CDP) QuickStart Packages. Bounteous has introduced a solutions that is based on Acquina CDP for assisting in generating efficient customer engagements in all the phases of the customer journey.
Global Customer Data Platform Market: Key Companies Insights
The global customer data platform market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.
Some of the key players in the global customer data platform market are Zeta Global Corp, Oracle Corporation, mParticle Inc., Salesforce.com Inc., BlueConic, Adobe Inc., Tealium, SAP SE, Acquia Inc., and Segment.Io Inc. (Twilio).
Customer Data Platforms (CDP) provide an omnichannel solution to help businesses understand their customers better. By bringing together all of a company's data sources, CDPs give marketers an opportunity to target audiences in a more personalized way.
Customer Data Platforms allow organizations to integrate and unify their first and third-party data, creating a comprehensive view of each of their customers. This information can then be used for marketing and sales activation. It is not only useful for gaining insights into consumer behavior, it can also help improve the product and services that a company offers. There are a number of options when it comes to choosing a CDP.
In the upcoming years, customer data platforms will likely be a part of every marketing team's toolkit. It is important to ensure that the data that is being stored meets quality standards. Also, it's critical that companies manage the privacy of their customer data.
Increasing spending on marketing and advertising activities is driving the global customer data platform market. Furthermore, the need for actionable insights based on customer data is increasing among the large enterprises.
However, stringent government regulations regarding the use of customer data could hinder the growth of the global customer data platform market. Moreover, the lack of a unified medium for the management of customer data is expected to hamper the growth of the market. It also affects the protection of the customer's data.
Key features of the study: