The marketing automation market size is expected to grow from USD 5.2 billion in 2022 to USD 9.5 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 12.8% during the forecast period. The increasing focus of enterprises to optimize marketing spending, growing number of marketing channels to reach end customers are a few factors driving the growth of the marketing automation market.
The services enables benefit the organizations by enhancing the marketing project execution and streamlining marketing operations
Services form an integral part of the marketing automation software life cycle. Services assist the software functionalities, ranging from its deployment to management, such as implementation and integration, training and consultation, product upgradation, and support and maintenance. With the increasing adoption of marketing automation software, the need for these associated services is expected to increase among enterprises, as they reduce marketing costs, increase the overall revenue, and improve performance. In addition, marketing automation services help organizations track, evaluate, and analyze the targeted prospects and existing customers.
Scalability and cost-effectiveness are the major factors driving the adoption of cloud-based marketing automation.
While enabling companies to manage their business operations related to the creation, storage, enrichment, management, and analysis of digital assets, cloud-based marketing automation solutions can help organizations avoid costs related to hardware, physical storage, and technical staff. The cloud deployment type is expected to grow at a higher CAGR during the forecast period. The cloud-based deployment type enables users to access the software from anywhere or from any device, such as personal computers, laptops, and mobiles. Implementing the cloud-based marketing automation solution helps SMEs and large enterprises focus on their core competencies, rather than IT processes. Cloud-based marketing automation solutions help reduce the overall costs and provide highly flexible and scalable access to solutions through the IT infrastructure hosted by the cloud service provider. Hence, enterprises prefer deploying marketing automation solutions in the cloud to improve mobility and decentralize data storage and computing. Enterprises are investing more in the cloud due to the increased need to optimize deployment costs, secure critical data, and manage resources.
The automation tools enables user to reduce the amount of time spent gathering posts and increase audience engagement.
The promoting and sharing their products on social media is a simple way to improve lead generation, boost conversions, and increase sales. According to Global Web Index, 54% of social browsers use social media to research products. Thus, social media marketing tools are expected to drive the demand for marketing automation software.
The intensely competitive market scenario has encouraged SMEs to invest in automated solutions to achieve high business efficiency
Being constrained by limited budgets, small IT infrastructure, and staff, SMEs look for flexible, scalable, and cost-effective solutions. Hence, SMEs increasingly adopt cloud-based marketing automation solutions to optimize and automate customer communications and outreach.
Marketing automation in the retail and consumer goods industry has a specific importance in the overall business operations and is expected to deliver a higher RoI
The retail and consumer goods industry having large customer base helps in predicting the customers’ behaviors and patterns through which it provides personalized experiences to its customers. During the COVID-19 pandemic, companies were forced to close their physical retail stores and offices, and shifted to the online marketing of products and services. Therefore, e-commerce was responsible for 19% of all retail sales in 2020, compared to 16% the previous year, which has been driving the demand for marketing automation software and services.
North America to dominate the marketing automation market in 2022
The presence of two major economies in North America: the US and Canada are expected to boost the adoption of marketing tools in the region. Moreover, the end-use industries in the region such as BFSI and retail are focusing on improving customer experience and reducing sales cycle, which is expected to drive the market during the forecast period. According to HubSpot, 79% of marketers in North America use inbound marketing as their primary approach. This is expected to drive the demand for marketing automation software in the region. As per Statista, in 2021, North America had approximately 417 million internet users. The region accounts for the biggest online audience, which is expected to drive the demand for marketing automation software.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with the key people. The breakup of the profiles of the primary participants as follows:
- By Company Type: Tier I: 33%, Tier II: 42%, and Tier III: 25%
- By Designation: C-Level: 36%, D-Level: 45%, and Others: 19%
- By Region: North America: 42%, Europe: 35%, APAC: 15%, Row: 8%
The report segments the marketing automation market by automation component (software, and services), deployment type(on-premises, cloud), application(campaign management, email marketing, lead nurturing and lead scoring, social media marketing, inbound marketing, inbound marketing, analytics and reporting, and other applications), organization size (SMEs, large enterprises), vertical, and regions. . The component segment includes software and services. Based on applications, the market is segmented into campaign management, email marketing, lead nurturing and lead scoring, social media marketing, inbound marketing, inbound marketing, analytics and reporting, and other applications. Based on deployment type, the market is segmented into On-premises and cloud. The market is segmented based on organization size as SMEs and large enterprises. Different Vertical using marketing automation software include BFSI, IT and telecom, retail and consumer goods, travel and hospitality, healthcare and life sciences, education, media and entertainment, manufacturing, and other Vertical.
The geographic analysis of the marketing automation market is spread across five major regions: North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in the marketing automation market with information on the closest approximations of the revenue numbers for the overall marketing automation market and the subsegments. The report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.