Global Statistics Representing Customer data Platform Market Scenario
A Customer Data Platform (CDP) collects, unifies, and creates a customer profile that can be activated on various platforms and media networks by marketing companies for the purpose of advertising. It centralizes customer data from various sources and creates a 360-degree view of the profile. Some of the prominent sources for data collection include e-commerce sites, web and mobile, and psychographic profiles, among others. Access, analytics, and engagement are the three types of CDPs studied in the report. CDPs collect and manage four types of data:
Data is collected to analyze and create a 360-degree profile of the customer. CDPs work with both known and unknown individuals; they collect data about different visitors, pipeline their behavior and journey, and make accurate data accessible to all. These platforms find applications across an array of verticals, including BFSI, retail and e-commerce, media and entertainment, IT and telecommunication, and automobile. In light of CDPs’ extensive application scope, the market is expected to register significant growth during the forecast period.
Growth of Social Media and Public-Private Partnerships are driving the global Customer Data Platform market growth
Growing social media and rising demand for Omnichannel platforms from marketers that seek to track customer behavior drive the demand for customer data platforms (CDPs). Collection, unification, and activation of consumer profiles help marketing companies monitor consumer preferences to provide customized products. Therefore, companies are investing in CDPs to enhance customer engagement. High implementation costs linked to the infrastructure and scalable solutions needed to store large volumes of customer data are the major restraining factors in the overall market growth. Further, integrating CDPs with mobile and marketing cloud entails constant maintenance, which adds to the cost. The lack of tools to integrate online and offline customer data in real-time, coupled with a lack of awareness also deter adoption to some extent. However, the emergence of CDPs as the most effective solution to gain customers and generate profits through high-quality, personalized experiences is expected to propel market growth. Governments and investors have also taken cognizance of the plethora of benefits offered by CDPs and are increasing investments in the technology. The effective personalization of customer information presents an opportunity to offer 8 times the return on investment on marketing spend and boost sales by 20%
Effective analysis of customer behavior to successfully conduct the unification and activation the profile is gaining traction
On the basis of Type, the global customer data platform market is classified as Access, Analytics, and Engagement. Analyzing consumer behavior has emerged as a cornerstone of economic expansion and development. Therefore, the Analytics segment is expected to register significant growth. Purchasing power, group influence, personal preference, economic conditions, and marketing campaigns are the five key factors that influence consumer behavior. Tracking and analyzing data on these factors allows organizations to gain effective insights into consumer demand. Growing demand for a 360-degree view of customer data by marketers has fueled the need for an efficient platform that can personalize content and provide useful insights through single-point access. The emergence of advanced data management solutions by various companies such as Microsoft, Oracle, and Teradata with the integration of artificial intelligence and machine learning is boosting the engagement segment growth.
By Application, the global customer data platform market can be segmented into BFSI, Retail and E-Commerce, Media and Entertainment, IT and Telecommunication, Automobile, and Others. The major areas of analytics in banking and finance are managing risk, risk assessment and scoring, fraud protection, and mitigation, forecasting default management, collection analytics, and regulatory compliance. The integration of artificial intelligence and machine learning algorithms will disrupt the e-commerce sector in a positive manner by allowing retailers to meet customer requirements in a shorter span of time. With the rise of digitization and the emergence of various media platforms such as Netflix, Amazon Prime, and others, players are adopting a data-driven model for better customer engagement. Customer retention is one of the most significant factors in the telecommunication sector. The rise of new mobility concepts such as electric vehicles and connected mobility has resulted in the generation of large volumes of data. Educational, agricultural, government, and healthcare sectors also possess immense potential in the development of analytics and related platforms. Favorable government initiatives such as OMB 13-13 and OSTP directives for unrestricted availability and accessibility of agriculture and nutrition data are fueling the overall adoption of customer data platforms
North America is expected to dominate market growth owing to the presence of a large number of key players
The U.S. dominates the CDP market in North America and is expected to retain its leading position throughout the forecast period. The presence of prominent market players and companies with large workforces bolsters the demand for CDPs among companies seeking to actively manage their employees and keep a track record. Growing demand for real-time data to personalize marketing for customers is forcing marketing and operational systems to adopt customer data platforms. This serves as the key factor driving demand for customer data platforms in the U.S.
Europe is emerging as a prominent region for the customer data platform market and anticipated to grow at a significant rate during the forecast period. The EU direct-to-consumer market is rapidly adopting customer data platforms, showcasing the region’s potential for market growth. The increasing demand across various industry verticals is expected to drive market growth during the forecast period
In APAC, China is expected to be the fastest-growing Asian country in the customer platform market, with the highest CAGR during the forecast period. The country’s large valuable consumer market provides immense opportunities for the adoption of customer data platforms. Japan is another emerging global player in the global customer data platform market as Japanese consumers have diverse interests and tastes, ranging from traditional needs to more Westernized desires. The customer data platform market in India is expected to witness remarkable growth owing to growing investments by retailers with prominent market shares
The Middle East and Africa region comprise some of the most prominent emerging and growing e-commerce markets such as Dubai, Israel, Turkey, Nigeria, Brazil, and Argentina, among others. The presence of CDP vendors striving to implement a mix of advanced technologies in a bid to gain a competitive edge significantly contributes to the regional market growth
The Central and South America region is expected to grow at a rapid pace during the forecast period, owing to the growing opportunities in data-driven companies and IoT
There is intense competition among the notable vendors in the market. Some of the prominent players in the market include Oracle, SAP, Salesforce, Adobe, NICE, SAS Institute Inc., Tealium, Segment, Zaius, AgilOne, ActionIQ, and BlueConic among others
The business strategy of the key vendors collectively focuses on offering the best class CDP platform to build a value-oriented customer profile for marketing to leverage brand positioning and the financial backup of investors for further expanding their reach in the international market
Customer Data Platform Market Segmentation
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