Marketing Automation Software Market Size, Share & Trends Analysis Report By Solution (Campaign Management, Email Marketing, Inbound Marketing, Mobile Applications, Lead Management, Reporting & Analytics, Social Media Marketing, Others), By Enterprise Size (Large Enterprises, SMEs), By Deployment (On-premise, Cloud), By End User (BFSI, Retail, Healthcare, Telecom & ITs, Discrete Manufacturing, Government & Education, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global marketing automation software market size was valued at USD 4.93 billion in 2022. It is projected to reach USD 11.25 billion by 2031, growing with a CAGR of 9.6% during the forecast period (2023–2031).

Marketing automation software is a tool that helps organizations automate marketing-related tasks such as social media, emails, and other online functions in order to save time, cost, and effort. These software programs help organizations with marketing on several online channels and automate repetitive tasks. They improve marketing and sales activities and provide optimal automated solutions. With an intensifying need to enhance customer experience, organizations of all sizes are increasingly adopting marketing automation software. The global market is projected to witness healthy growth during the forecast period.

Market Dynamics

What are the Key Factors Driving Industry Growth?

Technological Advancement

Technological advancement and increasing penetration of the internet in operational tasks are collectively surging the demand for marketing automation software. The emergence of social media marketing and the rapid adoption of digitalization is also expected to fuel market growth. Revolutionary technologies such as big data, artificial intelligence, and machine learning are expected to play an essential role in marketing automation in the future. AI and machine learning offer insights for marketing automation using tools such as dynamic content, predictive analytics, and chatbots. In 2018, various companies around the globe invested over USD 58 million in chatbot technology, and that number is expected to rise in the coming years.

Adoption by Retail Sector

Additionally, the increasing adoption of marketing automation software by the retail sector is a key driver for demand. These software programs enable retail businesses to capture online as well as offline leads and convert them seamlessly through cross-channel engagement. With the help of marketing automation, retailers can deliver an omnichannel experience to create an emotional connection with customers. However, a lack of integrating strategy and interoperability issues are restraining the demand for marketing automation software. Data policy concerns and B2B marketing automation deployment issues are other aspects that may hinder market growth.

Regional Analysis

On the basis of region, the global marketing automation software market has been segmented into North America, Europe, Asia Pacific, and Latin America, and the Middle East & Africa.

North America, with the largest market share, is a mature market. The key drivers of development in North America during the forecast years are the rise in internet and smartphone use, the acceleration of cloud computing adoption, the increased need for data integration and SaaS cloud services, and the expansion of digital marketing. With the help of marketing automation, companies can coordinate between various teams in sales to gain leads and maintain track of them. E-commerce websites such as Amazon and eBay that operate in the region adopt marketing automation software to customize their pages as per customers’ previous visits.

Europe is experiencing significant growth in the global market, with small and medium enterprises in the region driving demand for marketing automation software. The rising demand for data integration is also fueling market growth. For market participants, the countries in Europe provide excellent investment opportunities. Among the region's most promising verticals are manufacturing & distribution, BFSI, and advertising & design. Marketing automation software is frequently used by companies in these industries across a variety of channels to thoroughly understand the demands of their clients and provide the best solutions at the right time. In the subsequent years, the European market is anticipated to upscale as a consequence.

Asia Pacific is pegged to be the fastest-growing region in the global market. Companies in the region are struggling with customer retention and loyalty. Marketing automation software can be considered a strategic investment rather than an expenditure. Developing countries in the region, such as India and China, have been experiencing strong demand for marketing automation software. E-commerce has soared as a result of the APAC region's increasing internet adoption. Local competitors like Rakuten, Alibaba, and a number of others have made themselves known and are expanding. These organizations greatly streamline their operations with the use of marketing automation tools. The Asia-Pacific market is expanding as a result of these businesses' expanding marketing automation software usage.

Latin America and the Middle East & Africa region account for the least share in the global market. In South America, the market has grown in recent years as a result of increased investments in technologies like the cloud. The use of marketing automation software has grown as a result of a growing emphasis on education. Additionally, the market for marketing automation software is anticipated to be driven by significant development in cloud solutions. The information and communications technology industry in Brazil has grown tremendously in recent years. The government's dedication to innovation has resulted in a tax benefit for companies using advanced technology. Over the forecasting period, these factors are likely to drive the market for marketing automation software. In the Middle East and Africa region, the market's expansion is primarily due to rising social media adoption and digital marketing. In addition, SMEs in the area are demonstrating digital transformation by utilizing recent developments in technologies like artificial intelligence, robotics, cryptography, and big data in a variety of sectors, including retail, manufacturing, finance, and transportation.

Segmental Analysis

The global marketing automation software market can be segmented on the basis of solution, enterprise size, deployment, and application.

On the basis of the solution, the market can be segmented into campaign management, email marketing, inbound marketing, mobile applications, lead management, reporting & analytics, social media marketing, and others.

Campaign Management aids in developing, monitoring, and evaluating the results of marketing strategies across various channels. Implementing marketing ideas and creating a sales plan for maximum earnings are done through campaign management. Campaign management software is a crucial tool to help stay on top of expanding marketing channels and automate or streamline all processes and activities.

Email automation is a powerful marketing automation software that aids in sending the right message to the right person via automated workflows. This is very effective for lead nurturing and eventually drives sales from both potential and current customers.

On the basis of enterprise size, the market can be segmented into large enterprises and SMEs.

SMEs (Small and Medium-sized Enterprises) segment is expected to grow at a significant rate as more and more small and medium-scale businesses move towards automated marketing. Pricing for small business marketing automation is typically lower than for large enterprises based on the number of users, contacts, or external app connections. Many of these solutions feature simpler user interfaces that don't require coding for most tasks. However, this also implies that there is less room for customization when it comes to things like emails, pop-ups, and landing pages.

On the basis of deployment, the market can be segmented into on-premise and cloud-based.

The on-premise segment dominates the market. For an enterprise to use on-premise software, a license or a copy of the software must be purchased. There is typically more protection than with a cloud computing infrastructure because the software is licensed, and the complete instance is located on-site at an organization.

Cloud-based software is cloud-hosted application software that can be accessed and used through a web browser, a specific desktop client, or an API that connects with the user's desktop or mobile operating system.

On the basis of application, the market can be segmented into BFSI, retail, healthcare, telecom & IT, discrete manufacturing, government & education, and others.

Retail marketing automation aids in locating potential clients and ultimately turning them into loyal ones. Between a lead and a sale, the complete customer journey is fostered automatically. For instance, the main duty in the lead-nurturing stage is educating a potential customer. Using marketing automation would make it easier to provide relevant informational content. Further, prospects can be engaged with tailored communications when they are drawn specifically to a product of interest. These communications can be customized to the appropriate audience to support the expansion of retail operations.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

• October 2022- Act-On Software Inc. introduced a new SMS Automated Marketing Solution. The SMS functionality from Act-On is intended to assist marketers in developing automated, data-driven SMS campaigns to take advantage of the power of direct and customized mobile interaction.
• October 2022- Adobe stated that it would collaborate with U.S. Bank to offer improved online and in-branch customer experiences that are tailored to each customer's needs and interests.
• July 2021- Sales support platform Orum announced that it had closed a $25 million series A investment round, which was led by Craft Ventures and included a number of previous backers. The fundraising round will be utilized for general expansion, primarily focusing on product, customer service, and international market expansion.