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 marketing automation software market is projected to witness healthy growth during the forecast period, 2019–2026. 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.
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 rapid adoption of digitalization are also expected to fuel market growth. For instance, according to GroupM, the global advertising spending amount was pegged at approximately USD 558 billion in 2018.
Additionally, 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 concern and B2B marketing automation deployment issues are other aspects that may hinder market growth.
The global marketing automation software market accounted for over USD 4.6 billion in 2017 and is expected to grow at a CAGR of 5.6% during the forecast period, 2019–2026.
The global marketing automation software market can be segmented on the basis of solution, enterprise size, deployment, and application. On the basis of solution, the market can be segmented into campaign management, email marketing, inbound marketing, mobile applications, lead management, reporting & analytics, social media marketing, and others. On the basis of enterprise size, the market can be segmented into large enterprises and SMEs. On the basis of deployment, the market can be segmented into on-premise and cloud-based. On the basis of application, the market can be segmented into BFSI, retail, healthcare, telecom & IT, discrete manufacturing, government & education, and others.
On the basis of region, the global marketing automation software market has been segmented into North America, Europe, Asia Pacific, and Latin America and Middle East & Africa.
North America, with the largest market share, is a mature market. With the help of marketing automation, companies can coordinate between various teams in sales to gain leads and maintain a 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 marketing automation software 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 to an extent.
Asia Pacific is pegged to be the fastest growing region in the global marketing automation software market. Companies in the region are struggling with customer retention and loyalty. Investment in marketing automation software can be considered as 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. On the other hand, the Latin America and Middle East & Africa region accounts for the least share in the global marketing automation software market.
The marketing automation software market is evolving with the acquisition of smaller firms by big companies such as Adobe and Salesforce. The increasing number of options has resulted in a fragmented market with fierce competition for low prices.
Some of the prominent players in the global marketing automation software market are Act-On Software Inc. (U.S.), Adobe Systems Inc. (U.S.), Cognizant (U.S.), Hubspot, Inc. (U.S.), IBM Corporation (U.S.), Marketo, Inc. (U.S.), Oracle Corporation (U.S.), Salesforce.com, Inc. (U.S.), Teradata Corporation (U.S.), Infusion Software Inc. (U.S.), and SAS (U.S.), among others.