Marketing Automation Market Size, Share & Trends Analysis Report By Solution (Email, Social Media), By Deployment (On-premise, Cloud), By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global marketing automation market size was valued at USD 4.06 billion in 2019 and is expected to witness a CAGR of 9.8% from 2020 to 2027. Owing to the digitalization of industries, rising internet penetration, and the use of mobile devices, the demand for automating marketing solutions has been increasing rapidly. Increasing demand for personalized advertising, retention of users for business growth, and the need for informed advertising strategy are some of the major factors expected to drive the growth. Moreover, the rise in the adoption of IoT devices, an increase in big data, and data analytics solutions, and demand for business automation, and insights will propel the market growth.

Marketing automation is a technology that helps companies in building better customer engagement campaigns, by eliminating repetitive tasks and helping the marketing department to focus on other critical aspects. The technology facilitates lead generation management, customer lifecycle marketing, and customer retention, among others. As per Internet World Statistics, in 2019, global internet penetration across the world stands at 58.8% and it increases around 9% annually. Moreover, social media usage penetration globally was around 45%. Thus, a rising number of mobile devices, internet, and social media penetration will propel the market in the years to come.

Consumers around the globe have changed ways of perceiving information, sharing thoughts, and researching products and services before purchasing. Now, they are well-versed with the traditional tactics performed by sales and marketing departments and have found ways to avoid them. They have become smarter with the usage of technology, and rely heavily on information available on search engines, blogs, and other social media sites. Thus, providing an opportunity for companies to build a stronger relationship with consumers, by providing them a delightful experience is expected to be the edge that marketers look for.

In the age of digitalization and the use of aggressive promotion strategies, the utility of Artificial Intelligence (AI), data-driven promotion, and Search Engine Optimization (SEO) will provide an edge to marketing solution providers. AI will pose a potential opportunity for companies, industries, and countries over the coming years, which will boost the global GDP by up to 14% by 2030. Moreover, programmatic advertising (AI automation) is changing the face of digital marketing so rapidly, that eMarketer, a marketing services provider, predicts that around 86% of digital ads displayed in the U.S. will be programmatic by 2020. Using various automation technologies for advertising to achieve higher conversions and lower acquisition costs will boost the market growth.

With the implementation of new automation technologies, the market is also witnessing a shortage of skilled professionals who could train users to get the best out of analytics solutions and use them for actionable insights and information. However, with the help of cloud technology and platforms such as IaaS and SaaS, the large-sized companies are focusing on acquiring smaller ones and offering consolidated software suits called ‘Marketing Cloud’. The acquisitions and mergers are aiding companies to acquire the necessary expertise, technology, and the prevailing customer base to increase their market share and dominance. For instance, by 2010, most of the early marketing software companies were acquired by large players such as Oracle Corporation (Eloqua); Adobe Inc. (Neolane Inc.); Salesforce.com Inc. (Pardot); and IBM Corporation (Silverpop and Unica).

Solution Insights

Based on solutions, the marketing automation market is segmented into campaign management, email, inbound marketing, mobile applications, lead nurturing and lead scoring, reporting and analytics, social media, and others. Email marketing solutions dominated the market in 2019, owing to the ubiquity of email promotions across industries and the increasing use of mobile devices. High interactiveness, cost-effectiveness, and the ability to personalize the content, among others are some of the advantages that make email marketing solutions the most preferred solution. However, the growth of analytics in marketing to gauge consumer behavior is likely to boost the demand for other solutions in the coming years.

Reporting and analytics solution is poised to be the fastest-growing segment in the coming years. The solution helps in tracking success and offers performance insights to improve advertising return on investments, maximize the mix of channels, and provide long-term trends. Moreover, AI is enabling companies to remain up-to-date with minimal input, bringing customers customized content, and personalized recommendations, and providing one-on-one human-like assistance with chatbots and virtual assistants. Besides, technology companies are also instrumental in building integrated software suits comprising analytics marketing automation, Customer Relationship Management (CRM), and Content Management System (CMS) to offer all-in-one solutions.

Deployment Insights

Cloud and on-premise are the two types of deployment methods used by industry players. Cloud deployment is the most preferred way for the deployment of this technology and is predicted to maintain its dominance over the next eight years. The scalability and flexibility of the cloud technology, security aspects, and control over the data center are some of the prime factors that will boost the utility of cloud technology in the dispersion of marketing automation solutions. As per the tech industry experts, around 60% of workloads are run on a hosted cloud service as of 2019.

Marketing Cloud, a software suite, offers core marketing functionalities such as data services, targeting, automation, and content. Moreover, the benefits such as integration of marketing tools such as emails, social management, and analytics tools will boost the market of the cloud segment in the coming years. For instance, to enhance the integration capabilities of its software solutions, Salesforce.com acquired Datorama, an AI-powered marketing intelligence company in 2018. The acquisition has helped Salesforce to enhance its integration capabilities, and expand its offerings, presence, and reach in various market segments of the enterprise cloud computing market.

End-use Insights

Based on end-use, the market is segmented into Banking Financial Services and Insurance (BFSI), retail, healthcare, telecom and IT, discrete manufacturing, and government, among others. The telecom and IT segment dominated the market in 2019. The large prevalence of B2B companies in the telecom and IT sector is the primary reason for its dominance in the market. However, the discrete manufacturing industry is predicted to grow at the highest CAGR over the next eight years.

Previously, manufacturing industries had automation enabled on the shop floor but lacked it in the sales and promotion departments. The digitalization of manufacturing industries has helped enterprises to reach their customers in a more effective manner. A recent survey suggests that marketing automation has helped improve lead conversion by 107% in manufacturing industries. Moreover, a study conducted by the Content Marketing Institute in 2018, estimates that around 30% of the manufacturers were using automation in their sales and promotion departments. Integrating CRM and marketing automation will aid manufacturing industries to streamline their routine activities and eliminate time-consuming manual tasks. This is anticipated to boost the adoption of marketing automation solutions in the discrete manufacturing segment in the coming years.

Enterprise Size Insights

Based on enterprise size, the market is segmented into large enterprises and Small and Medium Enterprises (SMEs). In the initial stage of technology proliferation, marketing automation had few applications limited to large enterprises only. However, with the digitalization of industries and increasing rate of internet and mobile device penetration, and the need to reach consumers effectively, a large number of SMEs have started integrating automation solutions into their existing systems. Hence, the market is expected to witness phenomenal growth across SMEs over the forecast period.

The early adopters of this technology were mainly from Business-to-Business (B2B) industries, such as manufacturing, software, and business services. However, over the years, there has been a surge in the adoption of these solutions by companies belonging to various Business-to-Consumer (B2C) industries such as financial services, media and entertainment, healthcare, and retail. Such growth in the B2C segment can be attributed to the increasing need for software solutions to track real-time approaches to building and retaining customers. Thus, the utility of automation in advertising and sales in small and medium enterprises is likely to propel market growth over the forecast period.

Regional Insights

North America and Europe are likely to be key markets over the forecast period owing to the early adoption of marketing solutions. The increasing regulatory pressure in the European region and reforms in EU data protection rules for protecting the enterprise data is remarkably impacting the adoption of marketing automation solutions.

The Asia Pacific is anticipated to be the fastest-growing market driven by increasing awareness about the promotion strategies, increasing penetration of the internet, and the rise in usage of mobile devices. Besides, the substantial growth of manufacturing industries in countries such as China and India will promote the utility of marketing automation solutions in the coming years.

The utility of marketing automation solutions has been increasing in the Asia Pacific owing to a rapid rise in digital advertising across various social media platforms. In China, social media applications such as WeChat, Weibo, and Tieba have become prominent advertisement platforms helping enterprises to focus on people and improve their promotional strategies. According to Tencent, more than 55% of China’s population uses WeChat as the primary social media application. Thus, the growing internet penetration, usage of social media applications, and rising digitalization of enterprises in the region will boost the market over the forecast period.

Marketing Automation Market Share Insights

The global market is highly competitive and fairly concentrated. The prominent vendors operating in the market include Act-On Software, Inc.; Adobe Inc.; Cognizant; HubSpot, Inc.; IBM Corporation; Keap; Marketo, Inc.; Oracle Corporation; Salesforce.com, Inc.; and Teradata Corporation. Huge investments are driving the marketing automation industry owing to the growing demand for promotional services and automation solutions. Major strategies adopted by vendors include collaborations, new product developments, investments related to expanding capabilities, mergers and acquisitions, partnerships and agreements, and investments in research and development, among others.

In June 2018, Adobe Systems Inc. acquired Magneto Commerce, an open-source e-commerce platform. The acquisition will help Adobe to deliver a single, end-to-end digital experience platform including advertising, content creation, analytics, and commerce for B2B and B2C clientele. Moreover, it will help Adobe to solidify its market position by offering experience-driven commerce for brands and merchants of all sizes.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global marketing automation market report on the basis of solution, deployment, enterprise size, end use, and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2027)

  • Campaign Management

  • Email Marketing

  • Inbound Marketing

  • Mobile Applications

  • Lead Nurturing & Lead Scoring

  • Reporting & Analytics

  • Social Media Marketing

  • Others

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • BFSI

  • Retail

  • Healthcare

  • Telecom & IT

  • Discrete Manufacturing

  • Government & Education

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA