Big data may be the talk of the town but the global CRM software market is showing no sign of shrinking, having witnessed double-digit growth of almost 14% last year, according to Gartner Research.
The report, titled Market Share Analysis: Customer Relationship Management Software, Worldwide, 2013, shows revenue reached $20.4bn (£12.1bn) in 2013, up from $18bn (£10.7bn) in 2012.
Much of this growth has been driven by strong demand for software as a service (SaaS) CRM solutions from firms looking to replace legacy systems with alternatives that are easier to deploy and manage. The study also found competition had intensified among the major players in the market, with the top five providers accounting for 49.8% of revenue, in comparison to 48.1% the year before.
Salesforce strengthened its position as market leader, with an increase in revenue of 30.3% year-on-year. The other providers completing the top five were SAP, Oracle, Micrsoft and IBM.
Gartner research vice president Joanne Correia said investment in digital marketing and customer experience initiatives were the main drivers of the market.
“CRM will be at the heart of digital initiatives in coming years,” said Correia. “This is one technology area that will get funding because digital business is critical for companies to remain competitive.”
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