The global customer data platform (CDP) market is expected to reach $51,95-billion by 2030 -with a CAGR of 39,5% from 2024 to 2030 – according to a new report by Grand View Research.
The growing demand for assimilating and storing unstructured and structured consumer data automatically obtained from various media touchpoints is driving the adoption of CDP among B2B and B2C marketers. Furthermore, the need to engage and improve customer lifecycle by comprehending the collected insights is also contributing to the growth of the market.
Currently, brands and marketers accumulate huge volumes of customer data in the form of demographic, behavioural, and transactional segments. The collected data points are either stored as databases by a different organisation or by departments of the company. This poses challenges pertaining to data tracking and data redundancy.
Furthermore, information gathering based on cross-platform and online activities for customer conversion and engagement also remains a challenge for marketers. These factors are driving the demand for a customer database platform which can assimilate and store data points in a unified behaviour.
Unified customer profiles enable marketers to enhance their marketing strategies and improve customer experience. Retail and consumer goods were the early adopters of customer data platforms and the adoption gradually increased among the financial services, travel, IT and Telecom, and healthcare verticals.
The growing importance of first-party customer data and the rise in adoption of omnichannel media among marketers are the other factors contributing to the market growth.
The addition of machine learning and AI technologies is expected to enable enterprises to easily select a list of profiles using predictive modeling and other tactical applications – further driving the customer data platform market growth.
The increasing number of CDP vendors, who are raising higher funds, is also driving market growth. In 2018, CDP vendors generated funds worth more than $1,5-billion and registered a growth by 48% in funding as compared to the previous year.
As per the CDP Institute’s study, the industry witnessed an increase in the number of CDP vendors from 77 vendors in 2018 to 96 vendors in July 2019. These factors are expected to lead to considerable growth of the CDP market over the forecast period.
Additional highlights from the report include:
- The analytics segment growth can be attributed to the high demand for automating segmentation lists and the marketing and analysis of products using predictive modeling and machine learning technology-based models.
- The retail segment accounted for the largest market revenue share in 2023 owing to the use of CDP to engage customers, improve customer loyalty, and enhance consumer experience.
- The North American regional market accounted for the largest revenue share in 2023 and is anticipated to continue to dominate the CDP market over the forecast period