The global marketing automation market revenue stood at $4,438.7 million in 2020, and it is predicted to surge to $14,180.6 million by 2030. According to the estimates of the market research firm, P&S Intelligence, the market will demonstrate a CAGR of 12.3% from 2020 to 2030 (forecast period). The market is being driven by the growing adoption of digital marketing strategies, increasing use of social media, and growing adoption of the marketing automation software by enterprises, both large and small and medium enterprises (SMEs), across the world.
The increasing adoption of digital marketing is a major market growth driver. Both large and SMEs are rapidly adopting various automation tools for advertising their services and products on multiple channels, such as social media, the web, and email, and improving the lead generation process. Additionally, the worldwide expenditure on digital advertisements is predicted to surpass $450.7 billion by the end of 2021, thus accounting for over 50% of the total advertisement expenditure. The U.K., the U.S., Japan, Germany, and China are some of the countries investing heavily in digital marketing.
Furthermore, many SMEs are also rapidly adopting the marketing automation software for automating their marketing operations. Currently, there are more than 4 million SMEs around the world. As per the World Bank, these enterprises represent around 90% of the businesses and employ over 50% of the employees globally. Depending on deployment, the marketing automation market is divided into on-premises and cloud categories. Between these, the cloud category held the larger share in the market between 2015 and 2020, and it is predicted to retain its market dominance throughout the forecast period as well.
The mushrooming adoption of public cloud services is a major factor propelling the ballooning cloud expenditure. The marketing automation market is also categorized into services and solutions, based on offering. Amongst these, the services category is predicted to demonstrate higher growth rate during the forecast period. This is credited to the growing requirement for additional services, such as system support and maintenance, installation, and integration to enhance resource productivity, facilitate regular software updates, and streamline project lifecycle.
Geographically, North America contributed the highest revenue to the market in 2020, owing to the fact that numerous players focused on partnerships, client wins, and mergers and acquisitions in order to bolster their position. For example, Pipedrive Inc., which is a U.S.-based customer relationship management (CRM) company, completed the acquisition of Mailigen International Limited, which is a provider of email marketing automation solutions, in March 2020. This acquisition assisted Pipedrive Inc. in offering a better email marketing experience to its customers via effective communication and improved lead generation.
In the coming years, the Asia-Pacific (APAC) region is predicted to be the fastest-growing region in the marketing automation market. This will be because of the increasing penetration of the internet, growing popularity of social media platforms, surging retail and e-commerce industry, rapid advancements in the information technology (IT) sector, and growing focus of brands and companies on marketing and advertising their products and services on online platforms in the region.
Thus, the market will exhibit huge expansion in the coming years, mainly because of the growing internet penetration, rising adoption of digital marketing, and rapid digitization of operations.