First, there were stone tablets. Then there was pen and paper. Then came spreadsheets. But these were all exhausting, painstaking ways of keeping track of our relationships. Then came Customer Relationship Management (CRM) Software. CRM lets a user or company manage all of their business contacts, relationships, and interactions to improve relationships and streamline people-related business processes. CRMs started as simple spreadsheets and data entry automation software. Today's full feature CRM platforms not only automate contact management and interaction tracking, but they also incorporate lead management, email integration, document management, proposal management, workflow automation, lead scoring, sales analytics, and much much more. There are CRMs designed for salespeople in any industry, like Salesforce, SAP, Oracle, or Hubspot. There are also vertical specific CRMs like Affinity for Venture Capitalists and ARchitect for Industry Analyst Relations. Two decades ago, CRM market share consisted of a few large on-premise products from companies like Oracle and SAP. Then Salesforce disrupted CRM market share by coming in and leading the shift to cloud-based CRM. Salesforce stole CRM market share and paved the way for a new wave of CRM solutions providers. CRM applications automate critical business workflows, increase productivity, and most importantly for corporations, contribute to revenue. You can find CRM Market Size, CRM Market Share, and other trends and statistics below. You can get help with additional Customer Relationship Management industry market research here.
The chart shows the Customer Relationship Management - CRM Market Size from 2018 to 2023. In 2020, the size of the global CRM Industry was $37B and is projected to grow by 2.7% in 2021. From 2018 to 2023, Customer Relationship Management - CRM Industry growth is expected to average 2.8% per year. These estimates were made before the Coronavirus (COVID-19) pandemic. The short term impact of COVID-19 on the Customer Relationship Management - CRM market growth will likely be Low because companies embed critical data into CRMs that make it very difficult to switch or cancel a CRM software license. The long term impact of COVID-19 on CRM market growth beyond the COVID-19 pandemic will likely be Low because CRM is essential to business activities. Request help with obtaining the source for this data and additional CRM software market research here.
The chart shows Customer Relationship Management - CRM Market Share in 2017-2018. The CRM Market contains many large CRM providers with a long tail of small vendors. The leading vendor in the global CRM Industry was Salesforce with 19.5% market share in 2018, followed by SAP with 8.3% CRM market share, Oracle with 5.5% CRM market share, Adobe with 5.1% market share, Microsoft with 2.7%share, and Others with 58.9% share. More CRM market share is held by a highly fragmented set of CRM providers than in other enterprise software categories. The "Other" category includes companies like Hubspot, Freshworks, Zoho, Copper, Zendesk, and a host of other CRM vendors who have added CRM capabilities to their core products. Get help with market research for the CRM market, including the source for this CRM Market Share chart and other data here.
By one count, 91% of companies with more than ten employees use CRM. With that kind of saturation, where is the growth? Given the level of saturation, it is not surprising that Customer Relationship Management software growth is in line with GDP growth. Yet CRM market share still sees constant change. There are three primary areas of growth. The first is the cloud-based CRM. Cloud-based or SaaS CRM is the model that Salesforce pioneered, and that disrupted legacy CRM systems like Oracle and SAP two decades ago. The second area of CRM growth is mobile CRM. The workforce is increasingly mobile, and the COVID-19 pandemic will only reinforce this fact. The third area of CRM growth is the myriad of new CRM features, integrations, and capabilities. Choose a sales and marketing software buzzword, and it is likely either part of a CRM system or integrates with it. For most CRM users, it is not enough to have just contact and interaction management. CRM systems, especially SaaS CRM applications that are easy to update, offer more and more types of automation, analytics, and even features that integrate into content management systems. These include sales automation, email automation, marketing automation, lead analytics, sales analytics, and many other features.
Customer Relationship Management is a Mature market composed of many large CRM providers and many more small competitors. Salesforce market share was 19.5% of the Customer Relationship Management market in 2018. Salesforce launched in 1999 and was one of the companies that led the shift from software that is on-premise or on a computer to cloud-based Software as a Service (SaaS). Under the leadership of CEO and co-founder Marc Benioff, Salesforce disrupted the traditional method of delivering CRM and enterprise software. Salesforce CRM is the leading CRM and considered a leader in many Gartner Magic Quadrants and Forrester Waves. Second-place SAP market share was 8.3% of the CRM market in 2018. SAP CRM is part of the SAP ERP suite, primarily targeted to large enterprises. The Gartner Magic Quadrant considers SAP a leader or challenger in many CRM categories, while Forrester Wave classifies SAP as a leader or strong performer across a range of CRM categories. Oracle market share was 5.5% of the CRM market in 2018. Oracle sells a variety of CRM products, including the more traditional Oracle CRM On-Premise, cloud-based CRM, Social CRM, and other offerings. Gartner Magic Quadrants and Forrester Waves recognize Oracle's CRM products as leaders across most categories. SAP and Oracle were the primary companies whose CRM market share was disrupted by Salesforce. Adobe market share was 5.1% of the CRM market in 2018. Adobe Marketing Cloud is Adobe's CRM solution targeted to marketers. Adobe has a partnership with Microsoft Dynamics CRM to integrate its sales and marketing CRM platforms. It is an example of the convergence of traditional sales software and marketing software into an integrated platform. There are hundreds of other CRM solutions whose CRM market share is below 1%.
T4 comprehensively aggregated more than 100 reports from more than 25 publishers covering statistics and trends in the CRM Industry. This includes CRM Market Share, CRM Market Size by region, CRM sales by business size (small business, medium business, enterprise), revenue by industry vertical, revenue by deployment type, CRM adoption, cost, and more than 20 additional statistics. The industry falls under T4's Enterprise Software industry coverage. Several industries related to CRM in the T4 taxonomy include Marketing Software, Marketing Automation Software, Sales Software, Sales Enablement, Content Management System (CMS), Marketing Analytics, Sales Enablement Software, and Lead Generation Software. Related subcategories of the CRM Industry include Sales Acceleration Software, Sales Automation Software, Sales Analytics, Social CRM, Healthcare CRM, Contact Management Software, Customer Service Software, and Lead Scoring Software. You can find reports covering these industries on T4's Platform or learn about T4's additional research services here.
Schedule a Demo