Customer Data Platform Market

According to Stratistics MRC, the Global Customer Data Platform Market is accounted for $4.78 billion in 2022 and is expected to reach $31.77 billion by 2028 growing at a CAGR of 37.2% during the forecast period. Customer data platform (CDP) is a packaged software that generates a persistent, unified customer database, available to other systems. It offers certain features related to consumer interaction and behaviour. To provide a single, comprehensive perspective of each client, it gathers and combines first-party customer data from many sources. Platforms for customer data enhance omnichannel customization and customer experiences. It removes data silos and boosts productivity and income for the business.

According to the survey analysis of SAS Institute, by 2030, there will be over 67% of engagement between a consumer and brand using digital devices, such as online, mobile, etc., rather than humans.


Market Dynamics:

Driver:

Integrating artificial intelligence & machine learning

AI enables marketers to provide individualized experiences by automating routine procedures, developing consumer groups, and changing page portions. Large amounts of data are analyzed using machine learning, which speeds up the campaign testing and improvement process. Leading CDPs use AI and ML throughout all of their operations. These tools continuously assess how customers' identities change over time. Businesses are collecting and storing vast amounts of data. This technique aids marketing teams in making collective, intuitive judgments in real-time, hence accelerating the market's growth, by identifying trends, making forecasts, and providing suggestions that are useful to marketers.

Restraint:

Lack of flexibility

The majority of customer data platforms are based on a strict data model that is incompatible with the data architecture of a corporation. As they redesign their data to fit the unique model of the CDP, the data team will spend a lot of late hours working. Companies that want to use them must adhere to their schema, which cannot be modified to meet specific business needs. Businesses could struggle to integrate a CDP with their data collection if it contains proprietary items or a hierarchy. This factor is impeding the market expansion.

Opportunity:

Rapid technological advancements

Customer data platforms are used to a greater extent due to the rise in digital end users. The firm will be forced to use intelligent and automated machinery as a result of the introduction of new technologies, especially artificial intelligence and machine learning, in order to improve customer experience and provide them with better service. The quick development of technology also gives feed personalization algorithms the capacity to give customers more customized experiences. Modern technology has also changed how consumers and brands interact.

Threat:

Privacy concerns

The customer data platform is extremely susceptible to hacking attempts and data breaches. The organization uses third-party programs that are installed inside the premises of a company. Because the data platform depends on the security of these third-party organizations and technologies, these third-party tools generate security risks. Cybercriminals take advantage of these new entry points to infiltrate company systems with malware by using stolen credentials and unpatched security flaws. The privacy issues are thus expected to have a significant negative impact on the market for consumer data platforms.

Covid-19 Impact

The industry for consumer data platforms has been significantly impacted by the COVID-19 epidemic. Numerous firms have challenges in providing employees with proper access to reliable information due to the pandemic's global expansion. Organizations should invest in infrastructure that enables access to the company's accumulated records in order to maintain exact business inflow. As a result, it is currently creating a sizable demand for the sector.

The platform segment is expected to be the largest during the forecast period

The platform segment is estimated to have a lucrative growth. The platform component examines data coming from click streams, social media sites, and IoT devices. They frequently use interactive dashboards to give efficient outcomes. Additionally, the platform gives users the ability to detect high-value groups, improve machine learning using high-quality data, and predict a customer's future actions. As a result, consumer data platforms are widely used across many industries, which is likely to lead to strong segmental development.

The retail & e-commerce segment is expected to have the highest CAGR during the forecast period

During the projected period, the retail and e-commerce industry is predicted to develop at the quickest CAGR. In order to access a large consumer base, e-commerce and retail operations are booming. Customers are also paying more attention to digital services, which serves as a catalyst for the category demand around the globe. Additionally, as online shopping becomes more popular, merchants are being compelled to rethink their delivery strategies and enhance customer interactions across all channels and touch points. As a result, the industry's expansion in the retail and e-commerce sectors finally increased segment demand and opened the door for industry expansion.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to the broadening industry verticals. Due to the region's numerous industrial participants and their diverse activities and clientele, these solutions are more easily accessible there. The most competitive and rapidly evolving customer data platform (CDP) markets are found in the US and Canada. There are 72 CDP vendors with American headquarters. Moreover, throughout the projected period, the market in this area will develop even more due to the expanding use of big data technologies across several sectors and the rising expenditures made by businesses in data analytics.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to rising digitalization. The platform is being used by marketers and advertisers as a result of factors such growing digitalization, big data, and data analytics, as well as developing government restrictions related to the protection of the customer's information. Additionally, the long-term contracts and agreements with the digital solution providers connected to the long-term company prospects are paving the way for acquiring a competitive edge over competitors in the sector. As a result, it may increase demand in the near future for the customer data platform, which opens up profitable potential for the market across geographies.



Key players in the market

Some of the key players profiled in the Customer Data Platform Market include Orcale, Microsoft, Amazon Web Services, Adobe, SAP, Acquia, BlueConic, Databricks, SAS Institute Inc, Amperity, Dun & Bradstreet, Leadspace, Zeta Global, Upland Software, Tealium and Teradata.

Key Developments:

In March 2023, Adobe announced the launch of generative AI model Firefly. The new AI model will also be available for use in other products offered such as Creative Cloud, Document Cloud, Experience Cloud and Adobe Express offered by the company.

In March 2023, Microsoft creates new opportunities for partners through AI offerings and expansion of Microsoft Cloud Partner Program. The Program meets the changing needs of customers and helps the partners succeed with its robust set of dedicated partner offerings, including new designations that align to their six commercial solution areas across Azure, Modern Work, Security and Business Applications.

In February 2023, Amazon Web Services (“AWS”) and Rebura have entered into a multi-year Strategic Collaboration Agreement (“SCA”) that will see the two companies continue to work closely together to expand their services to customers. The agreement helps further underline Rebura’s relationship with AWS, and its success in helping businesses around the world to have a laser focus on the way they use their digital infrastructure to grow.

In March 2022, Oracle Cloud Infrastructure (OCI) is expanding with 11 new computer, networking, and storage services and capabilities that enable customers to run their workloads faster and more securely at lower costs. New offerings provide customers with truly flexible core infrastructure services, automatically optimizing resources to match application requirements and significantly reduce costs.

Components Covered:
• Platform
• Professional Services
• Support & Maintenance

Deployment Modes Covered:
• Cloud
• On-Premises

Organization Sizes Covered:
• Small Enterprises
• Medium Enterprises
• Large Enterprises

Capabilities Covered:
• Audience Management
• Open Access
• Identity Management
• Real-Time Analytics
• Other Capabilities

Applications Covered:
• Predictive Analysis
• Personalized Recommendations
• Customer Retention & Engagement
• Marketing Data Segmentation
• Security Management
• Other Applications

End Users Covered:
• Healthcare
• Telecom & IT
• Travel & Hospitality
• Media & Entertainment
• Retail & E-commerce
• BFSI
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances