Marketing Automation Market Analysis Report By Solution, By Deployment, By Enterprise Size, By End Use, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global marketing automation market size was USD 4.06 billion in 2019. It is projected to expand at 9.8% CAGR over the forecast duration, 2020 to 2027. The growth of marketing automation is fueled by the increasing penetration of the internet, increasing penetration across industries, and the growing use of mobile devices. In addition, rising demand for customized advertising, growing demand for well-informed advertising, and emphasis on customer retention are supplementing the growth of the market. Further, the advent of the latest technologies such as big data, data analytics, and IoT is anticipated to propel market growth.

Marketing automation helps organizations in building superior customer engagement by removing repetitive tasks and assisting the marketing team to focus on different critical aspects of the business. The technologies work for customer retention, lead generation, and customer lifecycle marketing among others. As reported by Internet World Statistics, Globally, internet penetration stands at 58.8% as of 2019. Internet penetration is predicted to grow by 9% annually. In addition, 45% of the world's population is using social media in one form or another. Thus, increasing social media penetration and internet connectivity are driving market growth.

There has been a significant change in the way consumers are perceiving information, researching products, and sharing information. Customers are more aware of conventional tactics of marketing and they tend to avoid them. They are well equipped with different gadgets and rely on the information procured through social media, search engines, and blogs. Thus, changing consumer behavior provides an opportunity for marketing agencies to offer an enhanced consumer experience.

With rapid digitalization, solution providers are heavily relying on the use of AI, search engine optimization, and data-based promotion. AI is estimated to boost the world’s GDP by 14% by 2030. In addition, the digital marketing face is being changed by the introduction of programmatic advertising. As estimated by eMarketer, nearly 86% of the digital ads that are displayed today will be programmed by 2020. Automation technologies help in lowering down acquisition costs and achieving higher conversation.

Owing to the increasing incorporation of automation technologies, the market is seeing a shortage of trained professionals who could draw actionable insights from the available analytics solution. However, cloud technology along with SaaS and IaaS has resulted in large players acquiring small players and offering “marketing cloud” solutions to them.

Solution Insights

By solution, the marketing automation market is segregated into inbound marketing, lead nurturing & lead scoring, social media, email, campaign management, reporting & analytics, and others. In 2019, the email marketing solution accounted for the largest share in the market. The rising use of mobile devices and the growing popularity of email services are attributing to its growth. In addition, cost-effectiveness and easy customization of content is further making email advertising popular. However, increasing use of analytics is projected to drive the demand for other marketing solutions in the next few years.

Reporting & analytics solution is likely to grow with the fastest pace over the forecast duration. This solution helps in provide insights about performance along with tracking success, thereby, improving return on investment and offering future trends. Further, AI has enabled businesses in offering personalized content and offering enhanced consumer experience with virtual assistance and chatbots. In addition, companies are also offering Content Management System (CMS) and Customer Relationship Management (CRM) to provide a solution that can cater to various needs.

Deployment Insights

Market players use on-premise and cloud as deployment methods. Cloud is the most used method and estimated to retain its dominance over the forecast duration. Cloud ability to offer flexibility and scalability is the major factor driving the market growth. As estimated by industry experts, nearly 60% of overall workloads are cloud-hosted in 2019.

A software suite called “marketing cloud” provides marketing functionalities like automation, targeting, and content. Moreover, the integration of various marketing tools like social management, analytics tools, and emails is anticipated to drive cloud adoption in the next few years. Salesforce in 2018 acquired Datorama to strengthen its integration abilities and expand its presence in the different markets.

End-use Insights

Depending on the end-use, the market is categorized into healthcare, telecom & IT, government, BFSI, retail, and others. In 2019, telecom & IT accounted for the largest share in the market. The prevalence of a huge number of B2B companies in telecom & IT is the major factor in driving the market growth. On the other hand, the discrete manufacturing sector is likely to witness the highest CAGR from 2020 to 2027.

In the past, manufacturing industries deployed automation technologies on the work floor but the sales department lacked automation technologies. However, growing digitalization has brought automation in marketing as it helps in reaching consumers more effectively. In the manufacturing sector, marketing automation has improved the conversion of lead by 107% as found in the recent survey.

Enterprise Size Insights

By enterprise size, the marketing automation market is categorized into small & medium enterprises and large enterprises. At the beginning of the automation technologies, only large enterprises applied automation technologies in their system. However, increasing digitalization has prompted SMEs to reach the consumer effectively, thereby boosting its adoption. Considering this, a large number of SMEs are integrating automation technologies in their system.

B2B industries have adopted this technology in the beginning. These industries include software, business services, and manufacturing. However, in the recent past, a large number of B2C companies like healthcare, retail, media & entertainment, and financial services are adopting these solutions. Growing focus on customer retention and strengthening customer base is driving the B2C segment. Thereby, growing adoption by small and medium enterprises is anticipated to drive the growth of the market.

Regional Growth

Europe and North America are expected to be the major market owing to the early adoption of technologies in these regions. Regulatory pressure and the recent reform in data protection rules in the EU are driving the adoption of marketing automation in the region.

On the other hand, APAC is projected to witness the fastest growth from 2020 to 2027 owing to the rising internet penetration, growing awareness about effective promotion strategies, and an increase in the number of mobile devices. In addition, growth in the manufacturing industries in India and China is attributing to marketing automation.

Further, increasing the use of social media for digital advertising is also bolstering the growth of Asia Pacific. For example, Weibo, Tieba, and WeChat have become leading advertising platforms in China. As per Tencent, over 55% of the Chinese people use WeChat as their primary social media platform.

Impact of COVID-19

The outbreak of COVID-19 has generated a mixed response to marketing automation. There has been a significant drop in conventional advertising, which in turn, has boosted the adoption of automation technologies in various end-user industries. However, companies have reduced their expenditure on advertising following the economic crisis caused by COVID-19, thereby, adversely affecting the market growth. Reduced expenditure also means that low spending on procuring innovative advertising technologies. Moreover, companies’ expenditure on advertising is also related to GDP growth. With the declining GDP growth, the overall advertising market is expected to witness a significant reduction in demand.

Marketing Automation Market Share Insights

The market is highly competitive owing to the presence of several players. Key market players include Adobe Inc., HubSpot, Inc., IBM Corporation, Oracle Corporation, Teradata Corporation, Marketo, Inc., and Keep among others. Owing to the increasing demand for marketing automation services, industry players are investing a huge amount of money in developing innovative solutions. Major strategic initiatives undertaken by key players are merger & acquisition, innovative product development, partnerships & development, and others.

Adobe Inc., in June 2018, acquired an open-source platform for e-commerce, Magneto Commerce. This acquisition is estimated to assist Adobe with content creation, end-to-end advertising, and analytics among others. In addition, this acquisition will help Adobe solidifies its position by providing experience-based commerce to merchandise and brands.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global marketing automation market report on the basis of solution, deployment, enterprise size, end-use, and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2027)
    • Campaign Management
    • Email Marketing
    • Inbound Marketing
    • Mobile Applications
    • Lead Nurturing & Lead Scoring
    • Reporting & Analytics
    • Social Media Marketing
    • Others

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)
    • On-premise
    • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)
    • Large Enterprises
    • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Million, 2016 - 2027)
    • BFSI
    • Retail
    • Healthcare
    • Telecom & IT
    • Discrete Manufacturing
    • Government & Education
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • MEA