By John Chan, ISM Software Lab Director
After an extensive analysis of the current CRM marketplace, here are the main points concerning the CRM market today which ISM has recently discovered:
The CRM industry continues be a robust, with a total 2010 worldwide revenue of $16.5 billion and a forecast of the global CRM market growing at a 6.9% compound annual growth rate (CAGR) for a total revenue of $23 billion in 2015. For North America, there was $9.3 billion in revenue for the CRM market in 2010 and IDC foresees the CRM market growing at a 6.9% CAGR until 2015 for a total market revenue of $12.9 billion. Out of all CRM application segments, the marketing automation applications segment is forecast to have the highest growth from 2010 -2015, with an 8.2% CAGR over this five-year period.
The SaaS model continues to penetrate the CRM market, accounting for 26% of the total enterprise CRM market revenue in 2010 and is expected to account for 50% of the total enterprise CRM market revenue in 2020. SaaS-based CRM will grow twice as fast as on-premise CRM solutions. The CAGR for all CRM software is forecast to be 6.9% for 2010 through 2015, and 12.9% for SaaS-delivered CRM during the same period. During this 2010 – 2020, on-premises applications will be predominate in large companies for their analytics, strategic planning, marketing and campaign management functionality. Small and mid-size companies will continue to lean towards the SaaS model due to their resource and budget constraints.
At present, a lot of the traditionally smaller CRM market players are now entering the enterprise market. For the CRM mid-market, there is also increasing movement among large CRM vendors who want to play in the mid-market space.