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IDC Forecasts Global CRM Market to Grow by More Than $1.3 Billion in 2011
Prediction highlights IDC's Worldwide Semiannual Customer Relationship Management Applications Tracker.
Posted Jun 22, 2011
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The global CRM applications market enjoyed a solid recovery in 2010 with year-over-year growth of 6.2 percent and revenue of $16.5 billion, according to the Worldwide Semiannual Customer Relationship Management Applications Tracker released today by IDC. IDC expects the CRM applications market to continue on this trajectory in 2011 with revenue approaching $18 billion on 7.6 percent year-over-year growth.

"Despite its relative market maturity, CRM applications represent a vibrant market opportunity," said Mary Wardley, program vice president for CRM applications at IDC. "As a segment, CRM applications continue to evolve. With technology enhancements, such as social networking and socialytics, today's CRM applications are helping organizations deliver the next level in intimacy and insight. In an interconnected world of global commerce the customer experience and relationship will be the key differentiator."

"Within the CRM applications market, three of the four functional markets are forecast to grow at above-average rates for 2011," said Wilvin Chee, associate vice president of worldwide software trackers. "The customer service and marketing applications markets are forecast to grow at 8.2 percent and 8.8 percent respectively, while the sales applications market will grow 8.6 percent year over year in 2011. Meanwhile, the contact center market, which experienced a modest decline in 2010, will rebound to 5.4 percent year-over-year growth in 2011."

Within the customer service market, three of the top 5 large countries (the United Kingdom, Germany, and France) are forecast to grow at an 8.2 percent annual rate in 2011, while Australia, Brazil, Canada, China, India, and Russia are expected to drive strong growth in the marketing applications market. With the exception of Brazil, these countries are forecast to experience even stronger growth in the aales applications market.

Despite consisting of just four functional markets, the overall CRM applications market remains fragmented, with many vendors vying to gain share. Outside the top three vendors, a total of 19 vendors achieved more than $100 million in CRM software revenue during 2010, representing more than 35 percent of total market share. Oracle, SAP, and Salesforce.com were the only vendors to amass more than $1 billion in CRM software revenue worldwide in 2010. Oracle held the top spot with 11.8 percent global market share in 2010, while Salesforce.com had the strongest year-over-year growth (27.4 percent) among the top three. Oracle's best results came from North America and Japan, whereas for Salesforce.com, the strongest growth was from the Asia/Pacific (excluding Japan), Central and Eastern Europe, the Middle East, and Africa.


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