• July 20, 2011
  • By Leonard Klie, Editor, CRM magazine and SmartCustomerService.com

Global CRM Market to Grow by $1.3 Billion in 2011

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The CRM market expanded by 6.2 percent last year, to reach $16.5 billion, according to the Worldwide Semiannual CRM Applications Tracker released by IDC. The forecaster expects the CRM applications market to continue along this trajectory throughout the year, with a gain of 7.6 percent, to reach revenue of nearly $18 billion.

In its revenue figures, IDC includes license and maintenance fees as well as income derived from software-as-a-service and other subscriptions.
Among particular segments within CRM, customer service solutions is expected to grow by 8.2 percent; the marketing applications segment is expected to expand by 8.8 percent; the sales applications market should grow by 8.6 percent; and the contact center market, which had experienced modest declines the past two years, is forecast to rebound to 5.4 percent growth in 2011.

“Despite its relative market maturity, CRM applications represent a vibrant market opportunity,” Mary Wardley, program vice president for CRM applications at IDC, said in a statement. “As a segment, CRM applications continue to evolve. With technology enhancements, such as social networking and social-ytics, 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 customer service segment, growth is expected to be strongest in the United Kingdom, Germany, and France, which are all forecast to increase by 8.2 percent this year. Australia, Brazil, Canada, China, India, and Russia are expected to drive strong growth in marketing applications. With the exception of Brazil, those countries are forecast to experience even stronger growth in sales applications.

The tracker covers more than 170 CRM vendors across the 13 largest geographical regions. Outside of 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). Oracle’s best results came from North America and Japan, whereas Salesforce.com’s strongest growth was from the Asia/Pacific region (excluding Japan), central and eastern Europe, the Middle East, and Africa.

News Editor Leonard Klie can be reached at lklie@infotoday.com.

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