Marketing Automation to Reach $6.3 Billion by 2026

Research firm Global Industry Analysts (GIA) valued the worldwide marketing automation market at $3.9 billion in 2020 and expects it to reach $6.3 billion by 2026, growing at a compound annual rate of 8.6 percent.

Of those totals, GIA expects cloud-based software to grow at a 9.6 percent CAGR to reach $4.6 billion by 2026, while the on-premises segment will see a 6.8 percent CAGR for the next seven years. On-premises deployments currently account for a 37.3 percent share of the total marketing automation market, the research found.

GIA says the growth of the overall market is being driven by the rise of digital advertising, sharp increases in e-commerce, and the surging popularity of social media. Companies are also increasingly relying on digital media marketing techniques, such as search engine marketing, social media marketing, online advertising, and mobile advertising while continuing to engage in traditional channels. Other advanced technologies impacting market growth include voice-based marketing, artificial intelligence, and mobile platform integration.

GIA estimates the U.S. market for marketing automation at $1.2 billion, accounting for a 29.3 percent share in the global market. China, the world's second largest economy, is forecast to reach $898.4 million in 2026 following a CAGR of 10.6 percent. Japan and Canada are forecast to grow at 7.1 percent and 7.4 percent respectively. Germany is forecast to grow at approximately 8.3 percent CAGR, while the rest of Europe will reach $989.3 million by 2026

Among the 252 solution vendors identified, the report highlights Acoustic, ActiveCampaign Act-On Software, Adobe, HubSpot, IBM, Keap, Klaviyo, Microsoft, Omnisend, Oracle, Salesforce, SugarCRM, SAP, SAS Institute, SharpSpring, and Thryv as the major industry players.