CRM Market Share Report
- Using an average among research firms that track and project CRM market size and growth, worldwide spending on customer relationship management software reached $52 billion in 2023 and is forecast to achieve $139 billion in 2030.
- The top 5 CRM market share leaders are Salesforce, Microsoft Dynamics, Oracle, SAP and Adobe. Salesforce dominates the global market with a 23.9% market share and more share than the next four competitors combined.
- The top 5 leaders make up less than half of the overall market.
Customer Relationship Management software buyers often consider market leaders to have staying power and be relatively safer bets. CRM software publishers use market share figures to jockey for competitive position, convey strength and infer buyer confidence.
However, most market leadership claims are based on arbitrary facts, self-serving numbers, and selective measures such as install base, company growth or other ways to slice the market.
We wanted to see what the data reveals. So, we compiled several sources to size up the market and measure market share for the leading vendors.
CRM Market Size & Growth
Measuring market size and forecasting growth isn't an exact science. Different research and analyst firms come up with different figures. So, we compared the data from the top 3 sources in the line chart below.
Statista calculates CRM market size and growth based on research data from Gartner. The company projects the global market to grow to $50 billion by 2025. That's a compound annual growth rate (CAGR) of 1.7 percent, a much smaller growth rate than the other two sources.
Gartner defines Customer Relationship Management as the four segments of customer service and support, digital commerce, marketing, and sales. The analyst firm advises marketing software is the fastest growing segment, increasing by 18.8% and representing more than 25% of the entire market. They also share that customer service and support is the top segment, contributing 36% of market revenue. The analyst firm also reports that Customer Relationship Management software has overtaken database management systems to become the fastest growing software market.
According to Grand View Research, the global CRM market size was valued at $58.8 billion and is forecast to grow 13.9% annually through 2030. Grand View also reports that over 91% of companies that employ more than 10 people use CRM software. However, according to Statista, only 16 percent of businesses consider their company's delivery of customer interactions across touch points and devices to be effective. Despite a mature technology, much learning remains.
Market Research Future projects the CRM market to grow from $35.15 billion in 2022 to $114.6 Billion by 2030, exhibiting CAGR of 12.7% during the forecast period.
CRM Market Insights
Despite some differences, the three above sources share several consensus points.
- North America is the region with the highest adoption and accounts for about 44 percent of the global market.
- The Asia Pacific region is the fastest-developing geography and is forecast to grow about 16 percent annually.
- The retail segment accounts for the largest market share by industry.
- The small and midsize business sectors will incur higher growth than the enterprise sector.
- According to PWC, digital transformation and customer experience management are the top two business drivers fueling CRM growth.
- Artificial Intelligence (AI) is the technology driver that will most bolster growth. CRM publishers are tightly integrating AI, machine learning, and natural language processing into their applications.
CRM Market Share by Publisher
Salesforce is the clear market share leader.
The data shows that Salesforce has over four times the share compared to the vendors vying for the number 2 position. Or put another way, Salesforce has more share than the next four vendors combined.
Additionally, the company is growing faster than its competitors. These factors suggest that Salesforce is widening its leadership. The company's install base (over 150,000 companies) is becoming stickier as customers adopt more Salesforce clouds. Over 60% of company revenues now come from preexisting customers, and the company continues to make progress with falling attrition rates.
The data show Microsoft, Oracle and SAP jockeying for the number 2 position. However, when considering the trajectories, SAP and Oracle are stagnant while Microsoft continues to climb. Microsoft will assume the clear number two market position if trending continues.
CRM Market Share Insights
Many pundits suggest that the top vendors are increasing their collective market share. The data show otherwise. Using IDC data, all vendors other than the top 5 group grew their collective market share from 46 percent in 2007 to 56 percent in 2023.
Adobe is the newcomer to the top 5 list. It does not offer a similar application scope (i.e., sales force automation and customer service applications) compared to the other four but its Customer Experience Cloud is the market share leading solution in the marketing software category.
CRM software vendors other than the top 5 are gaining ground, suggesting the market is becoming less top heavy.