Startup City Magazine

Customer Relationship Management Software Market Grew 13.3 Percent in 2014, Gartner


Bangalore: Worldwide customer relationship management (CRM) software totaled $23.2 billion in 2014 which is 13.3 percent up from 20.4 billion in 2013, says Gartner, Inc. According to the CRM table, the top 10 CRM vendors accounted for more than 60 percent share in 2014 and increased 14 percent over 2013. The top 10 vendors in 2014 had very little change in ranking compared with 2013. However, with the notable exceptions of Sales force and Microsoft, most vendors in the top 10 only held their positions or they lost share in 2014.

Taking about the market, Joanne Correia, Research Vice President, Gartner says, “Large vendors leveraged their acquisitions to extend their position in new markets and to enrich the depth of their current feature sets in 2014. We saw market consolidation continue and price wars started quickly as large vendors fought to keep their installed base from moving to other vendors and to stop the descent of their maintenance revenue”.

She also added “Strong demand for SaaS has been continues with accounting for almost 47 percent of total CRM software revenue in 2014. This is driven by organizations of all sizes seeking easier to deploy and faster ROI alternatives to modernizing legacy systems, implementing new applications, or providing alternative complementary functionality”.

Concerning the over worldwide CRM market, buyers’ preference for SaaS and strength in the sales sub segment kept Salesforce in the No. 1 position for the worldwide CRM market and raised the company to the No. 1 position in customer support. Pure play vendors generally saw strong revenue growth as midsize and large organizations sought to build out digital market and customer experience capabilities.

However, North America and Western Europe continued in double digits as North America continued to generate the bulk of revenue about 52.3 percent. The two regions represent 78.6 percent of all CRM software spending and both saw mid double digit growth in 2014.

On the other side, Asia/Pacific grew the fastest, with growth of 18.7 percent in 2014, while Eurasia, greater China and Latin America also experienced good growth in the low double digits, even though growth was slower than in 2013 due to economic issues. The Middle East and North Africa and mature Asia/Pacific continued their build outs and saw healthy growth, while sub-Saharan Africa saw the lowest growth.

More than 23 percent of 2014 CRM spending was in the communications, media and IT services industries because they focus on large groups using call center technologies and have mobile field service and sales organizations. Manufacturing including consumer packaged goods is not far behind, with companies in this industry using CRM for product and channel management. Third ranked is banking and securities, in which customer service experiences and up selling to other financial products is core to growth, including through enhanced analytic capabilities.


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