CRM Applications Market on Better Footing
The global customer relationship management (CRM) applications market enjoyed a solid recovery in 2010 with year-over-year growth of 6.2 percent and revenues of $16.5 billion, according to the International Data Corporation (IDC) Worldwide Semiannual Customer Relationship Management Applications Tracker.
IDC expects the CRM applications market to continue on this trajectory in 2011 with revenues approaching $18 billion on 7.6-percent year-over-year growth.
Despite consisting of just four functional markets, the overall CRM applications market remains fragmented with many vendors vying to gain share. 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 had the strongest year-over-year growth (27.4 percent) among the top three. Oracle’s best results came from the North America and Japan regions, whereas for Salesforce.com, the strongest growth was from the Asia/Pacific (excluding Japan) and Central & Eastern Europe, Middle East and Africa (CEMA) regions.
Within the customer service market, three of the top 5 large countries (UK, 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 same countries are forecast to experience even stronger growth in the sales applications market.