Marketing Automation Market

Marketing Automation Market Outlook (2024 to 2034)

The global marketing automation market is projected to advance at a CAGR of 14.6% during the 2024-2034 forecast period. As such, worldwide revenue from marketing automation solutions is forecasted to reach US$ 26.68 billion by 2034, up from US$ 6.83 billion in 2024.

The ever-increasing use of smartphones across the world is a key factor behind marketing automation market size expansion. Customer retention and lead generation are becoming key tasks for digital marketing channels in today’s scenario, which is driving the marketing automation market at a sturdy pace.

Demand for marketing automation solutions is increasing due to the increasing digitalization of businesses and rising internet penetration. Some of the primary causes projected to drive the rise of marketing automation are the rising demand for targeted advertising, the need to retain users for business growth, and the requirement for a data-backed advertising strategy.

Market growth of marketing automation is also being driven by the increasing use of IoT devices, rising availability of big data and data analytics solutions, and the need for in-depth business automation and insights.

Key Market Growth Drivers

• Popularity of IoT-connected devices is growing, which allows for the generation of larger volumes of multifaceted user data, which helps promoters craft more relevant marketing campaigns, which are more likely to succeed in lead generation, consumer acquisition, and retention.
• Marketers are using artificial intelligence (AI) and marketing automation to automate and optimize processes throughout the marketing workflow.
• In today's digital environment, businesses are using new and innovative strategies to reach out to and influence their prospects. An increase in the number of marketing channels suggests that people are producing more data through more varied means.
• Nowadays consumers appreciate genuine and customized interaction with brands, due to which companies are widely using marketing automation solutions to provide more personalized experiences and content to increase customer satisfaction and engagement, aiming to increase conversion rates.
• The increasing number of marketing channels, such as social media, email, mobile applications, and websites, are making the marketing field extremely complex, which is positively impacting the marketing automation market growth.
• Marketing companies are widely using marketing automation solutions as they ensure a consistent and well-coordinated client experience by assisting sellers in managing multi-channel campaigns effectively.
• For marketing companies, gathering and evaluating consumer data for future use is essential. Because of this, marketing automation demand is increasing, as it offers strong analytics and reporting capabilities, which enables the promoter to optimize tactics, show ROI, and make well-informed decisions.
• Marketing automation helps the human workers in marketing teams concentrate on strategic and creative endeavors by reducing manual and repetitive chores.
• The latest marketing automation market trend boosting its popularity is the growing incorporation of AI and machine learning to improve consumer segmentation, predictive analytics, and personalization.

Report Attribute	Detail
Marketing Automation Market Size (2024E)	US$ 6.83 Billion
Forecasted Market Value (2034F)	US$ 26.68 Billion
Global Market Growth Rate (2024 to 2034)	14.6% CAGR
North America Market Value (2024E)	US$ 2.25 Billion
East Asia Market Growth Rate (2024 to 2034)	15.8% CAGR
Software Segment Value (2034F)	US$ 19.74 Billion
BFSI Segment Value (2034F)	US$ 5.6 Billion
Key Companies Profiled	Adobe; Hubspot; Salesforce; SAS; Oracle; Acoustic; Act-on Software; SendinBlue; Activecampaign; Simplycast; Reelo; Maino.ai; ConvertWay; DRB Systems.

Why is Application of Marketing Automation Increasing Worldwide?

“Growing Number and Usage of Social Media Channels”

Continuous growth in the usage as well as the sheer number of digital marketing channels, such as websites, apps, email, and numerous social media, is boosting the demand for marketing automation due to the increasing complexity of handling all media channels. Managing multi-channel marketing is becoming extremely complex, and because of this, digital marketing companies are widely opting for marketing automation programs, as they help to make procedures simpler. Marketing automation software or solutions enable companies to plan, organize, and carry out campaigns across various media with ease.

Because of this development, customer experience is improving markedly, because marketing automation ensures that the messaging in the communication is coherent and consistent, as well as enabling personalization within the set parameters of the marketing campaign to appeal to specific consumers or consumer groups. Businesses are increasing client engagement and boosting conversion rates by utilizing marketing automation while saving time and decreasing manual errors in one stroke.

What’s the Key Challenge in Using Marketing Automation Solutions?

“Integration Issues with Existing Systems”

One of the key hurdles in the way of expansion of the marketing automation market is integration issues. Sometimes it can be difficult and time-consuming to integrate the latest marketing automation software with existing databases, CRM systems, and other technologies.

Improper integration and implementation can lead to inefficiencies such as inaccurate or redundant client data, leading to disjointed and wasteful marketing campaigns. This may result in companies failing to garner an accurate picture of the customer landscape and even actual customer decisions, leading to further inefficiencies down the line.

Country-wise Insights

The North American region is projected to hold 33% of the global marketing automation market share in 2024. Presence of leading technology companies, advanced digital marketing practices, high internet speed, and various other components are driving market expansion in the region.

What is the Demand Outlook for Marketing Automation in the United States?

“Most Advertising Companies Adopting Automation to Enhance Marketing Campaigns”

Attribute	United States
Market Value (2024E)	US$ 1 Billion
Growth Rate (2024 to 2034)	14.3% CAGR
Projected Value (2034F)	US$ 3.83 Billion

In the United States, using consumer data to inform and enhance future marketing campaigns is now becoming a key component of data-driven advertising strategies. To gain a deeper understanding of consumer behaviors, preferences, and campaign effectiveness indicators, advertising companies in the United States are widely using marketing automation for their analytics and reporting features. With marketing automation solutions companies can segment their consumers more efficiently, create customized messaging, and maximize the output of their marketing efforts by utilizing customer data in marketing through various media.

Marketing automation technology ultimately results in increased engagement, conversion rates, and ROI by boosting more meaningful customer interactions while improving targeting precision.

Why is Integration of Marketing Automation Increasing in Japan?

“High Focus on Improving Efficiency and Productivity of Advertising Operations”

Attribute	Japan
Market Value (2024E)	US$ 463.8 Million
Growth Rate (2024 to 2034)	16% CAGR
Projected Value (2034F)	US$ 2.04 Billion

Marketing automation is being widely used by advertising companies in Japan to improve productivity and efficiency in operations. Automation of repetitive operations such as lead nurturing, email campaigns, and customer segmentation can help firms free up precious resources and simplify workflows. Advertising companies are demanding marketing automation to concentrate more on the strategy behind the data analysis. Because of this, companies are maximizing outputs from their marketing expenditure, and ultimately strengthening their competitive advantage in the market.

Category-wise Insights

Based on deployment, the market is segmented into cloud-based and on-premise. The cloud-based marketing automation segment holds a significant market share because cloud-based solutions are easily scalable, meaning companies can quickly adjust their capabilities and resources to meet changing needs without incurring the upfront costs of on-premise solutions or equipment.

Why is Demand for Software Higher Compared to Marketing Automation Services?

“Software Allowing Better Flexibility Compared to Select Services”

Attribute	Software
Segment Value (2024E)	US$ 5.33 Billion
Growth Rate (2024 to 2034)	14% CAGR
Projected Value (2034F)	US$ 19.74 Billion

Demand for marketing automation software is mostly higher in comparison with services as it is more budget-friendly. Marketing automation software helps companies automate ad placement, targeting, and performance tracking across various digital media as per their need. By hiring professionals to handle marketing automation software, companies can run, edit, build strategies, and other aspects as per their needs and resources. Because of this, various companies prefer using software instead of choosing services.

By using software, advertising companies can do better in terms of improving engagement and target campaigns based on analysis of consumer behavior and preferences.

Why is Need for Marketing Automation Increasing in the BFSI Sector?

“Useful in Making Data-Driven Decisions and Strategies”

Attribute	BFSI
Segment Value (2024E)	US$ 1.5 Billion
Growth Rate (2024 to 2034)	14.1% CAGR
Projected Value (2034F)	US$ 5.6 Billion

Utilization of marketing automation is increasing in the banking, financial services, & insurance (BFSI) sector due to growing competition. In the BFSI sector, personalized communication and targeted marketing are becoming extremely important for consumer acquisition and retention. Marketing automation is helping BFSI companies simplify the management of their marketing tactics by efficiently delegating repetitive tasks such as email, campaigns, customer segmentation, lead nurturing, analytical reports, and various others to the automation program.

Another reason behind the growing adoption of marketing automation in the BFSI sector is the importance of data-driven decision-making. Marketing automation software provides BFSI companies with various features with which they can effectively use consumer data to make more refined and productive marketing strategies and create cross-selling opportunities.

Competitive Landscape

Key players in the marketing automation industry are focusing on providing tier-based pricing structures to support companies of all sizes and requirements, from start-ups to large corporations. This strategy drives revenue by attracting a larger client base.

• In July 2024, DRB announced the release of Catalyst, a technology for marketing automation that optimizes and streamlines carwash marketing. The Patheon point-of-sale and business optimization platform from DRB is natively integrated with Catalyst, enabling carwash operators to use extensive customer data for highly targeted and customized marketing campaigns.
• In June 2024, ConvertWay, a customer data and marketing automation platform designed specifically for the eCommerce industry, was launched by Shipway, an all-in-one shipping aggregator platform. In today's market, it is more difficult to achieve high website conversion rates due to increased ad expenses and customer acquisition costs (CAC). ConvertWay has the potential to change this by helping businesses turn website visitors into paying customers and keep them around for longer.
• In June 2024, India Quotient Advisers LLP led a fundraising effort for digital marketing technology startup Maino.ai, which raised INR 15 crore, or approximately US$ 1.8 million. Janhavi Parikh, Karan Bedi, and other notable angel investors also entered the round.
• In April 2024, startup Reelo, which focuses on marketing automation and customer loyalty, raised US$ 1 million. With the money, Reelo will be able to move faster toward its goal of providing underserved small and midmarket restaurant and retail businesses with enterprise-level data analytics and artificial intelligence marketing solutions.
• Adobe's journey optimizer gained mobile marketing personalization features in February 2022, allowing users to better engage their customers on smartphones. Message Designer, which allows users to create personalized email, push notifications, and in-app messages for customers on mobile devices from a single console; personalized app experiences, which consider app usage and other factors; and unified customer profiles, which drive analytics in workflows, are among the seven new capabilities added to the program.
• The Dynamics 365 Marketing December 2021 update allows users to construct journey branches based on any attribute, track unsubscribed customers in real-time marketing insights, and manage Microsoft Teams meeting options from the Dynamics 365 Marketing app.

Fact.MR provides detailed information about the price points of key providers of marketing automation solutions positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Marketing Automation Market Research

• By Component :

  • Software
  • Services

• By Application :

  • Campaign Management
  • Email Marketing
  • Lead Nurturing & Lead Scoring
  • Social Media Marketing
  • Inbound Marketing
  • Analytics & Reporting
  • Other Applications (Site Tracking, Activity Tracking, and Sales Conversion Tracking)

• By Deployment :

  • On-Premise
  • Cloud

• By Organization Size :

  • Small- & Medium-Sized Enterprises (SMEs)
  • Large Enterprises

• By Vertical :

  • BFSI
  • IT & Telecom
  • Travel & Hospitality
  • Healthcare & Lifesciences
  • Retail & Consumer Goods
  • Education
  • Media & Entertainment
  • Manufacturing
  • Other Verticals (Government, Logistics & Transportation, Automotive, and Energy & Utilities)

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa