Wondering how the customer data platform (CDP) industry is growing and evolving? Save this page as we continually provide updated information on industry growth, use cases, ROI, benefits, capabilities, and much more.
CDP Industry Size and Growth
- The top 25% of firms grew employment by 14% over the six-month period. The rest of the industry grew by 4%. The top group’s share of employment reached a new high of 64%. The top group’s funding grew by 33%, to reach 75% of the industry total. (CDP Institute, Customer Data Platform Industry Update, January 2022.)
- Funding for the top five firms now averages $190 million, compared with $21 million for all others. Funding for the top 25% averages $79 million. (CDP Institute, Customer Data Platform Industry Update, January 2022.)
- The Global Customer Data Platform Market size is expected to reach $20.5 billion by 2027, rising at a market growth of 34% CAGR during the forecast period. (Research and Markets, Sept 2021)
- The worldwide customer data platform software market will grow at 19.5% CAGR from $1.3 billion in 2020 to $3.2 billion in 2025. (IDC Worldwide Customer Data Platform Market Shares, 2020: The Flight to First-Party Data Is On, and CDPs Win Big, 2020)
- Consumer businesses (both B2C or B2B2C) are increasing their CDP deployments. In 2017 10% of these companies were deploying a CDP, but in 2021, 24% were deploying one. (2021 CDP Institute User Survey, November 2021)
- The traditional core of the industry, companies founded from 2008 to 2012, has fallen from 44% in 2016 to 26% in 2021, but still accounts for 41% of employment and 61% of funding. (CDP Institute Industry Update 2021, July 2021)
- The global healthcare customer data platform market is expected to reach USD $1.6 billion by 2028. The market is expected to expand at a CAGR of 27.2% from 2021 to 2028. (Research and Markets, Oct 2021)
CDP Geographical Breakdown
- At the end of 2021, the CDP Institute had identified 25 APAC-based CDP vendors in eight countries. These firms had an estimated 1,689 CDP employees and €491 million ($559 million) in funding. (CDP Institute and Treasure Data, Customer Data Platform Industry in APAC, January 2022)
- EMEA accounts for 39% of companies, 27% of employees and 28% of funding in the global CDP industry. (CDP Institute and Treasure Data, Customer Data Platform Industry in EMEA, January 2022.)
- 2021 revenues for EMEA-based CDP vendors are at least €500 million. Sales in EMEA of vendors based elsewhere probably adds €200 million or more. (CDP Institute and Treasure Data, Customer Data Platform Industry in EMEA, January 2022.)
- 2021 revenues for APAC-based CDP vendors are at least €150 million ($170 million). Sales in APAC of vendors based elsewhere add €25 million or more. (CDP Institute and Treasure Data, Customer Data Platform Industry in APAC, January 2022)
- Campaign vendors account for more than 40% of the EMEA industry. (CDP Institute and Treasure Data, Customer Data Platform Industry in EMEA, January 2022.)
- The APAC industry is dominated by delivery CDP vendors, who account for nearly half (48%) of firms and 69% of employment. (CDP Institute and Treasure Data, Customer Data Platform Industry in APAC, January 2022)
- Market by Region – Americas 58.3%, EMEA 23.5%, and APJ 18.2%. (IDC Worldwide Customer Data Platform Market Shares, 2020: The Flight to First-Party Data Is On, and CDPs Win Big, 2020)
- U.S. firms now account for just 45% of all companies, but 58% of employment and 64% of funding. (CDP Institute Industry Update 2021, July 2021)
- The Americas still has the highest deployment rate (26%), compared with 21% in Europe and 20% in the Asia Pacific. In-process deployments are highest in EMEA while planned future deployments are highest in APAC. (2021 CDP Institute User Survey, November 2021)
- The United States is home to 64 CDP vendors with 6,548 employees and $2.2 billion in funding, accounting for 42% of industry vendors, 57% of employment, and 64% of funding. (CDP Institute Industry Update 2021, July 2021)
CDP M&A and Funding
- Industry funding rose by $556 million during the period, including $317 million raised during this period and $240 million raised previously by companies added in this report. (CDP Institute Industry Update 2021, July 2021)
- There were seven acquisitions, one merger, and one divestiture during the report period. Five firms were based in Europe and four in the United States. Only two of the acquired firms were in the top 25% of the industry by employment and none had more than $51 million in funding. (CDP Institute Industry Update 2021, July 2021)
- Firms listed in previous reports grew by 6% in employment and 10% in funding during the report period – (CDP Institute Industry Update 2021, July 2021)
- Large, mature delivery CDPs, based outside the U.S, and founded before 2013, averaged 90 CDP employees and $50 million in funding. Small, new data, analytics, and campaign CDPs, founded after 2014 and based largely in the U.S. and Europe, averaged nine employees and under $300,000 funding. (CDP Institute Industry Update 2021, July 2021)
CDP Use Cases
- 81% percent of people are in favor of companies using AI to personalize recommendations. (CDP.com, Getting Personal: Consumer Perspectives on AI in Marketing and Customer Service, April 2022)
- 60% of respondents said their CX will be managed via robotics and AI automation within 12 months. (Treasure Data, How to Leverage a CDP for Contact Center Success, March 2022)
- 96% of enterprises have adopted a plan to adopt a “digital first” business strategy. (IDG 2021 Digital Business Study)
- 63% say they are using customer data to influence product offerings while 43% say they are running a loyalty program that ties incentives to more than purchasing. (Treasure Data, Unified Data Operations and the Customer Experience in 2022, January 2022.)
- 62% say marketing and 59% say sales departments are heavy users of customer data, but more than 40% are now using it for contact centers, supply chain/inventory management and product teams. (Treasure Data, Customer Data Maturity Study, January 2022)
- 63% marketers use a CDP to map out customer journeys and personalize digital campaigns (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
- Martech is involved in 82% of use cases. Marketing operations and data science/ analytics staff are the next-most common use cases. (CDP Institute: CDP Use Cases: What Users Want, December 2021)
- 61% say that a CDP will be critical to their personalization efforts. (Segment:2030 Today, 2021)
- 49% say they will use a customer data platform for AI and machine learning use cases. (Segment:2030 Today, 2021)
- Primary use case for CDP include – acquisition (57%), customer value (65%), and retention (61%) (CDP Institute: CDP Use Cases: What Users Want, December 2021)
- Less than 50% of marketers have integrated data such as product usage, third party, social media, cookie, app, and offline data (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
(CDP Institute: CDP Use Cases: What Users Want, December 2021)
ROI of Customer Data Platforms
- A global cosmetics brand using a CDP and AI-based segmentation has achieved a 7x ROI in five months following implementation, 18% conversion rate increase using personalized banners, and almost 40% increase in return on ad spending (ROAS). (IDC MarketScape: Worldwide Customer Data Platforms Focused On Front-Office Users 2021–2022 Vendor Assessment, March 2022)
- More than half of marketers said payback was achieved within 6 months and 4 out of 5 saw positive ROI within 12 months. (Tealium 2022 State of the CDP, January 2022)
- 56% report positive financial impact as a result of utilizing customer data, but the benefits are largely among organizations with 20,000 or more employees (84%). (Treasure Data, Customer Data Maturity Study, January 2022)
- 43% said CDP brought significant improvements to ROI/ROAS. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
- 56.8% say they expect ROI of 5-10x from investing in a CDP. (Segment: 2030 Today, 2021)
- Just 7% of organizations measure CDP ROI based on revenue. (Tealium: 2021 State of CDP, 2021)
- 53% define ROI by cost savings as a result of implementing a CDP, while 58% measure ROI by sales and revenue growth. (Segment:2030 Today, 2021)
- Marketers have made some progress tying CDPs to operational savings, which is now the No. 1 way to measure CDP ROI, up from No. 2 in the 2020 report. (Tealium:2021 State of CDP, 2021)
- The most common KPIs over-all are number of users engaged and user satisfaction, but the most common KPIs for individual tasks are data quality for data assembly, user satisfaction for analytics, and results for predictive models, outbound campaigns, real time interactions, and cross-channel orchestration.(CDP Institute: CDP Use Cases: What Users Want, December 2021)
(Treasure Data, State of Customer Data Platforms, DATE)
CDP Benefits
- The top benefits of the CDP are a unified customer view (88%) and analytics (54%). (2021 CDP Institute User Survey, November 2021)
- 74% of C-suite executives believe that good quality data gives them a competitive advantage over other businesses. (Treasure Data, Better Decisions in the Age of Unpredictability, February 2022)
- Centralized customer data offers greater efficiencies (64%) and more business growth (57%). (Treasure Data, Customer Data Maturity Study, January 2022)
- 49% said the top benefit was the ability to unify customer data from multiple sources and platforms. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
- Members receiving high value from their CDP prioritized basic goals including the unified customer view, loading complete data, privacy compliance, lower reliance on IT support, and less time spent on data management. Members reporting lower value were more likely to seek capabilities that rely on external systems and business users, such as cross-channel orchestration, message selection, and improved delivery. (2021 CDP Institute User Survey, November 2021)
(CDP Institute: CDP Use Cases: What Users Want, December 2021)
CDP Challenges
- One-in-five consumers believe AI has a negative impact on customer service experiences. (CDP.com, Getting Personal: Consumer Perspectives on AI in Marketing and Customer Service, April 2022)
- Organizational readiness was the most common problem listed by members with a deployed CDP, cited by 25%. (2021 CDP Institute User Survey, November 2021)
- 34% say their data is siloed across tools/business units, while 34% say it can be difficult to collect valuable data from customers. (Treasure Data, Customer Data Maturity Study, January 2022)
- 33% are not satisfied with their ability to use data to engage their customers. (Treasure Data, Unified Data Operations and the Customer Experience in 2022, January 2022.)
- Almost two-thirds (62%) of respondents said it’s difficult to integrate new third-party solutions into their martech stacks. (Tealium 2021 State of CDP, 2021)
- (2021 CDP Institute User Survey, November 2021)
CDP Capabilities
- High-value CDP owners said loading data from all sources (75%) and identity matching (57%) were the most important CDP capabilities. (2021 CDP Institute User Survey, November 2021)
- Integration with more third-party solutions shot up from the No. 4 improvement marketers want in their CDPs in our 2020 report to No. 1 in the 2021 report. (Tealium 2021 State of CDP, 2021)
- Among auto manufacturers, use of customer data platforms (CDPs), programmatic advertising, and DMPs is higher while dealerships depend more on mobile apps and alerts. Frost & Sullivan Auto Industry Research: Where Do We Go from Here?, 2021)
- Building segments is the most widely required capability, across 72% of use cases. (CDP Institute: CDP Use Cases: What Users Want, December 2021)
- Advanced CDP products such as interactions and orchestration require basic tasks as a foundation. As a result, the most common task is data assembly (66%), followed by analytics (42%) and predictive models (35%).(CDP Institute: CDP Use Cases: What Users Want, December 2021)
CDP Budgets:
- 87% of marketers expect to increase tech spending in 2022, with 40% planning significant increases. (Tealium 2022 State of the CDP, January 2022)
- Between 50% and 60% of marketers said they increased spending in 8 of 9 critical technologies last year. (Tealium 2022 State of the CDP, January 2022)
- 47% expect to increase their CDP budget by 25+% in the next 5 years (Segment: Customer Data Platform report, 2021)
- 62% say they will spend over $100,000 on their CDP. (Segment’s 2030 Today, 2021)
Adoption of Customer Data Platforms
- 91% of respondents cited digital transformation as a primary driver of CDP adoption. (Tealium 2022 State of the CDP, January 2022)
- “Providing customer data as an enterprise service requires a cohesive ecosystem of which CDPs are a foundational technology.” – Gerry Murray, research director, Marketing and Sales Technology research practice at IDC (IDC Worldwide Customer Data Platform Market Shares, 2020: The Flight to First-Party Data Is On, and CDPs Win Big, 2020)
- 43% of brands have a fully-deployed customer data platform (CDP) and 31% are working to implement one. (2019 Marketing Technology Survey, November 2019)
- In 2020, the CDP became the de facto way for businesses to use their data intelligently and efficiently. (Segment: Customer Data Platform report, 2021)
- CDP deployment type is primarily Cloud at 96%, with 4% being On-Premise/Other. (IDC Worldwide Customer Data Platform Market Shares, 2020: The Flight to First-Party Data Is On, and CDPs Win Big, 2020)
- Nearly one-third of consumer businesses (32%) have a unified customer database, compared with 23% in 2017. (2021 CDP Institute User Survey, November 2021)
- 73% of companies report that a CDP will be critical to their customer experience efforts. (Segment: Customer Data Platform report, 2021)
- Campaign and delivery CDPs account for 67% of companies, while data CDPs now account for just 13% of companies. (CDP Institute Industry Update 2021, July 2021)
Privacy & Compliance
- 81% of people have privacy concerns over how AI is used for recommendations, customer service and support. (CDP.com, Getting Personal: Consumer Perspectives on AI in Marketing and Customer Service, April 2022)
- 92% consider a CDP important to their privacy and compliance efforts. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
- While the vast majority of firms (85%) attempt to comply fully with privacy regulations, the share that exceeds the legal minimum has declined from 28% in 2020 to 22% in 2021. The trend appears across all business types and regions. (2021 CDP Institute User Survey, November 2021)
- 51% use CDP for customer privacy (Segment: 2030 Today, 2021)
- 66% said the CDP plays a major role building GDPR/CCPA compliant marketing lists. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
- 62% say data collection and privacy is more important than predictive insights and customer acquisition (Tealium: 2021 State of CDP, 2021)
Satisfaction
- 58% of respondents with a deployed CDP said the CDP delivered significant value. (2021 CDP Institute User Survey, November 2021)
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