What Is The Size Of The Customer Data Platform Market?

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Customer Data Platform Market Size: Key Takeaways 

  • CDP market size is up 19 percent from 2021, with industry revenue project to reach $1.9 billion. 
  • There are currently 152 defined vendors in the CDP space, with a span of offerings. 
  • Larger, more well-funded CDP vendors are experiencing higher headcount growth compared to smaller vendors
  • The United States holds the largest market share, but Europe and APAC are growing rapidly

The customer data platform market is growing. But what is in store for the future of the industry?

To get the answer, we turned to research from CDP Institute, a definitive source of industry data and analysis. The CDP Institute describes the customer data platform as “packaged software that creates a persistent, unified customer database that is accessible to other systems.” Vendors included in their biannual Industry Update reports meet the CDP Institute’s definition of a CDP. 

CDP Industry Revenue Projections Into 2022

The CDP Institute estimates industry revenue at $1.9 billion for 2022, up 19 percent from $1.6 billion in 2021.

Source: CDP Institute

How Big is the CDP Market by Vendor?

In addition to total industry revenue, the CDP Institute tracks industry size by the number of vendors in the space, as well as the number of employees at those vendors who are dedicated to CDP-specific offerings. Occasionally, the CDP Institute removes vendors from their list due to a clearer understanding of their products or as a result of changes in the products or in the company’s business. When companies are removed by CDP Institute, they are excluded from prior period analysis.

As of 2022, the CDP Institute is tracking 152 vendors in the CDP space.

  • Campaign CDPs are the most common CDP type, with 39 percent of market share
  • Twenty-eight percent are delivery CDPs and have been taking share from Campaign CDPs

In its January 2022 Industry Update, the CDP Institute notes that the industry has entered a new stage of maturity. While past periods saw upwards of 22 new entrants, the second half of 2021 saw just four new entrants: Adabra, Revenate, Tail and Unito.

Source: CDP Institute

According to the CDP Institute: “With few new entrants, the distribution of vendors by CDP type, region, founding year, and other attributes remained largely the same. Organic growth rates have been similar across the different vendor segments in recent periods.”

What is The Size of the CDP Market by Employee Headcount?

The CDP Institute estimated that 1,375 employees were added to CDP companies during the report period. Nearly all of these new hires came from vendors previously listed in CDP Institute’s reports. This is different from past periods, in which newly added vendors provided the majority of the increase.

According to the January 2022 Industry Update, “The top 25 percent of firms, based on employee count, grew employment by 14 percent over the six-month period. The rest of the industry grew by just 4 percent. The top group’s share of employment reached a new high of 64 percent. The top group’s funding grew even more rapidly, by 33 percent, to reach 75 percent of the industry total.”

Source: CDP Institute

The average employee count of the companies in the top 25 percent is now 216. This employee count of the top 25 percent has grown in recent reports, while the sizes of groups outside the top 25 percent have declined. In other words, larger companies have grown more quickly than smaller companies.

What Is The Size of the CDP Market By Region?

CDP vendors based in the U.S. are larger and better funded compared to vendors in other regions. Vendors located in the United States account for 45 percent of companies, 61 percent of employees, and 75 percent of funding. European vendors grew most rapidly in 2018-2019, but since then have lost share to APAC vendors.

Source: CDP Institute

CDP Institute’s data shows that U.S. and European vendors show similar age and type distributions, while APAC are younger and more concentrated in delivery CDPs. U.S. vendors are larger than European and APAC vendors, especially among Data CDPs and Analytics CDPs.

For more about the evolution of the CDP, check out our complete history of the data management industry.

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