Customer Data Platform Market Size: Key Takeaways
- As of July 2022, CDP Institute forecasts CDP industry revenue is at $2 billion for 2022, up 25 percent over 2021.
- There are currently 161 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 continue to grow.
Tracking CDP Market Growth
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 $2 billion for 2022, up 25 percent from $1.6 billion in 2021.
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 161 vendors in the CDP space.
- Campaign CDPs are the most common CDP type, with 38 percent of market share
- Thirty 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. The July 2022 update saw 11 new entrants to the market.
According to the CDP Institute: “The new firms were larger and better-funded than companies added in previous periods. This reflects the dominance of delivery CDPs (seven of the eleven additions), which are typically large, established businesses that have recently acquired or added CDP capabilities.”
What is The Size of the CDP Market by Employee Headcount?
The CDP Institute estimates that the CDP industry employee headcount grew percent across existing firms over the first half of 2022. Additional headcount was added to analysis with the inclusion of new vendors. Total employee headcount estimates are around 2,500 across the industry.
According to the July 2022 Industry Update: “The top 25% of CDP vendors, ranked by employment, account for 65% of employees and 83% of funding. The employee share of the top group has increased slightly in recent periods and the funding share has increased substantially. The average employee count of the companies in the top 25% is now 241, a figure that has grown by 70% as the average sizes of other groups have stagnated. As this suggests, larger companies have grown faster than smaller companies over the past six years and especially during the most recent report period, when the six-month rate reached 13%.”
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 Americas account for 47 percent of companies, 66 percent of employees, and 82 percent of funding. European vendors grew most rapidly in 2018-2019, but since then have lost share to APAC vendors.
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.