Customer Data Platform Market Size: Key Takeaways
- As of January 2023 2022, CDP Institute forecasts that CDP industry revenue will reach $2.3 billion in 2023 – a modest growth over $2 billion forecast in 2022.
- There are currently 171 defined vendors in the CDP space.
- 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 2023
As of January 2023 2022, CDP Institute forecasts that CDP industry revenue will reach $2.3 billion in 2023 – a modest growth over $2 billion forecast in 2022.
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 January 2023, the CDP Institute is tracking 171 vendors in the CDP space.
- Campaign CDPs are the most common CDP type, with 36 percent of market share. Delivery CDPs follow, at 32 percent.
- Eleven new CDP vendors were added in January 2023. Nearly half of the new CDPs added to the category are classified as analytics or data CDPs.
In its January 2022 Industry Update, the CDP Institute noted 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. The July 2022 update saw 11 new entrants to the market.
What is The Size of the CDP Market by Employee Headcount?
The CDP Institute estimates that the CDP industry employee headcount dropped in the latter half of 2022. While new vendor additions to the report account for increases, industry-wide hiring remained sluggish. Sixty-one companies reported drops in overall employee counts.
According to the CDP Institute, this could be indicative of over expansion in previous quarters. Recent economic slowdowns and uncertainty could also be impacting pace of hiring.
“Firms with an employment drop were on average larger and had grown more quickly than firms with an employment increase. This suggests those firms overexpanded and were cutting back in anticipation of a business slowdown.”
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 46 percent of companies, 63 percent of employees, and 83 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.
For more about the evolution of the CDP, check out our CDP funding data and CDP mergers and acquisitions data.