Customer Data Platform Market Size: Key Takeaways
- CDP industry growth remained sluggish in the second half of 2023. Net employment grew by 390 employees and total funding grew by $117 million. Both represent a 2% increase over the previous period and are the smallest increases on record, according to CDP Institutes January 2024 Customer Data Platform Industry Update.
- There are currently 180 defined vendors in the CDP space.
- The CDP industry continues to attract start-ups. Of the ten firms added during the January CDP Institute report, six are data and analytics CDPs, seven were founded in 2019 or later, and nine have fewer than 50 employees.
Tracking CDP Market Growth
The global CDP Market size is projected to grow from $5.1 billion in 2023 and $7.4 billion in 2024 to $28.2 billion by 2028, at a compound annual growth rate (CAGR) of 39.9% during the forecast period (2024-2028), according to report by MarketsandMarkets.
CDP Industry Revenue Projections
Despite the slowdown, CDP Institute forecasts $2.5 billion in revenue for 2024, up from $2.3 billion in 2023. The increase is below the historical average but in line with 2023 results.
CDPs Still Attracting Investment
In 2023 Simon Data saw a $52 million Series D and Klaviyo was valued at $8.5 billion in its IPO. Other CDP-related transactions included purchase of Easyence by mediarithmics; purchase of PUSHTech by Cendyn; merger of Adabra and Neodata to create Blendee; and acquisitions of CrossEngage and Datatrics by Spotler Group. Only Whenwhyhow dropped out of the CDP industry altogether.
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 2024, the CDP Institute is tracking 180 vendors in the CDP space.
Larger firms outperform smaller firms. The top 25% of companies had an organic growth rate of 2.1% for this period, nearly double the industry average. Their long-term average growth is 8% compared with an industry average of 6%. The top 25% account for 65% of employees and 80% of funding. The five largest firms account for 16% of employment and 13% of funding.
What is The Size of the CDP Market by Employee Headcount?
Organic employment growth improved slightly, from just over 0.5% in the first half of 2023 to 1.1% in the second half. The fraction of firms with an employment increase rose from 62% to 65%, according to the CDP Institute January 2024 Customer Data Platform Industry Update.
What Is The Size of the CDP Market By Region?
The U.S. continues to account for the bulk of industry, with 46% of companies, 63% of employees, and 83% of funding. European vendors are smaller and less funded than others. APAC vendors have an especially high share of newer and larger delivery CDPs.
For the most up-to-date information on the CDP Industry, check out these 2024 reports from Gartner, courtesy of Treasure Data.
- 2024 Magic Quadrant for Customer Data Platforms (Gartner)
- This is the inaugural Magic Quadrant for the CDP industry. The Gartner Magic Quadrant for Customer Data Platforms reveals the relative position of 17 technology providers for CDPs. https://www.treasuredata.com/i/gartner-mq/ (Note: Reg. required)
- 2024 Critical Capabilities for Customer Data Platforms (Gartner)
- In the 2024 Gartner Critical Capabilities for Customer Data Platforms report, you can evaluate 17 CDP vendors and their capabilities to determine which platform is right for your Use Cases. https://www.treasuredata.com/i/gartner-cc/ (Note: Reg. required)
