CRM revenues moving up; Europe and Asia Pac to get slice of the pie

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Total CRM software application revenues will increase from $9.4 billion worldwide by the end of 2001, to approximately $30.6 billion in 2005, according to a new report* from Cahners In-Stat Group.

While North America currently represents the majority of operational CRM revenues, Europe and Asia Pacific are expected to experience significant growth over the next five years.

Although the global economy continues to struggle and software spending has slowed, In-Stat believes that long-term, CRM will remain a high priority for companies.

“The current economic slowdown has led to modest performance between 2000 and 2001 for CRM application revenues, most prevalently in the more established operational CRM market. And, although the growth rates for the smaller markets of analytical and interactive CRM were strong, they were comparatively lower than in previous years,” said analyst Kirsten Cloninger. In contrast, In-Stat believes that the future holds promise. Beginning in 2002, operational CRM revenues are expected to grow between 30-40% through 2005.

While the revenue potential of CRM worldwide is high, competition is also fierce. The CRM landscape is expected to remain volatile, with analytical and operational CRM solutions continuing to overlap.

As this trend continues, In-Stat anticipates that the next 12 months will witness additional consolidation among analytical and operational vendors. As a result, growth in analytical CRM revenues will begin to decline, as operational vendors include analytical capability and increasingly absorb analytical revenues.

In-Stat has also found that:
• The United States is expected to reach roughly $8 billion in operational CRM revenues by 2005, accounting for roughly 44% of all operational CRM revenues worldwide. Operational solutions are defined as those that automate and manage processes associated with customer interactions of sales, marketing, service through either phone or web.

• Already sizable markets, Europe and Asia Pacific represent the next huge growth opportunity for CRM vendors. With e-business development continuing to expand globally and the concept of CRM growing in popularity, operational CRM revenues are expected to reach roughly $3.6 billion in Europe, and approximately $2.7 billion in Asia Pacific by 2005.

• The largest firms in the U.S. represent, and will continue to represent, the most opportunity for CRM vendors; though other markets, namely mid-sized businesses, may make attractive growth segments in the future. Large companies are expected to generate approximately $1.9 billion in operational CRM revenues by the end of the year, accounting for roughly 78% of the U.S. revenues. Expected to total $490 million by the end of this year, the mid-market will grow rapidly, starting next year. As opportunities in the U.S. enterprise market begin to decrease around 2004, the mid-market is expected to constitute a greater portion of revenues, as solution providers begin to focus more attention on them.

* The Three Faces of CRM - Analysis of the Worldwide Customer Relationship Management Marketplace (Part 1: Operational CRM) (#EC0105ST), provides worldwide revenue forecasts for the total CRM applications market, as well as the category termed “operational CRM.” Operational CRM revenues are further forecasted by geographical region worldwide, licenses versus hosted revenues, and by size of business in the United States. The report is the first of a three-part series that covers the interrelated methods by which businesses manage customer relationships: operational, analytical and interactive.
For more information, contact [email protected].

About Cahners In-Stat Group
The high-tech research firm provides the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions. In-Stat is a unit of Cahners Business Information and a member of the Reed Elsevier plc group.

Cahners In-Stat

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By admin
30th Jul 2001 14:01

Hi! Kindly visit our web site at www.spectrasolution.com where you will find a presentation under the seminar topic [
under Asia's 1st e-Exhibition] on CRM solutions with a difference [ TM regsd.] . It's doccumented in the form of a book.
Soon you will the demo sample too appearing under the power point presentation.

If interested the marketing rights , may be we can work together .
bye & Regards
Ram

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