CRM market set to boom in 2008by
Slowdown, what slowdown? Worldwide CRM software revenue is set to surpass $8.9 billion in 2008, a 14.2 per cent increase from preliminary 2007 revenue estimates of $7.8 billion.
According to Gartner, the market is poised for healthy growth through 2012 when revenue is forecast to reach $13.3 billion. Gartner expects the strongest growth in CRM spending to come from Asia/Pacific where revenue is forecast to grow from $410 million in 2007 to $840 million in 2012. Emerging regions such as Latin America, Eastern Europe and the Middle East and Africa will see positive upward trends in CRM spending, particularly in specific industries. But for now the US is the largest market for CRM total software revenue, as it accounted for $4.3 billion of revenue in 2007, and it will total $7.6 billion in 2012. Europe is expected to exhibit steady, positive growth rising from $2.6 billion in 2007 to $3.9 billion in 2012.
"The composition of the worldwide CRM market is evolving as vendors continue to extend regionally, increase penetration within existing accounts and gain new clients, offer flexible deployment models, and continue to develop the channel," said Sharon Mertz, research director at Gartner. "Furthermore, vendor confidence and buyer intent to purchase going forward indicate an overall positive outlook for the market in the mid- to long-term, despite softening economic conditions."
SaaS will be a major growth trend. "Overall we expect software as a service (SaaS) to continue to gain popularity as an increasingly critical element of buying sourcing strategies and will continue to drive growth through 2012," said Mertz. "Buyer demand will continue to focus on applications that provide vertical industry functionality, business analytics and applications provided by best of breed vendors that deliver specific value."