Marketing Automation Software Market

Global Marketing Automation Software Market Size

The global marketing automation software market was worth USD 6.96 billion in 2024. The global market is anticipated to be worth USD 21.11 billion by 2033 from USD 7.87 billion in 2025, growing at a CAGR of 13.12% during the foreseen period.

Marketing automation software is a platform developed for marketing professionals and departments to automate various repetitive marketing tasks. With marketing automation software, companies can streamline, automate, and measure marketing tasks such as emails, social networks, media, and workflows to increase operational efficiency and revenue growth.

MARKET DRIVERS

Hyper-personalization is one of the prime factors boosting the growth of the global marketing automation software market.

Marketing automation software provides companies with tailored experiences, builds stronger customer relationships, and optimizes the customer journey process. More than 70% of customers predict customization and grow impatient if it does not materialize. This trend is increasing the demand for marketing automation software solutions among companies to serve their target audience better. One study says personalized experiences across platforms and touchpoints are necessary since over 85% of consumers make in-store and online purchases.

An enhanced omnichannel marketing strategy is also driving the global marketing automation software market forward. Customers utilize over six touchpoints on average these days, with half consistently engaging more than four. Like, the U.S. company's omnichannel strategy increased revenues by nearly 25% in one quarter, with digital sales rising by more than 190%. Over two-thirds of the company's online transactions were completed by its physical locations, which helped it overtake rivals in the industry. Recent studies state that more than 75% of consumers are unwilling to purchase from a company that does not provide an integrated omnichannel experience. After having several bad encounters, close to 80% of consumers would pick a different business, whereas 59% of customers purchase from a rival, giving a better purchasing experience.

The growing adoption of account-based marketing (ABM) is propelling the growth of the marketing automation software market. It increases the conversion rates of marketing qualified leads (MQL) to sales accepted leads (SAL) by 25% and overall account engagement by 28%, among other important sales KPIs.

MARKET RESTRAINTS

The cost and return on investment are restricting the growth of the global marketing automation software market. The high upfront costs of advanced MAS continue to be a barrier, a measurable return on investment is even more important now. For businesses to justify the cost, new capabilities like AI and personalization must provide a clear return on investment. Talent shortage for advanced features is also limiting the market expansion. There is a skill vacuum because advanced technologies like AI and ABM demand specific expertise to implement and use. Furthermore, it is still tough for smaller MAS suppliers to compete in terms of cost and popularity because of the market dominance of established competitors like HubSpot and Adobe.

MARKET OPPORTUNITIES

The rising adoption of AI and ML is expected to provide more opportunities than we see today. The next marketing revolution is predicted to come from AI and ML. Organizations gain a competitive edge by implementing AI and ML in marketing automation software, eliminating human error, labor expenses, repetitive processes, and manual labor. Additionally, it enables businesses to increase productivity and enhance the accuracy of client targeting. The application of artificial intelligence and machine learning in marketing automation solutions allows wider outreach, client retention, productivity gains, improved customer experience, and lead-scoring prediction. Furthermore, marketing automation vendors will have many options to expand their operations thanks to AI and ML.

MARKET CHALLENGES

The inflation and geopolitical tensions have intensified economic concerns, which makes businesses hesitant to invest in expensive software like MAS. Also, the marketing budgets have been tightened due to this. Data privacy and security are also hindering the growth of the market. In 2023, the emphasis has switched from ensuring compliance with developing laws to building trust with clients over data usage. Data privacy regulations such as the CCPA and GDPR remain significant. Concerns regarding algorithm bias and its ethical effects are raised by MAS's growing dependence on AI. In the coming years, a new but critical problem will require addressing these worries by transparent AI development and ethical data practices.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Vertical Insights

Based on vertical, the manufacturing and distribution segment is projected to be one of the fastest-growing markets in the coming years. The market is expected to grow significantly in the manufacturing sector due to the growing global economy and the need for businesses to expand their market presence. Marketing automation software helps automate bidding and quoting processes, offering a holistic view to the marketing department. Popular channels include email and social media marketing, allowing manufacturers to address customer needs in real time. The industry is also implementing marketing automation solutions to become more customer-centric and expand its global reach.

By Application Insights

Based on application, the email marketing segment held the biggest market share in the global marketing automation software market, followed by the lead nurturing and lead scoring segment with the quickest predicted growth. By automating their correspondence, email marketers can avoid the headache of composing and distributing new messages each time a prospect expresses interest in a business, a customer leaves a cart, a discount is initiated, and so forth. During the forecast period, this will support the application segment growth.

By Deployment Model Insights

Based on the deployment model, the on-premises segment is expected to contribute more to the global marketing automation software market during the forecast period. Although the initial investment for on-premises marketing automation solutions adoption is higher than for cloud deployment, there are no ongoing charges associated with ownership. Since customer data is now easily accessible from mobile devices, there is a greater need for customer data security, which is expected to fuel the growth of this segment. This has increased the volume of data transfer between business parties and raised the risk of cyberattacks and data losses.

By End Users Insights

Based on end-users, the small and medium enterprises segment is anticipated to propel at a faster pace in the future. They are increasingly incorporating automation solutions into their systems due to the digitalization of industries, increasing internet and mobile device penetration, and the need to effectively reach consumers. Manufacturing, software, and business services were among the industries with the highest number of early adopters of this technology, or B2B industries. The rise of the B2C segment can be attributed to the growing demand for software solutions that monitor client acquisition and retention strategies in real-time. Therefore, during the projection period, the use of automation in sales and advertising by small and medium-sized businesses is expected to fuel market expansion.

REGIONAL ANALYSIS

North America has the biggest share of the global marketing automation software market. The primary drivers of market growth during the forecast period are the rising presence of marketing automation vendors, extended government support, and expanding company demand for a strategic marketing approach aimed at producing and distributing relevant and valuable material to draw in and engage a specific audience. Both product sales and brand image are impacted by social media. With more merchants offering their items online platforms, online shopping is growing in popularity in the area. Extensive data is generated by tracking consumer behavior in stores and online.

Europe is expected to propel at a higher CAGR in the coming years. The market is anticipated to have a huge scope in the region due to several major variables, including the expanding use of 5G networks, SaaS cloud services, growing usage of digital marketing, and rising demand for data integration services. Since most end-user verticals are investing more in marketing and social media penetration is constantly rising, the area is likely to become a lucrative hub for the studied market, which will lead to considerable growth in the market during the projection period.

Asia Pacific is estimated to witness significant growth in the marketing automation software market during the forecast period. It has great sales potential, and global companies like Amazon have made substantial investments because of the increased Internet usage in the region, which has boosted e-commerce development. Local companies like Rakuten and Alibaba have become recognized and expanding quickly. With a diversified ICT sector, which includes multimedia, wireless infrastructure, payments, telecommunications, geospatial, agricultural, and healthcare IT, Australia and New Zealand have adopted technological innovations. These ICT development initiatives are projected to boost marketing automation software usage in Australia and New Zealand going forward.

Latin America is expected to move forward at a consistent pace in the future. The market for marketing automation software is dominated by Brazil. Government funding for development and digitization is one of the main drivers of the region. In addition, the industry has grown rapidly in recent years due to rising expenditures in technology like the cloud. Additionally, a growing emphasis on education has led to a rise in the use of marketing automation software. Throughout the projection period, the market for marketing automation software will be driven by the huge expansion that cloud solutions are anticipated to have.

Middle East and Africa are anticipated to register a faster growth rate in the global marketing automation software market. Turkey emerges as the dominant player in the regional market. The market expansion is supported by initiatives. The development of the IT sector is currently assisted by increased investments in the technology sector, improved connection, expanding infrastructure, and economic diversification. In addition, the growth of the IT sector is bolstered by increasing investments in cyber security by both public and private entities. As a result, the Middle East and Africa area has an attractive market for marketing automation software due to the strong expansion of the IT sector.

KEY MARKET PLAYERS

Companies playing a promising role in the global marketing automation software market include Oracle Corporation, IBM Corporation, Adobe Systems Incorporated, Salesforce.com Inc., HubSpot Inc., Teradata Corporation, Act-On Software Inc., SharpSpring Inc., SAS Institute Inc. (SAS), Infusionsoft Inc., ActiveCampaign Inc., and others.

RECENT MARKET HAPPENINGS

• In August 2023, IBM officially unveiled Watsonx, its next-generation artificial intelligence and data platform, with a business focus on the launch of its first advertising campaign.
• In August 2023, IBM and Salesforce established a partnership to assist companies globally in accelerating the use of AI for CRM. The two companies collaborated to enhance customer, partner, and employee experiences while ensuring data protection.

MARKET SEGMENTATION

This research report on the global marketing automation software market has been segmented and sub-segmented based on vertical, application, deployment mode, end-user, and region.

By Vertical

• Academic and Education
• Advertising and Design
• BFSI
• Healthcare
• High Tech
• Manufacturing and Distribution
• Media and Entertainment
• Retail

By Application

• Campaign Management
• E-mail Marketing
• Mobile Application
• Inbound Marketing
• Lead Nurturing and Lead Scoring
• Reporting and Analytics
• Social Media Marketing

By Deployment Model

• On-Premises
• Cloud Hosted

By End Users

• Small and Medium Enterprises (SMEs)
• Enterprises

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa