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The customer data platform market size is projected to increase by USD 19.02 billion, at a CAGR of 32.12% between 2023 and 2028. The growth rate of the market depends on several factors, including the rising demand for personalized customer services in the retail industry, the increasing focus on customer engagement, and the increase in strategic investments by enterprises. A customer data platform is software that collects and unifies customer data and creates a customer profile, which can be used on different platforms and media networks by marketing companies for advertising. Customer data refers to the behavioral statistics and demographic data, which is collected for better communication and understanding of customer behavior.
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Rising demand for personalized customer services in the retail industry is the key factor driving market growth. Investing in personalized customer services allows retailer systems and processes to meet rising customer expectations. The customer data platform is the key to organizing and using consumer-related data in order to create better and more personalized experiences for customers. Personalized services enable retailers to understand the individual preferences of their customers in terms of product choices, sizes, styles, and preferred communication channels. Such factors enable retailers to target specific customer segments with relevant marketing messages and promotions.
Additionally, the growth in e-commerce and the personalization of customer services in online shopping play a major role in the business expansion of online retailers. Features such as personalized product recommendations, customized landing pages, and individualized shopping journeys enhance the online shopping experience of customers. Therefore, the rising demand for personalized customer services in the retail industry will foster the growth of the market during the forecast period.
Rising demand for omnichannel platforms is the primary trend shaping market growth. Aligning with market trends and analysis, the demand for omnichannel platforms from marketers to track customer behavior drives the demand for customer data platforms. Omnichannel refers to a customer-centric approach that integrates all channels, including online and offline, to deliver a unified and consistent brand experience across all physical stores and websites. This approach ensures that customers can interact seamlessly with the brands across different platforms and helps enhance their overall brand experience.
Moreover, customer data platforms play a crucial role in enabling and enhancing omnichannel strategies, as they act as a central hub for collecting, organizing, and unifying customer data from various touchpoints, allowing businesses to create a seamless and personalized omnichannel customer experience. Numerous enterprises across various industry verticals are adopting omnichannel strategies in order to enhance their customer experience, streamline operations, and remain competitive in the increasingly digital landscape. Therefore, the rising demand for omnichannel platforms will drive market growth during the forecast period.
Concerns regarding customer data privacy is a challenge that affects market growth. Customer data platforms are responsible for collecting and storing confidential customer data, including contact details, purchase history, and behavioral data. Any failure to follow proper regulations related to customer data gives rise to the risk of unauthorized access, such as data breaches, which lead to financial and reputation losses for enterprises using customer data platforms. Moreover, customer data platforms widely use cloud services To store the data.
Additionally, the trend of multi-tenancy in the cloud and the concept of sharing computational resources, data storage applications, and services among different users results in several challenges to data privacy. Consequently, rising concerns related to data privacy have led to the enactment of stringent data protection regulations, such as the General Data Protection Regulation in the EU, to protect customers' private data. Thus, such factors may impede market growth during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. The demand for on-premises customer data platforms is growing significantly as it helps in processing customer data for personalization and deriving customer-centric solutions while keeping the data highly secured. Additionally, the on-premises model offers unique data processing workflows in customer data platforms, which is lacking in cloud-based customer data platforms.
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The on-premises segment showed a gradual increase in the market share of USD 1.14 billion in 2018. Furthermore, organizations mainly deal with critical data, so they increasingly prefer to rely on the on-premises model, as it is more secure due to end-to-end quality control and no third-party interference. Such on-premises deployments ensure greater control over data, security, and infrastructure. Therefore, the on-premises segment of the global customer data platforms market is expected to witness significant growth during the forecast period.
The large enterprise segment is growing owing to rapid economic growth and stability, low-interest rates, the availability of funding and capital, and technological advancements and innovations. The growth of the large enterprises segment plays a major role in the growth of the global customer data platform market. Customer data platforms have become increasingly important in large enterprises, such as those operating in the automotive industry, large-scale retail corporations, and others. Further, customer data platforms provide large enterprises with the ability to expand their customer base and gain higher market shares. Hence, such factors drive the growth of the large enterprises segment and, in turn, promote the growth of the customer data platform market during the forecast period.
The Customer Data Platform market research report includes a comprehensive outlook on the Customer Data Platform Market, offering forecasts for the industry segmented by Deployment, which comprises on-premises and cloud based. Additionally, it categorizes End-user into large enterprises, and small and medium size enterprises, and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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