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CRM Revenues
Worldwide Moving On Up;
Europe and Asia Pac to Get Their Piece of the Pie
SCOTTSDALE, Ariz., July 24, 2001
- Cahners In-Stat Group (http://www.instat.com) projects that total
CRM software application revenues will increase from $9.4 billion
worldwide by the end of 2001, to approximately $30.6 billion in
2005. In the first study of a three part series, the high-tech market
research firm finds that 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," says Kirsten
Cloninger, Industry Analyst with In-Stat's eBusiness Group. 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 twelve 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 report, The
3 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 3 part series that covers
the interrelated methods by which businesses manage customer relationships:
operational, analytical and interactive.
To purchase these reports, or for more
information, please contact Chris Kissel at 480.609.4531; ckissel@instat.com.
The report is priced at $2,995.
Cahners In-Stat Group (http://www.instat.com)
covers the full spectrum of digital communications research from
vendor to end-user, providing 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 (http://www.cahners.com),
a leading provider of critical information and marketing solutions
to business professionals and a member of the Reed Elsevier plc
group. .
For more information,
contact:
Kirsten Cloninger,
Industry Analyst - eBusiness
Phone: 617.558.4942
Email: kcloninger@instat.com
Kirsten Skedd,
Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com
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