A new report by the CDP Institute, reports there was strong growth in the industry in 2019, including fourteen new vendors and $236 million in new capital added during the second half. Employment was up 64% over the previous year and the Institute estimates industry revenue to grow from the current $1 billion to at least $1.3 billion in 2020. On another front, established Customer Data Platform vendors anticipate industry consolidation soon, given the maturity of the market.
Growth, according to the CDP Institute, will be driven by expansion outside the U.S. and entry of enterprise marketing vendors. Adobe, Microsoft, and Oracle all released RealCDPTM-compliant products during the period and Salesforce is expected to release one in mid-2020. RealCDP is the CDP Institute’s standard for capabilities required to provide expected CDP functions.
The dominant theme of the period was change. The period saw three acquisitions of CDP vendors by larger firms, four acquisitions of other firms by CDP vendors, seven major funding events, and the exits of nine firms through asset sales or repositioning. The trend continued in early 2020 with Salesforce’s February 3 acquisition of CDP Evergage. These developments show vendors positioning themselves to succeed in a crowded marketplace where no company has yet established a dominant position. The transactions were notably concentrated in the second tier of CDP vendors: eleven of the fourteen non-exit events involved firms ranking between 13th and 30th in the 101-company industry.
The CDP Institute assigns CDP vendors to four categories based on the functions provided by their systems. Categories are:
A free copy of the complete report is available at https://lp.cdpinstitute.venntive.com/DL2129-CDPI-Industry-Update-January-2020
About the Customer Data Platform Institute
The Customer Data Platform Institute educates marketers and technologists about customer data management. The Institute publishes industry news and educational materials, provides vendor comparison reports, builds directories of industry vendors and service firms, and offers Webinars, workshops, and consulting on related issues.
Customer Data Platforms are defined as “packaged software that maintains a unified, persistent customer database which is accessible to external systems.” They are the only types of packaged software specifically designed to create and share a complete view of each customer. Institute Founder and CEO David Raab named the Customer Data Platform category in 2013.