Contrasting Gartner’s CRM Predictions
In 2013, Gartner published a report forecasting various enterprise software markets. The report predicted an increase in the CRM market from $20.6B to $36.5 B worldwide, leading all enterprise software categories in projected growth, showing a 15.1% compound annual growth rate (CAGR) from 2012 to 2017. It went on the describe that by 2017 it would eclipse ERP spending worldwide staying well ahead of other business tools like Business Intelligence, Supply Chain Management and Web Conferencing.
Fast-forward to today; let’s contrast these predictions from Gartner with the realities of the CRM market. The following results were extracted from another Gartner article published in May 2015 : The article described that the market grew 13.3% between 2013 and 2014, going from $20.4B in 2013 to $23.2B in 2014, this falls short of Gartner’s original prediction of $27.7B. Moreover, CRM software market is projected to grow at a 14.8% (CAGR) through 2017, this is 0.3% less than originally predicted. ERP solutions have maintained their place as the top spending software applications. Additionally, Gartner points out that 60% of all the CRM revenue is generated by the top 10 CRM vendors. Among the top fastest growing solutions providers are Salesforce, Microsoft and IBM.
Gartner’s forecasting reports show that enterprises are realizing the value in maintaining and managing, long-term customer relationships. However, results show that the market hasn’t reached the predicted growth. This could be due, in part, to the fact there is an increase in other, previously neglected, enterprise software markets like Business Intelligence and Program Management solutions.
Posted by Alvaro Tassano on InterConnectaon under: