As enterprises continue to invest in front-office applications, worldwide CRM software revenue is forecast to exceed $7.4 billion 2007, up 14 percent from $6.5 billion in 2006, according to a new report from technology research firm, Gartner, Inc.
The strong performance of the CRM software market is being fueled by growth across all subsegments and the explosive growth of software as a service (SaaS) solutions within the sales subsegment. In 2006, SaaS represented 12 percent of total CRM software revenue, and it is on track to reach nearly 14 percent in 2007. By year-end 2007, SaaS is forecast to represent more than $1 billion in CRM software revenue, growing at more than double the rate of the total CRM software market.
In addition, the report shows that the worldwide CRM software market will experience healthy growth through 2007; however growth will slow in the next 12 to 18 months because of the downstream impact of economic conditions, but also because the market size overall will increase. The market is forecast to grow to more than $11.4 billion in total software revenue by 2011.
More information can be found at www.CRMindustry.com.