The global CRM applications market enjoyed a solid recovery in 2010 with year-over-year growth of 6.2% and revenues of $16.5 billion, according to the International Data Corporation (IDC) Worldwide Semiannual Customer Relationship Management Applications Tracker. IDC expects the CRM applications market to continue on this trajectory in 2011 with revenues approaching $18 billion on 7.6% year-over-year growth.
Within the CRM applications market, three of the four functional markets are forecast to grow at above average rates for 2011. The customer service and marketing applications markets are forecast to grow at 8.2% and 8.8% respectively, while the sales applications market will grow 8.6% year over year in 2011. Meanwhile, the contact center market, which experienced a modest decline in 2010, will rebound to 5.4% year-over-year growth in 2011.
Within the customer service market, three of the top 5 large countries (UK, Germany and France) are forecast to grow at an 8.2% annual rate in 2011, while Australia, Brazil, Canada, China, India, and Russia are expected to drive strong growth in the marketing applications market. With the exception of Brazil, these same countries are forecast to experience even stronger growth in the Sales applications market.
Despite consisting of just four functional markets, the overall CRM applications market remains fragmented with many vendors vying to gain share. Outside the top 3 vendors, a total of 19 vendors achieved more than $100 million in CRM software revenue during 2010, representing more than 35% of total market share. Oracle, SAP, and Salesforce.com were the only vendors to amass more than $1 billion in CRM software revenue worldwide in 2010.
More information on CRM can be found at www.CRMindustry.com.