The customer data platform (CDP) industry experienced slow growth in the second half of 2023, according to the latest update from the CDP Institute. While there was a slight increase in employment and funding, it was the lowest reported yet at only 2%. However, since 2019, ten new players have entered the market, mostly small companies. The CDP Institute predicts below-average revenue growth for 2024, with an estimated $2.5 billion, up from $2.3 billion in 2023.
Why does this matter? The CDP industry appears to be at a turning point. Most digitally mature businesses have likely considered implementing a CDP to extract value from their data. To see significant growth, more organizations will need to prioritize reaching this level of digital maturity.
Additionally, there is a trend of CDPs being acquired and integrated with other digital experience offerings, as well as a growing preference for CDPs to connect with external data sources rather than gathering all necessary data themselves. It will be interesting to see where the industry stands in a year.
Here are the ten new CDPs featured in the Institute's update, all launched since 2019:
- Chord, DrivenIQ, Maestra, Rebid (United States)
- Custimy (Denmark)
- Dataware (Latvia)
- Pam Real CDP (Thailand)
- Pimcore (Austria)
- Tracardi (Poland)
- XCM Horizon (United Kingdom)
To learn more about the current state and capabilities of CDPs, check out the latest MarTech Intelligence Report on the topic. And don't forget to subscribe to MarTech Daily for free updates on the latest industry news and insights.
Originally reported by Martech: https://martech.org/the-cdp-space-saw-sluggish-growth-in-h2-2023/
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