As growth continues, the competition among CRM vendors is escalating as market leads start to get slim.
Despite a small slowdown in the growth of the
CRM applications market, overall growth was up 11.2 percent year-over-year for
the second half of 2011, down slightly from the first half of the year,
according to IT research firm IDC's latest Worldwide Semiannual CRM
Applications Tracker, which covers more than 190 global and local CRM vendors
across a total of 49 countries.
As growth continues, the competition among
CRM vendors is escalating as market leads start to get slim. Among the top five
CRM vendors worldwide, Oracle holds a slight lead, with 11 percent market
share, followed by SAP, with 9.9 percent share, with Salesforce.com fast behind
it, with a 9.5 percent stake. Avaya and SEC rounded out the top five with market
shares of 3.6 percent and 3.3 percent, respectively. CRM vendors categorized
under other comprised 62.7 percent of the market, according to IDC figures.
Geographically, Oracle holds the lead in the
Asia-Pacific region outside of Japan, while SAP has established itself as the
leader in the Europe, Middle East and Africa (EMEA), as well as the Latin
American markets. Salesforce.com is currently doing well in the North American
and Japanese markets. The competitive scenario for the worldwide CRM
applications market is becoming decidedly more interesting, the report noted.
The Americas and Japan outperformed other
geographic areas in the second half of the year, according to IDC research,
while emerging markets like Latin America and the Asia-Pacific markets gained
0.7 of market share, compared to 2010. IDC predicted these economies, led by
strong economic performances in China, Russia and Brazil, would drive further
growth in the CRM software market.
Among the four functional markets that comprise
the CRM applications spacecontact centers, marketing automation, sales
automation and customer serviceonly contact centers grew at a single-digit
rate, while the three others posted growth in the double digits. Despite
continued growth in 2012 to 2016 forecast period, the report predicted contact
center applications would lose an additional 3.4 percent through 2016.
"The CRM applications market is poised
on the threshold of a transformation with legacy installations being
transformed into socially aware applications environments. Early movement has
been observed for the last several years, Mary Wardley, program vice president
of CRM applications at IDC, said in a prepared statement. An influx of new
social vendors and acquisitions of social CRM applications providers by
established vendors augmenting their offerings for rapid market entry is
invigorating the market."
The activity is expected to continue through 2012 and bring new revenue to the space, she added.
Nathan Eddy is Associate Editor, Midmarket, at eWEEK.com. Before joining eWEEK.com, Nate was a writer with ChannelWeb and he served as an editor at FierceMarkets. He is a graduate of the Medill School of Journalism at Northwestern University.