IDC: CRM Market to Grow

BOSTON (08/17/2000) - Customer relationship management (CRM) revenues grew at a feverish 71 percent growth rate and reached US$3.3 billion in 1999, a new study released Thursday concluded.

Companies are focused on winning and retaining customers, and that emphasis is contributing to the CRM market's growth, the new International Data Corp. (IDC) report found. Revenue growth in the CRM sector is expected to continue at a healthy clip and become a $12.1 billion market by 2004.

Framingham, Massachusetts-based IDC divides CRM applications into three segments -- sales automation software, marketing automation software and customer support and call center software. Sales software is designed to manage sales functions, from high-end processes like account/contact management and list management, to low-end processes like simple contact management. Marketing software assists with such things as campaign management and execution and list management and telemarketing. Customer support and call center applications are designed to enhance the management of relationships with existing customers.

The sales automation sector played front runner in 1999 but is expected to trail the customer support and call center segment this year. Marketing automation applications through 2004 will be the fastest growing segment of the market, according to the study.

North America is the largest CRM market and held more than 70 percent of the sector's revenues in 1999. Revenue growth in North America is expected to slow, however, and the region's market share will drop to 64 percent by 2004, the study found.

Western Europe's CRM market will see the most rapid revenue growth, at about 36 percent, in the next five years, compared to 30 percent for the sector overall.

According to the study, the CRM market is quite fragmented, and beyond the top five suppliers in the market, no company holds more than 2 percent of the market share.

IDC is a subsidiary of International Data Group Inc., the parent company of the IDG News Service.

IDC, in Framingham, Massachusetts, can be reached at +1-508-872-8200 or at

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