Industry analyst firm Forrester has published a Global Martech Software Forecast, 2023-2027, which gives a five-year forecast of growth for global martech spending.
Forresters’s forecast examines six categories of marketing technology software: experience delivery, marketing automation, marketing resource management, marketing performance management, customer analytics and customer data management software.
In the report, Forrester predicts that global spending on martech will reach $148 billion in 2024 – up from $131 billion in 2023.
Cindy Liu, forecast analyst at Forrester, said: “This will surpass $215 billion by 2027, with growth most prominent in technologies related to customer data management, customer analytics, marketing performance management, and marketing automation.”
Other highlights from the report include:
- Martech is growing faster than the broader enterprise software market. Martech represents 14.9% of total global enterprise software spend in 2023 and will grow to 15.4% in 2027.
- Martech M&A activity has bounced back in recent quarters. Despite a slowdown in 2022, notable transactions in 2023 include Contentsquare acquiring Heap to strengthen its analytics platform, and Splio acquiring Tinyclues, an AI-powered predictive marketing platform.
- Martech investment gets spread evenly across marketing responsibilities. Slightly more than one-third (38%) of spending goes to technologies that support brand experience, 32% goes to technologies that support customer understanding and 30% goes to technologies that support brand strategy.
- Data is the cornerstone of modern technology stacks. Customer data management will grow at a CAGR of 14% between 2023 and 2027 and reach $37 billion in spending.
- GenAI provides a new stream of innovation in martech. Early use cases for genAI focus on creative development like writing and testing email copy, however future use cases include natural language querying for creating new audience segments, modeling and optimising performance metrics, and tasks such as customer journey design.
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