The CDP industry did see some growth in the second half of 2023, but it was small and sluggish according to the latest industry update from the CDP Institute. Both net employment and funding did grow, but at around 2% these were the lowest increases yet reported.
Nevertheless, 10 companies, mostly small, have entered the space since 2019. The CDP Institute is forecasting below average growth in revenues for 2024, $2.5 billion, up from $2.3 billion in 2023.
Why we care. It sometimes seems like the CDP space is at an inflection point. Most brands with sufficient digital maturity to extract value from a CDP must by now have considered implementing one. Strong growth surely requires more brands to ascend the digital maturity curve.
At the same time, we’re seeing CDPs being acquired and integrated with broader digital experience offerings, as well as a strong trend for CDPs to plug into external data sources like data lakes and warehouses rather than ingest all the needed data themselves. Let’s see where we are a year from now.
New CDPs in the space. Here are the 10 CDPs launched since 2019 that are featured for the first time in the Institute update:
- United States. Chord, DrivenIQ, Maestra, Rebid.
- Elsewhere. Custimy (Denmark), Dataware (Latvia), Pam Real CDP (Thailand), Pimcore (Austria), Tracardi (Poland), XCM Horizon (U.K.).
“Industry Update 2024” (gated resource).
Looking to take control of your data Learn about trends and capabilities of customer data platforms in the latest edition of this MarTech Intelligence Report.
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The Customer Data Platform (CDP) industry has experienced a slowdown in growth during the second half of 2023, according to recent market analysis reports. This comes after several years of rapid expansion, with many businesses adopting CDPs to better manage and utilize their customer data.
CDPs are software platforms that collect and unify customer data from various sources, creating a single, comprehensive view of each customer. This allows businesses to better understand their customers’ behavior and preferences, and to deliver more personalized and effective marketing campaigns.
The slowdown in growth is attributed to several factors, including market saturation and increased competition. As more companies have entered the CDP space, the market has become crowded, making it harder for individual vendors to stand out and attract new customers.
Additionally, the economic uncertainty caused by the ongoing global pandemic has led many businesses to tighten their budgets and reduce spending on new technology. This has had a direct impact on the CDP industry, as companies are less likely to invest in new platforms during times of financial instability.
Despite the slowdown, experts believe that the CDP industry still has significant potential for growth in the long term. As businesses continue to recognize the importance of data-driven marketing and customer engagement, the demand for CDPs is expected to remain strong.
Furthermore, advancements in technology, such as artificial intelligence and machine learning, are expected to drive innovation in the CDP space and create new opportunities for growth.
In conclusion, while the CDP industry has experienced a slowdown in growth during the second half of 2023, it is still a vital and evolving market with significant potential for future expansion. Businesses that are able to adapt to the changing market conditions and continue to invest in their customer data capabilities will be well-positioned for success in the years to come.
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