The customer relationship management (CRM) market is forecast to become the fastest-growing software market in 2018 and had hit $39.5 billion in 2017, market research firm Gartner said on Tuesday.
The CRM market overtook the database management systems (DBMSs) revenue that reached $36.8 billion in the same period.
CRM refers to practices, strategies and technologies that companies use to manage and analyse customer interactions and data.
“In 2018, CRM software revenue will continue to take the lead of all software markets and be the fastest growing software market with a growth rate of 16 per cent,” Julian Poulter, Research Director at Gartner, said in a statement.
The rise of marketing technology and a recent resurgence in sales technology in the CRM market is attracting many new entrants.
However, the major vendors offering CRM suites covering sales, commerce and service are showing stronger than average growth and are successful at cross-selling additional modules to existing customers.
“Organisations are keen to avoid silos of information and to obtain a 360-degree view of the customer,” Poulter added.