Customer Data Platform (CDP) Industry Statistics

Wondering how the customer data platform (CDP) industry is growing and evolving? Save this page as we continually provide updated information on industry growth, use cases, ROI, benefits, capabilities, and much more. 

CDP Industry Size and Growth

  • The Global Customer Data Platform Market size is expected to reach $20.5 billion by 2027, rising at a market growth of 34% CAGR during the forecast period. (Research and Markets, Sept 2021)
  • The worldwide customer data platform software market will grow at 19.5% CAGR from $1.3 billion in 2020 to $3.2 billion in 2025. (IDC Worldwide Customer Data Platform Market Shares, 2020: The Flight to First-Party Data Is On, and CDPs Win Big, 2020)
  • Consumer businesses (both B2C or B2B2C) are increasing their CDP deployments. In 2017 10% of these companies were deploying a CDP, but in 2021, 24% were deploying one. (2021 CDP Institute User Survey, November 2021)
  • The traditional core of the industry, companies founded from 2008 to 2012, has fallen from 44% in 2016 to 26% in 2021, but still accounts for 41% of employment and 61% of funding. (CDP Institute Industry Update 2021, July 2021)
  • The global healthcare customer data platform market is expected to reach USD $1.6 billion by 2028. The market is expected to expand at a CAGR of 27.2% from 2021 to 2028. (Research and Markets, Oct 2021)

CDP Geographical Breakdown

  • Market by Region – Americas 58.3%, EMEA 23.5%, and APJ 18.2%. (IDC Worldwide Customer Data Platform Market Shares, 2020: The Flight to First-Party Data Is On, and CDPs Win Big, 2020)
  • U.S. firms now account for just 45% of all companies, but 58% of employment and 64% of funding. (CDP Institute Industry Update 2021, July 2021)
  • The Americas still has the highest deployment rate (26%), compared with 21% in Europe and 20% in the Asia Pacific. In-process deployments are highest in EMEA while planned future deployments are highest in APAC. (2021 CDP Institute User Survey, November 2021)
  • The United States is home to 64 CDP vendors with 6,548 employees and $2.2 billion in funding, accounting for 42% of industry vendors, 57% of employment, and 64% of funding. (CDP Institute Industry Update 2021, July 2021)

CDP M&A and Funding

  • Industry funding rose by $556 million during the period, including $317 million raised during this period and $240 million raised previously by companies added in this report. (CDP Institute Industry Update 2021, July 2021)
  • There were seven acquisitions, one merger, and one divestiture during the report period. Five firms were based in Europe and four in the United States. Only two of the acquired firms were in the top 25% of the industry by employment and none had more than $51 million in funding. (CDP Institute Industry Update 2021, July 2021)
  • Firms listed in previous reports grew by 6% in employment and 10% in funding during the report period – (CDP Institute Industry Update 2021, July 2021)
  • Large, mature delivery CDPs, based outside the U.S, and founded before 2013, averaged 90 CDP employees and $50 million in funding. Small, new data, analytics, and campaign CDPs, founded after 2014 and based largely in the U.S. and Europe, averaged nine employees and under $300,000 funding.  (CDP Institute Industry Update 2021, July 2021)

CDP Use Cases

  • 63% marketers use a CDP to map out customer journeys and personalize digital campaigns (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
  • Martech is involved in 82% of use cases. Marketing operations and data science/ analytics staff are the next-most common use cases. (CDP Institute: CDP Use Cases: What Users Want, December 2021)
  • 61% say that a CDP will be critical to their personalization efforts. (Segment:2030 Today, 2021)
  • 49% say they will use a customer data platform for AI and machine learning use cases. (Segment:2030 Today, 2021)
  • Primary use case for CDP include – acquisition (57%), customer value (65%), and retention (61%) (CDP Institute: CDP Use Cases: What Users Want, December 2021)
  • Less than 50% of marketers have integrated data such as product usage, third party, social media, cookie, app, and offline data (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)

(CDP Institute: CDP Use Cases: What Users Want, December 2021)

ROI of Customer Data Platforms

  • 43% said CDP brought significant improvements to ROI/ROAS. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
  • 56.8% say they expect ROI of 5-10x from investing in a CDP. (Segment: 2030 Today, 2021)
  • Just 7% of organizations measure CDP ROI based on revenue. (Tealium: 2021 State of CDP, 2021) 
  • 53% define ROI by cost savings as a result of implementing a CDP, while 58% measure ROI by sales and revenue growth. (Segment:2030 Today, 2021)
  • Marketers have made some progress tying CDPs to operational savings, which is now the No. 1 way to measure CDP ROI, up from No. 2 in the 2020 report. (Tealium:2021 State of CDP, 2021) 
  • The most common KPIs over-all are number of users engaged and user satisfaction, but the most common KPIs for individual tasks are data quality for data assembly, user satisfaction for analytics, and results for predictive models, outbound campaigns, real time interactions, and cross-channel orchestration.(CDP Institute: CDP Use Cases: What Users Want, December 2021)

(Treasure Data, State of Customer Data Platforms, DATE)

CDP Benefits

  • The top benefits of the CDP are a unified customer view (88%) and analytics (54%).  (2021 CDP Institute User Survey, November 2021)
  • 49% said the top benefit was the ability to unify customer data from multiple sources and platforms. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
  • Members receiving high value from their CDP prioritized basic goals including the unified customer view, loading complete data, privacy compliance, lower reliance on IT support, and less time spent on data management. Members reporting lower value were more likely to seek capabilities that rely on external systems and business users, such as cross-channel orchestration, message selection, and improved delivery.  (2021 CDP Institute User Survey, November 2021)

(CDP Institute: CDP Use Cases: What Users Want, December 2021)

CDP Challenges

  • Organizational readiness was the most common problem listed by members with a deployed CDP, cited by 25%. (2021 CDP Institute User Survey, November 2021)
  • Almost two-thirds (62%) of respondents said it’s difficult to integrate new third-party solutions into their martech stacks. (Tealium 2021 State of CDP, 2021) 

CDP Capabilities

  • High-value CDP owners said loading data from all sources (75%) and identity matching (57%) were the most important CDP capabilities.  (2021 CDP Institute User Survey, November 2021)
  • Integration with more third-party solutions shot up from the No. 4 improvement marketers want in their CDPs in our 2020 report to No. 1 in the 2021 report. (Tealium 2021 State of CDP, 2021) 
  • Among auto manufacturers, use of customer data platforms (CDPs), programmatic advertising, and DMPs is higher while dealerships depend more on mobile apps and alerts. Frost & Sullivan Auto Industry Research: Where Do We Go from Here?, 2021)
  • Building segments is the most widely required capability, across 72% of use cases. (CDP Institute: CDP Use Cases: What Users Want, December 2021)
  • Advanced CDP products such as interactions and orchestration require basic tasks as a foundation. As a result, the most common task is data assembly (66%), followed by analytics (42%) and predictive models (35%).(CDP Institute: CDP Use Cases: What Users Want, December 2021)

CDP Budgets:

Adoption of Customer Data Platforms

Privacy & Compliance

  • 92% consider a CDP important to their privacy and compliance efforts. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
  • While the vast majority of firms (85%) attempt to comply fully with privacy regulations, the share that exceeds the legal minimum has declined from 28% in 2020 to 22% in 2021. The trend appears across all business types and regions. (2021 CDP Institute User Survey, November 2021)
  • 51% use CDP for customer privacy (Segment: 2030 Today, 2021)
  • 66% said the CDP plays a major role building GDPR/CCPA compliant marketing lists. (Treasure Data: State of the CDPs: Data Unification, Activation, and Compliance, 2020)
  • 62% say data collection and privacy is more important than predictive insights and customer acquisition (Tealium: 2021 State of CDP, 2021) 

Satisfaction

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