The global marketing technology industry generated $329 billion in 2022, but is anticipated to generate $1.7 trillion by 2032, equivalent to a CAGR of 18.5% driven by demand for personalisation and automation.

That’s according to a new report from Allied Market Research, which defines marketing technology (MarTech) is tools, platforms, and software applications that help businesses automate, streamline, and improve their marketing activities. For the purposes of the study this includes CRM (Customer Relationship Management), marketing automation platforms, CMS (Content Management System) tools, social media management tools, and data analytics software.

The report states that the global marketing technology market is experiencing growth due to several factors, including the increasing digital transformation, the surge in demand for personalized experience, and the proliferation of automation and efficiency.

However, data privacy and compliance, and the high cost of implementation could hamper market growth. Furthermore, the growing integration of AI and ML technologies and the increase in demand for real-time marketing are anticipated to provide lucrative growth opportunities.

Based on type, the digital marketing segment held the highest market share in 2022, accounting for nearly three-fourths of the global marketing technology market revenue, and is estimated to maintain its leadership status throughout the forecast period. The rise in the usage and development of digital technologies in the marketing sector propels market growth significantly. However, the offline marketing segment is projected to manifest the highest CAGR of 20.7% from 2023 to 2032. This is due to offline marketing services helping to grow relationships and networking of customers.

Based on end-use, the retail and e-commerce segment held the largest share in 2022, contributing to more than one-fourth of the global marketing technology market revenue, and is expected to maintain the lead position during the forecast period. This is because of numerous advantages provided by marketing technology such as faster processing times, lower latency, and the ability to customize and tailor the technology to specific requirements. However, the media and entertainment segment is expected to portray the largest CAGR of 23.5% from 2023 to 2032. Marketing technology can innovate and streamline consumer and subscription processes.

Based on region, North America to hold the highest market share in 2022, accounting for more than one-third of the global marketing technology market revenue. This is due to the rising investments from public companies, such as Google LLC, IBM Corporation, Microsoft Corporation, and Amazon Web Services, Inc. among others, which is expected to drive market revenue growth in the region.

On the other hand, the Asia-Pacific region is expected to maintain its dominance during the forecast period. The same region would also showcase the fastest CAGR of 21.7% from 2023 to 2032. This is due to the rise in digital penetration and adoption of smart devices, such as smartphones, tablets, and laptops are expected to drive market revenue growth in the region and provide lucrative growth opportunities.