Marketing Automation Among Top Four Investment Priorities for Digital Solutions

Rising importance of chatbots and increasing use of virtual and online channels to result in 15.7% growth of the MAS market, finds Frost & Sullivan

SANTA CLARA, California, June 3, 2020 /PRNewswire/ — Frost & Sullivan’s Post-pandemic Growth Opportunity Analysis of the Marketing Automation Solutions Market forecasts how the marketing automation solutions (MAS) market is expected to perform from 2020 to 2025 under two likely scenarios. The aspirational forecast is under the assumption that the COVID-19 virus will be contained by August 2020 and the global markets will recover by the end of the calendar year. The conservative forecast assumes that virus containment will be dependent on the development and availability of a vaccine, and the recovery period is 18-24 months. Under an aspirational forecast scenario, the market is expected to more than double, reaching $6.21 billion by 2025 from $2.58 billion in 2019, growing at a compound annual growth rate (CAGR) of 15.7%. This is 0.5% less than the pre-COVID-19 projection of 16.2%. The conservative forecast scenario estimates that the MAS market will reach $3.62 billion by 2025 at a CAGR of 5.8% (2019-2025), which is a 10.4% decrease compared to the pre-COVID-19 forecast.

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"Marketers are adopting MAS to try and make sense of the unlimited amount of online customer data and turn this data into actionable, intelligent leads and lead scoring sales enablement," said Melody Siefken, Research Analyst, Digital Transformation Practice at Frost & Sullivan. "Additionally, marketers are opting for an omnichannel approach to reach customers from all sides of engagement to create a seamless and consistent customer experience and journey."

Siefken added: "Despite the COVID-19 crisis, marketing automation is among the top four investment priorities for enterprise digital solutions in 2020 to streamline and automate marketing efforts and to be able to understand the customer journey while optimizing the experience. Further, vendors’ ability to provide attractive price-performance bundles, a robust reseller channel globally, ease of integration with other marketing tools such as customer relationship management systems, and effective customer support ensure high usage of the MAS solution."

Trends such as the rising importance of chatbots and increasing use of virtual and online channels to enhance marketing and sales will further drive the MAS market, presenting lucrative prospects for market participants involved in the space. Other opportunities include:

  • MAS adoption will improve as it has the potential to make marketing and sales strategies more effective through automated emails, campaigns, and lead management.
  • MAS will be key in collecting and analyzing massive customer data, which will give brands and companies better insight into the customer journey and experience.
  • MAS platforms can adjust prices, remove fees and enhance capabilities in times of crisis, which results in increasing demand.
  • The convergence of MAS and programmatic advertising will open up a new avenue for fresh business models, thereby increasing MAS use cases.

Post-pandemic Growth Opportunity Analysis of the Marketing Automation Solutions Market is the latest addition to Frost & Sullivan’s Digital Transformation research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan
For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Post-pandemic Growth Opportunity Analysis of the Marketing Automation Solutions Market

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Written by Markus Castro

A cat person by day and a writer by night. He loves to travel to his favorite destinations in Southeast Asia.

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