A global martech boom is currently underway and is projected to continue for the next few years. According to a report by Forrester, global martech spend is expected to exceed $215 billion annually by 2027, a significant increase from $131 billion in 2023.
The report also reveals that in the past year, martech spend has increased by 10.9%, with an expected annual growth rate of 13.3% in the coming years. This growth is largely driven by large consumer brands, with global B2C marketing organizations already spending 18% of their marketing budget on martech.
With 66% of marketing decision-makers planning to increase their technology spend, it is clear that martech is becoming an essential part of business strategy. The competitive pressure to stay ahead is a key driver for this increased investment, especially after the slowdown in growth due to the pandemic. However, with new generative AI capabilities and low-code tools, the report predicts a steady growth in the years to come.
The study found that martech spend is evenly spread across three main pillars:
This shows that martech is not limited to one specific area of business, but rather encompasses multiple aspects of marketing and customer engagement.
The report also highlights the increasing importance of data management in martech. The customer data management segment is expected to grow by 14% annually, reaching $37 billion by 2027. This further highlights the need for businesses to invest in technology to effectively manage and utilize customer data.
However, with the growing number of martech vendors (over 11,000 in 2023), the need for integration has become a challenge for many organizations. According to the report, 47% of marketers want to reduce the number of solutions they use, indicating a need for more strategic martech integration.
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With the martech industry set to exceed $215 billion by 2027, it is clear that technology is becoming an integral part of business strategy. Stay ahead of the game by staying informed and investing in the right martech solutions for your organization.
Originally reported by Martech: https://martech.org/martech-set-to-exceed-215-billion-by-2027/
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