Australian CRM market grows 19.4% in 2018

Customer relationship management software is both the largest and fastest growing category of enterprise application software, with Australian organisations spending nearly $2.3 billion on CRM software in 2018, according to Gartner.

The Australian CRM market grew 19.4% during 2018, significantly higher than the 12.5% growth rate experienced by the global market.

Spending on CRM software in New Zealand meanwhile grew 13.9% over the same period to NZ$220 million ($208.1 million).

Globally, Salesforce remains the clear market leader, with the vendor increasing its market share to 19.5% in 2018, from 18.3% in 2017.

Fourth-ranked Adobe also increased its market share — from 4.8% to 5.1% — but third-ranked Oracle's share fell from 6% to 5.5%. Second-ranked SAP and fifth-ranked Microsoft maintained their respective market shares of 8.3% and 2.7%.

Together, these top five vendors accounted for more than 40% of the total market. Their position on the leaderboard remained stable, with the exception of Microsoft replacing Genesys in fifth place.

Gartner's research also found that all subsegments of the CRM market grew by more than 13.7%. Customer service and support remained the largest subsegment, accounting for 35.7% of global revenue, but marketing was the fastest growing, and now represents more than 25% of the market.

Meanwhile, 72.9% of CRM spending was on cloud-based software-as-a-service. Gartner expects this to increase to 75% in 2019.

Image credit: ©peshkova/Dollar Photo Club

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