Customer relationship management software revenue will more than triple from a projected $9.4 billion in 2001 to $30.6 billion by the end of 2005, according to new research.
Much of the growth will come from Europe and the Asia Pacific regions, according to the Cahners In-Stat Group, a Scottsdale, AZ-based research arm of Cahners Business Information.
While current economic conditions have lead to lackluster spending, In-Stat sees operational CRM revenue as growing between 30%-40% for each year between 2002 and 2005.
The study breaks out CRM software into two categories; operational revenue, which automates processes associated with customer sales, marketing or service functions through either the telephone or online channels, and analytic revenue, which is generated from back-end number crunching programs and hardware.
According to the study, United States CRM operational revenue should reach $8 billion by 2005, making up 44% of all operational revenue worldwide. Operational revenue should reach roughly $3.6 billion in Europe, and $2.7 billion in the Asia Pacific region during the same period.
Large companies will continue to make up the most attractive market in the CRM software arena, the study said. They will account for $1.9 billion in operational revenue by the end of the year, or 78% of the market.
The mid-level market, which will generate almost half a billion dollars in revenue, will see a growth spurt starting next year, the study said. By 2004, as U.S. opportunities decline, this level of customer will make up a greater percentage of opportunities as software providers increase their focus on this segment.
The study, “The 3 Faces of CRM
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