The CRM applications market soared 84% in 2000 to $6.2 billion, according to research from IDC. The company predicts this market will generate over $14 billion in revenues by 2005.
Despite the current economic downturn, end-user organisations continue to rate CRM as critical to their ongoing business strategy, says Mary Wardley, director of IDC's CRM applications and e-commerce applications software programmes.
"End-user response to the market condition is to plan an ongoing implementation strategy over an extended period of time rather than purchase the total solution up front. This will fuel CRM applications growth over a longer period," she says.
IDC's bulletin "Worldwide CRM Applications Market Forecast and Analysis Summary, 2001-2005" found that robust growth was experienced across all three markets - sales automation, marketing automation, and customer service and contact centre applications - in 2000, with no one market showing revenue growth below 70%.
Sales automation was once again the largest of the CRM applications markets, garnering over 42% ($2.6 billion) of the worldwide revenues in 2000. Marketing automation applications experienced the greatest growth but remains the smallest in terms of revenue, says the report.
IDC predicts that regionally, North America will continue to dominate the worldwide market for CRM applications, with nearly $8.6 billion in revenue in 2005. However, Western Europe will show fastest growth rates, increasing its revenues at a 22% clip from 2000 to 2005. By comparison, North American CRM revenues will increase at a lower compound annual growth rate.