The global email marketing software market is projected to grow significantly, with its valuation expected to increase from $1,232.8 million in 2021 to $3,321.2 million by 2031, according to Allied Market Research.
This growth, representing a compound annual growth rate (CAGR) of 10.89%, is attributed to the increasing adoption of email marketing tools across industries.
Email marketing software supports businesses by managing email databases, developing templates, ensuring deliverability, and monitoring campaigns. Firms use this software to segment subscriber groups and deliver tailored content such as newsletters, promotional emails, and announcements. These capabilities are essential for businesses looking to strengthen connections with clients, prospects, and subscribers.
The business-to-business (B2B) segment has emerged as the leading revenue contributor in the market, generating $870.9 million in 2021. This segment is expected to reach $2,586.4 million by 2031, with a CAGR of 11.97%. Meanwhile, the business-to-customer (B2C) segment is forecast to reach $734.8 million during the same period, growing at a CAGR of 7.75%.
COVID-19’s Influence on Market Growth
The COVID-19 pandemic has accelerated the demand for email marketing software, particularly solutions integrated with artificial intelligence (AI). Businesses increasingly adopted digital advertising tools to navigate pandemic-related challenges, boosting the market’s growth.
Post-pandemic, the retail and consumer goods sector has particularly embraced digital marketing solutions, further driving the adoption of email marketing software. However, the emergence of subsequent COVID-19 waves in regions like the US and UK posed temporary challenges to the market in 2022.
North America accounted for a significant share of the global email marketing software market, driven by the presence of leading players and the growing awareness of the cost-effectiveness of email marketing solutions. The region has seen widespread adoption of email-based lead generation and customer management tools.
Asia-Pacific is also expected to experience substantial growth during the forecast period as businesses in the region increasingly adopt email marketing tools for digital engagement.
Key Trends in Deployment and Applications
The cloud-based deployment model is expected to generate $3,321.2 million by 2031, highlighting the model’s advantages in cost reduction and flexibility. By application, email lead generation led the market in 2021, growing at a CAGR of 10.89%. Customer relationship management applications are anticipated to see the fastest growth during the forecasted period.
In terms of industry verticals, the retail and consumer goods sector accounted for the highest revenue in 2021. However, the IT and telecommunications sector is poised to exhibit notable growth as organisations seek efficient digital communication solutions.
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