Email Marketing Industry to expand at a CAGR of 19.60% by 2025

According to a new research report by Transparency Market Research (TMR), the global market for email marketing demonstrates a fragmented and competitive due to the presence of a number of well-established players, namely, IBM, Microsoft Corp., Zoho Corp., Epsilon, and Responsys Inc., providing solution and services across various end-use industries. These companies, together, held just about 44% of the overall market in 2016.

Global Email Marketing Industry: Snapshot

The global market for email marketing has been influence by a number of factors, among which, the increasing usage of Internet is the most significant one. The expanding penetration of smart phones has also been adding to the growth of this market since the last few years. Over the coming years, the rising awareness among people pertaining to email marketing, such as a relatively higher RoI rate than any other form of digital marketing, will influence its popularity, resulting in a significant market rise.

On the downside, the lack of niche marketing options and the privacy issues concerning the usage of Internet and email may act as hindrances, limiting the growth of this market in the years to come. In 2016, the worldwide market for email marketing stood at US$4.51 bn. Expanding at a healthy CAGR of 19.60% between 2017 and 2025, this market is likely to touch US$22.16 bn by the end of 2025.

Currently, email marketing is being extensively utilized in the media, IT and telecom, retail/e-commerce, travel and leisure, and the BFSI industries as the primary source of marketing for business expansion purposes and customer retention and satisfaction.

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Asia Pacific to Exhibit Strong Presence in Global Email Marketing Industry

North America, Europe, Asia Pacific, the Middle East and Africa, and South America are the prime regional markets for email marketing across the world. Among these, Asia Pacific has acquired the leading position in the global market and is expected to remain so over the next few years, rising at a CAGR of 22.80% between 2017 and 2025, thanks to a relatively faster adoption. The escalating number of internet users and the proliferation of the retail/e-commerce industry in Asian economies, such as China and India, is likely to boost this regional market substantially over the next few years.

North America, on the other hand, is expected to witness slow growth in its market for email marketing in the near future due to the presence of various regulatory laws. In North America, the U.S. (the CAN-SPAM Act) and Canada (CASL), both, have their respective laws governing email marketing practices; however, the law in the U.S. is more lenient as compared to the one in Canada, which, subsequently is propelling the U.S. market for email marketing. The high internet penetration rate, the rising number of smartphone users, and the steady growth in the BFSI sector may assist the North America market for email marketing to find its way to success in the years to come.

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Software to Remain Strong among Email Marketing Components

Software and services are the main components of email marketing. The software segment has held the leading position in the global market for email marketing and is anticipated to retain it over the next few years, thanks to the increasing adoption of white label software, third-party standard, and web-based application. The third-party standard software is likely to emerge as the most preferred component of email marketing in the next few years.

Alchemy Worx Ltd., Adestra Ltd., GetResponse, VerticalResponse Inc., dotmailer Ltd., Forfront Ltd., BlueHornet Inc., Constant Contact Inc., BlueTie Inc., Drip Inc., Microsoft Corp., IBM Corp., The Rocket Science Group LLC, iContact Corp, Zoho Corporation Pvt. Ltd., Salesforce Inc., Responsys Inc., Epsilon, Natexo Group, and Campaign Monitor are the key companies involved in email marketing across the world.

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