New research from the CDP Institute shows that the customer data platform (CDP) industry is expected to exceed $1 billion in revenue by 2019, thanks to deeper investment and continued growth within the industry.
The report analyzes the annual growth, funding and revenue of roughly 30 private vendors in the CDP space. While specific revenue data was not disclosed to the public, a comparison of year-over-year revenue growth estimates that the industry is growing by more than 50% a year.
The study also revealed that the overall revenue from these vendors in 2016 reached roughly $320 million, with the top-six vendors accounting for half the industry total. More than $700 million in reported funding has been provided to these organizations.
The size of the industry came as a surprise to David Raab, Founder of the CDP Institute. The study highlights that most of the CDPs available today were founded in 2011 or later.
“It’s considerably more mature than I had realized,” Raab said in an interview with Demand Gen Report. “That’s partly because many of the vendors evolved from earlier businesses, such as tag management and campaign management. But it’s also due to fast growth among vendors who were CDPs from day one.”