The Customer Data Platform (CDP) industry is expanding, with 14 new vendors and $236 million in cumulative funding added to the ecosystem in the last six months.

The latest report from CDP Institute reveals that the martech category is growing. As per the 12-month growth rate, there was an increase of 48% across vendors and 32% across funding in the CDP technology sector. Meanwhile, in terms of employment, there was a 64% increase, found the report. As per the CDP institute, the 2019 revenue for CDPs is estimated to hit $1 billion, while the projects industry revenue is expected to surpass $1.3 billion in 2020. Of this, over half of the organizations accounted for as part of the CDP industry is outside the US. Meanwhile, the US-based vendors are also reporting a significant increase in external markets, mainly Europe and Asia-Pacific.

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The fast-evolving CDP market has witnessed substantial consolidation for the past six months, with three significant acquisitions of CDP vendors happening, four acquisitions of other firms by CDP vendors, and nine firms exiting through asset sales or repositioning. Some of the prominent CDP acquisitions include Dun & Bradstreet’s buying Lattice Engines in June in 2019, MasterCard’s acquiring SessionM, and Acquia’s Agilone acquisition in last December.

The State of the CDP Report 2020 by Tealium reveals that most marketers are mulling over switching their CDP in the next 12 months, even though 85% of them are satisfied with their existing platform. Over half of the marketers said their CDP lacked the necessary abilities to ingest data from any channel, and buy-in to these platforms from other departments is a difficult task.

The majority of enterprise-level marketing technology companies have pushed their CDP efforts even further in 2019. Tech giants such as Adobe, Oracle, and Microsoft released their CDP products, as defined by the CDP Institute report.  Meanwhile, Salesforce also piloted CDP implementations. The market is most likely to expand owing to the entry of these top vendors. This will also encourage buyers who were not sure about the validity of the concept or were doubtful about purchasing it from relatively small, independent software companies, mentioned the report.

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Although CDPs are a relatively new addition to the toolkit of marketers, the technology and the market is evolving at a faster pace. The market is predicted to reach $3,265.4 million by 2023, according to the latest report from Markets and Markets.