Employment and cumulative funding both rose 2%, well below historical averages, the CDP Institute revealed.
The Customer Data Platform (CDP) industry continued to attract new participants in the second half of 2023 despite challenging business conditions, according to the CDP Institute’s latest Industry Update report. Most of ten companies added in the latest edition of the report were small firms started in the past five years and focused on profile building and analytics. In previous reports, many added vendors were older, larger firms that adding CDP features to existing campaign and delivery products.
commented CDP Institute Founder and CEO David Raab, “The CDP market still contains pockets of opportunity for new vendors to fill. Companies specializing in a particular region, industry, or price point continue to identify niches where they can compete. Industry growth remained sluggish during the six–month report period. Employment and cumulative funding both rose 2%, well below historical averages. Total industry size was reported as 186 firms, 16,381 employees, and $6,917 million funding. The CDP Institute estimates industry revenue will reach $2.5 billion in 2024.
There was some improvement in employment growth at previously listed companies, which rose by 1.1% compared with just over 0.5% in the preceding report. The share of firms reporting an employment increase rose from 62% to 65%. Larger companies showed better results than smaller firms: employment rose 2.1% at the largest 25% of firms, compared with a drop of 1% at the remaining 75%.
