’25 MarTech: Consolidation and AI Takeover

'25 MarTech: Consolidation and AI Takeover

Scott Brinker and Frans Riemersma’s 2025 MarTech report deep dive + expert views on AI, data, and the evolving landscape from Hightouch, GrowthLoop, SAS, Progress, MetaRouter, & MoEngage.

An elaborate series of insights from Frans Riemersma, building upon the latest State of Martech report with Scott Brinker, paints a picture of a maturing landscape marked by slowing growth and a strategic pivot towards AI integration and stack consolidation. This year’s report, unveiled this week, reveals a modest 9% increase in martech tools, reaching 15,384, a stark contrast to the explosive growth fueled by GenAI in 2023. Notably, a record 1,200 tools were removed, signaling significant churn and a market recalibration.

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Experts from across the martech spectrum weighed in on these findings and broader trends:

Key Insights from the State of MarTech 2025:

  • Slower, Steady Growth: The martech landscape continues to expand, reaching 15,384 tools (a 9% increase from 2024). However, this growth is significantly more moderate than the GenAI-fueled surge of the previous year, suggesting a market finding its equilibrium.
  • Record Tool Churn: A substantial 1,200 tools were removed – the highest number in over three years. This indicates a significant market correction and heightened competition, where even well-rated solutions are vulnerable.
  • Maturing Market Dynamics: The high number of tool exits alongside slower overall growth points to a more selective and mature market environment, prioritizing value and effectiveness.
  • Explosive Historical Growth: The martech space has witnessed a staggering 100x growth since the initial map in 2011, which featured a mere 150 tools.
  • GenAI’s Initial Spike: The hype surrounding generative AI in 2023 led to an unprecedented influx of approximately 3,000 new tools.
  • A New Normal for Growth: With around 1,300 net new tools in 2025, the market appears to be entering a phase of more sustainable expansion.
  • Enduring Relevance of Core Categories: Even established categories like CRM and MRM continue to attract new entrants, highlighting their ongoing evolution and importance.
  • Longevity Doesn’t Guarantee Survival: The majority of removed tools were over five years old, indicating that even established players aren’t immune to market shifts.
  • Consolidation via Shutdowns: While consolidation is occurring, it’s primarily through tool shutdowns rather than large-scale mergers and acquisitions.
  • Quality Isn’t Always Enough: The removal of highly-rated tools (4.5+ G2 rating) suggests that strong reviews don’t guarantee survival without clear market fit and a robust business model.

Expert Perspectives:

  • Jonathan (Jon) Moran (SAS): During a session with Scott Brinker and Frans Riemersma, Moran highlighted the challenges of data quality, integration, and knowledge literacy as key hurdles in leveraging AI effectively. He presented a conceptual model for an ideal AI-driven martech stack, cautioning that “Lakes can be shallow, dirty, and stagnant—just like a lot of enterprise data.” Moran remains optimistic about the future of AI in marketing.
  • Sara Faatz (Progress): In a “Lightening Round” session with Scott Brinker and Frans Riemersma, Faatz identified “Shadow AI” as her top AI buzzword and “Copilot” as her go-to AI assistant. Surprisingly (or disappointingly), she noted the prevalent use of AI for content creation, urging marketers to use it as a helpful tool rather than creating “digital garbage.” Her outlook for AI in marketing is “Human-centric.”

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This initial look at the State of Martech 2025 report, coupled with expert commentary, underscores a pivotal moment for the industry. The focus is shifting from sheer volume to strategic implementation, with AI playing a central role in shaping the future of marketing technology. Stay tuned for further insights from Frans Riemersma in the coming weeks.