Salesforce.com and Microsoft increased their share in customer relationship management (CRM) software market, while SAP, Oracle and IBM fell in 2014.
Salesforce.com has increased its share in the global CRM software market to 18.4 percent in 2014 from 16.3 percent in 2013.
On the other hand, the CRM software share of SAP fell to 12.1 percent from 12.8 percent.
Oracle share in the CRM software market dipped to 9.1 percent from 10.1 percent, said Gartner India.
Microsoft increased the CRM software share to 6.2 percent from 5.8 percent. The share of IBM dropped to 3.8 percent from 3.9 percent.
Gartner said the CRM market increased 13.3 percent to $23.2 billion in 2014.
“Large software vendors leveraged their acquisitions to extend their position in new markets and to enrich the depth of their current feature sets in 2014,” said Joanne Correia, research vice president at Gartner.
The top 10 CRM vendors accounted for more than a 60 percent share in 2014, or $14 billion, growing 14 percent over 2013.
Software as a service (SaaS) accounts for almost 47 percent of total CRM software revenue in 2014 — driven by organizations seeking easier-to-deploy and faster-ROI alternatives to modernizing legacy systems, implementing new applications.
Buyers’ preference for SaaS and strength in the sales subsegment kept Salesforce in the No. 1 position for the worldwide CRM market and raised the company to the No. 1 position in customer support.
North America continued to generate the bulk of revenue (52.3 percent) in the overall CRM market. North America and Western Europe represent 78.6 percent of all CRM software spending, and both saw mid-double-digit growth in 2014. Infrastructure for cloud/SaaS deployments is more mature in these regions.
Asia Pacific grew 18.7 percent in 2014, while Eurasia, greater China and Latin America experienced good growth in the low double digits, though growth was slower than in 2013 due to economic issues. The Middle East and North Africa and Asia Pacific continued their buildouts and saw healthy growth, while sub-Saharan Africa saw the lowest growth.
More than 23 percent of 2014 CRM spending was in the communications, media and IT services industries because they focus on large groups using call center technologies and have mobile field service and sales organizations.
Manufacturing (including consumer packaged goods [CPG]) is not far behind, with companies in this industry using CRM for product and channel management. Third-ranked is banking and securities, in which customer service experiences and upselling to other financial products are core to growth, including through enhanced analytic capabilities.