widens CRM market share gap against SAP has widened CRM (customer relationship management software) market share gap against SAP in 2013, said Gartner.

For example,’s CRM market share increased to 16.1 percent in 2013 from 14.03 percent in 2012, while SAP’s CRM share decreased to 12.8 percent from 12.93 percent.

Oracle’s CRM software market share dipped to 10.2 percent last year from 11.19 percent in the previous year, Gartner said.

CRM market share of Microsoft increased marginally to 6.8 percent from 6.3, while IBM enhanced share to 3.9 percent from 3.6 percent in the global CRM market.

The size of the global CRM software market rose 13.7 percent to $20.4 billion in 2013 from $18 billion in 2012, said Gartner.

CRM software spending market size

Gartner noted that high levels of end-user investment in digital marketing and customer experience initiatives were the primary growth drivers of the market in 2013.

Strong demand for software as a service (SaaS), which represented more than 41 percent of CRM total software revenue in 2013, was driven from organizations of all sizes seeking easier-to-deploy alternatives to replace legacy systems, implement net-new applications or provide alternative complementary functionality.

Gartner said top 5 CRM vendors accounted for 50 percent of CRM revenue in 2013.

Western Europe CRM market rose 15.2 percent in 2013. North America drives the bulk of the revenue share (52.9 percent) for the overall CRM market. These two regions represent almost 80 percent of all software spending on CRM technologies.

The emerging Asia/Pacific and Greater China regions posted double-digit growth rates. The regions are far from maturing, but are impacted by a slowing macroeconomy.

The communications, media and IT services vertical industries are the largest spenders on CRM because they focus on large groups using call center technologies. They also invest more to improve analytics-related areas and improve/provide more consistent customer experiences.

Manufacturing (including consumer packaged goods) is in second place, with these companies using CRM for product and channel management.

Third-ranked is banking and securities, in which customer service and upselling to other financial products are core to growth.

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