Customer data platform providers to generate $6 billion by 2027

Customer data platform (CDP) providers are projected to generate $6 billion globally in the next five years according to a new study by Juniper Research.

Demand from the retail and e-commerce sectors are expected to drive this growth, representing 35 percent of CDP revenue this year.

In a whitepaper on the subject, Juniper defines a CDP as “A platform that collects first-party data on users from a variety of sources, which is then unified over a single interface to offer a cohesive and coherent overview of a customer’s preferences, habits, and interests.”

CDPs are used to highlight customer preferences using information available online including transaction data and browsing history.

Revenue from CDP providers is expected to jump by $1.7 billion by 2027, representing a 250 percent growth from 2022.

“CDPs can take businesses into more expansive terrain and zero in on the whole customer journey, for example which touchpoints are favoured by certain demographics, and even identify the products which are most likely to be favoured by users of smartphones or tablet devices. With the ability to draw upon a seemingly limitless set of data points, an effective marketing strategy can arguably only be as good as the CDP at the disposal of the enterprise,” the report says.

Juniper Research named Oracle, Salesforce and Tealium as the top three VDP vendors in the market, based on product offerings, partnerships and innovations.

According to co-author Charles Bowman, “The breadth of high-value services supported by Oracle's Unity CDP, including real-time management of data, ability to unify data sources and predictive analytics, are key to differentiating the platform from its competition. As a result, we expect Oracle's Unity CDP to be in high demand for personalisation services.”

The authors encourage CDPs to increase their third party integrations, allowing for great access to granular user data.