Global Email Marketing Software Growth Analysis Report - Market Size, Share, Forecast Trends and Outlook (2024-2032)

Email Marketing Software Market Analysis

Email marketing software is service-based software that aids users in deploying email marketing, by aiding users in creating, tracking, and sending emails to their subscribers and potential customers. This type of software is generally employed by marketing teams and companies for campaigns, branding, and online marketing. The general goals of email marketing software include increased user engagement, conversions, and customer lifetime value (CTLV), although email marketing software can also be sued for targeted goals.

Some other key factors propelling the growth of the email marketing software market include the emergence of integrated software that leverages AI. Artificial intelligence offers various advantages including personalisation, data analysis, automation, and higher rates of conversion. These advantages are expected to increase the integration of artificial intelligence in email marketing and boost market growth.

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Email Marketing Software Market Trends

Rise of Digital Marketing in Businesses

The growing adoption of digital marketing by individuals and businesses is a major trend fuelling the growth of the market. This growth is attributed to the wider reach of digital marketing channels as compared to traditional methods. Email marketing, a more specific form of digital marketing, can quickly deliver marketing messages of a brand to large volumes of subscribers. Email marketing remains one of the most effective digital marketing channels, with an average ROI of USD 36 for every dollar spent, which boosts the email marketing software demand. This high return on investment encourages businesses to invest more in email marketing solutions as part of their overall digital strategies.

For instance, TechSoup Polska experienced a 1,200% increase in order value from its email campaigns over a year by effectively communicating product offerings and support through targeted newsletters.  Their strategy focused on informing organisations about new technologies and facilitating knowledge exchange, showcasing how effective email marketing can drive significant results.

Growth of Personalised and Targeted Marketing

Another crucial trend of email marketing software market is the surging popularity of personalised and targeted marketing. Delivery of targeted and personalised emails increases the open rate, thus contributing towards revenue growth. Additionally, the low cost of email marketing software makes them ideal for various brands and businesses for digital advertising. For instance, a significant 80% of consumers are more likely to make a purchase when brands offer personalised experiences.  Companies that prioritise personalisation have also reported a 20% increase in sales on average which has led them to increase the implementation of personalised emails that can boost their reach.

A study has also showcased that 75% of consumers are more likely to buy from retailers that recognise them by name, recommend options based on past purchases, or know their purchase history, revealing the importance of targeted marketing.

Industry News

October 2024

Singulate, a provider of generative AI marketing, announced that it managed to raise around USD 2.3 million pre-seed round of funding from angel investors and venture capital firms.

August 2024

First Page Australia, an innovator of digital marketing, announced that it is establishing a partnership with Klaviyo, an email marketing platform.  This newly launched email marketing service leverages Klaviyo's advanced technology, providing businesses with a powerful tool to effectively connect with their customers.

Opportunities in Email Marketing Software Market

The increasing penetration of the internet across various age groups is further bolstering the effectiveness of email marketing software and the demand of email marketing software market. As more consumers become net-savvy, email usage is becoming commonplace, resulting in heightened potential for email marketing. For instance, the age group of 25 to 34 years constitutes over a third of online users, while 19% are aged 18 to 24 years. Younger demographics are particularly engaged with digital platforms, making them prime targets for email marketing campaigns. The high engagement levels among these age groups indicate a growing opportunity for businesses to reach these consumers through targeted email strategies.

A significant portion of email interactions occurs on mobile devices, with 67% of Gen Z and 59% of millennials primarily using smartphones for email access. This trend underscores the importance of optimising email content for mobile viewing, as a poor mobile experience can lead to higher deletion rates and lower engagement.

Email Marketing Software Market Restraints

Deliverability remains a significant challenge for email marketers. In 2023, the average email deliverability rate was reported at 85.7%, meaning nearly 14.3% of marketing emails never reached the intended inbox. This includes 6.3% that landed in spam folders and 8% that were undelivered altogether. Many marketers (61%) cite improving email deliverability as a major challenge, which can negatively impact campaign effectiveness and ROI, consequently affecting the email marketing software market opportunities.

With increasing regulations such as GDPR and CCPA, businesses must navigate complex compliance landscapes. These regulations impose strict guidelines on how companies can collect, store, and use customer data, leading to increased concerns about data security and privacy. For instance, under the California Consumer Privacy Act (CCPA), Consumers have the right to know what personal information is being collected about them and how it is used and shared.  Similar to GDPR, consumers can request the deletion of their personal information held by businesses, which can impact the effectiveness of email marketing.

Email Marketing Software Market Dynamics

There is a rising trend towards incorporating interactive content within emails, such as polls, quizzes, and AMP (Accelerated Mobile Pages) features that allow users to engage directly within their inboxes. This shift from static to dynamic content enhances user experience and engagement levels. Interactive emails can significantly improve click-through rates and overall campaign effectiveness. For example, Google has effectively utilised interactive emails to showcase its products, such as the Pixel Buds. In a campaign, users could interact with the email to view different angles and colours of the product directly within their inbox.

As per the email marketing software industry analysis, as mobile devices continue to dominate internet usage, optimising email campaigns for mobile viewing has become crucial. Reports indicate that over 67% of emails are opened on mobile devices, prompting marketers to focus on responsive design and mobile-friendly content to ensure effective communication with their audience.

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Email Marketing Software Industry Segmentation

“Email Marketing Software Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Channel

• Business-to-Business (B2B)
• Business-to-Customers (B2C)

Market Breakup by Deployment

• On-Premises
• Cloud

Market Breakup by Enterprise Size

• Large Enterprises
• Small and Medium Enterprises

Market Breakup by Application

• Email Lead Generation
• Sales Reporting
• Customer Management
• Template Management
• Reporting and Analytics
• Others

Market Breakup by End Use

• Banking, Finance, Security, and Insurance (BFSI)    
• IT and Telecommunications
• Retail
• Healthcare
• Consumer Goods
• Travel and Transportation
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Email Marketing Software Market Share

By Channel Insights

The B2C segment is recognised as the largest in the email marketing software market due to the sheer volume of consumer-oriented businesses. Companies in sectors such as retail, e-commerce, and entertainment heavily leverage email marketing to engage directly with individual consumers. B2C email marketing targets a broad audience consisting of individual consumers with diverse interests and preferences. This allows for more extensive campaigns that can reach millions of potential customers quickly.

By Deployment Insights

The cloud-based segment reflects the growing preference among businesses for scalable and flexible solutions that cloud-based platforms offer, affecting the email marketing software market dynamics and trends. Cloud-based email marketing solutions typically require lower upfront investments compared to on-premises systems, which necessitate significant capital for hardware and software purchases, as well as ongoing maintenance costs. It also operates on a subscription model, making it more accessible for small and medium-sized enterprises (SMEs) that may not have the budget for extensive IT infrastructure.

By Enterprise Size Insights

Large enterprises typically have larger marketing budgets compared to SMEs, allowing them to invest in advanced email marketing solutions that offer features like automation, segmentation, and analytics. This capability enables them to execute large-scale campaigns that can effectively reach a global audience, contributing to the email marketing software industry revenue. Large organisations often require advanced functionalities that are available in high-end email marketing platforms such as robust analytics for measuring campaign performance.

By Application Insights

Email lead generation is expected to account for a significant portion of the email marketing software market, due to the advantages it offers including increased customer engagement and improved customer retention rates, among others. Growing utilisation of email lead generation by end uses such as healthcare, travel and transportation, retail and banking, finance, security, and insurance (BFSI) are expected to aid the market growth for email marketing software.

Other features boosting the growth of email lead generation applications include the creation of email with engaging content and tailored presentation, targeted delivery, and email tracking. Email lead generation users also receive accurate customer data to boost their sales revenue further.

By End Use Insights

The retail sector holds a significant email marketing software market share as retail businesses heavily rely on email marketing to drive sales, engage customers, and promote new products. Retail businesses utilise email marketing as a primary channel for direct communication with customers. This includes sending promotional offers, product recommendations, and personalised content based on customer preferences and shopping behaviour. Such targeted communication is crucial for driving sales and fostering customer loyalty.

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Email Marketing Software Market Regional Insights

North America Email Marketing Software Market Dynamics

At a regional level, North America is anticipated to hold a sizable email marketing software market share over the forecast period due to the extensive adoption of email marketing software for business-to-business (B2B) and business-to-customer (B2C) channels. A growing number of businesses in the region have increased the employment of email marketing software to enhance their advertising efforts which boosts the growth of the email marketing software industry. The regional market expansion of email marketing software is also aided by the presence of various medium and small-sized firms in North America. Additionally, a rising number of marketers in the United States have increased the utilisation of email marketing software to provide effective services to their clients.

Asia Pacific Email Marketing Software Market Trends

The Asia Pacific region is witnessing one of the fastest growth rates in the market, with countries like India and China leading the charge. Internet penetration in these countries has surged, with over 800 million internet users in India alone as of 2023, significantly expanding the potential audience for email marketing as well as email marketing software market revenue.

The rapid growth of e-commerce in the region is fuelling demand for effective email marketing tools. For example, the e-commerce sector in China is expected to exceed USD 2 trillion by 2025, prompting businesses to leverage email marketing for customer engagement and retention.

Europe Email Marketing Software Market Drivers

European businesses are increasingly adopting digital marketing strategies, with email marketing being a key component.  The stringent GDPR encourages businesses to adopt robust email marketing solutions that ensure compliance and enhance customer trust. This regulatory framework has led to more sophisticated email marketing practices aimed at maintaining data privacy and security which can significantly impact the email marketing software market value. For instance, businesses are required to obtain explicit consent from users before sending marketing emails. Many companies have moved to double opt-in processes, where users must confirm their subscription through a follow-up email.

Latin America Email Marketing Software Market Growth

Latin America is becoming an attractive market for email marketing software due to its increasing internet penetration and smartphone usage. As of 2023, internet penetration reached approximately 65%, providing a larger base for digital marketing initiatives, which can eventually boost the email marketing software demand growth. Many small and medium-sized enterprises (SMEs) in Latin America are adopting email marketing as a cost-effective way to reach customers. This trend is driving demand for affordable email marketing solutions tailored to local businesses.

Middle East and Africa Email Marketing Software Market Overview

The Middle East and Africa are experiencing rapid digital transformation, with increasing internet connectivity and mobile usage driving engagement with digital channels. As of the end of 2023, mobile internet penetration in Sub-Saharan Africa reached about 27%, facilitating greater access to email services, which impacted the email marketing software demand forecast. Businesses in this region are increasingly adopting advanced marketing technologies, including email marketing software, to enhance customer engagement and retention strategies.  The market growth is further supported by government initiatives aimed at boosting digital economies and improving technological infrastructure.

Innovative Startups in Email Marketing Software Market

Startups in the market are leveraging innovative technologies and strategies to carve out their niche and compete with established players. Startups are integrating multiple communication channels, including SMS and live chat, into their email marketing platforms, providing a comprehensive solution for customer engagement. These companies often offer user-friendly interfaces and affordable pricing models, making advanced email marketing accessible to small and medium-sized enterprises (SMEs) and startups.

Moosend

Moosend is a user-friendly email marketing platform that caters primarily to startups and small businesses. It offers a range of features designed to simplify the email marketing process, including an intuitive drag-and-drop email builder, automation capabilities, and advanced segmentation options. Moosend allows users to create personalised email campaigns by utilising dynamic content blocks and merge tags, which enhance engagement by tailoring messages to individual subscriber preferences.

Brevo (formerly Sendinblue)

Brevo is a comprehensive marketing platform that integrates email marketing with SMS and chat functionalities, making it suitable for startups that require multi-channel communication. It offers a variety of tools for creating automated email campaigns based on user behaviour, allowing businesses to nurture leads effectively. Brevo's intuitive interface enables users to design visually appealing emails with customisable templates, while its API facilitates easy integration with e-commerce platforms and CRMs.

Competitive Landscape

Companies in the email marketing software market are increasingly adopting innovative strategies and technologies to enhance their offerings and improve customer engagement. A significant trend is the integration of artificial intelligence (AI), which allows businesses to create highly personalised email campaigns by analysing customer behaviour and preferences. For instance, platforms like Mailchimp have introduced AI-driven tools that help marketers optimize content and analyse performance, making campaigns more effective.

Key Industry Players

LeadGnome, Inc. was established in 2014 and is headquartered in Massachusetts, United States. The company mines emails to generate new contacts, enhancing existing leads, and provide intelligence to fuel sales acceleration. LeadGnome aids in eliminating time and effort required to review every individual email reply as well as in filling in missing information and synchronising all data with MAP/CRM.

Phonexa Holdings, LLC is a software development company that was established in 2016 and is headquartered in California in the United States. They provide marketing automation solutions for SMS, accounting, leads, emails, calls, and clicks, among others. Phonexa’s tools and products are designed to increase client revenue by maximising workflow efficiency.

SendWorks was established in 2016 and is based out of California, United States. Their products and services include transactional emails, email marketing, and scanning of lists to have a better understanding of the health of the sending domain. SendWorks aids its customers in turning emails into marketing machines to enhance the growth of their businesses.

Other market players include ConvertKit LLC and EmailOctopus (Three Hearts Digital Ltd), among others.

Recent Developments

June 2024

Birdseye, a major player in AI-driven retail and e-commerce marketing, has introduced new features to its autonomous email marketing platform. These updates enable retailers to efficiently manage their inventory through a straightforward one-click AI solution.

March 2024

GetResponse, a major provider of email marketing platform, announced that it is adding an AI writing assistant to its AI-powered toolset. This tool is optimal for people facing writer’s block and aiming to create engaging email copies.