The global customer data platform (CDP) market is projected to experience significant growth in the next four years, according to new research from market research company Technavio. The market size is estimated to increase by USD$19.02 billion from 2024 to 2028, with the North American market driving 37% of this growth.

The CDP market is expected to grow at a compound annual growth rate (CAGR) of 32.12% during the forecast period. In 2024 alone, a growth of 30.4% is projected. This substantial growth is largely attributed to the increasing demand for omnichannel strategies among businesses.

Customer Data Platforms serve as a central hub for collecting, organising, and unifying customer data from various touchpoints. According to Technavio, companies are prioritising the use of solutions that enable unified and centralised management of customer data. The use of machine learning and artificial intelligence is also on the rise in the customer data platform market.

However, Technavio's research found that the market faces several challenges. Legal issues in sharing customer insights within organisations due to confidentiality concerns pose a significant hurdle. Cloud services, widely used for data storage, present security challenges such as data loss and theft. Strict data protection regulations like the General Data Protection Regulation (GDPR) address these issues, limiting data-sharing and potentially hindering the growth of the customer data platform market.

Despite these challenges, Technavio found that the CDP market is experiencing significant growth due to the increasing demand for customer intelligence and omnichannel experiences. CDP solutions play a crucial role in data governance and data privacy laws compliance, providing data protection and mitigating risks of data breaches.

Advanced technologies such as artificial intelligence, machine learning, big data, and data analytics are integrated into CDPs to deliver real-time insights for industries such as healthcare, telecom, travel, and hospitality.