Sales Force Automation Software Market

The global sales force automation software market size was valued at USD 6.86 billion in 2022 and is projected to reach USD 18.27 billion by 2031, expanding at a CAGR of 11.5% between 2023 and 2031. The growth of the market is attributed to the growing demand for sales forecasting applications in the IT & telecommunication, banking, and retail sectors all around the world.

Sales force automation (SFA) is a commercial approach used to automate the processes without the intervention of humans. Furthermore, the software automate the processes based on specific inputs.

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For example, if leads don't answer to an initial email after a specified number of days, it can be sent follow-up emails based on a pre-defined template. Additionally, the program can be configured so that a single action done by a member of the sales team results in the completion of multiple tasks.

Moreover, SFA has the advantage of many unique capabilities such as order processing, information exchange among salespeople, maintaining client contact information, control and recording, inventory management, sales forecasting, order tracking, and employee evaluation. In addition, SFA software captures a massive amount of data from many client touchpoints and makes it available to multiple devices in a cloud implementation.

Due to the COVID-19 pandemic outbreak all around the world, many governments imposed travel bans, shutdowns, and quarantine procedures in order to prevent virus spread. These restrictions have had a negative impact on economies and industries in all sectors across globe. However, the use of SFA solutions is expected to upsurge in the coming years with the relaxing of constraints.

Market Trends, Drivers, Restraints, and Opportunities

• Growing use of machine learning (ML), artificial intelligence (AI), and deployment of cloud technology across business verticals are some of the key factors propelling the market growth.

• Increasing need for tracking mechanism and growing need for streamline in the sales processes are fueling the market expansion in the coming years.

• Rising implementation of cloud based solutions by various small & medium enterprises is estimated to upsurge the market growth.

• Lack of trained professionals and increasing data & security concern are some of the key restraining factors challenging the market expansion in the coming years.

• Growing smartphone penetration along with the increasing adoption of 5G mobile technology for smoother configuration and ongoing upgradation of data related to the sales force automation applications are anticipated to offer tremendous opportunity for market during the forecast period.

Scope of the Report

The report on the global sales force automation software market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Lead management segment is expected to grow at a rapid pace

Based on applications, the global sales force automation software market is segregated as opportunity management, lead management, order & invoices management, sales forecasting, and others.

The lead management segment is expected to grow at a rapid pace during the forecast period, owing to the various capabilities such as users can improve, allocate, and track leads from start to finish in order to transform them into eligible opportunities.

Furthermore, it enables campaign optimization across all market channels such as web, email, social media, SMS, and in-person mobile on a single unified platform, allowing for rapid and smart decisions.

However, the sales forecasting segment is estimated to gain a large revenue share in the coming years due to the growing implementation of big data analytics, artificial intelligence, and machine learning across business verticals in order to develop the sales force software.

Furthermore, sales forecasting offers users a real-time view of data for previous and current sales trends along with the accurate forecasts that assist the company to capitalize on growth prospects.

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Cloud segment is estimated to gain a large revenue share

Based on deployments, the market is bifurcated into on-premise and cloud. The cloud segment is estimated to gain a large revenue share during the forecast period, owing to the advantages of cloud technology in terms of flexibility, scalability, and security.

Furthermore, cloud computing has helped organizations in integrating client data across multiple platforms, including lead generation, marketing, sales, customer service, and business analytics. In addition, large corporations are also investing extensively in the installation of cloud-based automation technology.

Moreover, cloud computing is assisting businesses in being more effective and the combination of clouds and analytics is assisting businesses in processing, storing, and interpreting data to fulfil the demands of their customers. Additionally, cloud computing and analytics provide tremendous potential for gaining insights into productivity, customer behavior, and customer experience. Thus, aforementioned factors are up surging the segment growth.

Large enterprises segment is expected to account for a major market share

On the basis of enterprise sizes, the global sales force automation software market is divided into small & medium enterprises and large enterprises. The large enterprises segment is expected to account for a major market share during the forecast period, owing to the rising use of data analytics in SFA in order to take effective decisions, explore insights into deal opportunities, and enhance growth strategies by sales expert.

Furthermore, the increasing complexity of the corporate environment along with the growing need for making the sales process more customer-centric by bringing the customer closer through multiple marketing channels is expected to boost the segment growth.

However, the small & medium enterprises segment is projected to expand at a substantial CAGR during the forecast period due to the availability of various pricing alternatives. Furthermore, increasing adoption of sales force automation for lead management and forecasting is fueling the segment growth.

Moreover, monitoring and reducing expenses, removing overheads, and providing individualized services to clients are the top priorities for businesses implementing the program. In addition, SFA solutions are expected to meet the needs of organizations in order to increase efficiency and productivity while remaining competitive in the market.

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BFSI segment is projected to expand at a considerable CAGR

On the basis of end-users, the market is segregated as manufacturing, banking financial services and insurance (BFSI), IT & telecommunication, retail, healthcare, and others.

The banking financial services and insurance segment is projected to expand at a considerable CAGR during the forecast period due to the easier supervision of several operations such as opportunity management, lead management, customer relationship management, order & invoice administration, and analytics. It further helps the businesses in the retail and baking services sectors in increasing productivity.

Moreover, the solution provides retailers with numerous features such as customizable interface for better solution management, comprehensive report generation, reduced time complexity, overhead costs, comprehensive set of graphical and visual tools for expert data analysis, and centralization of essential information are boosting the segment growth.

North America is anticipated to constitute a key market share

In terms of regions, the global sales force automation software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key market share during the forecast period, owing to the growing investments by key players for sales automation in various verticals.

Furthermore, the close ties with the leading companies and simple access to AI based sales force automation applications are expected to fuel the market growth in the region.

However, the market of Asia Pacific is estimated to account for a major market share in the coming years due to the increasing banking and financial services, retail, and IT and telecommunication sectors across geographies. Furthermore, rising investment in the software development by large enterprises across business verticals is expected to upsurge the market growth in the region.

Segments

The global sales force automation software market has been segmented on the basis of

Applications

• Opportunity Management
• Lead Management
• Order & Invoices Management
• Sales Forecasting
• Others

Deployments

• On-premise
• Cloud

Enterprise Sizes

• Small & Medium Enterprises
• Large Enterprises

End-users

• Manufacturing
• BFSI
• IT & Telecommunication
• Retail
• Healthcare
• Others

Regions

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

Key Players

• SugarCRM
• Salesforce.com, Inc.
• CRMNEXT
• Microsoft
• INFOR
• SAP SE
• Oracle
• Zoho Corp. Pvt. Ltd
• Aptean
• Bpm'online

Competitive Landscape

Some of the major players competing in the global sales force automation software market are SugarCRM; Salesforce.com, Inc.; CRMNEXT; Microsoft; INFOR; SAP SE; Oracle; Zoho Corp. Pvt. Ltd; Aptean; and Bpm'online.

These major players are involved in various marketing strategies such as long-term strategic collaborations, mergers & acquisitions, and partnership with stakeholders in order to sustain a large revenue share in the market.

For example, Salesforce.com, Inc. acquired Tableau Software, an analytics platform company, in August 2019. With this purchase, the company is better positioned to help businesses across globe to accelerate the digital transformation by allowing them to tap into data and achieve customer insights to make better decisions. It further improves customer experiences, and accelerate innovation.

On the other hand, Oracle introduced new AI and machine learning-driven enhancements for its suite of sales tools in March 2019. This was done to improve marketing and sales productivity by using artificial intelligence to speed up the manual operations while taking advantage of all the data available in current sales and marketing.