CRM System Providers in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: September 2023
SIC SP0.024Revenue
£2.7bn
Past 5-Year Growth
Profit
£XX.Xm
Employees
2,036
Businesses
124
Wages
£XXX.Xm
CRM System Providers in the UK industry analysis
Other than implementing strategies for managing a company's interactions with customers, clients and sales prospects, CRM System Providers' services have expanded to include the automation of many back-office roles, sales procedures and marketing personalisation. Growing technology adoption and the desire by businesses to make operations more efficient and productive have boosted demand for CRM systems. Revenue is expected to rally at a compound annual rate of 19.6% to £2.7 billion over the five years through 2023-24, including a 12.8% hike in 2023-24.Strong revenue growth has been supported by the significant rise of Salesforce, which has grown to dominate the industry due to its usability and ability to integrate other functions, increasing its appeal to smaller companies. Furthermore, CRM system products have shifted towards a subscription-style model, changing from Software as a Product to Software as a Service. Business spending on software has boomed amid the ongoing digitalisation trend. The shift to a hybrid working model by many companies since the COVID-19 outbreak has supported demand. Since 2022-23, soaring inflation and heightened uncertainty amid geopolitical tensions have subdued business confidence and investment, weakening revenue growth.Revenue is forecast to climb at a compound annual rate of 11.7% to reach £4.7 billion over the five years through 2028-29. CRM system providers will benefit from improving economic conditions encouraging businesses to spend more on technology. Demand will also be boosted by technological advancements in software, with CRM systems increasingly incorporating artificial intelligence, machine learning and improvements in cloud computing. Growing competition as more companies enter the industry and a tighter labour pool could pressure industry profitability.
Trends and Insights
- Robust spending on systems drives up revenue. Despite current economic headwinds making companies think twice about spending, they’re still investing in modern CRM systems to improve efficiency.
- SaaS takes over the market. Software as a Service, spearheaded by Salesforce and Microsoft's cloud-first strategy, draws customers in with its subscription-based model, while the more traditional Software as a Product delivery methods falls out of favour.
- London's business activity attracts CRM system providers. Proximity to key markets, access to a skilled workforce and the presence of tech and marketing hubs make the capital a prime location, despite its high rents.
- Ubiquity and compatibility determine providers’ competitiveness. CRM systems that are easy to use and compatible with other applications save businesses time and increase efficiency, putting them in higher demand.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 19.6 % over the past five years, to reach an estimated £2.7bn in 2023.
Trends and Insights
Despite heightened uncertainty, spending on systems remains resilient
- Despite subdued business confidence relating to Brexit and the COVID-19 outbreak, businesses have sought to make use of advances in cloud computing and improve productivity, updating their CRM systems.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Favourable economic conditions will support business software expenditure
- Improving economic conditions will boost business confidence, driving business spending on software systems.
Biggest companies in the CRM System Providers in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
Salesforce UK Ltd | 1,453.7 | |
SAP (UK) Ltd | 193.5 | |
Microsoft Ltd | 181.3 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
CRM System Providers in the UK
Products & Services
Industry revenue is measured across several distinct product and services lines, including Software as a Service, Software as a Product and Other services and fees. Software as a Service is the largest segment of the CRM System Providers in the UK.
Trends and Insights
Software as a Service dominates the CRM industry
- Software as a Service (SaaS), known as off-premises software, is a relatively new method of retailing the industry's products.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Computer Consultants in the UK
- Document Preparation Services in the UK
Complementors
- Software Development in the UK
- Data Processing & Hosting Services in the UK
- Market Research & Public Opinion Polling in the UK
International industries
- Global Management Consultants
- CRM System Providers in the US
- Software Publishing in Canada
- Software Suppliers in Australia
- Computer System Design Services in New Zealand
Table of Contents
About this industry
Industry definition
Get with the programme: Revenue climbs as businesses seek to improve their capabilities and make efficiency improvements
What's included in this industry?
Software as a ServiceSoftware as a ProductInstallation of softwareConsulting on client requirementsTraining clients in the use of CRM systemsCompanies
Salesforce UK LtdSAP (UK) LtdMicrosoft LtdPurchase this report to view all 5 major companies in this industry.
Related Terms
SOFTWARE AS A SERVICE (SAAS)SOFTWARE AS A PRODUCT (SAAP)CLOUD COMPUTINGIndustry Code
SIC 62.01 - CRM System Providers in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Robust spending on systems drives up revenue. Despite current economic headwinds making companies think twice about spending, they’re still investing in modern CRM systems to...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
SaaS takes over the market. Software as a Service, spearheaded by Salesforce and Microsoft's cloud-first strategy, draws customers in with its subscription-based model, while...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London's business activity attracts CRM system providers. Proximity to key markets, access to a skilled workforce and the presence of tech and marketing hubs make the capital...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Ubiquity and compatibility determine providers’ competitiveness. CRM systems that are easy to use and compatible with other applications save businesses time and increase eff...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Customisation possibilities help Salesforce dominate. The platform's adaptability caters to varying industry needs, attracting larger companies looking for tailored CRM syste...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Salesforce UK Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of SAP (UK) Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Microsoft Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Salesforce UK Ltd, and factors influencing its performance in the industry
- Description and key data for SAP (UK) Ltd, and factors influencing its performance in the industry
- Description and key data for Microsoft Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
GDPR sets new rules for CRM system providers. They now have to make sure their systems adhere to strict data protection standards, requiring explicit user consent for data pr...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Salesforce’s dominance cuts the average profit margin. Its focus on mass over profitability, along with challenging economic conditions, constrains profitability despite comp...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the CRM System Providers in the UK industry in United Kingdom in 2024?
The market size of the CRM System Providers in the UK industry in United Kingdom is £2.7bn in 2024.
How many businesses are there in the CRM System Providers in the UK industry in 2023?
There are 124 businesses in the CRM System Providers in the UK industry in United Kingdom, which has grown at a CAGR of 6.9 % between 2018 and 2023.
Has the CRM System Providers in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the CRM System Providers in the UK industry in United Kingdom has been growing at a CAGR of 19.6 % between 2018 and 2023.
What is the forecast growth of the CRM System Providers in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the CRM System Providers in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the CRM System Providers in the UK market in United Kingdom?
The biggest companies operating in the CRM System Providers market in United Kingdom are Salesforce UK Ltd, SAP (UK) Ltd and Microsoft Ltd
What does the CRM System Providers in the UK in United Kingdom include?
Software as a Service and Software as a Product are part of the CRM System Providers in the UK industry.
Which companies have the highest market share in the CRM System Providers in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Salesforce UK Ltd.
How competitive is the CRM System Providers in the UK industry in United Kingdom?
The level of competition is high and increasing in the CRM System Providers in the UK industry in United Kingdom.
