The open source CRM software Market is estimated to be valued at US$ 2.59 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Open source CRM software refers to customer relationship management software that is available for use, modification, and sharing freely. It provides features such as contact management, account and lead tracking, integrated calendar and email, reporting and dashboards. Some key open source CRM software include Odoo, SuiteCRM, VTiger, Salesforce, Zoho, HubSpot etc. It is widely used across industries like retail, healthcare, manufacturing and others.
Market Dynamics:
The growth of the open source CRM software market is driven by increasing adoption of cloud-based technologies and cost benefits over proprietary CRM solutions. Cloud deployment model offers benefits such as scalability, low maintenance and operational costs. According to a survey, over 60% of organizations have indicated a preference for cloud-based open source CRM. Additionally, open source CRM provides up to 60-70% cost savings compared to on-premise commercial CRM software. This makes it an attractive option for small and medium businesses working with limited budgets. However, lack of regular upgrades and technical support are some key challenges for open source CRM software market.
Segment Analysis
The global open source CRM software market is dominated by the small and medium enterprise segment. Over 65% market share is held by the SME segment as open source CRM offers a cost-effective solution for customer relationship management needs of SMEs without burning a hole in their pocket. SMEs find open source CRM software more suitable as it provides all the functionalities of proprietary CRM at much lower costs and also has no licensing fees involved.
PEST Analysis
Political: The open source movement encourages innovation and provides more options to businesses which creates a positive political environment for open source CRM software market growth.
Economic: Recession-proof nature of open source CRM software makes it preferable for businesses during economic downturns driving its adoption. Lower costs of ownership compared to proprietary CRM further boosts its economic appeal.
Social: Younger workforce is technology-savvy and receptive towards open source solutions helping social acceptance of open source CRM software.
Technological: Continuous upgrades, new features addition and collaborative development fuel technological advancement and competitiveness of open source CRM software versus proprietary alternatives.
Key Takeaways
Global Open Source CRM Software Market Size is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing demand from small businesses for affordable CRM solutions.
The market size for open source CRM software stood at US$ 2.59 Bn in 2023. North America dominated the market with over 35% share due to widespread adoption by enterprises in US and Canada. Asia Pacific is projected to grow at the fastest pace during the forecast period led by China and India on back of growing small businesses.
Key players operating in the open source CRM software are Odoo, SuiteCRM, VTiger, Salesforce, Zoho, HubSpot, Pipedrive, Insightly, Base, Apptivo, Nutshell, Really Simple Systems, Teamgate, Bitrix24, Creatio, vTiger, SugarCRM, Zurmo, FatFree CRM, EspoCRM. Odoo captured the largest share of around 15% in 2023 led by its feature-rich module.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it