The North American Mobile Sales Force Automation (SFA) Market is valued at USD 2.65 Bn in 2021 and is poised to grow at a CAGR of 8.5% to reach a Market Size of USD 4.69 Bn in 2027. The North American Mobile SFA Market is poised to grow significantly driven by factors such as Significant increase in the demand for sales forecasting, Surge in Need for Business Intelligence & Insights and Emerging Innovation in the Field of Mobile Telecommunications Technology
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Drivers
- Market Restraints
- Industry Challenges
- Technology Trends
- Pricing Trends
- Post COVID-19 Recovery
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Sales force automation is a commercial approach in which specialized software is utilized to automate processes that would otherwise be performed by humans. SFA software is also comparable to customer relationship management (CRM) software. SFA, on the other hand, is more specialized than CRM, which is built primarily for the process of selling directly to businesses. SFA has a number of advantages over CRM, including the ability to process orders, share information among salespeople, manage customer contact information, control and reordering, inventory monitoring, sales predictions, order tracking, and employee evaluations.
When software tools automate aspects of the sales process, this is known as sales force automation (SFA). This automation focuses on administrative operations that, while vital, often take time for sales staff to do. According to studies, two-thirds of a sales rep’s time is spent on non-revenue producing tasks, according to a survey conducted. Sales reps can spend more time on more productive aspects of their jobs by allowing a sales force automation programme handle these chores.
Reporting and analytics tools can be included in sales force automation software. This makes it easy for sales managers to see indicators like sales team member performance or forecasted income over a given time period.
In a cloud implementation, SFA software captures a vast amount of data from numerous consumer touch points and makes it available to multiple devices. As a result, data security and piracy are a concern impeding the sales force automation software market’s growth. Furthermore, countries are enacting rules and regulations to tighten the regulatory framework, such as the General Data Protection Regulation (GDPR). This, together with the release of updated automation solutions from leading competitors, which feature two-factor authentication and other security checks, is expected to address data security issues, boosting market growth throughout the projection period.
SFA is typically a component of a client relationship management (CRM) system that tracks all phases of a transaction. The aim is to keep account of every contact a client has had, as well as the reason for the interaction and any follow-up that may be required. Phone calls, emails, and meetings are examples of this.
The North American Sales Force Automation Market is valued at USD 2.65 Billion in 2021 and is poised to grow at a CAGR of 8.5% to reach a Market Size of USD 4.69 Billion in 2027.
When software tools automate aspects of the sales process, this is known as sales force automation. It primarily focuses on the automation of time-consuming administrative chores that can be performed by a sales force. Cloud-based software is widely employed in the sales force automation business. Such software allows for safe data storage, which is incredibly important in today’s world. Secure data storage allows organizations to gain secure access while lowering costs. It offers solutions that aid in the expansion of sales and the ongoing management of the complete corporate sales process. The market’s major players are continually introducing new developments for the global sales force automation market’s future growth.
Microsoft Corporation, Oracle Corporation, SAP SE, NetSuite Inc., and salesforce.com Inc. have all contributed significantly to the sales force automation market revenue by providing sales force automation solutions all over the world. Artificial intelligence, or AI, has already been used into solutions that improve sales and personalized services by IT giants like Microsoft. Furthermore, Salesforce.com and Microsoft Dynamics CRM online formed a global strategic alliance in 2014 to provide sophisticated solutions to customers around the world.
The Sales Force organization has provided SaaS SFA solutions ranging from mobile sales productivity apps to advanced analytics over the years. Microsoft Dynamics CRM online, on the other hand, provides SFA product vision and capabilities in order to provide better solutions to consumers. All of the service providers are working hard to boost the sales force automation industry’s growth.
The use of sales force automation in a variety of industries is expected to boost the market potential for sales force automation. Because sales process automation frees up employees’ time from administrative tasks, businesses can improve their performance through increased productivity. As a result, demand for sales force automation rises, propelling the SFA Market Growth.
Some of the Major Risks in the North American Sales Force Automation (SFA) Market include
Privacy and reputation
- Consumer data is being exploited without their permission.
- Data containing personally identifiable information (PII) is not stored securely, resulting in a data breach and subsequent individual consequences.
- The Sales Force Automation (SFA) Market is largely fragmented, with a number of conglomerates and medium-sized and small start-up companies accounting for the majority of global market share. Lower entry barriers, a lack of economies of scale, and fierce market competition are all factors contributing to the Sales Force Automation market’s fragmentation. Businesses with lower margins and higher costs will benefit from a fragmented market. When interacting with other countries, they also lack the benefit of size.
Top Market Opportunities
The Prime Opportunities for the Market Players in the North American Sales Force Automation (SFA) Market are
Increased adoption across several sectors
The sales force automation market will reach its peak in the near future, thanks to the emergence of more advanced technology and growing usage across a variety of industries. The market is likely to grow as the modern world shifts more towards automation. Sales force automation reduces burden and helps firms improve performance, resulting in a surge in demand for the sales force automation industry.
According to a market research of sales force automation, the top companies are focusing on delivering customized solutions in product modelling, sales forecasting, call automation, order management, and other areas to meet the needs of customers. Such innovations and solutions have the potential to propel the sales force automation industry to new heights.
Advancements in Cloud Computing and Big Data
Cloud computing and big data are two important effects on SFA software systems. For analysis and creation of ideas, AI software requires and creates a large amount of data. Improvements in cloud-storage services and sectors will open up new market opportunities in this area. Big data management is also predicted to expand in the future. The internet of things (IoT) has been a boon to the market for AI software platforms. According to current market data, there will be approximately 8.74 billion IoT devices on the market in 2020, with that number expected to triple in the next ten years.
Furthermore, advancements in 5G technology would open up new potential for the market. The bulk of SFA software platforms are cloud-connected and rely on the internet to complete operational activities. The availability of high-speed internet on the market will also open up new opportunities for virtual support and robotics. According to a market research of artificial intelligence (AI) software platforms, the system will experience significant growth over the next 10 years.
The Major Factors driving the growth of the North American Sales Force Automation (SFA) Market include
Significant increase in the demand for sales forecasting
In the banking, retail, and information technology (IT) industries, there is currently a major growth in demand for sales forecasting. This, together with the growing demand for tracking methods and efficiency in sales processes, is one of the key reasons driving the industry forward. Aside from that, SFA software has unique capabilities including information sharing among salespeople, order processing, client contact management, inventory monitoring, control, and reordering, sales forecasting, and order tracking. As a result, it is far more popular than customer relationship management (CRM) software around the world.
Furthermore, prominent firms are employing innovative solutions such as machine learning (ML), artificial intelligence (AI), and cloud technology to provide opportunity, forecasting, and smart product or service suggestions. This contributes to the market’s expansion.
Surge in Need for Business Intelligence & Insights
Social media, blogs, and other internet portals have emerged as important sources of consumer behavior and current industry trends. A corporation can monitor the trend and insights connected to consumer behavior and their affinity towards a certain brand or product using sales force automation software.
Simply described, an SFA is a sales management software application. SFA delivers automated workflows that streamline the sales process and maximize revenue by managing business leads, sales forecasts, and team performance. When software tools automate aspects of the sales process, this is known as sales force automation (SFA).
This automation focuses on administrative operations that, while vital, often take time for sales staff to do. According to studies, two-thirds of a sales rep’s time is spent on non-revenue producing tasks, according to a survey conducted. Sales reps can focus on more productive aspects of their jobs by allowing sales force automation software to handle these responsibilities. Selling is all there is to it.
Emerging Innovation in the Field of Mobile Telecommunications Technology
Increased smartphone adoption and adoption of 4G & 5G mobile technology allow for easier configuration, usage, and upgradation of data related to sales force automation applications based on different apps such as Windows, Android, and iOS, which is expected to drive the sales force automation software market growth in the future.
The Major Factors restraining the growth of the North American Sales Force Automation (SFA) Market include
Dearth of Sales Force Automation Experts
Sales Force is a complicated system, and firms need employees with certain skill sets to create, manage, and implement Sales Force systems. Workers working with Sales Force systems, for example, should be familiar with technologies such as cognitive computing, machine learning, deep learning, and image recognition. Integration of Sales Force solutions with existing systems is a complex endeavor that necessitates considerable data processing in order to emulate human brain behavior. Even slight faults can cause a system to fail or a solution to malfunction, which can have a significant impact on outcomes and desired outcomes.
To personalize an existing ML-enabled Sales Force service, you’ll need the help of a data scientist or a developer. Because Sales Force is still in its early stages of development, the number of people with in-depth knowledge of the technology is limited. As a result, the restraining factor’s impact is predicted to be significant in the early years of the forecast period. Because the data contains demographic information about customers, businesses may design algorithms that penalize people based on their age, gender, or ethnicity. Companies should constantly represent customers in a clear and precise manner, account for prejudices, and provide fairness.
High cost of Sales Force Automation software implementation and maintenance
The expense of implementing and maintaining SFA software is high. Because of the affordability issue, various potential markets around the world are not progressing at the required rate. Although SFA software makes work processes smoother and more efficient, the expenses of implementation, particularly for SMEs, are rather significant. In addition, the lack of critical infrastructure in several markets is slowing expansion. According to current predictions, a major portion of the worldwide Sales Force Automation (SFA) Software Platform market would remain unprepared during the forecast period.
The cost of a custom SFA solution range from $6000 to $300,000. This cost includes development and implementation. Ongoing SFA services, such as advising, are less expensive, but its use in various industries, such as e-commerce, logistics, and retail, is more common. Businesses with limited in-house capabilities or unfamiliarity with Artificial Intelligence are frequently forced to outsource, which presents the biggest financial challenge. Artificial Intelligence costs vary depending on the type of plan employed in various applications. Because SFA technologies are more expensive, small and medium-sized businesses have a hard time implementing them.
The Key Challenge for market players in the North American Sales Force Automation (SFA) Market is
Lack of accuracy of the solutions produced
The SFA software platform offers innovative and effective solutions, yet it has limitations in several areas. Aside from the cost of custom-creating infrastructure, the system will never be able to completely replace the contribution and intelligence of human employees. SFA software, for example, is not creative. The system’s intellect is artificially generated, and machine learning is one of the system’s advanced outcomes. However, AI software is incapable of doing activities that require the creation of something unique or the use of creative abilities.
Furthermore, there is growing concern about the accuracy of SFA software platforms’ solutions. The data that is entered into the system is used by this automated software. Even if advanced AI algorithms do not make little mistakes, the software is not perfect all of the time. A system error can be caused by a variety of circumstances. These elements could pose a risk to the North American Sales Force Automation (SFA) software platform market.
Technology is transforming the way Sales Force Automation solutions are offered, some of the major technology trends in the North American Sales Force Automation (SFA) Market are
Blockchain makes a big splash
Salesforce Blockchain is a “low-code platform that enables enterprises to share verified, distributed data sets across a trusted network of partners and third parties,” according to a news statement from the CRM behemoth. Salesforce Blockchain can assist with the creation of blockchain networks, workflows, and apps in this regard. Simply defined, the main purpose of such a solution is to allow Salesforce clients to access and share data with a broad and dynamic group of partners (in a secure manner). A distributed ledger also aids in bridging the ‘trust gap’ in order to deliver new experiences. As a result, Blockchain can assist firms in eliminating excessive expenses and inefficiencies by storing, tracking, and verifying data from all network partners.
Enterprise mobility gains steadily
By 2020, Gartner expects that 40% of sales companies will use mobile technologies for the majority of their SFA. Salesforce has been at the forefront of the mobile revolution since 2007, introducing CRM to mobile devices. Salesforce has, in retrospect, built a good platform for future solutions.
It’s also encouraging consumers to use the mobile UI with new features like:
Building Native Apps: Salesforce teamed with Apple (the world’s most advanced mobile operating system) to rebuild the native Salesforce app in 2018. The goal is to improve the user experience by leveraging iOS features like Siri Shortcuts, Face ID, and Business Chat.
The Pricing of Sales Force Automation Solutions depends on several factors some of which include
- Team Size
- Solutions offered and
- Customer Support Solutions offered
Some of the Sales Force Automation Solutions offered and their pricing is as in the below table
|Essentials||All-in-one sales and support app||$ 25 USD/user/month|
|Sales Professional||Complete sales solution for any size team||$ 75 USD/user/month|
|Service Professional||Complete customer service solution for any size team||$ 75 USD/user/month|
|Pardot Growth||Suite of marketing automation tools for any size team||$ 1,250 USD/month up to 10,000 contacts|
Post COVID-19 Recovery
The COVID19 pandemic had a significant influence on the world’s health and financial systems. Several firms and sectors suffered severe impacts and were unable to carry out their responsibilities. In some ways, such severe effects impacted the sales force automation market. All industrial operations were halted, and the supply chain was disrupted as a result of the lockdown limitations. However, thanks to the efforts of leading market participants and the need for automation systems from a variety of industries, the industry was able to exhibit a significant increase and continue steady growth even in these difficult times.
People generally worked from home during the lockdown, and businesses gravitated toward automation systems because manual operations were banned. This resulted in a large demand for sales force automation, which contributed to the expansion of the sales force automation industry. Many firms have increased their demands for such software due to its ease of use. Market companies are introducing new innovations in order to provide better solutions, which will drive the SFA market growth in the near future.
Market Size and Forecast
The North American Sales Force Automation Market is valued at USD 2.65 Billion in 2021 and is poised to grow at a CAGR of 8.5% to reach a Market Size of USD 4.69 Billion in 2027.
The increase in accelerated growth in SFA, combined with the Software market and usability, has signaled important changes in the current Sales Force Automation (SFA) Software market position, as well as emphasizing the Sales Force Automation (SFA) Software market’s futuristic scenario. The impact of the Covid-19 epidemic on businesses has been divided as the pandemic continues to wreak havoc around the world. While some industries are unaffected by the crisis, others will continue to face issues long when the economy recovers. To assure profitability in the coming years, almost all businesses are charting a new course of action to deal with changes in the business landscape.
One of the report’s segments, On-Premise, is expected to grow at a 9% CAGR and reach US$ 1.83 billion by the conclusion of the analysis period (2027). After an early assessment of the pandemic’s commercial effects and the resulting economic crisis, the Software-as-a-Service (SaaS) segment’s growth is corrected to a revised 7.8% CAGR for the next seven years.
The Cloud segment is expected to grow at an 8.1 percent CAGR, with the United States and Canada leading the way. By the end of the analysis period, these regional markets, which had a combined market value of US$1.1 billion in 2020, will have grown to US$1.9 billion. North America, on the other hand, will grow at a 9.9% CAGR over the forecast period.
In the United States, the Sales Force Automation (SFA) industry is expected to reach US $1.4 billion by 2020.
Despite the COVID-19 crisis, the North American market for Sales Force Automation (SFA), which was predicted to be worth US$ 2.65 billion in 2021, is expected to expand to US$ 4.69 billion by 2027, with a CAGR of 8.5 percent between 2020 and 2027. One of the report’s segments, On-Premise, is expected to grow at a 9% CAGR and reach US$ 1.83 billion by the conclusion of the analysis period. After an early assessment of the pandemic’s commercial effects and the resulting economic crisis, the Software-as-a-Service (SaaS) segment’s growth is corrected to a revised 7.8% CAGR for the next seven years.
During the projected period, cloud deployments are expected to rise at a phenomenal rate. The advantages of using cloud-based delivery methods for deep learning software solutions and services include flexibility, automatic software upgrades, disaster management via cloud-based backup systems, and increased efficiency.
The BFSI industry is predicted to be the largest contributor in the end-user segment, while the healthcare sector is expected to develop at the fastest CAGR during the forecast period. Both industries are using AI platforms to gain insights from enormous amounts of data, improve customer experience, evaluate data trends, and improve decision-making.
The adoption of advanced technologies in industry verticals such as automotive, healthcare, retail, finance, and manufacturing is being driven by the tech giants’ continual research and innovation. However, technology has always been an important component of these businesses, but Sales Force Automation has pushed it to the forefront. For example, AI is being incorporated into nearly every instrument and programme, from self-driving cars to life-saving medical equipment.
AI has already shown to be a major game-changer in the approaching digital world. Amazon.com, Inc., Google LLC, Apple Inc., Facebook, International Business Machines Corporation, and Microsoft are among the tech giants spending heavily in AI research and development. These businesses are working to make AI more accessible to business applications
In 2019, Salesforce.com, Inc., Microsoft Corporation, and Oracle Corporation were the top three players with a significant market share. Long-term strategic collaborations, mergers and acquisitions, and collaboration with stakeholders across the value chain are all happening among the market’s players.
For example, Salesforce.com, Inc. announced the acquisition of Tableau Software, an analytics platform firm, in August 2019. With this purchase, the company is better positioned to help businesses around the world accelerate digital transformation by allowing them to tap into data throughout their whole business and gain deeper insights to make better decisions, improve customer experiences, and accelerate innovation.
By combining new technology with SFA solutions, market participants are also creating new products and services. Oracle Corporation, for example, promised various AI and machine learning-powered enhancements for its suite of sales tools in 2021. This was done to improve marketing and sales productivity by using artificial intelligence to speed up previously manual operations while taking advantage of all the data available in today’s sales and marketing.
Key Market Players
Some of the Key Players in the North American Sales Force Automation (SFA) Market include
Salesforce.com, Inc. is a company that specializes in customer relationship management (CRM) software. The Customer 360 platform from the company provides a source that integrates customer data across systems, applications, and devices, allowing businesses to sell, service, market, and do business from anywhere. It focuses on cloud, mobile, social, analytics, and artificial intelligence (AI), all of which help organizations transform. It also allows third parties to use its platform and developer tools to create new features and applications for the platform. Its Sales service allows clients to store data, track leads and progress, forecast prospects, acquire insights through analytics and relationship intelligence, and deliver quotes, contracts, and bills. It aids in the connection of their service employees with clients at all points of contact. It also uses forecasts, recommendations, and chatbots across digital channels to assist clients with regular difficulties.
Microsoft Corporation is a computer software and hardware corporation. Software products, services, devices, and solutions are developed and supported by the company. Productivity and Business Processes, Intelligent Cloud, and More Personal Computing are the company’s segments. Operating systems, cross-device productivity apps, server apps, business solution apps, desktop and server management tools, software development tools, and video games are among the company’s offerings. Gadgets like as personal computers (PCs), tablets, games and entertainment consoles, other intelligent devices, and related accessories are also designed, manufactured, and sold by the company. It offers a variety of services, including cloud-based solutions that deliver software, services, platforms, and content to customers, as well as solution support and consulting. Original equipment manufacturers, distributors, and resellers are all used to promote and distribute the company’s products and services.
SAP SE (SAP) is a software firm established in Germany that specializes in enterprise applications. The company is divided into three segments: The Applications, Technology, and Services sector sells software licenses, subscriptions to its cloud applications, and related services, primarily support and various professional services, as well as software implementation and education services. the SAP Business Network segment, which includes cloud-based collaborative business networks and services relating to the SAP Business Network, such as cloud applications, professional services, and education services, as well as the Company markets and sells cloud offerings developed by SAP Ariba, SAP Fieldglass, and Concur, and the Customer Experience segment, which includes on-premise and cloud-based products that run front office functions across the customer journey.
Aptean is a global leader in providing purpose-built, industry-specific software that helps manufacturers and distributors run and expand their operations more efficiently. Aptean’s technologies, services, and unrivalled expertise enable businesses of all sizes be Ready for What’s Next, Now, with cloud and on-premise deployment choices. Aptean has offices in North America, Europe, and Asia-Pacific, with its headquarters in Alpharetta, Georgia.
Zoho Corporation is a multinational technology firm located in India that develops web-based business products. It is most well-known for its Zoho online office suite. Sridhar Vembu and Tony Thomas launched the company in 1996 and it now has seven sites, including a worldwide headquarters in Chennai, Tamil Nadu, India, and a corporate headquarters outside of Austin in Del Valle, Texas. AdventNet, Inc. was the company’s name from 1996 to 2009. In 2001, AdventNet expanded its operations into Japan. In 2005, Zoho CRM was released, followed by Projects, Creator, and Sheet in 2006. With the launching of Zoho Docs and Zoho Meeting in 2007, Zoho ventured into the collaborative market. In 2008, the company launched invoicing and mail capabilities, and by August of that year, it had surpassed one million users. Zoho One, a complete suite of over forty applications, was released in 2017. Zoho One has been expanded to 50 applications as of October 2021. In January 2020, Zoho had surpassed 50 million users.
Infor is a multinational enterprise software corporation based in New York City, New York. Infor focuses on business solutions for businesses that are supplied as a service via cloud computing. Infor began focusing on software for industry niches, as well as user-friendly software design, in 2010. Originally focused on financial systems and enterprise resource planning (ERP), Infor began to focus on software for industry niches, as well as user-friendly software design, in 2010. Infor uses Amazon Web Services, Microsoft Azure, and a variety of open-source software platforms to deploy its cloud applications.
CRMNEXT is a company that specializes in Customer Relationship Management (CRM) solutions. It has more than a million users that manage over a billion clients in 30 countries across Asia, Europe, North America, the Middle East, and Africa. Its banking CRM, insurance CRM, and financial services CRM solutions are used by some of the world’s largest and fastest-growing organizations for all of their sales, onboarding, servicing, and cross-sell needs. It is assisting customers in setting the bar for removing barriers and friction across channels, resulting in award-winning customer engagement and effective business growth. With 325,000+ users spread across 5,000+ locations in 19 countries, it boasts the world’s largest banking Customer Relationship Management deployment. It is focused on the delivery of high impact CRM solutions, with expertise in developing customer journeys from digital onboarding through all elements of aided services.
SugarCRM is a Cupertino, California-based software firm. Sugar, a web-based customer relationship management (CRM) system, is one of its products. Sales force automation, marketing campaigns, customer service, collaboration, Mobile CRM, Social CRM, and reporting are all features of SugarCRM. Sugarcrm.com is the company’s commercial website, and Sugar Exchange (for third-party extensions) and user forums are also available. SugarCRM had two million users as of 2017.
Sales Force Automation (SFA) is a sunrise segment in the CRM segment which can alter the face of the industry as it could significantly increase the outputs generated across all sectors such as BFSI, Retail and eCommerce, IT and Telecommunication, Healthcare, Automotive and Industrial Automation and could generate interesting equations in terms of revenue generation and offer significant turnaround in terms of growth.
The North American Sales Force Automation (SFA) Market is expected to grow at a significant CAGR of 8.5% to reach a Market Size of USD 4.69 Billion in 2027 from a value of USD 2.65 Billion in 2021. Some of the primary driving factors for the market are the Significant increase in the demand for sales forecasting, Surge in Need for Business Intelligence & Insights and Emerging Innovation in the Field of Mobile Telecommunications Technology.
Some of the Challenges affecting the growth of the North American SFA Market include Dearth of Sales Force Automation Experts, High cost of Sales Force Automation software implementation and maintenance and Lack of accuracy of the solutions produced. Though growth bottlenecks exist the Opportunities exist in the form of Increased adoption across several sectors and advancements in Cloud Computing and Big Data
- SFA – Sales Force Automation
- SMEs – Small and Medium Enterprises
- CRM – Customer Relationship Management
- GDPR – General Data Protection Regulation
- AI – Artificial Intelligence
- IoT – Internet of Things
- ICT – Information and Communication Technology
- R&D – Research & Development
- SaaS – Software-as-a-Service