capioIT forecasts the Asia Pacific Salesforce Services Market to reach US$4.9B by 2023 – Dominated by Japan and Australia, with India, The Philippines and China the fastest-growing markets
Salesforce is the clearly leading SaaS provider, not just in CRM, or Customer Experience, but it sets the benchmark across the market. Revenues in the Asia Pacific region have exceeded US$1B, and with growth at 26%, it is enabling the services ecosystem to grow at an accelerated rate.
In 2019, capioIT forecasts that the Asia Pacific Salesforce Services market will be US$1,635M. In 2023 we forecast that it will reach US$4,857M. The CAGR from 2019 to 2023 is 31.8%. The largest market in 2019 and 2023 will be Japan. It will make up 33.3% of the 2019 market, and 32.5% of the 2023 market. ANZ is close behind, representing 30.2% of the 2019 market, and 25.6% of the 2023 market.
The key trends are shown in the two tables below.
From a country perspective, as noted in terms of market size. $$$ potential, in 2018 and 2023 Japan leads the way, followed by Australia. In 2023 they are 32.5% and 22.7% of the total market respectively. Korea is 10.7% and India 8.5% in 2023. With China the fifth-largest services opportunity, the top five markets represent over 80% of the total opportunity. China is perhaps a smaller market than anticipated, capioIT is very conservative about the long term prospects for growth in China. We expect that the political environment will deteriorate, and China is also on a path to develop compatible technology itself for applications and infrastructure rather than to rely on US or Western-based technology. This is despite Salesforce making strong long term relationships with Alibaba in the local market, albeit initially for MNC relationships. The market remains difficult to forecast.
The figure below highlights the growth rates of each market from 2018-2023. Despite a small base, the Philippines is the fastest-growing market followed by the substantially larger PRC and Indian markets. Clearly, these will increase in importance through the forecast period and belong. The slowest growing markets are the more mature markets of Australia, New Zealand and Taiwan.
Salesforce is clearly the strongest SAAS provider globally and across broad technology, not just the breadth of customer experience markets that it provides solutions. The services opportunity presented by Salesforce has been rapidly increasing. Focused on Australia and Japan primarily, it is increasingly covering the entire region, and customers create their own requirements and opportunities. Services vendors need to have the flexibility to deliver services across Salesforce offerings, geography and industry. Failure to do this, drive automation and deliver the customer experience will lead to a loss of market share and opportunity.
Note – Salesforce Services are defined as externally provided services for the integration of Salesforce into an organisation regardless of industry.
IT services refer to the business and technical skills and resources to support organisations to identify, develop, manage and optimise information and business processes. The Business and IT services market is characterised by the type of outcomes and skills required such as Design of solutions, building solutions and management of outcomes.
Note – The following countries are included in the Asia Pacific region
- New Zealand
- Greater China
- Hong Kong
- Rest of Asia Pacific