Handling the ‘Monster’ Tool Growth of 2024

The Gist

  • Rapid growth. Martech’s 27.8% growth rate highlights the dynamic expansion of the market.
  • Atomized tools. Specialist apps dominate, offering flexibility and seamless integration.
  • Generative AI impact. Generative AI tools are driving innovation and diversification in martech.

The marketing technology landscape grew “by a lot” in 2024. A 27.8% growth rate in the last year to be precise. That is probably the largest growth in the past 13 years. Frankly, as publishers of the yearly “Marketing Technology Landscape” supergraphic, we don’t care about the size of the martech market. 

We keep track of the martech tools out there for one reason only: to thoroughly understand what is happening in the marketing technology space. And “thoroughly understanding” is what you should do, too, as a marketing professional, judging by the fundamental dynamics we observe. 

With the number of tools as high as 14,106, understanding marketing technology looks daunting, let alone using it properly. For the more tech-savvy, it resembles an enormous candy store where you can get a sugar high on tools fast. If you ask me, both situations are not good for your company and your customer. 

So, how to approach this martech monster?

Taking a few steps back, we see three major trends are shaping the future of marketing technology. Understanding these trends empowers you as a marketer to navigate this ecosystem relatively easily.

1. Marketing Technology Grows Faster Than It Consolidates

It is a fact that the martech landscape continues to expand rapidly. With the decreasing costs of software, consolidation is probably not around the corner. Since the first Martech Landscape in 2011, the industry has grown by an astounding 9,295% for 13 consecutive years. That is an annual growth rate of 41.8%.

martech apps 2011

Consolidation does happen, no doubt. Every year, there are multiple reasons why martech tools are removed from our overview. This year this is what the numbers look like. 

  • 76 – Out of business.
  • 61 – Acquired & merged.
  • 61 – URL change, due to merged products or modules.
  • 33 – No longer martech, now fintech, edutech, etc.
  • 32 – Now agency, giving up software ambitions.

Source: The State of Martech 2024

The numbers this year sum up to 263 deprecated tools in total. That’s only a 2.1% churn rate from last year’s cohort. That is probably an all-time low. It is a very low number compared to the 3,068 new tools added. This low churn rate underscores a critical insight: Consolidation does not happen as fast as the growth in the market.

This implies that waiting for the market to consolidate is not a strategy. In the past 13 years, we haven’t seen a sudden shake-out of tools, or one vendor acquiring hundreds of other vendors and pushing small ones out of business. So how can you deal with the tsunami of martech tools? Let’s deep dive into the tsunami and see what it looks like on the inside.

Related Article: Marketing Technology Landscape Grows to 14,106 Solutions

2. Say Goodbye to Point Solutions, and Welcome Martech Atomization

The growth is fueled by a trend that we could label “martech atomization.” Martech is atomizing into smaller, specialist apps that perform one marketing job to be done well and seamlessly integrate with the ecosystem partners. Labeling specialist apps as “point solutions that create legacy and data dead ends” turned out to be “specialist apps that prevent legacy that integrate well.”

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