Social Media Management Market by Type (Engagement, Scheduling & Publishing, Analytics, and Others), Enterprise Size (Large, Mid-market, and SMEs), End-use (BFSI, Retail, Healthcare, Real Estate, Manufacturing, Media & Entertainment, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Social Media Management Market Analysis

The global social media management market is predicted to garner $18,197.8 million in the 2021–2028 timeframe, growing from $3,771.4 million in 2020, at a high CAGR of 21.2%.

Market Synopsis

Increasing penetration on internet and social media sites, growing adoption of digital marketing, and enhancement of customer experience with social media management are the key factors anticipated to drive the social media management market.

However, regulatory constraints related to privacy issues may restrain the growth of the global industry during the forecast period.

According to the regional analysis of the market, the North America social media management market is anticipated to grow at a CAGR of 20.6%, by generating a revenue of $5,618.2 million during the review period.

Social Media Management Overview

Social media management is the practice pertaining to creating, listening, scheduling, analyzing, and engaging with content posted on social networks, such as Facebook, Twitter, LinkedIn, and Instagram. By automating these processes, the companies can save time, increase productivity, and tap into the potential of their audience. Moreover, with the help of user’s social media information such as perceptions and expectations, enterprises can use this data to plan strategies, monitor competitor’s activities, and improve company’s operational performance.   

Impact Analysis of COVID-19 on the Global Social Media Management Market

COVID-19 impact on the social media management market has been favorable, owing to the increased use of social media platforms among consumers. This is due to the volume of data generated through social media platforms, the increase in cloud adoption trends, and high adoption rates of social media management software among small and medium enterprises. 

Market growth is restricted by regulatory and compliance constraints, incomprehensible workflows, complex laws, and a lack of common standards. A lack of standard measures for social media management platforms and a lack of a single solution to manage the increasing unstructured data challenges may hinder the growth of the social media management market.

Increasing Penetration of Social Media Applications is likely to Drive the Market Growth

The use of social media by businesses is integral to their operations. The rise of internet-enabled mobile phones and tablets, combined with an ever-increasing user base on social media platforms, will propel the social media analytics market forward over the forecast period. As per the recent social media industry estimate, by end of 2021, there will be over 4.48 billion people using social media worldwide, with the average user accessing 6.6 social media platforms per month. 

Currently, consumers can be reached through social media platforms, reinforcing the demand for social media analytics solutions for businesses throughout the world. Also, brands are instrumental in utilizing services from third party firms such as Facebook ad management agency to reach potential customers for their product and services. As of 2021, Facebook has 2.85 billion users, according to the company. Moreover, Twitter, a microblogging social media site, claims that 500 million tweets are sent every day, and that 9% more individuals are using Twitter on a daily basis, confirming the global penetration of social media networks. Such developments are expected to increase the utility of social media campaign management tools among the business entities.

To know more about global social media management market drivers, get in touch with our analysts here.

Data Manipulation and Privacy Leaks to Restrain the Growth of the Global Industry

Data breaches have alarmed many users, forcing them to reconsider their social network interactions and the security of their personal information. According to a Pew Trust survey, 80% of social media users are concerned about companies and advertising accessing and utilizing their posts on social media. However, there has been increasing advocacy of stricter laws and regulations which will address the privacy issues in the long run. 

Increasing Data Volume across Industries to Foster the Growth of Social Media Management

Businesses are making the most of social media data by advancing customer relationships using social media management solutions to gain real-time insights and increase revenue. As per the global statistics on Big Data (data sets of information that are too large to handle), almost 17 megabytes were generated every second by each person in 2020. Moreover, data generated by internet users each day amounts to 2.5 quintillion bytes. The available data and its utilization in effective way is likely to present enormous opportunities for companies for anticipating trends, tracking competitor promotions, managing brands, and enhancing customer experience. 

To know more about the global social media management market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The engagement sub-segment is predicted to have a dominating market share in the global market with a revenue of $1,289.2 million in 2020 and register a revenue of $5,998.5 million during the forecast period, growing at a CAGR of 20.7%. Increasing adoption social engagement tools such as social CRM, social monitoring & alerts, automation tools, and customer service tools has propelled the growth of the sub-segment in the social media management market. Moreover, social media management market trends suggest that increasing demand for social CRM tools to monitor and engage with social media influencers is anticipated to boost the growth in the near future.

The analytics sub-segment is predicted to have highest growth rate in the global market with a revenue of $846.7 million in 2020 and register a revenue of $4,494.4 million during the forecast period, growing at a CAGR of 22.7%. With the aid of social media analytics tools, social media data can be utilized to gain insight into customer perceptions of competitors' products as well as industry-specific trends. Though the use of social media analytics for competitive intelligence has not yet reached its full potential, the use of social media analytics for competitive intelligence is projected to grow in the coming years as competition grows.

Source: Research Dive Analysis

The small & medium enterprise sub-segment of the global social media management market is projected to have the fastest growth and surpass $5,172.6 million by 2028, with an increase from $1,030.0 million in 2020. Social networks have become essential element among SMEs for its marketing strategy helping the brand positioning and product or service differentiation. Moreover, increasing utility of social media analytics and social CRM tools is likely to boost the market in the segment.

The large enterprise sub-segment of the global social media management market is projected to register a substantial revenue of $6,715.0 million by 2028, with an increase from $1,428.9 million in 2020. It has become imperative for enterprises to have strong social media presence to help customers connect with their brand on a personal level and enhance its brand loyalty and customer retention. For example, Hewlett Packard (HP), a computer hardware company, partnered with Lithium, a renowned social media management tool, back in 2012 to increase customer interaction and response rates. HP customer service workers were able to communicate with customers on social media more effectively and efficiently owing to the Lithium social media management solution.

Source: Research Dive Analysis

The healthcare sub-segment of the global social media management market is projected to have the fastest growth and surpass $2,607.3 million by 2028, with an increase from $ 486.1 million in 2020. Social media platforms allow healthcare facilities and hospitals to connect with prospective patients one-on-one, while also offering valuable information to assist them in making the best decision for their health.

The BFSI sub-segment of the global social media management market is projected to register a substantial revenue of $4,235.3 million by 2028, with an increase from $935.0 million in 2020. Social media platforms are widely used by financial organizations to increase and retain their client base. Over the past quarters, the BFSI industry has been steadily investing to reap the benefits of digital transformation. Banking institutions across the world are instrumental in investing time and money not just in offering a digital customer experience but also in digitally engaging with customers, employees, and stakeholders.

Source: Research Dive Analysis

The Social Media Management Market in Asia-Pacific to be the Fastest Growing

The Asia-Pacific social media management systems market accounted $1,076.7 million in 2020 and is projected to register a revenue of $5,603.7 million during the forecast period. As per the industry estimates in Asia-Pacific region, more than 40% of all internet users use social media for work purposes. Moreover, between April 2019 and January 2020, number of people using social media in Asia increased by 16.98%. Also, increasing volume of data, increasing smartphone and internet penetration, advancements in AI and big data technologies, and increasing desire for valuable insights among businesses are some of the factors driving the growth of the market in the region.

Competitive Scenario in the Global Social Media Management Market

Product launches and mergers & acquisitions are common strategies followed by major market players.
 

Source: Research Dive Analysis

Social media management market share has been accounted by key players including Sprinklr, Oktopost, Falcon.io, HubSpot, Salesforce, Social Hub, Spredfast, Likeable Hub, Social Flow, and Meltwater, among others. Also, the market is substantially fragmented and accounted by large number of social media marketing management companies. The majority of the main vendors provide all-encompassing suites with a wide variety of features. Niche players, on the other hand, are developing new competencies.

In June 2021, Salesforce, a cloud-based software company, introduced a novel low code tool for developers on its salesforce lightning platform. This low-code tool is meant for automation, interactive app development, and new elastic computing. It includes AI-driven data protection, identity management, and the development of skills to assist teams in generating more revenue.

In October 2021, Sprinklr, a social media management company, launched the second iteration of its a customer service solution Sprinklr Modern Care, which includes sophisticated AI and automation to enable businesses unify case management and agent engagement in a single contact center software solution.

Porter’s Five Forces Analysis for the Global Social Media Management Market:

• Bargaining Power of Suppliers: Supply is an issue in regard to knowledge and experience which faces bottleneck. Those with experience can instill confidence in their clients or top management in their particular business models, but those without experience pose a bigger risk in an industry that is already perceived as risky. Therefore, bargaining power of suppliers (experienced professionals) is moderate when it comes to offering unique social media management solutions.
  Thus, the bargaining power of the suppliers is moderate.
• Bargaining Power of Buyers: The buyers garner significant amount of bargaining power as industry offers wider range of social media management options. The low switching cost for buyers and less product differentiation offered by companies gives edge to buyers. 
  Thus, the bargaining power of the buyers is high.
• Threat of New Entrants: In social media industry, there are virtually no entry barriers due to economies of scale, giving new entrants the opportunity to adequately study the market. Moreover, in the business to business (B2B) model advantages such as low initial investments, price-performance decision powers, and adaptability, a new entrant can challenge an established player. 
  Thus, the threat of the new entrants is high.
• Threat of Substitutes: In terms of competition and other marketing and influencing tools there are few options available in the market such as search engine optimization (SEO) and search engine marketing. However, these substitutes cannot be considered a complete switch because social media marketing is much less expensive, effective, and quick to set up than search engine optimization or search engine marketing.
  Thus, the threat of substitutes is moderate.
• Competitive Rivalry in the Market: Considering B2B model, there are large number of agencies in the social media industry. Lower pricing of tools is pervasive, which acts as a substitute in terms of competition. The competition is likely to increase because of the low investment and low entry barriers, however for sustainability it is still challenging just like any other industry.
  Therefore, the competitive rivalry in the market is high.