Email may be one of the oldest digital marketing tools in the book, but it’s far from outdated. A new report from Allied Market Research shows the global email marketing software market is expected to triple in size, growing from $1.2 billion in 2021 to $3.3 billion by 2031, at a compound annual growth rate (CAGR) of 10.9%.

This sharp rise reflects how businesses are rethinking email not just as a communications tool, but as a precision marketing engine—one that’s increasingly powered by cloud platforms, data analytics, and AI-driven personalization.

Why It Matters

The resurgence of email marketing isn’t a surprise. Amid digital saturation and growing privacy regulations, email remains a high-performing, permission-based channel that marketers can control end-to-end. But the way companies use email has changed: it’s now automated, behavior-triggered, and hyper-personalized.

COVID-19 played a pivotal role in accelerating adoption. Lockdowns pushed more customer activity online, forcing companies to digitize engagement, accelerate product launches, and shift budgets toward owned channels like email. According to the report, that shift continues to pay off.

Who’s Driving the Growth?

• B2B organizations are leading the charge, with this segment accounting for over two-thirds of the market share in 2021—and expected to post the fastest growth (CAGR 11.97%) through 2031.

• On the tech side, cloud-based deployment dominates, comprising nearly three-fourths of the market and growing at 12.79% CAGR.

• Among applications, email lead generation is where most companies are putting their chips, and it's set to grow fastest (CAGR 13.17%), surpassing template management and sales reporting.

“Businesses are using email not just for newsletters anymore, but for full-funnel automation, AI-powered content delivery, and CRM integration,” notes the report.

Regional Trends: North America Leads, APAC Accelerates

• North America remains the top revenue contributor, holding 40% of the global share, thanks to advanced tech infrastructure and established email ecosystems.

• But Asia-Pacific is the market to watch, expected to clock a 13.56% CAGR, driven by massive mobile adoption, SMB digitization, and marketing tech investments in countries like India, China, and Indonesia.

Competitive Landscape: Consolidation Meets Innovation

The email marketing space continues to consolidate around a handful of power players—Mailchimp (Intuit), HubSpot, Salesforce, and Zoho—even as agile upstarts like ConvertKit and Jivox gain traction with lightweight, modular solutions.

Key strategies include:

• Cloud-native platforms with drag-and-drop builders and A/B testing

• AI-powered campaign orchestration

• Omnichannel integrations (social media, SMS, landing pages)

• Enhanced analytics and ROI reporting

“We’re seeing email evolve from a static tool to a dynamic, intelligent system that helps brands close the loop on customer journeys,” says the report.

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