The global ad tech software market to grow by $11 billion from 2022 to 2027, study
The ad tech software market is set to grow by $11.03 billion from 2022 to 2027. However, the growth will progress at a compound annual growth rate, CAGR, of 7.95% during the forecast period, according to Technavio.
The ad tech software market is fragmented, and the vendors are seeking strong partnerships with automotive, industrial, and commercial companies to compete in the market.
Adform, Adobe Inc., Alphabet Inc., Amazon.com Inc., Criteo SA, InMobi Pte. Ltd., Integral Ad Science Holding Corp., Magnite Inc., MediaMath Inc., Mediaocean LLC, Meta Platforms Inc., Microsoft Corp., NextRoll Inc., OpenX Technologies Inc., PubMatic Inc., Skai, The Trade Desk Inc., Tremor International Ltd, Twitter Inc., and WebFX are some of the major market participants.
The increasing internet and smartphone penetration drives the growth of the ad tech software market. Companies can increasingly use digital advertising to promote their offerings because the number of smartphone users is increasing globally. These opportunities result in the development of the global advertising technology software market for browsing and posting ads. Consequently, Ad tech software providers cater to the vast number of mobile users by investing in mobile applications. Hence, such factors boost the growth of the ad tech software market during the forecast period.
The growing adoption of ad-blocker solutions challenges the growth of the ad tech software market. Ad-blockers can be deployed easily through browser extensions as they help frustrated users who do not prefer to view advertisements to remove them from websites. For instance, vendors like Google has also adopted a feature to ban ad extensions from Chrome's Web Store and Google Play. Such features impact the revenue generated by Ad tech software companies. Hence, such challenges the growth of the ad tech software market during the forecast period.
The retail and consumer goods segment will be significant during the forecast period. Furthermore, technological advances in this sector help the segment grow significantly. Artificial intelligence (AI) is an example of the technological advances in the sector. Factors such as data explosion, increasing consumer disposable incomes, and the presence of numerous small- and medium-sized enterprises (SMEs) drive the retail and consumer goods segment during the forecast period.
