Introduction
As we head into 2025, the Customer Data Platform (CDP) market continues to evolve rapidly. From mergers and acquisitions to advancements in AI and the growing importance of first-party data, the landscape is shifting in ways that will shape how brands manage and activate customer data.
Here are my top five predictions for the CDP market in 2025, along with one bonus prediction for the industry moving forward.
1. Consolidation of Independent CDP Players
The first major trend we’re already seeing is the consolidation of independent CDP vendors. Companies like Lytics, ActionIQ, and mParticle have all been acquired by larger entities, signaling a wave of mergers and acquisitions across the industry.
This consolidation will continue to fragment an already complex market, forcing independent players to prove their value in an increasingly crowded space. To survive, these vendors will need to demonstrate real ROI and offer differentiated capabilities that can stand up to the competitive pressure from tech giants like Adobe and Salesforce.
2. A Sharper Focus on ROI
With more options on the table, CDP vendors will need to move beyond just offering features—they’ll have to show tangible business outcomes. The pressure to demonstrate ROI is going to intensify, particularly as brands evaluate whether to invest in traditional CDPs or pivot to cloud-first solutions like composable CDPs or reverse ETL tools.
Enterprises will expect rapid time-to-value, with CDPs delivering immediate, measurable benefits. Vendors that fail to showcase clear use cases and quick wins risk losing ground to more agile, cloud-native solutions that offer flexibility and faster activation.
3. Competitive Switching Will Increase
After a period of slowed SaaS investment, the market is beginning to thaw, and we’re seeing a rise in competitive switching among CDP providers. Vendors like TreasureData are positioning themselves to capture this momentum, targeting brands that are reconsidering their current platforms in search of better performance, flexibility, or cost efficiency.
At Actable, we’re already seeing this trend reflected in our client base. As the market becomes more fluid, brands are more open to exploring alternative CDP solutions that better align with their evolving needs.
4. The Power of First-Party Data in the Cloud
As third-party cookies continue to decline, brands are doubling down on their first-party data strategies. Cloud data warehouses like Snowflake, BigQuery, and Databricks are becoming the central hubs for customer data, offering more powerful ID resolution capabilities than most traditional CDPs.
This shift allows brands to maintain greater control over their data while leveraging the cloud’s scalability and flexibility. Strong ID signals housed in cloud environments can then be activated through CDPs, serving as powerful layers for audience segmentation, personalization, and engagement.
5. AI Agentification Will Transform CDP Usability
One of the most exciting developments on the horizon is the integration of AI agents within CDPs. These agents will help users mine data, build audiences, and generate recommendations, making CDPs more accessible to non-technical teams.
For many organizations, data literacy remains a barrier to fully leveraging their CDP investments. AI agents will bridge this gap, allowing marketers to tap into advanced data capabilities without relying on technical expertise. This shift will democratize data activation, empowering more teams to drive value from their customer data.
Can We Move Beyond “Composable CDPs”?
Here’s my bonus wish for the CDP market in 2025: Let’s move beyond the buzzword of “composable CDPs.”
While composable architectures offer flexibility and scalability, the term itself has become more of a marketing buzzword than a meaningful distinction. The focus should be on solutions that deliver real value to clients—whether they include composable features or not.
At the end of the day, brands don’t care about how their CDP is labeled. They care about outcomes. Does the solution help them activate their data efficiently? Does it drive measurable business results? That’s where the conversation needs to be.
Final Thoughts
The CDP market is poised for significant change in 2025. Consolidation, increased focus on ROI, competitive switching, the rise of cloud-first data strategies, and the integration of AI will reshape how brands approach their customer data.
As these trends unfold, the key for brands will be to remain agile—choosing solutions that not only fit their current needs but also position them for long-term success in an evolving Martech landscape.
At Actable, we’re excited to be at the forefront of this transformation, helping brands navigate the complexities of customer data and unlock new opportunities for growth.
