Scott Brinker and Frans Riemersma released their highly anticipated “State of Martech 2025” report on May 6, 2025, providing a comprehensive analysis of the evolving marketing technology landscape. The report, now in its 15th consecutive year, outlines significant developments including continued growth, AI integration, and market consolidation.

The martech industry has grown significantly, reaching a total of 15,384 solutions in 2025, marking a notable 9% increase from 14,106 solutions in the previous year. Since its initial tracking began in 2011, the industry has witnessed exponential growth of over 10,000%, equivalent to an average compound annual growth rate (CAGR) of 39.2%.

Scott Brinker, widely recognized as the “godfather of martech,” commented on this growth trajectory, stating:

“We’ve witnessed astounding exponential growth. Marketing was among the first business disciplines transformed by cloud software abundance, and this explosion has continued relentlessly.”

Martech Categories: Broad-Based Growth Continues

All primary martech categories experienced growth, underlining the diversity and widespread nature of innovation:

• Commerce & Sales, Content & Experience, and Advertising & Promotions each grew by roughly 10%.

• Social & Relationships, Data, and Management categories expanded by about 7% each.

Notably, the Sales Automation, Enablement & Intelligence subcategory grew by more than double, increasing from 708 solutions in 2023 to 1,546 in 2025. Likewise, Content Marketing tools nearly doubled, rising from 575 to 1,102 solutions.

However, the report also highlighted an 8.6% churn rate, with 1,211 solutions exiting the market. Remarkably, 64% of those solutions predated the AI-native boom that began with ChatGPT’s launch in November 2022. Frans Riemersma described this as a critical market shift, emphasizing,

“Consolidation is inevitable given market saturation. While we see churn in established solutions, there’s exciting renewal driven by innovative AI-native entrants.”

Artificial Intelligence Dominates Martech

AI adoption in marketing is rapidly transitioning from experimental to widespread operational use. According to the report:

• 72% of companies have either begun piloting AI or have already integrated it into specific workflows.

• A striking 87.5% of marketers are now regularly using stand-alone AI assistants, notably ChatGPT, Google Gemini, and Microsoft Copilot.

AI-driven functionalities are predominantly employed for content production (78.1%), audience segmentation (42.7%), data analytics (38.5%), and email/SMS personalization (34.4%). Brinker remarked on this integration, highlighting,

“AI is rapidly moving from a novelty to an indispensable part of the martech stack. The future will see AI deeply embedded into marketing systems, creating more dynamic and intelligent operations.”

Martech Stacks Slightly Expanding

Contrary to earlier predictions of martech stack consolidation, tech stacks have shown slight expansion. Zylo’s SaaS Management Index indicates the average tech stack grew by 2%, rising from 269 apps in 2023 to 275 in 2024. This incremental increase reflects cautious yet strategic adoption of new AI-based technologies.

Global Martech Landscape: Strong US and EU Presence

The United States remains the primary hub for martech, hosting 7,127 companies. The European Union is close behind, boasting 4,006 martech enterprises—equivalent to 56% of the U.S. total. Additionally, India, Canada, and Australia emerge as significant martech regions, illustrating global diversity in technology innovation.

Improved Martech User Satisfaction

Overall satisfaction with martech products has seen modest improvement, moving from an average rating of 4.36 in 2023 to 4.42 in 2025. Small martech companies consistently received higher satisfaction ratings, suggesting specialized niche solutions are increasingly valued by users.

Market Outlook and the “Hypertail” Phenomenon

The report identifies ongoing market renewal rather than simple consolidation or expansion. Brinker and Riemersma introduced the concept of the “hypertail,” where billions of lightweight, custom-built software programs are created using low-code/no-code platforms and AI-driven capabilities. These programs temporarily emerge to solve highly specific and transient marketing needs.

Brinker elaborated on future implications:

“Martech stacks are evolving into highly malleable systems of context underpinned by multiple integrated AI-driven systems. Companies must be agile enough to leverage these dynamics effectively.”

Strategic Recommendations for Marketers

The authors outlined crucial strategies for marketers navigating these changes:

• Prioritize AI integration across workflows to fully harness technological advancements.

• Establish robust data infrastructures, particularly integrating cloud data warehouses with martech stacks—a trend already seen in 56.2% of surveyed organizations.

• Emphasize composability and openness, ensuring technology platforms facilitate seamless AI-driven integrations.

Summarizing the report’s findings, Brinker offered advice to business leaders and marketing professionals:

“This isn’t just about technology—it’s about adapting our organizations and mindsets to a pace of change that is unprecedented. Those who embrace flexibility and innovation will find incredible opportunities ahead.”