B2B martech spending growth slows, may hit $8.5 billion by 2024

Martech spending by U.S. B2B companies is expected to grow by 30% over the next two years, according to a new study. This would be a lower increase compared to the past three years.

Dig deeper: B2B marketing confidence survives budget pressures

By 2024 the spend is expected to hit $8.5 billion, up from this year’s $6.5 billion, according to a report from Insider Intelligence. This would mean an average annual spending increase of 13.5%, down significantly from the 17.4% average increase since 2020.

Even with the slowdown, the B2B martech average spend will slightly outpace B2C’s 13% projected average.

The increased B2B spending is being driven by changing customer behavior. Like B2C consumers, B2B buyers want a self-serve, personalized experience that doesn’t require them to speak to a salesperson, according to the Insider Intelligence report. 

They have higher expectations for their customer experience. As a result, B2B marketers have been investing in new technology which creates customizable content and messaging and delivers it via the person’s preferred channels. 

Why we care. Has B2B martech caught up with B2C yet? That’s the big question as we head into increasingly troubled economic waters. Inflation is hurting consumer spending, which generally leads to tighter budgets in every type of organization. If you aren’t already all-in on personalization and customization then it could be a very tough time.