7 Facts about the US Subscription Market Posted on 2014-06-27 16:09:00 by House of Kaizen

As you now may know, the subscription-based service market is booming. Recent advances in technology, including cloud computing are the primary drivers in the shift to new consumption and delivery models.

  1. According to an October 2013 study by the Economist Intelligence Unit, The worldwide market subscription service model is estimated at $500 billion.
  2. Market research firm, Gartner Group, states that 80% of a company’s future revenue will come from just 20% of its existing customers, who use a subscription-based service model.
  3. According to the Economist Intelligence Unit research, four out of every five businesses are currently seeing changes in how their customers access their services.
  4. According to a study conducted by the Economist Intelligence Unit, 51% of companies are utilizing new models for pricing and delivery, such as subscriptions and rentals, rather than an outright sale.
  5. Emerging as the primary means to deliver services and goods, subscription based services are being implemented as a core part of 40% of companies’ business.
  6. Gartner, a market research firm, predicts that by 2015, 35% of revenue from Global 2000 companies be generated via subscription- based services.
  7. A recent study by the Incyte Group, an independent research group, discovered that out of 1,000 U.S. businesses, nearly 50% had adopted or were planning to adopt recurring revenue models.