The customer relationship management software market grew by 13.7% in 2013, according to a new report from Gartner. That’s worldwide. The market reached $20.4 billion in 2013 compared to $18 billion in 2012.

Software as a service (SaaS) represented over 41% of CRM total software revenue last year, according to the firm. Demand, it says, was driven from organizations of all sizes looking for easier-to-deploy alternatives to replace old systems as well as those seeking to “implement net-new applications or provide alternative complementary functionality.”

“High levels of end-user investment in digital marketing and customer experience initiatives were the primary growth drivers of the market in 2013,” said Joanne Correia, research vice president at Gartner. “CRM will be at the heart of digital initiatives in coming years. This is one technology area that will get funding because digital business is critical for companies to remain competitive.”

The competition among vendors has been heating up, at least with the big players. The top five vendors accounted for 50% of CRM software revenue in 2013.

Most of the revenue (52.9%) came from NOrth America, though Western Europe saw 15.2% growth. Combined, the two regions accounted for about 80% of all CRM spending throughout the year.

You can find the full report here.

Image via Gartner