Customer Relationship Management Market
Customer Relationship Management Market Analysis by Deployment (Cloud, On-premise), by Solution (CRM Analytics, Social Media Monitoring, Customer Experience Management, Salesforce Automation), by Enterprise Size - Regional Forecast 2022-2032
Analysis of Customer Relationship Management Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Customer Relationship Management Market Outlook
The global customer relationship management market is expected to secure a market value of US$ 164. 68 Billion by 2032 while expanding at a CAGR of 11% during the forecast period from 2022 to 2032.
Technologies such as; Artificial Intelligence (AI), machine learning, and models such as SaaS are expected to provide a significant boost to the market during the evaluation period.
Increasing demand for automated engagement with customers and providing a seamless customer experience and services are projected to play a salient role in strengthening the market development in the coming time. Departments such as; sales and marketing and customer services are increasingly integrating CRM systems to enhance customer experience.
Market Size in 2022
US$ 58 Billion
Estimated Value In 2032
US$ 164.68 Billion
Projected CAGR from 2022 to 2032
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Global Customer Relationship Management Market Analysis from 2015 to 2021 Vs Future Market Outlook for 2022 to 2032
The global customer relationship management market is predicted to secure about US$ 52 Billion in 2021. The growth in the market size can be attributed to the increasing integration of artificial intelligence in customer relations software.
The market is predicted to procure about US$ 164.68 Billion by 2032. The expansion in the market size can be attributed to the increased usage of software solutions to enhance the customer experience, especially during the COVID period. Sectors such as; BFSI, retail, consumer goods, healthcare adopted such solutions during the lockdown, thereby growing its demand considerably.
According to a report, the healthcare workforce in the U.S and the UK adopted the Salesforce Health Cloud Solutions for online record-keeping of the tested patients. The market is likely to gain momentum post-pandemic period as well.
How does the Integration of Artificial Intelligence in the Customer Relationship Application boost Customer Outreach?
Implementation of Artificial Intelligence across digital technologies to act as an efficient Business Strategy
The growing demand for AI-powered software across digital technologies is anticipated to play a significant role in driving the market in the coming time. The PWC Experience Center report reveals that half of the organizations that adopted the digital transformations method were successful in offering a seamless experience to their customers.
For instance, SugarCRM launched AI-powered SugarPredict. It aims to work for service, marketing, and sales team. In another instance, Salesforce.com rolled out Service Cloud 360. It provides connected and personalized service from anywhere on a digital engagement platform.
Further, the assistance provided by the bots reduces manual errors and provides auto-generated responses to emails and customer reports, which is projected to give a significant boost to the market growth in the coming time. Therefore, the integration of AI in the customer relationship is likely to enhance the customer reach in the forecast period.
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How do Security Threats Associated with Customer Relationship Application Hamper the Market?
Growing Cyber Attacks to Hinder the Adoption of Customer Relationship Applications
The cases of growing data breaches with the usage of software are expected to hinder the market considerably. The software system carries various personal details such as credit card information, corporate intelligence, patient health data, sales data, and financial information.
Therefore, the safety of such confidential data is a huge concern for organizations. For instance, UpGuard revealed in August 2021 that a Microsoft power apps data breach exposed 38 million records that contained personally identifiable information (PII).
What is the Contribution of North America in Boosting the Customer Relationship Management Market?
Increased Demand for Customer Relationship Application in the Region to Boost the Market in North America
As per the estimations at Fact. MR, North America is projected to dominate the market and is likely to have garnered about 44% of the global revenue in 2022. The expansion of the market in the region can be attributed to the rapid adoption of CRM solutions by various organizations across the region.
Additionally, the rising implementation of developed technologies offers a varied set of customer preferences data along with real-time prediction capabilities. In North America, the US is anticipated to make the most significant contribution in boosting the market. The growth of the U.S can be attributed to the rapid digital transformation of sectors such as; banking, hospitality, and retail.
Why is APAC projected to be a Lucrative Market?
Expansion of e-commerce industry to enhance the Customer Outreach and Boost the Market in the Region
As per the analysis, the APAC region is anticipated to witness a CAGR of 12% during the forecast period. The reason for so can be attributed to the rapid expansion of e-commerce in developing nations such as; India, China, and Japan are likely to play a prominent role in bolstering the market APAC. The rapid adoption of advanced technologies is one of the most salient business strategies of the key players of the region, thereby, growing the industry in APAC.
As per the Salesforce APAC research key findings, by 2023, 73% of businesses will use AI-powered automation to allow smoother customer engagement. As of now, India and Singapore are at the forefront positions across the APAC, with 40% of the establishments using the insights.
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Why is Customer Service Segment expected to dominate the market?
Growing Need to Understand Consumer Behavior to Boost Adoption of Customer Relationship Application
As per the analysis at Fact. MR, the customer service segment is expected to dominate the market during the forecast period. The evaluation states that the segment is likely to procure about 20% of the global revenue share in 2022. The growth of the segment can be attributed to the increasing need to understand consumers’ behavior and preferences.
This has motivated brands to adopt customer relationship management applications to provide a seamless experience to their customers. Furthermore, the increasing application of digital platforms that use AI and its increasing usage by customers to engage with brands and organizations is projected to boost the market growth in the forecast period.
What is the Role of Cloud Segment in Driving the Market?
Increased Demand for the Cloud-based CRM Software among the SMEs to Grow the Segment
The cloud segment is anticipated to account for about 50% of the global revenue in 2021. The robust growth of the segment can be attributed to the increasing deployment of CRM software on the cloud.
Further, its growing adoption among SMEs is projected to augment the market in the coming time. Moreover, it offers benefits such as real-time access, cost-effectiveness, high flexibility, among others.
The established players of the global customer relationship management market adopt various strategies such as; collaboration, partnership, and acquisition to expand their global market reach.
Some of the recent developments among the key players of the market are as follows:
- In November 2020, Microsoft Corporation disclosed an alliance with Adobe Systems, Inc. and C3.ai to offer developed and efficient AI-powered CRM solutions.
- In April 2020, Zoho Corporation Pvt. Ltd., launched Bigin. It is a CRM software launched for SMEs which will enable them to build multiple customer pipelines.
- In February 2021, Copper CRM, Inc. acquired Sherlock to assist clients in strengthening their relations with customers. It also offers transparency to the professionals with respect to the customer’s behavior and preferences.
Key Segments Covered in the Industry Report
By End Use
- Government & Education
- Discrete Manufacturing
- IT & Telecom
- CRM Analytics
- Social Media Monitoring
- Marketing Automation
- Customer Experience Management
- Salesforce Automation
- Customer Service
By Enterprise Size
- Small & Medium Enterprise
- Large Enterprises
- FAQs -
By 2022-end, the customer relationship management market is forecast to reach US$ 58 Billion
From 2015 to 2021, customer relationship management revenue surged at a CAGR of 8%
According to Fact.MR, from 2022-2032, the customer relationship management industry is likely to flourish at a CAGR of 11%
By 2032, the customer relationship management market is expected to be valued at US$ 164.68 Bn
As per Fact.MR, the market for customer relationship management in North America is likely to capture 44% revenue in 2022
The Asia Pacific is forecast to flourish at a CAGR of 12% from 2022 to 2032, with respect to customer relationship management
Customer service is expected to account for about 20% of the global customer relationship management market revenue
According to Fact.MR, cloud-based customer relationship management will accumulate about 50% revenue