Customer Relationship Management Market Outlook
The global customer relationship management market size was valued at USD 53.07 Billion in 2022 and is likely reach to USD 129.29 Billion by 2031, expanding at a CAGR of 10.4% during the forecast period, 2023-2031. The growth of the market is attributed to the rising trend of automated customer management, improving customer service, and enhancing customer experience.
Customer relationship management (CRM) helps businesses in engaging new customers and improving existing customer experience. Use of CRM solutions eases the process of communication with consumers and increases their satisfaction about products or services.
Additionally, advancements in CRM software makes it more approachable, fast, and effective analysis of important information about business analytics.
This information is needed to increase sales, customize customer experience, find leads, retain customers, close deals, build stronger relationships, and make the process more simple and efficient. Owing to these advantages, the solution is widely applied in several industries across the globe.
The COVID-19 pandemic outbreak had brought a positive impact on the market due to the implementation of work from home policy by various business organizations and government bodies.
This factor has driven organizations to focus on CRM to engage customers, resolve customer issues, close sales deals, and pursue opportunities in remote working environments. This is leading to wide installation and adaptation of CRM in several organizations.
Market Trends, Drivers, Restraints, and Opportunities
- Rising use of digital platforms by consumers to communicate with organizations and brands is a key factor driving the market growth.
- Increasing availability of service models such as Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) model is projected to drive the market expansion during the forecast period.
- Growing threat of cyber-attack on data stored in CRM software acts as a major challenge that can restrict the market growth in the coming years.
- Rising stringent government regulations such as General Data Protection Regulation (GDPR) regarding data protection can hamper the market growth during the projected timeline.
- Integrating technology such as natural language processors, deep learning, machine learning, and big data with CRM software is projected to create significant growth opportunities for the market.
Scope of Customer Relationship Management Market Report
The report on the global customer relationship management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Customer Relationship Management Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Deployments (Cloud and On-premise), End-users (IT & Telecom, BFSI, Government & Education, Retail, Discrete Manufacturing, Healthcare, and Others), Solutions (Salesforce Automation, Customer Service, CRM Analytics, Social Media Monitoring, Marketing Automation, Customer Experience Management, and Others), and Enterprise Sizes (Small & Medium Enterprise and Large Enterprise)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Microsoft Corp.; Oracle Corp.; SugarCRM Inc.; Copper CRM, Inc.; Creatio Technologies; Salesforce.com, Inc.; SAP SE Corp.; ADOBE Inc.; Zoho Corp. Pvt. Ltd; and Insightly, Inc.
Customer Relationship Management Market Segment Insights
Cloud segment is expected to grow at a rapid pace
Based on deployments, the global customer relationship management market is bifurcated into cloud and on-premise. The cloud segment is expected to grow at a rapid pace during the forecast period attributed to numerous benefits such as cost effectiveness, flexibility, low hardware maintenance cost, and scalability.
Furthermore, cloud-based deployment can be accessed from any location, which is projected to accelerate the segment growth further. However, the on-premise segment is anticipated to expand at a substantial CAGR during the forecast period in the coming years due to choice of organizations to store their business- critical information data on their servers for improved data security.
Rising use of CRM solutions by banking and financial institutes drive the BFSI segment
In terms of end-users, the market is divided into IT & telecom, BFSI, government & education, retail, discrete manufacturing, healthcare, and others.
The retail segment is expected to account for a major market share during the projected timeline owing to increasing competition in retail sector leading the demand of advanced CRM software and online systems for efficient customer centric services for buyers.
On the other hand, the BFSI segment is projected to expand a considerable CAGR during the forecast period due to rising use of CRM solutions by banking and financial institutes. Moreover, it also provides continuous access to buyer database, better customer experience, unified communication with buyers, and segmentation of costumers, which presents a major factor driving the segment.
Customer service segment is estimated to account for a significant market share
On the basis of solutions, the global customer relationship management market is segregated into sales force automation, customer service, CRM analytics, social media monitoring, marketing automation, customer experience management, and others.
The customer service segment is estimated to account for a significant market share during the forecast period owing to growing significance of understanding buyers’ behavior and their preferences for organization and use of digital channels by buyers to engage with brands and organizations.
However, the CRM analytics segment is anticipated to grow at a high CAGR during the projected period attributed to the expanding accumulation of unstructured and structured data through digital platforms leading to installation of CRM analytics.
Additionally, rising integration of analytics features in CRM solutions as companies seek ways of deriving rich insights from business data is a major driver of the segment.
Large enterprise segment is expected to expand at robust growth rate
Based on enterprise sizes, the market is bifurcated into small & medium enterprise and large enterprise. The large enterprise size segment is expected to expand at robust growth rate during the forecast period due to the presence of various functional sectors in large organizations.
Moreover, the segment growth is further accelerated as CRM helps to integrate consumer data with business process management and enable organization to synchronize with customer support process, sales, and marketing.
On the other hand, the small & medium enterprise segment is projected to expand a considerable CAGR during the forecast period owing to rising impletion of CRM by small & medium size enterprises.
The enterprises are using the solution for various applications including smooth employee transition, business networking, funding opportunities from government bodies, internal transparency & collaboration, and building brand.
Customer Relationship Management Market Regional Outlook
North America is anticipated to constitute a key market share
In terms of region, the global customer relationship management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to digital transformation of numerous industry verticals and industries such as hospitality, banking, and retail in the region.
However, the Asia Pacific market is anticipated to grow at a rapid pace during the forecast period due to high demand for advanced CRM software from emerging economies and favorable development of E-commerce industry by the regional market players.
- IT & Telecom
- Government & Education
- Discrete Manufacturing
- Salesforce Automation
- Customer Service
- CRM Analytics
- Social Media Monitoring
- Marketing Automation
- Customer Experience Management
- Small & Medium Enterprise
- Large Enterprise
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Microsoft Corp.
- Oracle Corp.
- SugarCRM Inc.
- Copper CRM, Inc.
- Creatio Technologies
- Salesforce.com, Inc.
- SAP SE Corp.
- ADOBE Inc.
- Zoho Corp. Pvt. Ltd
- Insightly, Inc.
Key players competing in the global customer relationship management market are Microsoft Corp.; Oracle Corp.; SugarCRM Inc.; Copper CRM, Inc.; Creatio Technologies; Salesforce.com, Inc.; SAP SE Corp.; ADOBE Inc.; Zoho Corp. Pvt. Ltd; and Insightly, Inc.
Companies are focusing on investment in R&D for new product development and update existing product portfolio to boost their market share. Furthermore, companies are widely engaging in strategic partnership and merger & acquisitions to develop technological advance CRM solutions for acquiring new buyers or expand their consumer base worldwide.
For instance, in May 2018, an integration software company Mulesoft was acquired by Salesforce.com, Inc. This acquisition allowed Salesforce.com, Inc. to gain access to Mulesoft integration technology and large buyer base.