Customer Relationship Management Industry Overview
The global customer relationship management market size was valued at USD 52.4 billion in 2021 and is expected to reach USD 157.6 billion by 2030, at a CAGR of 13.3% from 2022 to 2030.
The COVID-19 pandemic has driven several organizations across the globe to develop a roadmap and to understand together with their consumers how to move ahead in the future. Rising demand for automated engagement with customers, improving the scope of digital operations and enhancing customer experience and services are driving the demand for Customer Relationship Management (CRM) solutions across various industries globally. Emerging technologies, such as cloud computing technology, Artificial Intelligence (AI), machine learning, and the availability of various service models such as SaaS, Infrastructure as a Service (IaaS), and Platform as a Service (PaaS) are projected to drive the market over the forecast period.
Gather more insights about the market drivers, restrains and growth of the Global Customer Relationship Management Market
According to industry estimates, over 91% of organizations with more than ten employees in their workforce use customer relationship management systems. Organizational departments such as sales and marketing and customer services and support are increasingly integrating CRM systems with artificial intelligence to improve customer experience and feedback and develop strong bonds with their customers. Furthermore, factors such as efforts to accelerate business content, shifting their strategy from push marketing to pull marketing, and providing real-time communication, will empower organizations to adopt customer relationship management solutions over the forecast period.
The growing use of digital channels by customers to communicate with brands and organizations is anticipated to boost the market growth over the forecast period. A recent survey conducted by SoftClouds suggests that approximately 82% of the organizations use customer relationship management systems for sales reporting and process automation. It gives a better understanding of buyer behavior and their preference, which enables brands and organizations to adopt the best customer relationship management strategies and deliver performance in real-time. For instance, in December 2021, Freshworks Inc. offered Freshdesk Contact Center to 7-Eleven store, a global chain of retail stores. The solution will resolve queries quickly and deliver the same-in-store conveniences to their regular customers and online shoppers.
With the growing importance of understanding customer behavior and their preferences, organizations are adopting customer relationship management strategies to deliver the best performance in real-time and stay ahead of their rivals. Rapid shifts in the fields of business intelligence and embedded analytics, Internet of Things (IoT), artificial intelligence, and their implementation in customer relationship management solutions are likely to promote product enhancement and innovation among CRM vendors. For instance, in June 2021, Salesforce.com, Inc. announced new capabilities across digital 360 to help enterprises to boost their digital activities and deliver the next generation of digital experiences, commerce, and marketing.
The CRM market is anticipated to witness the tussle between emerging vendors, large vendors, and new and niche vendors to expand their business reach into new markets and industries. Furthermore, several customer relationship management providers are working with system integrators (SI) and independent software vendors (ISV) to sustain in this competitive market. The growing adoption of customer relationship management applications, ease of deployment, and ongoing price trends are expected to drive the growth of customer relationship management market.
Customer Relationship Management Market Segmentation
Based on the Solution Insights, the market is segmented into Customer Service, Customer Experience Management, CRM Analytics, Marketing Automation, Salesforce Automation, Social Media Monitoring and Others.
The customer service segment dominated the market and accounted for a revenue share of over 20% in 2021.
The CRM analytics segment is anticipated to witness a significant CAGR over the forecast period.
Based on the Deployment Insights, the market is segmented into On-premise and Cloud.
The cloud segment dominated the market and accounted for a revenue share of over 50.0% in 2021. Deployment of the CRM software on cloud, allows the users to access the same information from any device at any time.
Due to the increasing demand for data privacy, the demand for on-premise customer relationship management solutions has increased.
Based on Enterprise Size Insights, the market is segmented into Large Enterprises, Small and Medium Enterprises.
The large enterprises segment accounted for the highest revenue share of more than 60.0% in 2021.
The growing adoption of a number of government initiatives through digital campaigns, such as video marketing, social media, and search engine marketing, across the globe are expected to drive the SME segment at a significant CAGR over the forecast period.
Based on End-use Insights, the market is segmented into BFSI, Retail, Healthcare, Telecom & IT, Discrete Manufacturing, Government & Education and Others.
The retail segment emerged as the largest shareholder in 2021, accounting for nearly 24.0% of the market, respectively. The growing online shopping platforms and mobile application is offering huge customer data to retail companies.
The IT and telecom segment is anticipated to be the fastest-growing segment over the forecast period. Customer relationship management solutions in IT and telecom offer brand equity, distribution channels, post-purchase service, and customer exclusivity and support.
Based on the Customer Relationship Management Regional Insights, the market is segmented into North America, Europe, Asia Pacific, South America and Middle East & Africa (MEA).
North America dominated the Customer Relationship Management (CRM) market and accounted for the largest revenue share of44.1% in 2021.
In Asia Pacific, the market is estimated to register the highest CAGR over the forecast period. The rising demand for innovative customer relationship management solutions from emerging countries such as China and India is acting as a catalyst for the growth of the regional market.
Market Share Insights:
September 2021: Salesforce.com, Inc. announced the collaboration with Slack, a business communication platform, to empower the sales team to collaborate in real-time to close more deals from anywhere.
October 2021: SAP SE announced the integration of SAP Sales Cloud Solution with Microsoft Teams. This integration of SAP Sales Cloud Solution with Microsoft Teams enables users to access customer and sales information instantly from Microsoft Teams and also update the records of customer meetings in real-time without leaving the Microsoft Teams.
Key Companies Profile:
Leading market participants are investing in research and development activities to drive organic growth and increase their market shares. Additionally, companies are also engaging in new product development to expand and strengthen their existing portfolios and acquire new customers.
Some prominent players in the global Customer Relationship Management market include
Zoho Corporation Pvt. Ltd
Copper CRM, Inc.
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