The Global Customer Experience Management Software Market Anticipated to Generate a Revenue of $26,466.6 Million, Growing at a CAGR of 17.7% from 2021 to 2028Download Sample Reports Overview
The global customer experience management software market size is estimated to be valued at $26,466.6 million by 2028, surging from $7,538.4 million in 2020, at a CAGR of 17.7%.
COVID-19 Impact on the Customer Experience Management Software Market
The COVID-19 pandemic has impacted almost every industry, raising churn rates. The pandemic has had a moderate impact on the customer experience management software sector. Global manufacturing, supply networks, and logistics, as well as the continuity of operations in a variety of industries, are all suffering as a result of the lockdown. However, due to advancements in technology and digital CEM solutions, the situation is under control from the latter half of the pandemic, and demand for customer experience management software services is expected to rise as companies seek to improve customer experience and develop personalized relationships with customers. Several industries will employ a variety of products and services to assist digital projects that deal with mission-critical procedures, increase productivity, and differentiate user engagement.
Global Customer Experience Management Software Market Trend
Customer behavior and preferences are becoming more essential, encouraging many firms and organizations to employ customer experience management to provide the best service possible. In the next years, customers' increasing access to digital platforms for engaging with businesses and organizations is likely to drive market growth. CEM solutions are becoming more widespread in modern businesses and enterprises as a way to achieve customer-centricity across operations and, as a result, better distinguish themselves in today's competitive market.
Cyber-attacks have become far more common and sophisticated in recent years. Sensitive data is frequently kept on-premises databases and, in the cloud, allowing cybercriminals to undermine critical company data and exploit it for illegal purposes. Cybercriminals, for example, now have a variety of tools at their disposal to obtain vital information. In such cases, marketing and IT teams must collaborate by providing data collection and processing insights. This market's expansion is projected to be hampered by such reasons.
Artificial Intelligence (Al) is quickly changing how businesses connect with their customers. Market-leading companies have been focusing on investing in Al-based technologies to supplement their customer experience efforts in recent years. Businesses are also investing in cloud-based customer service to increase productivity by reducing complaint resolution periods and call processing times. BFSI, retail, and IT & telecom, among other industries, are implementing Al-enhanced CXM solutions to promote customization, gain a better understanding of client preferences, and create personalized journeys. These technical improvements are projected to open up a slew of new industry prospects.
Global Customer Experience Management Software Market, Segmentation
The global customer experience management software market is segmented based on component, deployment, platform, end-use, and region.
The component sub-segment is further classified into solutions and services of which the solutions sub-segment is projected to generate the maximum revenue during the forecast period and register a revenue of $13,923.7 million during the forecast period.
The growth of the market is being fueled by an increase in the number of call centers and a growing need for real-time customer interaction solutions to better customer experience. Businesses can manage customer interactions with the use of client experience management software. The CXM software solution is gaining traction in the call center industry because it delivers conversational analytics to detect and organize relevant phrases and words used during interactions.
The deployment segment is further divided into on-premises and cloud of which the on-premises sub-segment is projected to grow at a faster CAGR during the forecast period and generate a revenue of $11,399.5 million by 2028, growing from $3,112.4 million in 2020, with a CAGR of 18.4%.
In an on-premises deployment, the CEM apps are hosted on the organization's server. This deployment approach is used by organizations that want to store their business-critical data on their own servers for better data protection. Large corporations have dedicated servers and computer infrastructure that enable them to run the platform with simply a software license or copy. As a result, they can reduce their overall ownership, implementation, and other related costs. Furthermore, on-premises solutions offer better data management and security to enterprises.
The platform segment is further classified into websites, call center, mobile application, email, social media, and others. Among these, mobile application sub-segment is expected to grow at a faster CAGR during the forecast period and generate a revenue of $4,014.3 million by 2028, growing from $1,533.1 million in 2020, with a CAGR of 18.5%.
The increasing usage of smart connected devices such as smartphones, iPads, laptops, and other similar devices, which is forcing businesses to build and implement smartphone marketing and communication strategies, may be contributing to the sub-segment's growth.
The end-use segment is further classified into healthcare, retail & consumer goods, BFSI, and others. Among these, healthcare sub-segment is expected to grow at a faster CAGR during the forecast period and generate a revenue of $6,906.0 million by 2028, growing from $1,895.4 million in 2020, with a CAGR of 18.3%.
Patients can now choose from a wide range of healthcare providers and plans, as well as share their opinions via various digital channels such as the web and social media, thanks to improvements in digital technology, resulting in an increase in demand for CEM.
The customer experience management software market share in Asia-Pacific is anticipated to be the fastest growing market during the forecast time period and reach $6,132.8 million by 2028, with a CAGR of 18.7%.
Increased use of IoT-based sensor devices, as well as AI-driven enhanced automation and analytical tools, to provide personalized services to business-to-consumer and business -to-business, is one of the primary drivers driving market advancement in Asia-Pacific. The rise of the regional market is fueled by the presence of call centers, the expanding popularity of social networking sites, and a focus on customer experience and satisfaction.
Key Players in the Global Customer Experience Management Software Market
Some of the leading global customer experience management software market players are
- Adobe Inc.
- IBM Corporation
- Nice Limited
- Oracle Corporation
- Sap SE
- Verint Systems
- Zendesk Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Customer Experience Management Software Market:
- Bargaining Power of Suppliers: Customer experience management software market contains moderate concentration of distributors and suppliers and hence, the distributors and supplier controls are expected to be moderate, resulting in moderate bargaining power of dealers.
Hence, the bargaining power of the supplier is moderate.
- Bargaining Power of Buyers: Buyers will have high bargaining power, significantly because of modest number of players operating in the customer experience management software market.
Hence, the bargaining power of the buyer is high.
- Threat of New Entrants: In the modern world, new entrants may face multiple new barriers, like legal and government policies.
Hence, the threat of the new entrants is moderate.
- Threat of Substitutes: There are few alternate products for customer experience management software.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: Robust presence of key players such as SAP and Salesforce is creating massive rivalry in the local as well as international market. Also, high spending on business expansion and strategic tie-ups are some of the main factors rising competitive rivalry among the companies.
Thus, the competitive rivalry in the market is high.