Enjoy complimentary customisation on priority with our Enterprise License!
The customer relationship management (CRM) market is estimated to grow at a CAGR of 10.16% between 2022 and 2027. The size of the market is forecast to increase by USD 54.4 billion. The growth of the market depends on several factors, including the increasing adoption of CRM by SMEs, the increasing adoption of cloud-based offerings, and the focus on customer engagement.
This customer relationship management (CRM) market report extensively covers market segmentation by application (service and support CRM, sales CRM, marketing CRM software, and e-commerce software CRM), deployment (saas and on-premise), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The focus on customer engagement are notably driving the market growth, although factors such as the data security concerns may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key CRM Market Driver
A focus on customer retention is a key factor behind the growth of the global CRM market. Businesses are increasingly focused on retaining customers and building long-term relationships with them. This helps extend the customer lifecycle and allows businesses to generate revenue through the resale of their products/services. This saves marketing costs and creates trust among consumers. A CRM helps you communicate your latest offers to both existing and potential customers.
Moreover, businesses can resolve day-to-day customer issues using CRM. This saves cost and time for the organization and considerably improves customer engagement. Major organizations are using CRM to improve customer engagement, which, in turn, improves sales and helps to build the brand. Companies are increasingly concerned about customer satisfaction rates, which have a large impact on the company brand image. Thus, the increasing focus on customer engagement will drive the demand for CRM software during the forecast period.
Significant CRM Market Trend
The growing demand for social interaction is the primary trend in the global CRM market growth. The need for the integration of CRM activities with social media services has been increasing in the market mainly to get several insights and create future products. Social interactions primarily consist of two components such as customer prediction, and customer conversation. The primary purpose of the customer prediction is to identify potential social demand by separating prospective buyers from non-potential ones. Similarly, customer conversation is about engaging likely buyers and converting them to make an inquiry or move further down the demand requirement process.
A newer approach has been implemented in fields like analytics platforms to integrate social data into their forecast models. This approach helps companies analyze social communications in real time and examine the mixture of social contacts exploiting both keyword analysis and predictive algorithms. All this breakdown of data is aimed at determining and segregating the potential buyer. This trend is affecting the market and plays a crucial role in determining marketing strategies for a business. Such factors are expected to fuel the growth of the customer relationship management (CRM) market during the forecast period.
Major CRM Market Challenge
The data security concerns is a major challenge to the growth of the global CRM market. Enterprises are increasingly being hit by cyberattacks and are facing revenue losses and major issues in maintaining their production efficiency. SMEs are the primary targets of cybercriminals. These enterprises are impacted by espionage, sabotage, and data theft. The lack of proper IT security infrastructure and small internal budgets are making SMEs more vulnerable to threats, resulting in cyberattacks such as ransomware. These attacks result in the loss of the target company sensitive data, financial thefts, or the disruption of its business operations.
Furthermore, enterprise SaaS CRM applications are being accessed via the Internet, and data transactions are performed across multiple locations and with third-party entities. Such operating environments are becoming vulnerable to cyberattacks. Hackers are targeting SaaS CRM applications by gaining access to corporate networks, thereby exposing customer information. This kind of cyberattack raises a question about the security aspects of SaaS solutions and can hamper the growth prospects of these technologies. Hence, data security concerns are expected to limit the growth of the customer relationship management (CRM) market during the forecast period.
Key CRM Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global CRM Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acoustic LP: The company offers CRM which features email marketing, mobile marketing, and performance insights and reporting.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the service and support CRM segment will be significant during the forecast period. Customer service and support software CRM help organizations resolve customer issues as smoothly as possible. It also helps to ensure that proper service standards are achieved through instructions. The service and support software collects essential data and feedback from customers, which is used to promote businesses and resolve similar issues at a faster rate. Such factors will increase the segment growth during the forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
The service and support CRM was valued at USD 16.46 billion in 2017 and continue to grow by 2021. The service and support software CRM tracks on-field employees and technicians and connects them with customers. This results in faster resolution of any pressing query, and at the same time, it builds trust among customers. For instance, the Coca-Cola Company uses service and support CRM to resolve customer issues and monitor their behavior. It is also used to promote new offers to existing customers. Hence, the above-mentioned factors are expected to drive the growth of the CRM customer service and support software segment in the customer relationship management market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North Americas enterprises are investing in cloud services to implement enterprise applications to streamline business processes. SaaS solutions enable access to all types of software, such as ERP, CRM, and HRM, through web browsers using the one-click functionality. The flexibility of CRM solutions makes them suitable for temporary workloads and workloads that are experimental in nature or prone to changes unexpectedly. The region is also experiencing growth in the number of enterprises from industries such as BFSI, telecom and IT, healthcare, and retail, which will positively impact the growth of the regional market during the forecast period.
In 2020, the outbreak of COVID-19 significantly impacted several industries in North America. However, in 2021, due to the initiation of vaccination drives, lockdowns were lifted, which led to the resumption of operations in several industries, including IT, manufacturing, and automotive industries. This increased the demand for CRM software in 2021 and 2022. Such factors are expected to drive the growth of the customer relationship management market in the region during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
CRM Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.16% |
Market growth 2023-2027 |
USD 54.4 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.34 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 55% |
Key countries |
US, Canada, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acoustic LP, Adobe Inc., Agile CRM Inc., Concentrix Corp., Huawei Technologies Co. Ltd., HubSpot Inc., Koch Industries Inc., Microsoft Corp., NICE Ltd., Oracle Corp., Pegasystems Inc., Sage Group Plc, Salesforce.com Inc., SAP SE, SAS Institute Inc., SugarCRM Inc., Verint Systems Inc., Vtiger Systems India Pvt. Ltd., Zendesk Inc., and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.