Crm Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, UK, Germany, Japan - Size and Forecast 2024-2028

CRM Market Size 2024-2028 

The customer relationship management market is estimated to grow by USD 60 billion at a CAGR of 10.23% between 2023 and 2028. The increasing adoption of CRM by SMEs is fueled by the recognition of the value it brings in managing customer relationships and improving business processes. The shift towards cloud-based offerings makes CRM more accessible and cost-effective for businesses of all sizes. Additionally, the focus on customer engagement highlights the importance of CRM in building and maintaining strong relationships, driving further adoption and growth in the market. Integrating CRM systems with e-commerce platforms enhances customer engagement and streamlines the sales process, leading to more personalized experiences and increased revenue. Furthermore, the integration of AI and machine learning capabilities in these systems is enhancing their functionality and driving adoption across industries. SaaS solutions enable access to all types of software, such as ERP, CRM, and HRM, through web browsers using the one-click functionality. The ability of these systems to provide personalized experiences and insights is also contributing to their increasing adoption. Moreover, the growing trend of omnichannel customer interactions is driving the need for robust solutions, further fueling market growth.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By Application

The market share growth by the service and support CRM segment will be significant during the forecast period. Customer service and support software CRM helps 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.

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The service and support CRM was valued at USD 18.30 billion in 2018. The service and support software tracks on-field employees and technicians and connects them with consumers. This results in faster resolution of any pressing query, and at the same time, it builds trust among consumers. For instance, the Coca-Cola Company uses service and support to resolve issues and monitor their behavior. It is also used to promote new offers to existing customers. Vaccination drives play a crucial role in public health by increasing immunization rates and preventing the spread of infectious diseases within communities. Hence, the above-mentioned factors are expected to drive the growth of the segment in the market during the forecast period.

By Region

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North America is estimated to contribute 53% 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 America's enterprises are investing in cloud services to implement enterprise applications to streamline business processes. The flexibility of these solutions makes them suitable for temporary workloads and workloads that are experimental 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.

Market Dynamics and Customer Landscape

The market is experiencing a transformation driven by hyper-personalization, AI, and automation. Social media customer service and consumer satisfaction are becoming increasingly important, leading to the integration of advanced technologies into CRM platforms and tools. Digital technology and cloud technology are playing pivotal roles in enhancing marketing, sales, and consumer service efforts. The rise of e-commerce has further fueled the adoption of these strategies, with a focus on business intelligence, embedded analytics, and IoT integration. As companies embark on digital transformation journeys, AI integration, and omnichannel marketing are key trends shaping the future. Our researchers analyzed the data with 2023 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 Market Driver

A focus on customer retention is a key factor behind the growth of the market. Businesses are increasingly focused on retaining customers and building long-term relationships with them. This helps extend the consumer lifecycle and allows businesses to generate revenue through the resale of their products/services. This saves marketing costs and creates trust among consumers. It helps you communicate your latest offers to both existing and potential customers. This is supported by AI, automation, social media customer service, customer satisfaction, CRM platforms, digital technology, CRM tools, marketing, sales, customer service, cloud technology, e-commerce sales, CRM strategies, and business intelligence

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 this to improve customer engagement, which, in turn, improves sales and helps to build the brand. Companies are increasingly concerned about consumer satisfaction rates, which have a large impact on the company's brand image. Thus, the increasing focus on consumer engagement will drive the demand during the forecast period.

Significant Market Trend

The growing demand for social interaction is the primary trend in the market growth. The need for integration 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 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 market during the forecast period.

Major Market Challenge

Data security concerns is a major challenge to the growth of the 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's 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 these 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 market during the forecast period.

Key Market Customer Landscape

The market 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 Market Customer Landscape

Who are the Major Market Companies?

Companies 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 companies, including:

• 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.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook 
  • Service and support CRM
  • Sales CRM
  • Marketing CRM software
  • E-Commerce software CRM

• Deployment Outlook 
  • SaaS
  • On-premise

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is evolving with the integration of work collaboration tools and organizational departments to enhance customer relationships. CRM systems and IT & telecom sectors are leveraging the Internet of Things (IoT), Digital channels, and artificial intelligence for better insights. Companies like SoftClouds, Freshchat, and Supara are offering innovative solutions for customer data management. Big data analytics and cloud platforms are revolutionizing customer relationship management, benefiting both large corporations and Small and Medium Businesses (SMBs). However, compliance with regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) poses challenges. The focus is on AI-driven customer experiences and innovation in bot development and messaging API for improved customer service and employee development. 

SoftClouds conducts surveys on various aspects of IT infrastructure, including futuristic customer relationship management suites. These surveys delve into buying behavior trends and the evolving market, emphasizing the importance of customer data management solutions and CRM software like Follow Up Boss. Furthermore, the Digital Personal Data Protection Act of 2023 impacts data handling practices within the CRM domain. SoftClouds surveys reveal that while CRM solutions and systems are pivotal in the customer service segment and CRM analytics segment, call center technology and employee development and feedback play crucial roles in overcoming hurdles within these areas.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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