Customer Experience Management (CEM) Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,Canada,China,Germany,UK - Size and Forecast 2023-2027

Customer Experience Management Market Forecast 2023-2027

The Customer Experience Management market size is estimated to increase by USD 12.55 billion and grow at a CAGR of 15.23% between 2022 and 2027. The growth of the Customer Experience Management (CEM) market hinges on various factors, notably the rising emphasis on customer-centricity across organizations. Furthermore, the surge in digital transformation within retail and healthcare sectors is fueling the demand for CEM solutions. Additionally, the evolving landscape of consumer behavior is contributing to this growth trajectory. As businesses increasingly prioritize enhancing customer experiences, CEM solutions become indispensable in meeting these evolving demands. Consequently, the CEM market is propelled forward by a combination of factors that emphasize the importance of understanding and catering to customer needs in today's competitive landscape. This market growth and analysis report includes an in-depth analysis of drivers, trends, and challenges. Furthermore, this market analysis and report includes historic market data from 2017 to 2021.

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

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The market is witnessing a profound transformation driven by advancements in digital technology tools and work collaboration tools. With the proliferation of Internet of Things (IoT) and the emergence of Business-to-Consumer Market, the Healthcare Industry, Information Technology Industry, and Telecommunications Industry are revolutionizing consumer interactions. Businesses are embracing Cloud Technology and leveraging Machine Learning (ML) and Artificial Intelligence (AI) for data-driven decision-making and enhanced customer experiences. Amidst Supply Chain Disruptions and New Regulations, opportunities arise for Omnichannel strategies and Platform-driven interactions to meet evolving consumer expectations. AR/VR technology and On-premise deployment alongside Cloud deployment models cater to diverse business needs, ensuring personalized journeys and multichannel experiences. As AI and Analytics drive data-driven insights, prioritizing data privacy and security remains paramount, shaping talent acquisition and training initiatives. From larger corporations to smaller businesses, managing customer interactions and safeguarding brand reputation amidst data breaches underscore the importance of embracing advanced technologies for sustainable growth in the digital era.

Market Overview

The  (CXM) has become a critical differentiator for brands seeking to gain a competitive edge. Technology plays a pivotal role in CXM, with tools like Cloud technology, Artificial Intelligence (AI), and Analytics enabling businesses to gain deeper insights into customer behavior and preferences. These insights can be leveraged to deliver personalized and efficient customer experiences, leading to increased customer loyalty and retention. Moreover, Collaboration and partnerships between companies are essential in CXM. For instance, Machine Learning (ML) and Big Data analytics can be used to analyze customer data and provide actionable insights. Additionally, Telecommunication and Internet technologies enable seamless communication between businesses and customers, facilitating real-time problem resolution and enhancing the overall customer experience. Furthermore, Personalization is a key component of CXM. Informance and marketing automation tools can be used to deliver targeted and relevant content to customers, enhancing their engagement and satisfaction. Ultimately, CXM is about creating a seamless and enjoyable customer journey, from initial contact to post-purchase support, resulting in increased customer satisfaction and advocacy.

Market Driver

The growing emphasis on customer-centricity within organizations is a primary driver of the market. This heightened focus is playing a substantial role in propelling the market forward.

Consequently, numerous businesses are making investments in CEM solutions to gain profound insights into customer needs, preferences, and behaviors. By leveraging CEM tools, companies can collect feedback, analyze data, and uncover valuable insights that empower them to provide personalized and meaningful experiences. Some of the notable advantages of CEM solutions include aiding businesses in aligning their strategies, processes, and resources with customer expectations. This alignment enables companies to map the journey, identify pain points, and optimize interactions at each touchpoint. Therefore, these factors are expected to fuel the growth of the global market research and growth and trends in the market report period.

Market Trends

One of the pivotal factors influencing the growth of the market is the recent advancements and developments in the global CEM landscape. Notably, the global CEM market has witnessed notable progress in recent years, and this trend is anticipated to have a favorable impact on the global market. 

For instance, in June 2022, Kyndryl, a prominent provider of IT infrastructure services worldwide, entered into a strategic collaboration with Oracle to expedite clients' cloud transition journeys. This partnership aimed to offer managed cloud solutions to businesses on a global scale. Through this collaboration, Kyndryl sought to enhance its extensive experience in working with and supporting clients utilizing Oracle products and services, achieving the status of an Oracle Cloud Infrastructure (OCI) key delivery partner. Consequently, such advancements are projected to propel the global market in the foreseeable future. 

Market Restrain

Privacy and security concerns associated with CEM solutions are the key challenges hindering the global CEM market growth. Due to the rising amount of customer data being collected and stored, businesses need to ensure the responsible handling and protection of this data to maintain trust and comply with privacy regulations. 

One of the major privacy concerns in CEM is the collection and use of personal information. Due to the significant increase in cyber attacks, the organization must ensure that sufficient data protection protocols are in place to protect data. Additionally, there is an increasing risk in working with third-party companies as client data is more prone to data leaks. Hence, such factors are expected to hinder the global market trends during the forecast period.

Market Segmentation 

The market share growth by the solution segment will be significant during the forecast period. Solutions in this market can be referred to as the software and technology offerings that help businesses manage and improve customer experiences. It is widely used across organizations to address various aspects of CEM, enabling organizations to gather customer feedback, analyze data, and implement strategies for enhancing satisfaction and loyalty.

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The solution segment was valued at USD 6.32 billion in 2017 and continued to grow until 2021. One of the key applications of the CEM solution includes feedback management which enables collecting, analyzing, and acting upon customer feedback through channels such as surveys, feedback forms, and social media monitoring. and thereby helping businesses to capture customer sentiment, identify areas of improvement, and take actionable steps to address concerns and preferences. Technological advancements have led to complex data realities, necessitating the use of tools and platforms to manage customer touchpoints across digital and physical landscapes. Cloud-based solutions offer scalability, flexibility, and streamlined resource access, enabling real-time insights and personalized engagements. Strategies for enhancing customer satisfaction and loyalty include implementing cloud deployment models, ensuring agility in operations, and addressing customer concerns through actionable steps based on feedback collected from various touchpoints. These tools facilitate data analysis and the implementation of strategies tailored to the unique needs of each business. Hence, there is increasing adoption of CEM solutions across organizations as it helps businesses to extract meaningful insights about customer behavior and preferences by leveraging data. Therefore, such factors are expected to drive the growth of this segment which in turn will drive the growth of global customer relationship management during the forecast period.

By Deployment

The wide benefits of the on-premises segment are expected to drive the growth of this segment during the forecast period. One-premises segment can be defined as a traditional approach to implementing CEM solutions, where businesses host and manage the CEM software and infrastructure within their own premises. One of the key advantages of this segment is that enterprises have full control over the entire CEM system, including hardware, software, data storage, and security. Also, this on-premises segment can be customized to cater to the specific needs of the organization. Advanced technologies like Machine Learning (ML) and Artificial Intelligence (AI) power analytical tools that drive digital transformation. The World Economic Forum highlights the importance of platform-driven interactions in mitigating supply chain disruptions and adapting to new regulations. Industries like healthcare, information technology, and telecommunications are investing in CEM solutions to provide personalized journeys and multichannel experiences. On-premise deployment offers businesses control over their data privacy and security, crucial for industries with stringent regulatory compliance requirements or sensitive customer data. Cloud deployment also presents opportunities for smaller businesses, enabling access to advanced technologies and data-driven insights. However, businesses must prioritize talent acquisition and training to effectively implement these solutions. Data breaches and brand reputation risks underscore the need for robust security measures. CEM technologies include AI, analytics, and cloud platforms, enabling predictive analytics and enhancing customer experiences. AR/VR technology further enriches the customer journey, offering immersive experiences in various industries, such as insurance industry.

Regional Overview

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North America is estimated to contribute 42% 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. As a variety of regional industries in North America are increasingly adopting CEM solutions, it is expected to significantly contribute to the growth in the region. Additionally, the presence of prominent companies such as  Microsoft Corp. (Microsoft), and Oracle Corp. also fuels the market growth in the region. One of the key reasons is that these companies offer cutting-edge services to local businesses, hence the cloud is becoming more relevant in expanding markets. Thus such factors are expected to drive these solutions in the region during the forecast period.

Market Customer Landscape

This market forecast 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 and forecasting strategies.

Global Market Customer Landscape

Who are the Major 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.

Adobe Inc: The company offers a customer experience management cloud that helps digital maturity go faster and results in higher conversion rates, increased customer loyalty, and a robust bottom line.

Avaya Inc: The company offers customer experience management which has seamless connections, and builds employee loyalty by creating easy, fully integrated interactions across any channel, any time.

Freshworks Inc: The company offers customer experience management by delivering a great customer experience built into the fabric of a customer service function.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Genesys Telecommunications Laboratories Inc.
• International Business Machines Corp.
• Medallia Inc.
• Microsoft Corp.
• NICE Ltd.
• Nokia Corp.
• Open Text Corp.
• Oracle Corp.
• Qualtrics LLC
• SAP SE
• SAS Institute Inc.
• Service Management Group
• Sprinklr Inc.
• Tech Mahindra Ltd.
• Verint Systems Inc.
• Zendesk Inc.
• Ignite Enterprise Software Solutions 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.

Market Analyst Overview

Technology tools like Cloud, Machine Learning, and Artificial Intelligence are transforming the way businesses interact with their customers. For instance, Machine Learning algorithms help in analyzing customer data to provide personalized experiences, while Cloud technology enables seamless access to customer information from anywhere. Moreover, Collaboration and communication tools like Teams and Forums facilitate effective interaction between customers and support agents. Telecommunication and Transformation services ensure that these interactions are efficient and effective. Worldwide, companies are investing in CXM to differentiate themselves from competitors. For example, Machenik Learning and Artificial Intelligence enable intelligent customer interactions, while Analytics provide insights into customer behavior. Intelligence and Artificial Intelligence help in automating customer interactions, making them more efficient and effective. Digital transformation is a key driver of CXM, with platforms like Platforms and Forms enabling easy customer engagement. Supplies and Consumables ensure that these platforms are always available and functioning optimally. In conclusion, CXM is a critical area of focus for businesses in today's digital age. By leveraging technology tools like Cloud, Machine Learning, and Artificial Intelligence, businesses can provide personalized, efficient, and effective customer experiences, ultimately leading to increased customer satisfaction and loyalty.  

Businesses in various industries, including Clothing, Depository, Insurance, and Technology, are investing significantly in CXM to deliver personalized experiences to their customers. CXM encompasses various aspects such as interaction design, customer service, and analytics. The primary goal is to create a seamless and efficient customer journey, from initial contact to post-purchase support. By implementing CXM strategies, businesses can increase customer satisfaction, loyalty, and retention. Moreover, the use of technologies like Personalization, Analytics, and Artificial Intelligence (AI) has revolutionized CXM. These technologies enable businesses to understand customer behavior and preferences, providing tailored experiences that cater to individual needs. Businesses in the Business Services sector, such as Consulting and Training, also play a vital role in CXM. They help organizations develop and implement effective CXM strategies, ensuring that customer expectations are met and exceeded. In conclusion, CXM is a vital marketing aspect for businesses aiming to provide exceptional customer experiences. By leveraging technologies and partnering with industry experts, businesses can create meaningful connections with their customers, leading to increased revenue and long-term success.  

Segment Overview

This market research and analysis 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. 

• Component Outlook
  • Solution
  • Service
• Deployment Outlook
  • On-premises
  • Cloud
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

 

Market Scope
Report Coverage	Details
Page number	157
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.23%
Market growth 2023-2027	USD 12.55 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	14.35
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 42%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Adobe Inc., Avaya Inc., Freshworks Inc., Genesys Telecommunications Laboratories Inc., International Business Machines Corp., Medallia Inc., Microsoft Corp., NICE Ltd., Nokia Corp., Open Text Corp., Oracle Corp., Qualtrics LLC, SAP SE, SAS Institute Inc., Service Management Group, Sprinklr Inc., Tech Mahindra Ltd., Verint Systems Inc., Zendesk Inc., and Ignite Enterprise Software Solutions Inc.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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.

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What are the Key Data Covered in this Market Research and Growth 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 market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and the changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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