Saas Customer Relationship Management (Crm) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, UK, Germany, Japan - Size and Forecast 2024-2028

SaaS Customer Relationship Management Market Size 2024-2028

The SaaS customer relationship management market size is estimated to grow by USD 81.81 billion at a CAGR of 15.7% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Small and medium-sized enterprises (SMEs) are increasingly adopting these solutions due to their affordability, flexibility, and ease of use. Cloud-based CRM offerings are also gaining popularity, as they enable businesses to access their customer data from anywhere, at any time. Furthermore, the emphasis on customer engagement is leading companies to invest in advanced systems that can help them build stronger relationships with their clients. These trends are expected to continue, fueling the growth of the SaaS CRM market in the coming years. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.

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

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Market Dynamics Customer Landscape

In the ever-evolving landscape of the market, cloud-based offerings have emerged as the cornerstone, enabling businesses to access Software as a Service solutions via a cloud server infrastructure. As a leading software provider, companies offer comprehensive data storage solutions and adopt a subscription-based model to cater to diverse needs. Leveraging SaaS CRM analytics, organizations harness the power of AI and automation to enhance social media customer service and leverage digital technology for streamlined operations. CRM tools equipped with AI-powered insights and cloud technology facilitate efficient work collaboration, empowering businesses to optimize CRM analytics for strategic decision-making. With players like SoftClouds leading the charge, the focus is on delivering personalized experiences to drive retention and loyalty. Cloud-based CRM solutions cater to specific industries and business types, with smaller, niche providers offering specialized solutions tailored to unique requirements. Despite economic uncertainty, businesses continue to invest in cloud-based solutions to fuel growth and innovation in the Market. 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

The focus on customer engagement is notably driving market growth. Companies are increasingly focusing on engaging customers and creating long-term associations with customers. This helps in increasing customer lifecycles, and companies can generate their revenue through reselling products/services. This saves the cost of marketing and builds trust among consumers. 

CRM helps in the communication of the latest offers to both existing customers 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 build the brand. Companies are increasingly concerned about customer satisfaction rates, which have a large impact on the company's brand image. Thus, the increasing focus on customer engagement will drive the demand for SaaS CRM, which is expected to fuel the growth of the global market during the forecast period.

Significant Market Trends

The advent of big data and analytics services is a major trend in the market.  Analytics is one of the most significant trends in the CRM services industry. Firms are adopting analytics services to transform unstructured data gathered from various online channels into structured data to get meaningful insights. Data is analyzed using advanced analytical tools such as predictive analytics to understand the pattern related to business and consumer behaviors. Analytical tools have been helping numerous industries, such as BFSI, retail, telecommunications, and healthcare, to take critical decisions at organizational levels for improving customer service.

With the adoption of technology and outsourcing services, most enterprises are witnessing an abundance of data. Companies are increasingly focusing on analyzing and using this data in a timely fashion to get a competitive advantage over cost and time. These companies are recognizing the prospect of big data and designing their IT strategy to capture such opportunities. For instance, big data can help government banks to spot fraudulent transactions. Hence, the above-mentioned factors are expected to fuel the growth of the global market during the forecast period.

Major Market Challenge

The availability of free and open-source CRM software is a major challenge impeding the market growth. The high cost of SaaS CRM software has led to an increase in the adoption of free and open-source CRM software, especially among enterprises with a low IT budget. Most of the SMEs operating with a low IT budget is not investing in perpetual software licenses and subscriptions due to their high costs. 

However, the availability of open-source CRM is enabling them to adapt and customize software licenses and subscriptions according to their business model. Open-source CRM with customizable architectures is being implemented by SMEs. The use of open-source CRM provides SMEs with the same functionalities as that of commercial SaaS CRM but for free or at a very low cost. This enables SMEs to adopt open-source CRM, which is expected to hamper the growth of the vendors operating in the market. For instance, Bitrix24 is a free SaaS CRM software. Hence, the above-mentioned factors may hinder the growth of the global market during the forecast period.

Key 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.

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.

International Business Machines - The company offers products in multiple segments including software, and consulting among others, with a high focus on software.? 

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

• Capillary Technologies
• Cendyn Group LLC
• DataAegis Software Pvt Ltd.
• Doxim Inc
• HCL Technologies Ltd.
• HubSpot Inc.
• Infor Inc.
• NICE Ltd.
• Oracle Corp.
• Pegasystems Inc.
• Sage Group Plc
• Salesforce.com Inc.
• SAP SE
• SugarCRM Inc.
• Veeva Systems Inc.

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.

Market Segmentation

By End-User

The market share growth by the retail segment will be significant during the forecast period. The adoption of SaaS CRM is experiencing growth in the retail sector due to the development and expansion of retail and e-commerce companies across the globe. Retail companies are adopting SaaS CRM for creating better customer relations, improving productivity, and driving revenue to remain competitive in the market.

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The retail segment showed a gradual increase in the market share of USD 12.38 billion in 2018. Retail companies are launching new stores and digital sales models, acquiring other retail businesses, and implementing cloud computing. The implementation of these strategies is also occurring with the growing customer base. Companies are using SaaS CRM to create a cross-channel customer experience and integrate back-office applications, point-of-sale applications, inventory applications, and marketing applications. An integrated application coupled with SaaS CRM can be used for analyzing customer behaviors and buying patterns for predicting sales. The implementation of SaaS CRM enables customer experience optimization as well. Retailers handle huge amounts of customer-centric data, which needs to be processed in real-time. SaaS CRM enables the integration of customer data from multiple channels, such as the web and social media and allows access to all the information shared across teams when needed. The rise in the availability of customer data is attributed to the increased adoption of smartphones, social media, and tablets. SaaS CRM providers help enterprises achieve uniformity in their profitability even during market fluctuations. They also help enterprises understand consumer behavior and their dynamic buying patterns. Hence, the above-mentioned factors are expected to fuel the growth of the global 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. The demand for SaaS CRM in North America is mainly attributed to the use of public cloud services by enterprises and the increased need for the analysis of customers' information. Enterprises in the region are investing in cloud services to implement enterprise applications to streamline business processes. SaaS solutions enable access to all types of software. The flexibility of SaaS 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, retail, and other end-users, which will have a positive impact on the growth of the market during the forecast period.

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. 

• End-user Outlook 
  • Retail
  • BFSI
  • Manufacturing
  • Telecom and IT
  • Others

• Application Outlook 
  • Service and Support
  • Sales
  • Marketing
  • E-Commerce

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

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Market Analyst Overview

In the dynamic realm of the market, robust data storage solutions form the backbone, catering to diverse sectors including banking. With a focus on cross-platform compatibility, businesses leverage insights from VMR industry reports to derive actionable data and drive forward-looking analysis. The ease of implementation and scalability of cloud-based applications align with the overarching digital transformation trend, facilitating efficient financial management and investment decisions. Leading platforms like Lithium prioritize hyper-personalization and integrate work collaboration tools such as Freshchat and Supara.

Furthermore, business intelligence and embedded analytics empower organizations to harness the potential of the Internet of Things and cater to the needs of both large corporations and Small and Medium Businesses. Amidst the rise of omnichannel marketing and big data analytics, cloud platforms serve as fertile ground for both smaller, niche CRM providers and established enterprises, driving business investment and fostering growth across B2B, B2G, and B2C segments. Insights from financial statements, annual reports, and quarterly earnings alongside expert opinions gauge the level of digitization and impact of GDP sector composition on the evolving SaaS CRM Market.

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What are the Key Data Covered in this Market 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 2028
• 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 industry 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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