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The SaaS customer relationship management (CRM) market is estimated to grow at a CAGR of 13.43% between 2022 and 2027. The size of the market is forecast to increase by USD 59,426.56 million. The growth of the market depends on several factors, including the increasing adoption of SaaS CRM by SMEs, the increasing adoption of cloud-based offerings, and the focus on customer engagement.
This report extensively covers market segmentation by end-user (retail, BFSI manufacturing, telecom and it, and others), application (service and support, sales, marketing, and e-commerce), 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.
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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.
The focus on customer engagement is notably driving the SaaS customer relationship management 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 SaaS CRM market during the forecast period.
The advent of big data and analytics services is a major trend in the SaaS customer relationship management 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 SaaS CRM market during the forecast period.
The availability of free and open-source CRM software is a major challenge impeding the SaaS customer relationship management 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 SaaS CRM market during the forecast period.
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 SaaS Customer Relationship Management (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.
International Business Machines - The company operates under 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 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 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 shows a gradual increase in the market share of USD 11,085,47 million in 2017 and continued to grow until 2021. 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 SaaS CRM market during the forecast period.
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North America is estimated to contribute 52% 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.
The BFSI sector is one of the major users of SaaS CRM in the region. BFSI companies are investing in cloud-based services for managing their business operations. These companies are using cloud-based services for additional computing or storage as per their requirements. BFSI companies typically generate lots of data, which needs to be kept secure. Real-Time analysis of this data can give insights that help in understanding consumer behaviors and enable firms to improve their product offerings. However, it may not be feasible to store all data on-premises or on a private cloud. This is creating the need for SaaS CRM in the BFSI sector in North America. SaaS CRM stores and analyses data such as daily records or trading statements that have to be retained for many years. Such factors are driving the growth of the market during the forecast period.
The outbreak of COVID-19 in 2020 significantly impacted several industries in North America. However, the pandemic had a lesser impact on the SaaS CRM market, as the spread of the disease and related lockdowns resulted in enterprises adopting the work-from-home model. The rising adoption of the remote workforce enhanced the use of cloud services, accelerated digital transformation, increased the need for the latest technologies, and created a stronger demand for knowledge management. Hence, such factors are expected to drive the growth of the SaaS CRM market across 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.
SaaS Customer Relationship Management (CRM) Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.43% |
Market growth 2023-2027 |
USD 59,426.56 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.6 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 52% |
Key countries |
US, Canada, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Capillary Technologies, Cendyn Group LLC, DataAegis Software Pvt Ltd., Doxim Inc, HCL Technologies Ltd., HubSpot Inc., Infor Inc., International Business Machines Corp., NICE Ltd., Oracle Corp., Pegasystems Inc., Sage Group Plc, Salesforce.com Inc., SAP SE, SugarCRM Inc., Veeva Systems 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 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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