The customer experience management market is anticipated to grow from US$ 11,555.18 Million in 2022 to US$ 29,780.95 Million by 2028; it is projected to grow at a CAGR of 17.1% from 2022 to 2028.
Market Analyst Perspective:
Customers are increasingly preferring personalized and meaningful experiences from both physical and digital channels. Customer experience management market solutions are thus witnessing rising demand for hyper-personalization from the end-user industry verticals. It uses real-time buyer data, predictive analytics, artificial intelligence (AI), machine learning (ML), and automation to predict and decide the next best action to put in front of a customer. The customers are approached as individuals instead of segments, and multiple touchpoints are integrated to ensure that the customer gets a unique and tailored shopping experience. Through hyper-personalization, companies can send substantially contextualized communications to certain customers at the right time and place and through the right channel. Adopting a data, analytics, and AI-powered hyper-personalized marketing strategy allows the company to gain better insights and capabilities and adapt to the customers’ changing realities in real time, which is what today’s customers expect. As digital marketing evolves and becomes more competitive, hyper-personalized marketing is expected to provide organizations with the opportunity to engage with customers deeply, strengthen existing relationships, foster new ones, and improve the overall experience.
Additionally, customers prefer to move seamlessly through both physical and digital channels. They've quickly adapted to quick response (QR) codes in restaurants and retail stores, signifying their growing understanding of the physical-digital or ‘phygital’ experiences. These experiences are expected to stay, and thus, organizations are expected to make such experiences more immersive and consistent, regardless of the channel being utilized. As part of this trend, organizations are anticipated to employ augmented reality (AR) and virtual reality (VR) technologies to offer ‘try-before-you-buy’ experiences, thus strongly embracing virtual worlds. For instance, JP Morgan's virtual Onyx lounge grants the bank to run its services in the metaverse. Similarly, Fender's Stratoverse allows visitors to explore a guitar-shaped island and enjoy a scavenger hunt.
Market Overview:
Solutions and services offered by customer experience management market players are often considered technologies that focus on customer engagement, satisfaction, and experience. It aims to work towards customer interactions to meet or exceed their expectations, increase customer satisfaction, and improve loyalty and advocacy. It is an approach to building relationships with customers and goes beyond marketing. It aims to achieve a digital transformation that positions customers at the center of the business.
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Customer Experience Market: Strategic Insights
Market Size Value in US$ 11,555.18 Million in 2022 Market Size Value by US$ 29,780.95 Million by 2028 Growth rate CAGR of 17.1% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Customer Experience Market: Strategic Insights
| Market Size Value in | US$ 11,555.18 Million in 2022 |
| Market Size Value by | US$ 29,780.95 Million by 2028 |
| Growth rate | CAGR of 17.1% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Market Driver:
Rising Adoption of e-Commerce to Drive Growth of the Customer Experience Management Market.
E-commerce or electronic commerce is the trade of goods or services on the Internet. It encompasses a wide variety of data and solutions for online buyers and sellers. Businesses having an online presence generally utilize an online store and/or platform to conduct e-commerce marketing and sales activities and to oversee logistics and fulfillment. Retail e-commerce sales globally is anticipated to witness steady growth over the next decade, maintaining an increase of more than 10% annually. Essential articles, including food and beverage and health and personal care, are a strong driver of e-commerce in developed nations. Penetration of smartphones and low internet is a strong driver of e-commerce in developing nations. E-commerce gains are also driven by budget-conscious consumers leveraging the Internet to compare product prices and avail deals. With customers availing of e-commerce, e-commerce players are strongly relying on customer experience management solutions and services to improve their app and website experiences and also retain customers. The majority of consumers leave their shopping carts because of bad customer experience and switch to a different e-commerce site that matches their expectations. Additionally, after facing a bad customer experience, customers often stop transacting with the e-commerce company. The bad experiences may include customer care services, errors in transactions, irrelevant search results, shipping policies, and web navigation. Hence, excellent customer experience has become a prerequisite for success and is not limited to a business goal. With rising e-commerce transactions, e-commerce companies are strongly availing of customer experience management solutions and services. Such applications are driving the customer experience management market globally.
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Segmental Analysis:
The customer experience management market is segmented on the basis of component, deployment, organization size, touchpoint, and industry vertical. Based on components, the market is bifurcated into solutions and services. Solution was the leading segment in 2022, but the service segment is anticipated to grow at a faster rate during the forecast period. By deployment, the market is divided into on-premise and cloud. The on-premise segment held a larger market share in 2022, but the cloud segment is anticipated to grow at a faster rate during the forecast period. By organization size, the market is bifurcated into SMEs and large enterprises. On the basis of touchpoints, the market is segmented into call centers, websites, mobile applications, email, social media, and others. By industry vertical, the market is segmented into IT & telecom, BFSI, energy & utilities, government, retail, manufacturing, and others. By geography, the market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & and Africa (MEA), and South America (SAM).
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The large enterprises segment acquired the largest market share in 2022 and is expected to continue its domination throughout the forecast period. However, the SMEs segment is anticipated to witness a faster growth rate, buoyed by the rising affordability of customer experience management solutions and growing awareness of the advantages of such solutions. Additionally, the primary marketing strategies of most SMEs are tailored around social media, and also SMEs from several verticals are relying strongly on e-commerce. Thus, since a majority of their business is strongly reliant on digital media, SMEs are increasing their focus on improving their brand image through customer experience management solutions and services. Hence, the segment is anticipated to record a faster CAGR while contributing to the customer experience management market growth.
Regional Analysis:
North America holds a substantial share of the customer experience management market. It is one of the most technologically advanced regions in the world, supported by factors such as early adoption of technologies, government investment in new advancements, and strong economic growth. The region has a high penetration of advanced technologies, a large number of tech start-ups, and a higher acceptance of customer experience management. Additionally, the region is a pioneer in research and development of such advanced technologies. Furthermore, the US and Canada have been witnessing a significant rise in the number of users of solutions offered by customer experience management market players. The region also is a pioneer in social media marketing. Several social media sites have started in this region. Sites such as Instagram, Facebook, and X (earlier Twitter) have a significant number of users from this region. Hence, any derogatory post regarding a brand on social media can spread fast and significantly hamper the image of the brand. Hence, there is a significant demand for solutions and services offered by customer experience management market players in the region.
Key Player Analysis:
The customer experience management market players include Adobe Inc., Freshworks Inc., IBM Corporation, Microsoft Corporation, NICE Ltd, OpenText Corporation, Oracle Corporation, SAP SE, and Zendesk Inc. The market is moderately fragmented, with several small solution providers from the North American region entering the market after receiving private funding. Various other market players are introducing new product offerings to contribute to the proliferation of the market size. Numerous other important market players were also analyzed during this market research to get a holistic view of the global market and its ecosystem. The leading market players focus on feature upgrades, collaboration, expansion and diversification, and acquisition strategies, which enable them to grab new business opportunities.
Recent Developments:
Companies in the customer experience management market adopt several inorganic and organic strategies, such as product innovation and partnership. Adobe Inc., IBM Corporation, Microsoft Corporation, NICE Ltd, and Oracle Corporation are key market players. With the strong growth in demand for customer experience management, numerous companies have established partnerships to expand their offerings. A few recent key customer experience management market developments are listed below:
- September 2023 – Genesys announced a strategic collaboration with Salesforce and introduced a unified AI-powered customer experience and relationship management solution that integrated Genesys Cloud CX and Salesforce Service Cloud. The new solution was aimed at making agent and supervisor jobs more seamless by bringing enterprise contact center and workforce engagement management (WEM) capabilities to Salesforce Service Cloud from Genesys Cloud CX.
- May 2023 – Sprinklr, a leading customer experience management company, launched Sprinklr AI+, an artificial intelligence (AI) tool to gather insights from unstructured customer experience data. The tool can combine unstructured customer experience data from over 30 digital channels, including social media, news, blog and review sites, and messaging platforms, with generative AI to create content, improve feedback, enhance assistance, and identify insights.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Deployment, Organization Size, Touchpoint, and Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The IT and telecom segment led the customer experience management market globally with a market share of 25.5% in the year 2021.
The customer experience management market by component was led by solution segment which held the major market share in year 2021.
Growing adoption of artificial intelligence and growing e-commerce industries globally are few of the reasons for customer experience management market growth.
The major companies in customer experience management includes Adobe; IBM Corporation; Oracle Corporation; SAP SE; and Salesforce.com, inc.
In 2021, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific.
The List of Companies - Customer Experience Management Market
- Adobe
- Avaya Inc.
- IBM Corporation
- NICE Ltd.
- Oracle Corporation
- SAP SE
- Verint Systems, Inc.
- Zendesk
- SAS Institute Inc.
- Salesforce.com, inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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