Published Report - Customer Experience Management Market Share Report, Size and Forecast-2028

[Research Report] 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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Published Report - Customer Experience Market: Strategic Insights

Published Report - Customer Experience Market

• Market Size 2022
  US$ 11.56 Billion
• Market Size 2028
  US$ 29.78 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Component

• Solution and Service

Deployment

• On-Premise and Cloud

Organization Size

• SMEs and Large Enterprises

Touchpoint

• Call Center
• Website
• Mobile Application
• Email
• Social Media

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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.

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).

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.

Customer Experience Management Market Report Scope

Published Report - Customer Experience Market Report Scope

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.