Canada Customer Relationship Management Market Size, Share & Trends Analysis Report By Solution, By Deployment, By Enterprise Size, By End Use, And Segment Forecasts, 2021 - 2028

Report Overview

The Canada customer relationship management market size was valued at USD 2.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.2% from 2021 to 2028. The adoption of Customer Relationship Management (CRM) software is currently gaining traction in various industries owing to the changing nature of the software in terms of functionalities and features. CRM suites also enable enterprises to gauge business performance and track the sales trajectory, which is turning out to be a lucrative feature for businesses. Salesforce.com’s rapid growth in recent years indicates that cross-sales to existing customers with an installed base for add-ons and upgrades are also contributing to the growth of the market.

Customer relationship management solutions are gaining widespread popularity in diverse industries. As businesses become more customer-centric, the CRM market is expected to witness rapid growth over the forecast period. Ongoing trends such as hyper-personalization of customer service, use of AI and automation, and various customer value models are the key attributes propelling the growth of the segment. Moreover, implementing robust social media customer service can help reduce costs, increase response times, improve customer satisfaction, and increase the adoption of CRM platforms across industries.

The Canada CRM market has largely evolved in recent years in line with the changing customer demands. The most important development in the market is the integration of CRM solutions with social media platforms to connect with customers over social media channels. Several vendors are promoting their products as social CRMs and are offering features such as psychographic/demographic profiling and sentiment extracting as the mainstream functions of their CRM suites. As a result, activities such as online collaboration, feedback sharing, media sharing, and ideation are replacing conventional static CRM communications.

Businesses in Canada are increasingly turning to public cloud services in place of traditional infrastructure and software. Hence, opting for cloud-based services can help businesses in saving money and that money can be invested in bettering the operations such as CRM and other software’s. SaaS solutions can offer several advantages. SaaS solutions are easy to deploy and can also be customized according to the changing requirements. SaaS solutions can also help businesses in saving on the costs incurred on licensing fees, support, and training. Hence, SaaS solutions can typically help organizations in cutting the overall IT investments while enhancing operational efficiency and focusing on core expertise.

Businesses are increasingly utilizing CRM software to gain insights into customer behavior. Organizations have inculcated new business models to expand their customer reach and enhance the end-user experience. Organizations are also focusing on developing their ability to adapt to both changing customer expectations and market conditions. Incumbents of several industries and industry verticals are increasing their customer reach through various e-commerce models, such as e-retail, direct-to-customer (D2C), marketplace, and social commerce, among others. Moreover, a paradigm shift from standalone horizontal portals catering to different parameters of experience components separately to digital experience portals integrating all the necessary parameters of experience components into a single platform is also getting evident.  

Solution Insights

The customer service segment accounted for a market share exceeding 25% in 2020. The growing importance of understanding customer behavior and preferences enables various brands and organizations to deliver the best service performance in real-time by adopting customer service strategies. Manufacturing and service companies frequently incorporate CRM service providers' expertise and experience into their integrated multi-channel marketing and promotional campaigns as well as customized customer feedback and support to better serve their customers through CRM solutions. Moreover, the growing use of digital channels by customers to communicate with brands and organizations is estimated to boost the segment's growth over the coming years.

The marketing automation segment is anticipated to register considerable growth over the forecast period. The increasing demand for customized advertising, the need for informed advertising strategy, and retention of users for business growth are some of the key factors expected to drive the segment's growth. Moreover, with the development of cloud technology and services such as Infrastructure as a Service (IaaS) and Software as a Service (SaaS), enterprises are focusing on offering consolidated software solutions called Marketing Cloud. Businesses in Canada are increasingly turning to public cloud services as it helps them save money, which can then be invested in bettering solutions such as CRM and other software.

Deployment Insights

The cloud segment accounted for the highest market share of more than 50% in 2020. Organizations are increasingly opting for cloud-based deployment of a variety of CRM solutions as they are hosted on the vendor’s server and can be remotely accessed from any location. This eliminates the need for manually upgrading business solutions and enables users to access data from any location in a hassle-free way.

The on-premise segment is anticipated to expand at a considerable CAGR over the forecast period. A large number of companies are shifting from manual systems to automated systems for carrying out a variety of operations. This has led to increasing demand for on-premise solutions. As such, the on-premise segment is expected to witness steady growth over the forecast period.

Enterprise Size Insights

The large enterprise segment accounted for the highest market share of over 60% in 2020. Large organizations have multiple operational departments, due to which they widely use CRM solutions to integrate customer data with business process management features, enabling users to coordinate with their sales, marketing, and customer support processes. Moreover, vendors offering scalable features in their CRM to meet the needs of large organizations are also expected to drive the demand for CRM solutions in this segment.

The rising number of government initiatives through digital Small and Medium Enterprise (SME) campaigns, such as video marketing, social media, and search engine marketing, across the globe is expected to drive the growth of the segment over the forecast period. Furthermore, investments in SMEs are expected to drive the demand for digital services and facilitate the increased implementation of project management solutions, in turn driving the growth of the SME segment in the regional market.

End-use Insights

The retail segment accounted for the highest market share of over 20% in 2020. The increasing competition in the retail industry has led to a growing demand for advanced CRM software and online systems to enable enterprises to provide their customers with efficient services. Moreover, new CRM offerings that support multiple channels for sale, offer analysis, and provide a complete overview of customers and their purchasing habits are also on the rise. Such developments are expected to increase the demand for CRM solutions in the retail segment over the forecast period. The Canadian retail industry is widely adopting business solutions as they provide competitive benefits, such as graphical user interface support, optimum utilization of the resources, and reduction in the overhead & excessive inventory costs. This has largely contributed to the growth of the retail segment.

The healthcare segment is anticipated to expand at a considerable CAGR over the forecast period. Healthcare CRM helps to meet the needs of patients efficiently. There is a growing demand for CRM solutions in the healthcare sector to focus on PRM while offering tangible benefits. This seamless integration into healthcare operations coupled with timely updates of patients’ health records is anticipated to help avoid lengthy checkups and improve quality of care while lowering the overall costs. In Canada, hospitals are using customized dashboards to access important information and administer individualized care. Encrypting critical information and restricting its access to authorized doctors and staff members can play a vital role in preventing data breaches.

Key Companies & Market Share Insights

The key players that dominated the market in 2020 include Salesforce.com, Inc.; SAP SE; Oracle Corporation; Adobe Systems Inc.; and Microsoft. These players have been ranked based on the key strategies adopted by them to maintain a competitive edge in the market, their product offerings, and application segments served by them, the sophistication of technology, product differentiation strategy, and industry impact. The key strategies considered include strategic collaborations, partnerships, and agreements; new product development; capability expansion; mergers and acquisitions; and research and development initiatives.

The market is highly competitive, and the leading market players have an extended operating history, a large customer base, and significant competitive strengths. For instance, in September 2021, Salesforce.com, Inc. announced new AI-powered workflows and contact center innovations in its Service Cloud platform to help service agents offer fast customer services and build loyalty and trust. The new workflow capabilities include omnichannel routing in Flow, customer service incident management, and Robotic Process Automation (RPA) capabilities. Some of the prominent players operating in the Canada customer relationship management market are:

• Salesforce.com, Inc.

• Microsoft

• SAP SE

• Oracle Corporation

• Adobe Systems Inc.

• Genesys

• Verint Systems, Inc.

• International Business Machines Corporation

• Pegasystems Inc.

• Sage Group PLC

Canada Customer Relationship Management Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the Canada customer relationship management market report based on solution, deployment, enterprise size, and end use:

• Solution Outlook (Revenue, USD Million, 2018 - 2028)

  • Customer Service

  • Customer Experience Management

  • CRM Analytics

  • Marketing Automation

  • Salesforce Automation

  • Social Media Monitoring

  • Others

• Deployment Outlook (Revenue, USD Million, 2018 - 2028)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2018 - 2028)

  • Large Enterprise

  • Small & Medium Enterprise

• End-use Outlook (Revenue, USD Million, 2018 - 2028)

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Discrete Manufacturing

  • Government & Education

  • Others