Customer Experience Management Market Size, Share, & Trends Analysis Report By Analytical Tools, By Touch Point Type, By Deployment, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global customer experience management market size was valued at USD 10.65 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.4% from 2023 to 2030. The market growth can be attributed to the mounting importance of understanding customer behavior and their preferences, which drives various brands and organizations to implement customer experience strategies, such as regularly communicating and engaging with customers, developing a long-term programme, and utilizing automation, to provide the best service performance to customers in real-time. 

The COVID-19 pandemic is likely to influence businesses significantly, suppressing profitability, stifling innovation, and drying up cash flows and financial reserves. The increasing use of digital technology tools is likely to set the pace for digital transformation and digital optimization in both existing and new businesses. These developments are expected to increase the use of cloud technology and work collaboration tools, thereby assisting customer experience management (CEM) market growth.

The market is expected to witness an increasing share of work delivered through digital engagement models based on collaboration platforms and tools. The rapid proliferation of smart technologies, such as Machine Learning (ML), Artificial Intelligence (AI), and Internet of Things (IoT), among others has declined the cost of computing and storage power. For instance, automakers are using AI and analytics to understand what people do in their cars and also help automakers to provide maintenance services within vehicle sensors that can tell when a customer needs any type of service. This development would further drive the growth of the customer experience management market during the forecast period.

The continued digital transformation across various industries is prompting industry incumbents to replace the existing array of a myriad of solutions required to create, manage, and enhance the digital presence with a unified solution that can serve all purposes. The Digital Transformation Initiative of the World Economic Forum expects platform-driven interactions to be accounting for almost 2/3rd of the USD 100 trillion digitalization economy by 2025. As such, the continued integration of Artificial Intelligence (AI) and Machine Learning (ML) into CEM solutions is expected to drive the growth of the customer experience management market.

Understanding customer behavior is essential for businesses of all sizes. Given that the general public frequently spends quality time on various social networking platforms, such as Twitter, Facebook, Pinterest, LinkedIn, and Snapchat, among others, organizations have recognized that social networking platforms can provide a great opportunity to gauge changes in customer behavior and the way customers interpret information about products or services. Social Customer Relationship Management (CRM) can particularly assist businesses at this stage in positively engaging customers and increasing brand awareness. These developments would further drive the growth of the customer experience management market during the forecast period.

Supply chain disruptions and the implementation of new regulations would also have a significant impact on CEM market growth. However, as more people turn to the internet for online shopping, the business-to-consumer market is expanding rapidly. Healthcare and information technology and telecommunications are likely to see growth opportunities. As the demand for medicinal products and medicines has grown exponentially, effective and efficient change management has become increasingly important in the life sciences industry. The strong push for learning and development supported by AR/VR for remote training and demonstration for both employees and customers, as well as AR/VR-led remote troubleshooting for the energy & utility, retail, and telecom industries, would result in an improved customer experience, reduced time-to-serve, and reduced costs.

Analytical Tools Insights

The text analytics segment accounted for a revenue share of 40.6% in 2022. The growing need for social media analytics and the demand for sorting customer interactions or Voice of the Customer (VoC) across various digital touchpoints has contributed to the overall segment growth. Furthermore, text analytics enables predictive analytics with accurate sentiment data analysis and assists users in making critical business decisions by analyzing current and historical data to predict future outcomes. As a result of these factors, the segment is expected to be driven by the demand for predictive analytics among organizations in the forecast period.

The web analytics & content management segment is expected to witness a significant growth of 16.4% in the forecast period. The major factors driving the web analytics & content management segment growth include the need for companies to increase their revenue by providing personalized content for customers, enhancing interactions with customers online, and maintaining a brand presence. The growth in digital content is also expected to drive the web content management segment growth significantly. The use of web analytics is increasing and is fueled by several trends, including the constant rise in online shopping, rapid implementation of marketing automation platforms, and shift toward data-driven businesses.

Touch Point Type Insights

The call centers segment accounted for the largest market share of 31.9% in 2022. The key driving factors include the rising adoption of advanced contact center technologies, the increasing deployment of cloud-based and virtual contact center solutions, the emerging role of social media in contact center operations, and streamlined customer interactions to achieve high customer satisfaction. Furthermore, the snowballing popularity of call centers has impelled businesses to invest in technologies that aid in improving call resolution rates, customer satisfaction rates, and multi-channel performance, among others. These technologies include self-service workforce management solutions, speech technology, analytical tools, case management solutions, and email response management systems. These developments would further supplement the demand for advanced call centers during the forecast period.

The web services segment is expected to grow at a CAGR of 16.9% over the forecast period. Web CEM enables organizations to deliver responsive, powerful, mission-critical customer experiences across omnichannel touch points that meet the needs of many enterprise information platforms, social and rich media, languages, and devices. Web CEM is a sophisticated platform that makes use of cutting-edge web technologies to facilitate integration with existing enterprise systems. Businesses can use customer experience management to create a web presence that incorporates video, text, images, and documents while adhering to the principles of providing an optimized, social, and non-disruptive experience. These benefits would further drive the growth of the segment during the forecast period.

Deployment Insights

The on-premise segment accounted for the largest market share of 59.8% in 2022. A large number of companies are shifting from manual systems to automated systems for carrying out a variety of operations. According to a customer relationship management buyer survey conducted by SelectHub, several larger enterprise groups have preferred on-premise as compared to cloud-based deployment. Due to the increasing demand for data privacy, the demand for on-premise customer experience management solutions has increased. This has led to increasing demand for on-premise solutions.

The cloud segment is expected to witness significant growth of 17.5% over the forecast period. The demand for cloud CEM solutions, owing to their ease of accessibility and integration, is increasing due to the growing implementation of artificial intelligence, big data, IoT, and connected devices. Organizations are increasingly preferring cloud-based deployment of a variety of customer experience management solutions as they are hosted on the vendor’s server and can be remotely accessed from any location. These solutions help boost employee productivity, enhance customer engagement and retention, and offer various other business benefits.

End-use Insights

The retail segment accounted for the largest market share of 24.1% in 2022. The retail sector invests heavily in marketing and promoting products to attract customers and increase sales. However, the retail sector faces various challenges in delivering customer services. Retail companies use structured analytics CEM solutions to maintain detailed information about their customers, such as their preferences and social media activity. They can understand customer preferences by collecting this information from different touchpoints, such as websites, smartphone applications, social media platforms, and physical stores/branches, and analyzing it. These capabilities would further supplement the demand for customer experience management solutions in the retail sector during the forecast period.

The BFSI segment is anticipated to witness a significant growth of 16.7% in the forecast period. The segment expansion can be attributed to increased demand for CEM solutions, particularly in contact centers. This has prompted BFSI firms to invest in and implement analytical tools with multi-channel customer experience management features to effectively meet customer expectations. Furthermore, customer experience management solutions enable BFSI businesses to maintain quality standards while reducing internal inefficiencies. These benefits provided by analytical solutions will drive demand for customer experience management solutions in the BFSI sector during the forecast period.

Regional Insights

North America held the major share of 43.7% of the global customer experience market in 2022. The growing investments in digital channels and marketing by the U.S. and Canadian organizations are contributing to regional market growth. Social media is emerging as a potential channel for enterprises to share and receive feedback and product reviews and increase brand awareness. Solutions such as social middleware, social management, social monitoring, and social measurement are evolving and enabling enterprises to establish customer engagements and increase their brand presence among customers. Companies such as Salesforce.com and Adobe are doing technological advancements to create social media campaigns for developing online brand communities. This results in the U.S. and Canadian enterprises are spending aggressively on digital channels.

Asia Pacific is anticipated to emerge as the fastest-growing regional market at a CAGR of 17.1% owing to the advances in the latest technologies and the continued development of AI-based tools and self-service capabilities, such as chatbots, IVR, web self-service, and online communities, are allowing enterprises to better understand the changing customer behavior, provide instant support, and initiate proactive actionable responses. For instance, in January 2021, Microsoft Corporation India and CoRover, a conversational AI platform, introduced AskDISHA powered by Azure, an AI-powered chatbot, to the Indian Railway Catering and Tourism Corporation (IRCTC) to improve user experience by 70%. The virtual assistant uses technologies such as AI, machine learning, and Natural Language Processing (NLP) to answer passenger queries. The platform also offers real-time analytics for quick decision-making.

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in December 2022, Freshworks Inc, a cloud-based software solutions provider for all sizes of business, introduced its Freshservice, an IT service management system, to St. Marche, a Brazilian supermarket chain, to meet employee needs and increase productivity. With the help of Freshservice, St. Marche would provide users more flexibility and improve their automation process to resolve internal employee requests more quickly. Some of the prominent players dominating the global customer experience management market include:

• Adobe

• Avaya Inc.

• Clarabridge

• Freshworks Inc.

• Genesys

• International Business Machines Corporation

• Medallia Inc.

• Open Text Corporation

• Oracle

• Qualtrics

• SAP SE

• SAS Institute Inc.

• Service Management Group (SMG)

• Tech Mahindra Limited

• Verint

• Zendesk

• Miraway

Recent Developments

• In June 2023, Adobe unveiled new advancements around the Adobe Experience Cloud. The company announced the accessibility of Adobe Product Analytics for enterprise customers. It also announced significant enhancements to Adobe Experience Manager, Adobe Mix Modeler, Adobe Journey Optimizer, and Adobe Real-Time Customer Data Platform.

• In June 2023, Avaya, a world-leading company in customer experience solutions announced its reworked professional services with the name Avaya Customer Experience Services (ACES), formerly known as Avaya Professional Services. The upgraded approach enables the smooth integration of AI, digital, and cloud technologies to deliver enhanced business outcomes to consumers.

• In May 2023, Genesys, a world leader in experience orchestration cloud, announced the launch of the Genesys Cloud EX™ solution. The solution aims at engaging, motivating, and empowering the employees. 

• In May 2023, Medallia, Inc., a world leader in customer & employee experience, announced a strategic partnership with Cresta and expanded its integrations with Five9 and LivePerson. These partnerships are aimed at further strengthening the conversational AI technologies of the company that are used for agent assistance in real-time with customer service teams.

• In May 2023, Oracle announced the deployment of its retail solutions on the cloud at Prada Group. The luxury brand combines its digital and physical offerings to get in touch with its customers better and utilize data for delivering an increasingly custom experience.

• In May 2023, SAS, one of the leading companies in analytics, announced its collaboration with ECXO, a European Customer Experience Organization that is specialized in Customer Experience and focused on the EMEA region.

• In April 2023, DTDC, the largest freight & logistics company in India selected Freshworks for customer engagement efficiencies for delivering customized experiences to customers across the world. 

• In April 2023, OpenText announced OpenText Cloud Editions (CE) 23.2, with approximately 75,000 innovations that were introduced in the last year to assist customers in accelerating their cloud-centric digital transformation.

• In December 2022, Freshworks Inc, a cloud-based software solutions provider for all sizes of business, introduced its Freshservice, an IT service management system, to St. Marche, a Brazilian supermarket chain, to meet employee needs and increase productivity. With the help of Freshservice, St. Marche would provide users more flexibility and improve their automation process to resolve internal employee requests more quickly. 

• In July 2021, Qualtrics the first in the world Experience Management (XM) provider and developer of the XM category, announced an agreement to acquire Clarabridge, one of the leading companies in omnichannel conversational analytics, in a transaction of stock with a value of USD 1.125 billion.

• In January 2021, IBM entered into a collaboration with Audi UK, one of the leading luxury automotive manufacturers in the world. This collaboration was aimed at redesigning Audi's website for delivering a more engaging digital customer experience.  

Customer Experience Management Market Report Scope

Global Customer Experience Management Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global customer experience management market report based on analytical tools, touch point type, deployment, end-use, and region:

• Analytical Tools Outlook (Revenue, USD Million; 2018 - 2030)

  • EFM Software

  • Speech Analytics

  • Text Analytics

  • Web Analytics & Content Management

  • Others

• Touch Point Type Outlook (Revenue, USD Million; 2018 - 2030)

  • Stores/Branches

  • Call Centers

  • Social Media Platform

  • Email

  • Mobile

  • Web Services

  • Others

• Deployment Outlook (Revenue, USD Million; 2018 - 2030)

  • Cloud

  • On-premise

• End-use Outlook (Revenue, USD Million; 2018 - 2030)

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Government, Energy & Utilities

  • Construction, Real Estate & Property Management

  • Service Business

  • Others

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Denmark

    • Finland

    • Norway

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • New Zealand

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • UAE

    • Saudi Arabia