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

Report Overview

The global customer relationship management market size was valued at USD 43.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 10.6% from 2021 to 2028. One of the key trends in the industry is the growing demand for deploying Customer Relationship Management (CRM) suites and solutions via the Software as a Service (SaaS) model. Rising demand for automated engagement with customers, improving the scope of digital operations, and improving customer experience and services are the factors driving the demand for CRM solutions across various industries globally. Moreover, developments in cloud computing technology, the emergence of serverless computing and hybrid cloud computing, and the availability of various service models such as SaaS, Infrastructure as a Service (IaaS), and Platform as a Service (PaaS) are projected to drive the CRM market growth over the forecast period.

Industry estimates suggest that around 91% of organizations with more than 10 employees in their workforce use CRM systems. Organizational departments such as sales and marketing and customer services & support are increasingly integrating CRM systems into their business operations to improve customer experience and thereby increase business profitability. According to the CRM Cloud Survey Report led by SoftClouds, around 82% of the organizations surveyed use CRM systems for sales reporting and process automation. Senior management across numerous organizations is increasingly seeking efficient tools to handle customer data and use actionable insights derived from unstructured datasets to make data-informed decisions. Moreover, factors such as efforts to accelerate business content and shift their strategy from push marketing to pull marketing are expected to encourage organizations to adopt customer relationship management solutions over the forecast period.

The growing use of digital channels by customers to communicate with brands and organizations is estimated to boost the customer relationship management (CRM) market growth over the forecast period. A recent survey on consumer behavior outlined that over 67% of customers make business interactions with brands on social media platforms such as Twitter, Facebook, Snapchat, and Reddit. A better understanding of buyer behavior and their preferences enables brands and organizations to adopt apt customer service strategies and deliver the best service performance in real-time. For instance, in June 2019, Zoho Corporation Pvt. Ltd. integrated Zoho CRM with TeamViewer meetings. The integration enabled salespeople to schedule and launch online meetings directly using the familiar workflow and interface of TeamViewer. Moreover, the promising pace of development and deployment of communication technology in the IT industry is helping organizations to automate conversations with buyers, implement mobile CRM, and automate business processes using software robots to enhance customer relationship management across industries and sectors.

The growing importance of understanding customer behavior and their preferences amid the intensifying competition is prompting brands and organizations to adopt CRM strategies to deliver the best service performance in real-time and stay ahead of their rivals. Moreover, the rapid pace of digital transformation is prompting companies across several industries to replace the existing array of a myriad of solutions used to create, manage, and enhance their digital presence with a unified CRM solution that can serve all the purposes and meet all requirements. Technological advancements in the fields of business intelligence and embedded analytics, and their implementation in CRM solutions are likely to promote product enhancement and innovation among CRM vendors. For instance, in 2017, Cobalt, a CRM solution provider, developed an Augmented Reality (AR) application that can be integrated with a CRM platform.

The industry is expected to continue to witness the ongoing tussle between emerging solution vendors, large and traditional vendors, and new startups and niche vendors. Moreover, CRM solution providers are working with strategic System Integrators (SI’s) and Independent Software Vendors (ISVs) to expand their business reach into new markets and industries. Ongoing price trends, ease of deployment, and growing business applications of CRM solutions across industries and sectors are expected to drive the growth of the customer relationship management market.

COVID-19 Impact Insights

The COVID-19 pandemic has driven organizations across the world to undertake all necessary measures to ensure the safety of their employees and communities. During the pandemic, businesses and organizations need to close sales deals, pursue opportunities, and resolve customers' issues more than ever to improve retention. Government mandate of Work from Home (WFH) policies has driven organizations to increasingly focus on more effective ways of engaging with customers in a remote working environment. This is anticipated to drive the adoption and implementation of CRM solutions to their full potential as businesses focus on leveraging the majority of CRM functions to serve buyers, drive sales engagement, and increase employee productivity.

Solution Insights

Based on solution, the customer service segment dominated the market in 2020 and accounted for a revenue share of over 25%. This can be attributed to the growing importance of understanding buyer behavior and their preferences, encouraging brands and organizations to adopt customer service strategies to deliver the best service performance in real-time. Moreover, the growing use of digital channels by buyers to engage with brands and organizations is estimated to boost the growth of the segment over the forecast period.

The CRM analytics segment is anticipated to gain significant traction and is expected to register promising growth over the next few years. The growing integration of analytics features in CRM solutions as companies seek ways of deriving rich insights from business data is expected to drive the growth of the segment. Furthermore, the rising accumulation of structured and unstructured data through digital channels is estimated to drive the implementation of CRM analytics during the forecast period.

Deployment Insights

Based on deployment, the market is segmented into on-premise and cloud deployment. The cloud segment dominated the market in 2020 and accounted for a revenue share of over 60%. Cloud-based solutions have become the norm owing to the several benefits, such as high flexibility, scalability, cost-effectiveness, and low hardware maintenance cost, offered by the SaaS deployment model. Organizations increasingly prefer cloud-based deployment of various 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 the same and enables the user to access data from any location in a hassle-free manner.

According to a CRM buyer survey conducted by SelectHub, larger enterprise groups preferred cloud deployment to on-premise. However, there is an increasing demand for data privacy in the modern world. This has led to steady demand for on-premise CRM solutions. The on-premise model is still opted by the largest organizations in the world; the organizations that favor their business-critical information to be stored on their servers for enhanced data protection. These organizations have dedicated IT infrastructure that allows them to maintain on-premises setup in a hassle-free manner. A rise in investments in CRM systems on the part of these large organizations is likely to drive the segment during the forecast period.

Enterprise Size Insights

Based on enterprise size, the market for customer relationship management is segmented into large enterprises and Small & Medium Enterprises (SME). The large enterprises segment accounted for the highest market share exceeding 56% in 2020. Owing to the presence of multiple operational departments in large organizations, CRM solutions are utilized to help integrate buyer data with business process management features and enable users to coordinate with their sales, marketing, and customer support processes effortlessly. Moreover, the high number of CRM solutions offering scalable features to meet the evolving requirements of organizations is expected to drive the growth of the segment. Moreover, the growing applications of big data, artificial intelligence, and machine learning in large enterprises are expected to drive the adoption of CRM solutions.

The rising number of government initiatives through digital campaigns, such as video marketing, social media, and search engine marketing, across the globe are expected to drive the growth of the SME segment over the forecast period. The increasing demand for business networking, internal transparency and collaboration, smooth employee transition, funding opportunities from government bodies, and building brand and reputation will enable SMEs to implement CRM solutions across businesses.

End-use Insights

Based on end-use, the market is segmented into retail, BFSI, healthcare, discrete manufacturing, IT and Telecom, government and education, and others. The growing demand for CRM solutions in B2C businesses is significantly high. The retail and BFSI segment emerged as the largest shareholders in 2020, accounting for nearly 23.5% and 22.0% of the market, respectively. CRM solutions are widely used by banking and financial institutions as they help provide enhanced client experience. CRM solutions also offer various functional advantages, such as segmentation of customers, seamless communication with buyers, and continuous access to the client database.

The increasing competition in the retail industry is driving the demand for advanced CRM software and online systems to enable enterprises to provide their buyers with efficient customer-centric services. Moreover, innovative CRM solutions that support multiple channels for sale processes, offer analyses, and a complete data-based oversight of buyers 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 IT and telecom segment is expected to register the fastest CAGR over the forecast period. CRM solutions in IT and telecom offer brand equity, distribution channels, post-purchase service, and customer exclusivity and support, benefits that allow organizations to continue their business in the highly concentrated and competitive market. Moreover, the increasing demand for on-time delivery of products is compelling businesses to focus on improving the efficiency of their business processes. Further, the growing demand for solutions that allow organizations to understand customer buying behavior and gather competitive insights is expected to boost the market growth in the discrete manufacturing segment.

Regional Insights

In North America, the U.S. exhibited the largest share of over 90% in 2020. The growth of the U.S. market can be attributed to the presence of several key CRM vendors in the country and numerous businesses and enterprises across the region that rely on the use of advanced technologies. While North America is anticipated to continue to dominate the market over the forecast period, Europe is expected to show a relatively sluggish growth. Continued digital transformation across various industries and industry verticals, including banking, retail, and hospitality, is expected to propel the growth of the North America region.

Asia Pacific is estimated to register the highest CAGR over the forecast period, owing to the growing demand for innovative CRM solutions from emerging countries such as China and India. The promising expansion of the e-commerce industry in Asian countries is anticipated to drive the demand for CRM solutions. The growing scope of businesses in the region, an optimistic growth prediction across economies, and a large buyer base are other key factors expected to drive the growth of the CRM market in the Asia Pacific region over the forecast period. For instance, in June 2019, Salesforce.com scaled up its operations in the region with an investment of around USD 100 Million in Japanese startups.

Key Companies & Market Share Insights

The key players operating in the market include Salesforce.com, Inc.; Microsoft Corporation; SAP SE; Oracle Corporation; and Adobe Systems Inc. Salesforce.com, Inc. is an enterprise software provider, which offers customer management software suites through the cloud platform. Microsoft Corporation has also exhibited considerable development in the field in the past few years. Leading market participants are investing in R&D activities to drive organic growth and increase their market shares. Additionally, companies are also engaging in new product development to expand and strengthen their existing portfolios and acquire new buyers. Companies are also engaging in mergers and acquisitions and strategic partnerships to develop technologically advanced solutions and gain a competitive edge over their rivals.

For instance, in March 2018, Salesforce.com, Inc. acquired Mulesoft, an integration software company. The acquisition allowed the company to gain access to Mulesoft’s integration technology and large buyer base. Some of the prominent players operating in the global customer relationship management market are:

• Salesforce.com, Inc.

• Microsoft Corporation

• SAP SE

• Oracle Corporation

• ADOBE INC.

• SugarCRM Inc.

• Zoho Corporation Pvt. Ltd

• Copper CRM, Inc.

• Insightly Inc.

• Creatio

Customer Relationship Management Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this report, Grand View Research has segmented the global customer relationship management market report based on solution, deployment, enterprise size, end-use, and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2028)

  • Customer Service

  • Customer Experience Management

  • CRM Analytics

  • Marketing Automation

  • Salesforce Automation

  • Social Media Monitoring

  • Others

• Deployment Outlook (Revenue, USD Million, 2016 - 2028)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2028)

  • Large Enterprises

  • Small & Medium Enterprise

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Discrete Manufacturing

  • Government & Education

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • New Zealand

  • South America

    • Brazil

  • Middle East & Africa (MEA)