The global Customer Relationship Management (CRM) market size was valued at USD 23.14 billion in 2015. The industry is driven by the growing demand for Software as a Service (SaaS) in the deployment of CRM suites and solutions. Mature customer service, automated engagement, improved experience, and increasing scope of digital operations are a few factors fueling the demand for these solutions across various verticals.
Currently, organizational departments, such as customer services & support and sales & marketing, have started working together toward a common end of providing better experience and increasing profitability. This has forced senior executives to seek the availability of consumer data, actionable insights in unstructured datasets, and efficient tools to handle them, which is fueling the growth of industry. The industry-wide effort to deliver better content and the shift from the push to pull marketing strategy will further help in the industry growth.
Global Customer Relationship Management market, by application, 2014 - 2025 (USD Million)
Social CRM is expected to become the next most sought after functionality in the industry after cloud-based SaaS delivery owing to the changing dynamics. With the proliferation of technology in the industry, mobile CRM, automated customer conversations, and robotic process automation would shape the future of the industry. The integration of CRM suites with intelligent agents to mine the unstructured contact data in discussions, connections, and potential customers is the prime focus of companies, which are directing the development of products of solution vendors.
The industry is expected to witness an ongoing tussle between large and traditional vendors and the new emerging solution vendors. The CRM ecosystem would also be affected by the convergence of different platforms and the streamlining of routine tasks will gain priority. Though the industry growth may be affected by data privacy and security concerns of organizations, the ongoing price trends, deployment ease, and business-critical applications of customer relations are anticipated to boost the adoption rate in the coming years.
Large enterprises have been the major adopters of CRM suites for quite some time now as these solutions help them track their return on investments and improve the overall efficiency of their sales cycles. The large enterprises segment emerged as the largest industry shareholder owing to the vast marketing and IT budgets at the disposal of these organizations and the need for handling a huge amount of data.
Yet, in the recent years, SMBs have driven the growth of the industry owing to the widespread popularity of SaaS-based solutions. The segment is estimated to grow at a CAGR of 18.0% over the next nine years.
Though it is perceived that B2B businesses are the largest users of CRM solutions, the demand for these solutions is quite high in the B2C businesses. This is evident from the fact that retail and BFSI emerged as the largest shareholders in the global CRM solutions industry.
The telecom and IT segment is estimated to grow at a rapid CAGR of 16.8% in the coming years. The rapid adoption of customer-centric processes and technological proliferation are driving this immense growth with the discrete manufacturing segment closely following the IT & Telecom segment in the adoption of CRM. Its importance in sales cycles and customer relations is impelling the discrete manufacturing segment growth.
Cloud-based solutions have become the norm in the industry, which can be attributed to the increasing demand for solutions that help the sales and marketing teams on the go. The demand for SaaS is fueled by large and small enterprises alike as it provides numerous benefits such as cost flexibility, mobility, and almost no hardware cost. Concerns regarding security and privacy are the major hindrances observed in cloud deployment; however, as these concerns are being tackled, the cloud adoption is set to increase even further in the coming years.
North America CRM market, by deployment, 2015 (%)
The North American region, especially the U.S., has exhibited the largest share in CRM adoption. The growth in the U.S. can be attributed to the presence of numerous vendors, both big and small, in the region. While the North American region is anticipated to continue to dominate the industry, the European region has shown a rather sluggish growth in the recent years as the gloomy economic conditions have affected the marketing and IT budgets of the organizations in the region.
The Asia Pacific region is estimated to grow the fastest over the forecast period, owing to the growing demand from developing countries, such as China and India. The growing scope of business, a large customer base, and an optimistic growth prediction are a few factors driving the growth of industry in the Asia Pacific region. The region is estimated to grow at a CAGR of 17.2% over the forecast period.
The CRM industry is led by big five companies, namely Salesforce.com, Microsoft, SAP, Oracle, and Adobe. Salesforce.com is an undisputed leader in the industry, which is attributed to the cloud-delivered product suites of the company that offer elemental functionalities to benefit large and small enterprises alike. Microsoft has also shown considerable growth in the last couple of years.
The industry is also marked by frequent merger and acquisition activities of smaller firms by well-established firms. An important characteristic of the industry is the growing popularity of niche players that cater to specific industries across different verticals.
Attribute |
Details |
Base year for estimation |
2015 |
Actual estimates/Historic data |
2014 - 2015 |
Forecast period |
2016 - 2025 |
Market representation |
Revenue in USD Million & CAGR from 2016 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, South America, and MEA |
Country scope |
U.S., Canada, UK, Germany, India, Japan, China, and Brazil |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the customer relationship management market on the basis of deployment, enterprise size, application, and region:
Deployment Outlook (Revenue, USD Million; 2014 - 2025)
On-premise
Cloud
Enterprise Size Outlook (Revenue, USD Million; 2014 - 2025)
Large Enterprises
Small and Medium Businesses
Application Outlook (Revenue, USD Million; 2014 - 2025)
BFSI
Retail
Healthcare
IT & Telecom
Discrete Manufacturing
Government & Education
Others
Regional Outlook (Revenue, USD Million; 2014 - 2025)
North America
U.S.
Canada
Europe
UK
Germany
Asia Pacific
China
Japan
India
South America
Brazil
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