Digital Experience Platform Market Size, Share & Trends Analysis Report By Component (Platform, Services), By Deployment (On-premise, Cloud), By Application, By End Use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global digital experience platform market size was valued at USD 9.20 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.3% from 2021 to 2028. The COVID-19 pandemic has triggered digital transformation initiatives across industries for businesses to respond to the disruptions effectively and revamp their efforts to adapt DXPs to ensure business continuity and process optimization. The increasing preference of organizations to deliver integrated, personalized, and optimized user experience and engagement across numerous marketing channels is anticipated to drive market growth. Furthermore, the increasing adoption of DXPs by market vendors has enabled them to reach customers through multiple digital devices and foster upselling and cross-selling. A digital experience platform provides end-to-end touchpoint optimization and personalized experience across all customer interactions.

The rising adoption of Web 2.0 technologies, such as video sharing, hosted services, social networking, collaborative consumption platforms, web applications, microblogging, and podcasting, is playing a key role in encouraging businesses to invest in digital experience platforms. DXPs also enable organizations to deliver suitable content and recommend loyalty rewards based on customer's lifetime value. Furthermore, DXPs offer benefits such as seamless integration with multiple business systems, customer activity monitoring components, and in-built analytical capability. Organizations deploy DXPs to accelerate customer retention rates by developing business relationships and anticipating customer requirements. Key market players are focusing on upgrading their digital platforms by integrating advanced technologies such as Machine Learning (ML), Artificial Intelligence (AI), and big data in business processes, thereby driving market growth across multiple applications.

The increasing adoption of interactive and self-service kiosks for providing banking services such as mobile banking, internet banking, and related products is anticipated to accelerate the adoption of DXPs by banks, financial institutions, and Non-Banking Financial Companies (NBFCs). Many fintech startups are also deploying DXPs to improve their customer interaction and engagement to compete with dominant market players.

Digital experience platforms allow organizations to introduce big data analytics in their operations, enabling a unified view of customer interactions, activities, and data across numerous applications, touchpoints, user journeys, and channels. Moreover, DXPs help organizations deliver predictive offerings and contextual recommendations to their clients. Organizations are adopting customer-centric culture to increase customer engagement by dealing with real-time customer data. For instance, in April 2017, Mercedes-Benz USA partnered with Medallia, a customer and employee experience management software provider, to support its customer experience transformation initiatives. The new Operational Customer Experience Management (OCEM) is intended to empower dealers and authorized centers to listen and understand feedback from all customer journey touchpoints and respond instantly using appropriate actions.

Component Insights

The platform segment dominated the digital experience platform market in 2020 and is also anticipated to expand at the highest CAGR exceeding 12% from 2021 to 2028. The increasing adoption of digital experience platforms by startups and large multinational companies in developed economies of North America, Europe, and the Asia Pacific regions is expected to drive market growth over the forecast period. The growing need to retain existing clients amid rising competition is also projected to play a vital role in driving the deployment of DXPs by organizations.

The service segment is expected to grow significantly over the forecast period owing to the growing demand for services such as training & consulting throughout major end-use industries such as healthcare, BFSI, manufacturing, and IT & telecom. Digital experience platform services support organizations in achieving increased ROI, cost-cutting, and improved performance of business operations. Digital experience platform services are useful for organizations that do not have any analytics platform and internal budgets to implement and manage customer experience platform solutions.

Deployment Insights

The cloud segment dominated the market in 2020 and is expected to register the highest CAGR of more than 12% from 2021 to 2028. Factors such as reduced capital investments in physical infrastructure, ease of deployment, and vast advancements in information sharing technologies are anticipated to emerge as the key factors driving the growth of cloud-based DXPs globally. Cloud deployment offers improved convenience to organizations by providing hassle-free integration, increased operational flexibility, reduced maintenance, and low operational manpower requirement.

The on-premise segment is expected to expand at a promising pace over the forecast period as several businesses such as startups and SMEs select on-premise solutions owing to the ease of customization offered during their implementation. On-premise solutions offer high-end data security and facilitate easy compliance with various government regulations. The on-premise deployment also offers large organizations better control over confidential data. Moreover, on-premise deployment allows organizations to install a customized network of digital transformation that suits the organization's needs most accurately and efficiently.

Application Insights

The Business-to-Consumer (B2C) application segment captured the largest share of nearly 60% in 2020 and is also projected to emerge as the fastest-growing segment over the forecast period. Digital experience platform companies are introducing new features in their existing offerings and expanding their business portfolios through new product launches to accelerate the adoption across multiple applications. The introduction of customer behavior analytics enables organizations to understand, identify, and predict early signals of customer churn rate, improve the quality of customer engagement, and take proactive measures to increase customer retention.

The increasing deployment of B2C digital experience platforms by organizations to deliver consistent, personalized, and relevant content to improve the customer’s buying process and engagement experience is expected to drive the growth of the segment. Furthermore, B2C DXPs provide organizations with unified access to customer interactions. They also help organizations meet customer expectations, provide personalized products and service recommendations, and improve customer retention. B2C DXP platforms offer capabilities to actively reorganize business content on different types of digital devices such as tablets, smartphones, and laptops.

End-use Insights

The retail segment captured over 30% of the overall revenue share in 2020 and is expected to continue to dominate the market by 2028. The growing focus of retail companies on improving customer engagement and interaction, adopting a customer-specific pricing strategy and a customer-centric marketing approach, and offering customized products is expected to accelerate the deployment of digital experience platforms across the retail sector. An increasing number of DXP offerings in the market are leveraging advanced technologies such as AI ML to analyze consumers’ search, social media interactions, and browsing and purchasing histories. Furthermore, DXPs enable retailers to make better decisions, improve transparency, shorten product delivery time, and the optimal use of resources.

The BFSI segment is expected to emerge as the fastest-growing segment over the forecast period. This can be attributed to the increased consumer preference for online and digital banking. The proliferation of digital banking has improved the demand for personalized and secure banking experiences among consumers. Moreover, banks and financial institutions are majorly relying on DXPs to provide engaging and creative content to promote their standard products and customized customer-specific services.

Regional Insights

North America dominated the market in 2020 and accounted for over 30% share of global revenue. The presence of key market players such as ADOBE INC.; Microsoft Corporation; Oracle Corporation; and salesforce.com, Inc. in North America is expected to support regional growth over the forecast period. High emphasis on customer engagement and retention and the presence of well-established online and traditional retailing channels are some other major factors driving the growth of the North American DXPs market.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. Factors such as the growing population of tech-savvy individuals, rising per capita incomes, and the increasing sales of smartphones and tablets are some of the major factors expected to drive the deployment of DXPs by businesses in Asia Pacific. SMEs and large enterprises adopt digital experience platforms to facilitate and help streamline business processes and enable accurate business decision-making. Furthermore, the presence of several Information Technology Enabled Services (ITeS) and software firms in countries such as China, India, Japan, Singapore, and South Korea is also expected to accelerate the deployment of DXPs.

Key Companies & Market Share Insights

The key players operating in the market include Salesforce.com, Inc.; Acquia Inc.; ADOBE INC.; Liferay, Inc.; and International Business Machines Corp. Market players are investing aggressively in research and development activities to drive organic growth, improving their internal processes, actively engaging in new product development, and improving their existing products to acquire new customers and increase their respective market shares.

Companies are also focusing on mergers and acquisitions and strategic partnerships to develop technologically advanced products and gain a competitive edge in the market. For instance, in March 2020, SAP SE collaborated with Accenture Plc to launch a co-developed platform based on SAP S/4HANA Cloud for the oil and gas industry. This collaboration is aimed at reducing the complexity across upstream processes in the industry. Some of the prominent players operating in the global digital experience platform market are:

• Salesforce.com, Inc.

• Acquia Inc.

• ADOBE INC.

• International Business Machines Corp.

• Liferay, Inc.

• Microsoft Corporation

• Open Text Corporation

• Oracle Corporation

• SAP SE

• Sitecore

Digital Experience Platform 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 2018 to 2028. For this study, Grand View Research has segmented the global digital experience platform market report based on component, deployment, application, end-use, and region:

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

  • Platform

  • Services

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

  • On-premise

  • Cloud

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

  • Business-to-Consumer

  • Business-to-Business

  • Others

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

  • BFSI

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Retail

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa