Digital Experience Platform Market Size, Share & Trends Analysis Report By Component (Platform, Services), By Deployment (On Premise, Cloud), By Application (B2C, B2B), By End Use, And Segment Forecasts, 2019 - 2025

Industry Insights

The global digital experience platform market size was valued at USD 7.53 billion in 2018 and is expected expand at a CAGR of 10.9% from 2019 to 2025. Increasing efforts by the companies to deliver personalized, integrated, and optimized user engagement and experience across multiple marketing channels are expected to drive the growth. Furthermore, rising adoption of the Digital Experience Platforms (DXPs) by marketers has enabled them to seamlessly reach customers through multiple digital devices and promote cross selling and upselling. DXP enables users to rapidly build and deliver integrated, optimized user experiences across multiple digital channels.

Over the last few years, due to increased digitization and preference for omnichannel approach, customer experience has emerged as the key competitive differentiator for brands. Companies are deploying DXPs to communicate with customers across multiple points of interaction using dynamic and customized content based on customer’s specific needs or product preferences. Furthermore, the capability of DXPs to collect and analyze the customer buying behavior and unify customer data obtained from multiple touchpoints to create a centralized view is also a major factor driving the market growth. In addition, integration of emerging technologies, such as Artificial Intelligence (AI), big data, and Machine Learning (ML) have enabled key solution providers to upgrade their DXs, thereby driving the demand for digital experience platforms across multiple applications.

Web 2.0 technologies have enabled companies to deliver a dynamic web experience to improve customer interaction and engagement. Rising adoption of Web 2.0 technologies, such as hosted services, video sharing websites, social networking, microblogging, collaborative consumption platforms, web applications, and podcasting is playing a pivotal role in driving the adoption of digital experience platforms. DXPs also enable companies to analyze the user experience and customer data using a pre-integrated stack. Furthermore, the seamless integration with multiple business systems, in-built analytics capability, and customer activity monitoring components has also enhanced the capabilities of DXPs.

The companies are deploying DXPs to facilitate customer retention by developing long-lasting business relationships by anticipating customer requirements. The digital experience platforms also enable companies in recommending and delivering suitable content and suggesting loyalty rewards based on customers lifetime value. For instance, the growing adoption of interactive kiosks for delivering banking services and related products is also expected to drive the adoption among banks and Non-Banking Financial Companies (NBFCs). A large number of fintech startups is also deploying digital experience platforms to effectively improve their customer interaction and engagement process to compete with the dominant market leaders.

However, the integration issues with legacy business processes and infrastructure, rapidly evolving DXP technologies, and reluctance to upgrade to customer-oriented marketing and communication strategies are the major challenges impacting the growth of the DXP market. Furthermore, the lack of an experienced workforce to manage multiple solutions as part of the DXPs is a major concern for SMEs and startups. To overcome these issues, users are reducing their reliance on single-vendor platforms due to the lack of functionality to support multiple processes. Companies are now adopting a multi-vendor approach to provide DXP for internal-facing employee Experience (EX) and the outward-facing Customer Experience (CX) functions.

Component Insights

Based on component, the digital experience platform(DXP) market has been segmented into platform and services. Platform held the largest market share in 2018 and is also anticipated to register the fastest-growing segment over the forecast period. Increasing adoption of digital experience platform by large Multinational Companies (MNCs) as well as startups in developed economies of North America, Europe, and Asia Pacific is anticipated to drive the growth. The need to retain the existing customers is also projected to play a crucial role in driving deployment of digital experience platforms by the companies.

Rising adoption of DXP for handling customer queries through automatic response processes and providing customers with real-time feedback of the posed queries is also expected to be a key factor driving the adoption. The capability of DXPs to analyze real-time data and to provide insights regarding past customer engagement has enabled companies to customize the content delivery. Furthermore, the deployment of DXPs to analyze customer buying behavior is also expected to increase the adoption by companies in multiple end use segments. The DXPs also provide companies with plug-and-play modular software components and services that can be integrated based on evolving business requirements.

Deployment Insights

The cloud segment held the leading market share in 2018 and is also anticipated to expand at the fastest CAGR over the forecast period. The ease of deployment and reduced capital investments in physical infrastructure and workforce are the major growth drivers. The cloud deployment model also offers increased convenience to companies by providing hassle-free integration, reduced maintenance, increased operational flexibility, and low operational manpower requirement.

The SMEs and startups are anticipated to be the major users of cloud based DXPs due to the abovementioned factors. Furthermore, the cloud based DXPs have enabled companies to access the platform from multiple devices such as laptops, smartphones, and desktop computers to deliver customized content based on customer buying behavior, preferences, and historical transactions. The cloud deployment model also offers customers with a usage-based service model with the pay-per-use facility. The increasing number of startups in emerging economies such as China and India is also anticipated to drive the deployment of DXPs over the next six years.

Application Insights

Based on application, the Digital Experience Platform (DXP) market has been further segmented into Business-to-Consumer (B2C), Business-to-Business (B2B), and others. The B2C segment dominated the market in 2018 and is also expected to register the fastest-growing segment over the forecast period. DXP vendors are expanding their portfolio and introducing new features to increase the adoption across multiple applications. For instance, the customer behavior analytics and dynamic content features have enabled users to improve the quality of customer engagement and improve the probability of a sale.

The deployment of B2C digital experience platforms by companies to deliver personalized, consistent, and relevant content to improve the customer engagement experiences and the buying process is anticipated to drive the market growth over the forecast period. Furthermore, B2C DXPs also provide companies with a unified access of customer interactions. They also help companies in anticipating the customer expectations, provide personalized product and service recommendations, and improve customer retention. The capability of B2C DXP platforms to dynamically reorganize content on different types of digital devices, such as smartphones, tablets, and laptops, is also a key growth driver.

End-Use Insights

The retail segment dominated the market in 2018 owing to the factors such as customer-centric approach and growing focus on improving customer engagement and interaction, offering customized products, and adopting a customer specific pricing strategy. The DXPs are leveraging emerging technologies, such as Machine Learning (ML) and Artificial Intelligence (AI) to analyze consumers’ search, social media interactions, and browsing and purchasing histories. The digital experience platforms also help identify and analyze the location and customer demographics to anticipate the purchase and then deliver relevant content to support their decision making.

The BFSI segment is expand at the fastest CAGR over the forecast period due to the increasing consumer preference for digital and online banking. Over the last few years, walk-ins at the banks have drastically reduced, which are also expected to decline further due to the proliferation of digital banking. Hence, financial institutions and banks majorly rely on DXPs to deliver engaging and creative content to promote their standard products and customized customer specific services.

Regional Insights

North America held the leading market share in 2018. It is home to several leading digital experience platform providers, such as Adobe; Microsoft Corporation; Oracle Corporation; and salesforce.com, Inc.; among others. Companies deploy DXPs for developing customer-centric marketing campaigns. The high emphasis on customer engagement and retention and strong presence of online and conventional retailing channels are some other major factors driving the regional market growth. Furthermore, the companies in the region are also the early adopters of emerging technologies.

Asia Pacific is projected to emerge as the fastest-growing regional market for digital experience platform. The rising per capita income, tech-savvy population, and sales of smartphones and tablets are some of the major factors expected to drive the adoption of DXPs by the companies operating in the regional market. The rapid growth of online retailing is also fueling the demand for DXPs in the region. Furthermore, the well-established presence of Information Technology Enabled Service (ITES) and software companies in countries, such as India, China, Singapore, Japan, and South Korea is also anticipated to facilitate the cost-effective deployment of DXPs.

Digital Experience Platform Market Share Insights

Key market players include Adobe; Acquia Inc.; Episerver; CoreMedia AG; IBM Corporation; Oracle Corporation; Liferay Inc.; Microsoft Corporation; Open Text Corporation; SAP SE; Salesforce.com, Inc.; and Sitecore; among others. These market players are working on developing new features and capabilities to improve the functionalities offered by their DXPs. In addition, some of the solution providers, such as Salesforce.com, Inc.; SAP SE; Oracle Corporation; Adobe: and Microsoft Corporation are acquiring or partnering with emerging technology startups to develop innovative solutions.

In 2018, Microsoft Corporation partnered with Adobe and SAP to launch an Open Data initiative to reinvent customer experience management and help organizations to offer world-class customer experiences in real-time to its customers. Similarly, in 2018, Salesforce acquired Mulesoft, LLC-an integration software company. The acquisition enabled Salesforce to simplify integration with the MuleSoft Anypoint Platform for extending Salesforce data, events, processes, and APIs. In 2018, SAP SE acquired Callidus Software Inc., a cloud-based CRM solution provider. The acquisition enabled SAP SE to offer differentiated, cloud-based customer engagement solutions to its customers.

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 2025. For the purpose of 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, 2016 - 2025)

  • Platform

  • Services

• Deployment Outlook (Revenue, USD Million, 2016 - 2025)

  • On-premise

  • Cloud

• Application Outlook (Revenue, USD Million, 2016 - 2025)

  • Business-to-Consumer

  • Business-to-Business

  • Others

• End-Use Outlook (Revenue, USD Million, 2016 - 2025)

  • BFSI

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Retail

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa