Loyalty Management Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Deployment (On-Premises, Cloud), By Organization Size (Small & Medium Enterprise, Large Enterprise), By Vertical, By Region, And Segment Forecasts, 2025 - 2030

Loyalty Management Market Size & Trends

The global loyalty management market size was evaluated at USD 12.07 billion in 2024 and is anticipated to grow at a CAGR of 8.7% from 2025 to 2030. Loyalty management platforms offer businesses the necessary tools to design, implement, and manage effective loyalty programs. The rapid digital transformation in the retail industry is driving the adoption of loyalty management solutions in this sector. Innovative digital loyalty and engagement platforms, including mobile apps and online platforms, are helping retail businesses engage with customers across various touchpoints. Digital loyalty cards, personalized offers, and mobile wallets are some significant tools of modern loyalty programs that are driving their demand in retail industries. These factors would further drive the loyalty management market during the forecast period.

Loyalty management software assist businesses in fostering long-term relationships with existing customers by encouraging repeated business and building brand loyalty. This strategy involves the implementation of loyalty programs, rewards, and incentives to motivate customers to make recurring purchases. Loyalty management software also allow businesses to go beyond mere transactions and build an emotional connection between the brand and its customers. By component exclusive discounts, special offers, and VIP treatment, organizations can incentivize customers to stay loyal to their brand for a longer period of time. Therefore, the primary focus of loyalty management programs is to retain and nurture the customer base, as loyal customers tend to be more profitable and act as brand advocates. These factors would further drive the loyalty management market during the forecast period.

Industry players are utilizing advanced technologies, including AI, ML, and data analytics, to help businesses analyze large volumes of customer data for evaluating patterns and preferences, making the customer experience more engaging and rewarding. Furthermore, there is a significant rise in initiatives such as new component launches, partnerships, mergers, and acquisitions by market players to integrate the latest technologies into their respective loyalty management solutions to enhance their component performance and capabilities. For instance, in August 2023, Valuedynamx Limited, a data-centric multichannel purchase rewards provider, announced the launch of the Pay with Points solution that helps banks or credit card issuers and airlines with miles-based loyalty programs to offer more dynamic reward options through Valuedynamx’s growing network of merchant partners. These factors would further drive the loyalty management market during the forecast period.

The growing preference for automated and integrated solutions bodes well for the growth of the loyalty management market. The demand for technologically advanced loyalty management solutions is increasing as several organizations have started opting for streamlined and robust software to reduce dependency on human resolutions, minimize routine tasks, and reduce manual errors. For instance, mobile deployments and digital wallets replace traditional punch cards and physical loyalty cards. This shift offers customers convenience and provides businesses with more insights into customer behaviors. Moreover, it enables the integration of loyalty programs with other digital marketing efforts, creating a more seamless customer journey.

Various international regulatory bodies have drafted regulations to protect consumer data from unauthorized users and prevent any potential misuse of personal data. Market players must abide by various regulations and acts, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), related to personal data protection and other acts related to software design. Various governments are focusing on incentivizing indigenous software development, thereby encouraging market players to invest in their home countries, develop innovative solutions, provide employment opportunities to locals, and increase their regional customer base. These factors would further drive the loyalty management market during the forecast period.

Market Concentration & Characteristics

Industry players are adopting advanced technologies, such as artificial intelligence (AI), machine learning (ML), and data analytics, to help customers analyze large volumes of customer data and evaluate various patterns and customer preferences, making loyalty programs more customer-centric for greater customer engagement.

There is a significant rise in initiatives such as mergers and acquisitions by market players to integrate the latest technologies into their respective loyalty management solutions to enhance their product performance and capabilities. In April 2023, Brierley+Partners was acquired by Capillary Technologies, an engagement platform and customer loyalty provider, to provide customers with more effective and efficient loyalty and customer engagement solutions via Capillary Technologies’ next-generation Software-as-a-Service (SaaS) platform.

With the rising initiatives by organizations to follow standardized practices such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) for data privacy, industry associations and organizations have been working to establish guidelines and ethical frameworks promoting responsible data handling and usage.

The threat of substitutes can be termed as high owing to the presence of several external substitutes, including discounts and cashback, which businesses opt to acquire and build customer loyalty. Thus, the threat of substitutes in the loyalty management market can be termed as high.

End-user organizations are buying loyalty management solutions based on multiple factors, such as pricing, product quality, features, and brand recognition. Further, businesses in the market prefer integrated software suites that offer multi-purpose functionalities, which can be easily integrated with the incumbent systems of the businesses.

Component Insights

The solution segment accounted for the largest market share of over 58.0% in 2024 in loyalty management market. The segment growth can be attributed to the increasing use of loyalty management solutions by various end use industries to launch and manage loyalty programs. Loyalty management solutions offer various features, such as tracking & analytics, flexible Deployment Programming Interface (API), and compliance with regulations such as the payment General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and Card Industry Data Security Standard (PCI DSS). Companies operating in the market are focused on introducing innovative loyalty management solutions to improve their brand value. For instance, in March 2023, Kognitiv Corporation, a technology company in Toronto, launched the loyalty management and partner collaboration solution Kognitive Pulse, which is AI-driven that enables its clients for data-driven personalization and optimization of consumers’ journey across omnichannel Software-as-a-Service (SaaS) platform.

The services segment is anticipated to grow at a CAGR of 9.2% over the forecast period. The loyalty management services segment is anticipated to witness considerable growth over the forecast period owing to their wide range of features, such as customer report analysis, multichannel marketing, workflow management, dispute resolution, creation of new loyalty programs, and post-sale analysis. With loyalty management services, end-users can perform extensive data analysis to gain actionable insights and make data-driven decisions. Furthermore, loyalty management service providers such as IGT Solutions Pvt. Ltd., Flatworld Solutions Inc., and OSF Digital focus on providing 24x7 support to their clients to enhance their relationships with customers and increase their customer retention rate.

Deployment Insights

The on-premises segment accounted for the largest market share in 2024 in the loyalty management industry. The segment growth can be attributed to the high adoption among large and medium-sized businesses. Several businesses prefer on-premise solutions because of the ease of customization during implementation. On-premise solutions provide advanced data security, making it convenient to comply with various government regulations. On-premise deployment also provides organizations with greater control over sensitive data while allowing them to roll out a personalized network for loyalty management programs that best meet their needs.

The cloud segment is anticipated to grow at a CAGR of 9.4% during the forecast period.The segment growth can be attributed to the various benefits offered by cloud-based loyalty management solutions, such as low maintenance costs, remote management of loyalty programs, and quick deployment. Cloud deployment allows employees in an organization to access measurement and analytical tools in real-time and make better decisions about the customer journey. Cloud-based solutions are widely preferred over conventional systems as they are more effective in meeting evolving customer expectations.Key players are making significant investments in the market owing to the rising inclination of customers towards cloud-based solutions. For instance, in July 2023, International Business Machines Corporation launched a new cloud region in Madrid, Spain. This new cloud region comprises three data centers in Madrid, Las Rozas, and Alcobendas city.

Organization Size Insights

The large enterprises segment dominated the market and accounted for a revenue share of over 62.0% in 2024 in loyalty management market. The segment growth can be attributed to the emphasis of these companies on increasing their customer retention rate by component incentives and rewards. Furthermore, large enterprises are making significant investments in customer loyalty solutions to maintain their position in the competitive market. When implementing loyalty management solutions, large enterprises focus on factors such as the need for simplicity of framework coordination, better adaptability, and data protection. Their higher financial capability allows them to implement advanced loyalty management solutions, which bodes well for the segment growth.

The small & medium enterprises (SMEs) segment is anticipated to register the highest CAGR during the forecast period. Initially, SMEs, together with their particular industries, play a critical role in a country's employment and economy. The benefits of cloud-based deployments, including cost savings and compatibility with their Customer Relationship Management (CRM) system, entice small and medium-sized businesses to choose cloud-based loyalty management solutions. For instance, in April 2022, Virgin Australia, an Australia-based airline, launched the Business Flyer Loyalty Program to retain the existing SME customers and attract new ones. With this program, their members are expected to earn Velocity Points for every dollar they spend on eligible flights and can redeem those points in hotel car hires, next flight booking, and at various brand partner stores.

Vertical Insights

The retail & consumer goods segment accounted for the largest revenue share of over 22.0% in 2024 in loyalty management industry. The significant growth of the retail & consumer goods segment can be attributed to the increasing internet penetration rate and the growing preference for mobile apps for making purchases and related decisions. Furthermore, consumer goods companies and retailers are utilizing loyalty programs in web deployments and digital e-commerce to retain existing customers and attract new customers. Various brands are launching loyalty programs to stay ahead of the competition and increase their customer base. For instance, in September 2023, children's clothing brand Hanna Andersson launched a loyalty program, Hanna Rewards, which offers one point for each dollar that customers spend when buying apparel. When the point count reaches 125, customers can convert them to a USD 10 reward. Customers can also get access to new component sales and limited-time deals access.

The hospitality segment is anticipated to grow at a CAGR of 9.6% during the forecast period. The hospitality segment is witnessing notable growth due to the increasing adoption of loyalty management solutions by various restaurants, hotels, and resorts to enhance their customer experience and loyalty to the brand. Hospitality loyalty programs are offered in various categories: personalized rewards, points system, and partnership rewards. Furthermore, apart from general rewards, guests can also receive service-based rewards such as free internet access, discounts on luxury suites for the next visit, instant redemption on food & beverage services, and no blackout dates.

Regional Insights

North America held the major share of over 33.0% of the loyalty management industry in 2024. The regional growth can be attributed to the high adoption of loyalty management solutions in the region, led by significant competition in a majority of industries. North America is characterized by the presence of major loyalty management providers, namely Aimia, Inc., Bond Brand Loyalty, Inc., ICF International Inc., Kobie Marketing, and TIBCO Software, which are significantly investing in R&D to develop advanced loyalty management solutions and increase their customer bases, contributing to the regional market growth. Further, customers in the U.S. widely use debit and credit cards in stores to adopt monetary benefits and gain benefits from loyalty programs, such as product discounts, rebates, and cashback. These factors would further drive the growth of the regional loyalty management market during the forecast period.

Europe Loyalty Management Market Trends

The loyalty management industry in Europe is growing at a CAGR of 9.2% from 2025 to 2030. The European loyalty management market is driven by the growing demand for personalized loyalty management solutions, especially in the UK, France, and Italy, owing to factors such as brand investments in AI and customer engagement in these countries.

The loyalty management market in UK is growing significantly at a CAGR from 2025 to 2030. The growing emphasis on the adoption of analytical tools and customer engagement software to support sales, customer service, and marketing activities across all industries and sectors are the key factors driving the UK loyalty management market growth.

The loyalty management industry in Germany is growing significantly at a CAGR from 2025 to 2030. There is a rising demand for loyalty management solutions among small and medium-sized organizations in Germany owing to the shifting focus of these organizations toward attracting new customers and gaining a competitive edge are among the primary factors driving the Germany loyalty management market growth.

The loyalty management market in France is growing significantly at a CAGR from 2025 to 2030. The loyalty management market in France is a competitive and rapidly growing market. The increasing number of SMEs in France is anticipated to bolster the demand for loyalty management solutions to obtain customer insights and increase the customer base.

Asia Pacific Loyalty Management Market Trends

The loyalty management industry in Asia Pacific is growing significantly at a CAGR of 9.8% from 2025 to 2030. The increasing internet usage and the continuous growth of the retail, consumer goods, and e-commerce industries in countries such as China, Japan, and India are expected to boost the growth of the Asia Pacific loyalty management market. Furthermore, advanced loyalty management solutions are easy to use and can be availed at an affordable price, which drives their demand among consumers across industries and sectors such as hospitality, travel, retail, and consumer goods. Further, significant penetration by global market players and advancement in digital payment solutions is further driving the regional loyalty management market growth.

The loyalty management market in China is growing significantly at a CAGR from 2025 to 2030. The proliferation of e-commerce platforms, increasing penetration by key retail brands, a significant presence of potential audience, and strategic initiatives by end-use companies to improve their customer base are further accelerating the growth of the China loyalty management market.

The loyalty management market in Japan is growing significantly at a CAGR from 2025 to 2030. The rising government initiatives and e-government agendas to promote workforce optimization and enable organizations to use electronic media to communicate with their customers, creating robust market opportunities for the Japan loyalty management market.

The loyalty management market in India is growing significantly at a CAGR from 2025 to 2030. In India, the continued deployment of cloud-based solutions, rising demand for big data analytics, and shifting focus of end-user companies toward loyalty management solutions are driving the growth of the Indian loyalty management market.

Middle East & Africa Loyalty Management Market Trends

The loyalty management market in Middle East & Africa is growing significantly at a CAGR from 2025 to 2030. Increasing internet usage in the Middle East and African region, coupled with a significant presence of tech-savvy individuals in the region, is projected to boost the demand for loyalty management solutions in Middle East & Africa.

The loyalty management market in Saudi Arabia is growing significantly at a CAGR from 2025 to 2030. As the Saudi Arabia attracts top retail and electronics brands, it creates the need for component improved customer experience services with the help of loyalty management solutions. Furthermore, supportive government initiatives for employee loyalty programs bode well for the growth of Saudi Arabia loyalty management market.

Key Loyalty Management Company Insights

Some of the key players operating in the market include Oracle Corporation, Salesforce, Inc., and IBM Corporation, among others are some of the leading participants in the global loyalty management industry.

• Oracle Corporation specializes in providing technological solutions and enterprise software. The CrowdTwist loyalty and engagement solution offered by the company provides customers a flexible SaaS platform, customizable loyalty programs, and superior customer engagement opportunities.

• Salesforce, Inc. is an enterprise software provider, which offers customer management software suites through the cloud platform. The Loyalty Management solution offered by the company is a standalone product which can be integrated across various ecosystems. It helps organizations in creating more intelligent and personalized engagements with their customers, enhances Customer Lifetime Value, and boosts positive ROI.

BOND BRAND LOYALTY INC., Comarch SA, and Aimia Inc. are some of the emerging market participants in the loyalty management market.

• BOND BRAND LOYALTY INC. is a data-driven customer experience and loyalty management business company engaged in providing loyalty solutions and integrated marketing services. The company specializes in management marketing and measurement of experiences that build brand loyalty for organizations.

• Comarch SA designs, implements, integrates, and sells IT solutions globally. The company has categorized its components under the Customer Loyalty Marketing Platform into Loyalty Management, Data Analytics, Marketing Automation, Omnichannel Marketing Applications, and Loyalty Consulting.

Recent Developments

• In January 2025, SAP SE launched a new loyalty management solution designed for retailers and consumer packaged goods companies. This solution is intended to help businesses build customer loyalty by delivering personalized, real-time offers and immersive customer experiences. It integrates seamlessly with SAP Commerce Cloud, SAP Service Cloud, SAP Emarsys, and SAP S/4HANA Cloud Public Edition, along with specialized solutions for fashion, retail, and other verticals.

• In January 2023, IBM Corporation announced IBM Partner Plus, a program to reimagine the way the company engages with its business partners by providing unprecedented access to the company’s resources and incentives. The program envisaged fueling growth for both new and incumbent partners, including technology providers, resellers, and independent software vendors, by putting them in a position to control their earning potential.

• In March 2023, Salesforce, Inc. announced a partnership with Polygon, a blockchain platform for Non-Fungible Token (NFT)-based loyalty program. The partnership envisaged Salesforce Inc. assisting its clients in transitioning to Polygon by providing a management platform that would allow them to develop token-based loyalty programs.

• In August 2023, Comarch SA announced a partnership with Virgin Active, a health club based in South Africa, to enhance Virgin Active’s retention, members’ experience, and engagement. With the introduction of the new Virgin Active Rewards program and Virgin Active App, the company was looking forward to making leading a healthy lifestyle easier and more accessible to its members.

Loyalty Management Market Report Scope

Global Loyalty Management Market Report Segmentation

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 2030. For this study, Grand View Research has segmented the global loyalty management market report based on component, deployment, organization size, vertical, and region:

• Component Outlook (Revenue, USD Billion; 2018 - 2030)

  • Solution

    • Channel Loyalty

    • Customer Loyalty

    • Customer Retention

  • Service

    • Professional Services

      • Consulting

      • Implementation

      • Support & Maintenance

  • Managed Services

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

  • On-premise

  • Cloud

• Organization Size Outlook (Revenue, USD Billion; 2018 - 2030)

  • Small & Medium Enterprise (SME)

  • Large Enterprise

• Vertical Outlook (Revenue, USD Billion; 2018 - 2030)

  • Transportation

  • IT & Telecommunication

  • BFSI

  • Media & Entertainment

  • Retail & Consumer Goods

  • Hospitality

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • U.A.E

    • Saudi Arabia

    • South Africa