Customer Engagement Solutions Market Research, 2031
The global customer engagement solutions market was valued at $18.5 billion in 2021, and is projected to reach $48.4 billion by 2031, growing at a CAGR of 10.2% from 2022 to 2031.
Customer engagement solution refers to business communication and interaction adopts various strategies to widen and retain consumers. In addition, customer engagement solutions include the software that manages the marketing personalization, customer services, webchat, Omni channels, and others. This solution is widely applicable for the optimization of the workforce, development of engagement application and automation.
Rise in adoption of customer engagement solutions to reduce customer churn rate and increasing use of E-commerce and M-commerce platforms are driving the growth of customer engagement solution market. Moreover, increase in focus on delivering enhanced customer engagement through omnichannel boosts the customer engagement solutions market size. However, data synchronization between customer engagement solutions and other technologies for customer engagement solution systems and data security and privacy concerns restrict the customer engagement solutions market growth. On the contrary, growth in investments in Artificial Intelligence (AI) in customer engagement solution expected to offer remunerative opportunities for expansion of the customer engagement solution market during the forecast period.
The customer engagement solutions market is segmented into Offering, Deployment Mode, Enterprise Size and Industry Vertical.
The customer engagement solutions market is segmented on the basis of by offering, deployment mode, enterprise size, industrial vertical and region. On the basis of offering, the market is categorized into solutions, and service. On the basis of deployment mode, the market is bifurcated into on-premise and cloud. On the basis of enterprise size, the market is divided into large enterprise and SMEs. On the basis of industry vertical, it is classified into BFSI, IT & telecom, healthcare, manufacturing, transportation & logistics, retail & e-commerce, media & entertainment, travel & hospitality, and others. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the customer engagement solutions industry are Avaya Inc., Alvaria, Creatio, CRMNEXT, eGain Corporation, Enghouse Systems, IBM Corporation, Microsoft Corporation, NICE, Oracle Corporation, Open Text Corporation, Pegasystem Inc, SAP SE, Salesforce, Inc, ServiceNow, Verint Systems Inc, Zendesk. These players have adopted various strategies to increase their market penetration and strengthen their position in the customer engagement solutions industry.
In terms of offering, the solution segment holds the largest customer engagement solutions market share as, owing to the high demand of design and deployment of new customer engagement solution network as part of digital transformation initiative and growing popularity and adoption of advance technology model. However, the service segment is expected to grow at the highest rate during the forecast period owing to, high level of cost savings on the total cost of ownership, increased delivery speed and quality, rise in standardized & configurable services globally. These are the major factors that influence solutions in the customer engagement solution market.
Region wise, the customer engagement solutions market share was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to technological advancements in the information and communication technology (ICT) sector and rapid rise of artificial intelligence (AI) & internet of things (IoT) within end users is positively impacting the growth of customer engagement solution industry. However, Asia-Pacific is expected to witness significant growth during the forecast period, due to increasing adoption of cloud computing by various organizations.
COVID-19 Impact Analysis
The customer engagement solution industry has witnessed stable growth during the COVID-19 pandemic, owing to rise in demand for digital support, fraud detection solutions, and various others solutions during the pandemic situation. In addition, the COVID-19 pandemic has resulted in changes in model performance, as more continuous monitoring and validation is required to mitigate various types of risks, compared to static validation and testing methods, which, in turn, drives the development of advanced machine learning models. In addition, with rapid digital transformation, various governments have introduced stringent regulations to protect end users data such as General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). However, COVID-19 pandemic is making it even harder for larger companies to keep pace, and even more difficult for midsize and smaller companies to adopt AI and cloud technologies, owing to long development timelines and high investment requirements.
Top Impacting Factors
Rise in adoption of customer engagement solutions to reduce customer churn rate
The increase in adoption of customer engagement solution helps transfer poor customer experience into a positive brand image for the company and increase customer retention. In addition, customer engagement involves engaging customers through various touchpoints, such as social media, surveys, advertisement campaigns, and direct interaction. For instance, in 2021, HubSpot’s state of Inbound report, over 50% of companies have witnessed that generating leads. Moreover, customer engagement solutions provide analytical insights regarding customer churn rate periodically as well as ensures effective relationship management between organizations and customers. Adopting customer engagement solutions helps organizations enhance customer retention and customer loyalty. Such demands are driving the growth of the customer engagement solution industry.
Increasing use of E-commerce and M-commerce platforms
Surge in use of e-commerce and m-commerce platforms. The industry is expected to witness new opportunities for market growth as well as new types of alternatives to invest in advance technologies. In addition, in recent years, e-commerce and m-commerce experience has dramatically changed, creating new opportunities to use strategies that have already run their course in the U.S. For instance, in January 2022, U.S. Department of Commerce figures online sales hit $231.35 billion in the first quarter, up a modest 6.7% from $216.74 billion for the same period the prior year. That’s another deceleration from the 9% to 10% quarterly ecommerce growth registered in the last half of 2021. Furthermore, providing outstanding experience is an important component of eCommerce and M-commerce consumer engagement strategy. For instance, in April 2021, Dentsu launches Merkle Canada to expand its customer experience capabilities Therefore, many end users are enabling customer engagement solution to have an emotional connection between a customer and a brand during the pandemic, which in turn is driving the growth of the market.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the global customer engagement solutions market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global customer engagement solutions market trends is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The customer engagement solutions market analysis from 2022 to 2031 is provided to determine the market potential.
- The report includes the analysis of the regional as well as global customer engagement solutions market trends, key players, market segments, application areas, and market growth strategies.
Customer Engagement Solutions Market Report Highlights
| Aspects | Details |
 By Offering |
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 By Deployment Mode |
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 By Enterprise Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | Zendesk, CRMNEXT, ServiceNow, Oracle Corporation, Verint Systems Inc., NICE, IBM Corporation, Salesforce, Inc., Alvaria, Enghouse Systems, eGain Corporation, Creatio, SAP SE, Avaya, Open Text Corporation, Pegasystem Inc., Microsoft Corporation |
Analyst Review
Customer engagement is emerging as one of the most effective methods of customer retention and becoming a key focus area for small as well as large organizations across the globe. In addition, the backdrop of widespread digitalization of marketing, the ability of companies to interact with potential and existing customers through various digital channels to build relationships is growing in importance, so much, it has become crucial for competitive success in the marketplace.
The global customer engagement solution market is expected to register high growth due to customer engagement solutions are helping companies to widen their customer base, reduce customer churn rate, and increase customer retention. Thus, the increase in adoption of customer engagement solutions, owing to their benefits, is one of the most significant factors expected to drive the growth of the customer engagement solutions market. With growth in requirement for customer engagement solution, various companies have established alliance to increase their capabilities. For instance, in March 2021, MoEngage partnered with Merkle Sokrati on customer engagement platform. It helps to help consumer brands and enterprises with the technology and know-how that helps to build agility into their marketing strategies and optimize engagement costs with reduced time-to-market.
In addition, with further growth in investment across the world, the rise in demand for customer engagement solution, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in March 2022, Intercom, the Engagement OS, launched new Intercom Inbox a complete rebuild and redesign to make its most-used product the fastest and most efficient support inbox for the modern era. For instance, in September 2021, eGain (NASDAQ: EGAN), the leading cloud platform for customer engagement automation launched availability of eGain Knowledge Hub, the company’s next-gen knowledge management solution for the digital-first, remote-first era. These factors are set to accelerate the market growth towards customer engagement solution in the coming time.
Moreover, with increase in competition, major market players have started acquiring companies to expand their market penetration and reach. For instance, August 2021, Gupshup acquires Active.Ai to strengthen customer experience solutions for BFSI customers.
Rise in adoption of customer engagement solutions to reduce customer churn rate and increasing use of E-commerce and M-commerce platforms are driving the growth of customer engagement solution market.
Region wise, the customer engagement solution market share was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to technological advancements in the information and communication technology (ICT) sector and rapid rise of artificial intelligence (AI) & internet of things (IoT) within end users is positively impacting the growth of customer engagement solution industry.
The global customer engagement solution market was valued at $18.45 billion in 2021, and is projected to reach $48.40 billion by 2031, registering a CAGR of 10.2% from 2022 to 2031.
The key players that operate in the customer engagement solution market are Avaya Inc., Alvaria, Creatio, CRMNEXT, eGain Corporation, Enghouse Systems, IBM Corporation, Microsoft Corporation, NICE, Oracle Corporation, Open Text Corporation, Pegasystem Inc, SAP SE, Salesforce, Inc, ServiceNow, Verint Systems Inc, Zendesk. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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