According to a recent report published by Allied Market Research, titled, “Customer Experience Management Software Market by Component, Deployment Type, Platform, and Industry: Opportunity Analysis and Industry Forecast, 2020-2027,” the global customer experience management software market size was valued at $7,571 million in 2019, and is projected to reach $23,835 million by 2027, registering a CAGR of 15.6% from 2020 to 2027
Global customer experience management market scenario is primarily driven by the factors such as growing popularity of on demand business model; increasing adoption of omnichannel shopping experience and the need for personalization within the consumer behavior has mandated the companies to adopt strategic initiatives that would boost the overall product sales, thereby creating a higher profit margins. Growing scope of customer experience management within the healthcare and public sector, backed by rising product sales such as medical devices and favorable government programs has created huge potential for the overall market growth during the forecast period. However, complexities in integrating electronic data interchange and data synchronization and bias issue within the operational data is estimated to hinder the overall market growth. With AI becoming a core part in the technology, its integration within the software is set to create meaningful insights for various business structure creating higher profit margins. In addition to this, expanding cloud-based business model is set to create a lucrative opportunity for the customer experience management software market during the forecast period.
In 2019, the global customer experience management software market share was dominated by software segment and is estimated to maintain its dominancy during the forecast period, as there is a growing need for analyzing the customer requirement and behavior for creating a successful product portfolio. Growing demand for online food delivery, transportation and various other services, where technology integration also plays a significant role are some of the major cases of this business model. With this model gaining a rapid demand, the need for all in one platform integration tool is set to boost the market growth during the forecast period. However, service-based segment is set to achieve a lucrative growth, backed by increasing popularity of multi-channel platforms with mobile platforms creating a strong base for the overall market growth.
By industry, the retail sector dominated the market in 2019, with its trend also continuing during the forecast period, owing to growing consumer traction backed by colossal growth in the number of mobile users. Integration of chatbots and voice assistants within the business model in the retail sector has provided a strong base for enhancing the customer behavior and requirements. However, the healthcare segment is set to achieve a colossal growth rate, owing to growing need to bridge the gap between consumer and business. Healthcare sector is lacking in this scenario. Thus, the scope of software would increase in a double fold manner, giving a higher CAGR growth structure.
The current COVID scenario is projected to have a higher positive impact, with the emergence of strict social distancing measure, business have transitioned their performance over the online channel creating a higher surge for consumer personalization and needs, thereby creating a strong demand for customer experience management software. With this trend being followed for various other industries including BFSI, public & government, healthcare, retail and others, the demand for customer engagement, retention and loyalty is estimated to have a positive correlation, thereby creating strong need for effective experience management software.
Key Findings Of The Study
- By component, in 2019 the software segment dominated the customer experience management software market size. However, the services segment is expected to exhibit significant growth during the forecast period.
- On the basis of deployment type, the cloud segment accounted for the highest revenue in 2019 during the forecast period.
- On the basis of platform, the mobile app segment accounted for the highest revenue in 2019, however, the voice assistants segment is expected to witness highest growth rate during the forecast period.
- On the basis of industry, the retail, then BFSI segment accounted for the highest revenue in 2019, however, the healthcare segment is expected to witness highest growth rate during the forecast period.
- Region wise, the customer experience management software market was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the upcoming years
Some of the major companies operating in the market are Adobe Inc., Avaya Inc., IBM Corporation, Nice Ltd., Oracle Corporation, SAP SE, Verint Systems, Zendesk Inc., SAS Institute Inc., and Salesforce.com, Inc. and others.