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Customer Relationship Management (CRM) Market Size, Share & COVID-19 Impact Analysis, By Component (Software, Services), By Deployment (On-Premises, Cloud), By Enterprise Size (Large Enterprises, SMEs), By Application (Marketing and Sales Automation, Customer Management, Lead Generation & Customer Retention), By Vertical (BFSI, Manufacturing, IT & Telecommunications, Retail & Consumer Goods, Healthcare) and Regional Forecasts, 2021 – 2028

Region : Global | Format: PDF | Report ID: FBI103418



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The global customer relationship management (CRM) market size was USD 52.64 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth rate of 10.1% in 2020 as compared to the average year-on-year growth rate during 2017-2019. The market is projected to grow from USD 58.04 billion in 2021 to USD 128.97 billion in 2028 at a CAGR of 12.1% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth rate, returning to pre-pandemic levels once the pandemic is over.

In the scope of the study, considered solutions and services provided by key players in the customer relationship management market, such as Infor Inc., provide marketing analysis, customer service, and reporting. Similarly, Infusion Software, Inc. offers sales tracking software, a marketing automation platform, contact management for customer service, among others.

The software manages and monitors the business operation to improve customer experience. The growing implementation of advanced technologies such as artificial intelligence, the internet of things (IoT), connected devices, and big data are expected to fuel the software’s demand. Similarly, the introduction of cloud-based software is likely to gain traction owing to its ease of accessibility and integration. For instance, in March 2021, outdoor power equipment supplier, Rotary Corporation, announced the partnership with cloud-based CRM provider, Workbooks to enhance operations and reduce cost.

Surging Remote Location-based Employees and Clients to Drive Growth amid COVID-19 Pandemic

The COVID-19 crisis has massively impacted businesses across the globe owing to the disturbance in manufacturing units, supply chain, labor and employee availability, temporary shutdown of cross-country boundaries, among others. This factor has led businesses to implement work-from-home policies. Despite lockdown, various companies commenced their operations from remote working. However, the businesses experienced high demand for customer support solutions to provide seamless collaboration between employees and customers.

The solutions provide real-time communication in a meaningful way that supplements and enhances conventional connections through phone and e-mail. With the implementation of the software, companies can reach out to their customers and provide tailored customer services as per the requirement. During the pandemic crisis, the software supported the companies in real-time tracking and automated solutions to enhance the customer experience. The industries such as retail and consumer goods, BFSI, and healthcare highly adopted these solutions during the lockdown. For instance, healthcare workers in the U.S. and the U.K. adopted the Salesforce Health Cloud solution for online record-keeping of the tested patients. Thus, post-pandemic, the customer relationship management market is expected to gain remarkable growth.

  • For instance, in May 2020, Salesforce.com Inc. launched Work.com to help communities and enterprises re-skill employees, reopen, and respond efficiently to COVID-19. Further, it helps accelerate the public and private sector in customer and employees’ wellness assessment, emergency response management, contact tracing, shift management, and volunteer management.


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Integration of Artificial Intelligence to Propel Potential Market Opportunities

The implementation of artificial intelligence across digital technologies is growing rapidly worldwide. Similarly, the demand for AI integration within customer relation software is increasing rapidly to improve customer experience. As per the Salesforce, Inc., and IDC report, an AI-powered system is expected to offer a competitive edge to the users.

AI technologies such as machine learning, deep learning, and natural language processors help the software understand the customer's emotional state. Using this data, the software manages and offers solutions to the customers, which, in turn, helps build strong relationships. For instance, AI-powered customer relation software offered by Salesforce’s Einstein and Zoho CRM’s Zia offers voice command technology to gain customer information. Similarly, virtual assistants and bots use this technology to reduce human errors and offer automated responses to customer reports, data capture, emails, and more. Thus, the integration of AI technology is expected to boost market growth in the forthcoming years.

  • For instance, in May 2021, SugarCRM launched Artificial Intelligence (AI) powered SugarPredict that works for marketing, service, and sales teams. SugarPredict provides lead scoring using AI to analyze conversion and engagement data from SugarMarket and lets the platform do the work.

  • For instance, in April 2021, Salesforce.com, Inc., launched Service Cloud 360 to support customer service expectations and provide personalized, connected service from anywhere on one digital engagement platform. Further, Service Cloud 360 offers service cloud workforce engagement, a workforce planning product that uses artificial intelligence (AI) to help enterprises predict the request coming to the contact center, including web chat, email, phone, and social.


Rapid Digital Transformation to Drive Market Growth

Digital transformation is the integration of digitally advanced technologies across all the business areas to boost operations and value delivery to the customers. This shift from the traditional base is forcing companies to adopt new business models and market trends. The insights collected from the constantly connected technology helps to offer a better customer experience after proper data analysis.

As per the report of PWC Experience Center, half of the enterprises cited that the digital transformation helped improve customer satisfaction. However, as per the 2019 white paper of Infosys Limited, almost half of the Fortune 500 enterprises are expected to vanish as these companies could not keep pace with the ongoing digital shift. Thus, in the process of shifting towards customer-centric services, businesses are implementing a customer relation system.

Rapid digital shift significantly relies on the CRM market and other integrated technologies that offer enhanced customer satisfaction. This smooth transformation improves the customer journey by offering a superior customer experience across all touchpoints of communication. Thus, to effectively implement digitization, the demand for software is likely to grow, which will bode well for the global customer relationship management (CRM) market growth in the forthcoming years.


Increasing Security Threats over Customer Relation Software Stored Data May Hamper Growth

The customer management software stores a massive amount of personal and private data collected by organizations and customers. The customer relationship software system carries crucial information such as corporate intelligence, credit card information, financial information, patient health data, sales data, and banking instructions. The safety and security of such highly confidential data is the major concern for enterprises. Further, governments across the globe introduce strict data regulations such as General Data Protection Regulation (GDPR) to secure customer information.

The growing data breach incidents through the software are creating several issues for the companies with software. For instance, in January 2021, the cellular witnessed a data breach after the hackers gained access to the company’s customer management software. The hackers gained the name, PIN, address, service plan, cell phone numbers, and billing/usage statements of the customers. Thus, the growing attacks through the system are expected to hinder the growth of the customer relationship management market.


By Component Analysis

Increasing Demand for Software among SMEs to Drive This Segment’s Growth

Based on the component, the market has been bifurcated into software and service.

The software is likely to dominate during the forecast period. The customer management software centrally manages customers’ data and accordingly automates sales and marketing strategies. The software has witnessed unprecedented growth among Small and Medium Enterprises SMEs, mainly attributed to the increased demand to manage customer experience and retain potential customers.

The services are likely to showcase the highest CAGR during the forecast period. The services offered by the companies include professional expertise to maintain the client's business operation.

By Deployment Analysis

Ease of New Technology Integration to Surge Demand for Cloud-based Customer Relationship Software

The deployment criterion has been further divided into cloud and on-premises.

Cloud-based software is expected to dominate during the forecast period. The cloud-based deployment offers quick and real-time access to data that helps in enhancing customer satisfaction. Moreover, it can be accessed from any device, enabling users to view customer details simultaneously. The increased product demand drives the market for cloud-based software among small and medium-sized businesses as it offers various advantages, such as cost efficiency, accessibility, and virtually no equipment costs.

The demand for on-premises-based software is likely to gain traction due to the increasing IT funds and requirements.

  • For instance, in June 2021, Salesforce.com, Inc. announced new capabilities across digital 360 to help enterprises go digital faster and deliver the next generation of digital experiences, commerce, and marketing. Further, these new technologies combine data and digital so that enterprises can put customers at the center of their digital strategy.

By Enterprise Size Analysis

Increasing Number of Customers among Large Enterprises to Fuel the Segment’s Growth

By enterprise size, the market is categorized into large enterprises and small and medium enterprises.

The large enterprise is expected to account for the largest share during the forecast period. Growing challenges regarding the monitoring and management of a company’s overall performance drive large enterprises to invest in software. Large enterprises have emerged as the largest business participant due to the high marketing and IT expenditures capacity and the need to handle a high volume of customer data.

Small and medium enterprises are expected to grow at a rapid CAGR during the forecast period. The rising competition to gain more customers forces SMEs to focus on providing better customer experience and relationship maintenance.

By Application Analysis

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Growing Focus on Increasing Customer Base to Drive CRM Demand in Lead Generation & Customer Retention

By application, the market is segmented into marketing and sales automation, customer management, lead generation and customer retention, customer support and contact center, and others.

The lead generation and customer retention are projected to account for maximum market share during the forecast period. The digital transformation across the industries is driving companies to implement the software. The businesses are witnessing a significant rise in service and product inquiries, and the implementation of the software is likely to support the lead generation process.

The customer support and contact center are anticipated to gain a significant share of market revenue. The software's real-time analysis enhances the customer support and contact center capabilities in handling the clients.

Marketing and sales automation are likely to gain rapid growth during the forecast period due to enterprises' increasing focus on sales and marketing. The data analysis provided by software helps large and small enterprises execute marketing strategies, promotional events, gain customer insights and preferences.

By Vertical Analysis

Digital Shift in BFSI to Boost This Segment’s Growth

Based on verticals, the market is categorized into banking, financial services, and insurance (BFSI), manufacturing, IT and telecommunications, retail and consumer goods, healthcare, transportation, logistics, and others.

The BFSI vertical is likely to experience exponential growth in the market. The BFSI industry is witnessing a rapid shift towards digitalization and thus requires customer-specific software. The growing online banking services are also likely to fuel the demand for software to gain and maintain loyal customers.

The services provider industry such as IT and telecommunication is also adopting CRM software to manage its massive client base. The industry is implementing the software to understand the client requirement and general market trends.

Retail and consumer goods are expected to gain significant growth during the forecast period. The growing online shopping platforms and mobile application is offering huge customer data to the companies. These retail companies are shifting towards customer relationship software to understand the business growth, market trend, customer requirement, and experience.

The healthcare industry is expected to showcase a steady growth in the adoption of CRM software. The industry deals with massive, private, and confidential data sets of its customers requiring this software for its management and monitoring. The increasing use of connected medical devices is expected to surge the demand for the software. Also, real-time support helps healthcare providers access the data quickly and reduces the chances of casualties.

  • For instance, in June 2021, Salesforce.com, Inc., launched corporate and investment banking for financial services’ cloud. This new technology offered by the company will help bankers to deepen their relationships with clients. Further, this technology helps share sensitive information relevant to dealing and managing deal interactions on a single platform.


North America Customer Relationship Management Market Size, 2020 (USD Billion)

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By region, the market has been analyzed across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America is expected to dominate the global customer relationship management market share during the forecast period. The rapidly growing businesses and competition amongst the service providers may fuel the software’s demand. Furthermore, the rising implementation of advanced technologies provides a vast set of customer preferences data and real-time prediction capabilities. The United States is likely to lead the region during the forecast period due to the vast number of retailers in the country. Likewise, a significant presence of key players in the country is likely to drive market growth.

Europe is expected to hold the second-largest market position during the forecast period. The rapidly increasing small and medium businesses across the European countries are likely to surge customer relationship management demand and obtain customer preferences and insights. Large enterprises are focusing on gaining knowledge of constantly evolving customer behavior for future marketing and business strategies.

  • For instance, in May 2021, SAP SE announced that European companies, including Wacker Chemie AG and Deichmann SE, have selected SAP SE’s customer experience products to gain a 360-degree view of their customers. This factor would help the companies remove customer friction points and help cut down complexity and unify data to retain and build customer relations at scale.

The market in Latin America is likely to showcase steady growth during the forecast period. The rising industry sectors such as BFSI, healthcare, and retail in the region contribute to the market growth.

Asia Pacific is expected to gain rapid growth during the forecast period. The rising retail industries and the massive adoption of advanced technologies drive the demand for customer relationship management software. Further, countries such as China, India, Southeast Asia, and Japan have different demographics such as population size, density, age structure, and more is fueling the demand for software in service-providing industries of these countries.

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The Middle East and Africa are likely to gain significant growth owing to the rapid adoption of digitalization and advanced technologies across the industries. The growing government focus on customer data safety and better experience are likely to surge the market growth.


Key Players Are Entering into Strategic Partnerships to Expand Their Global Businesses

The market vendors, such as SAP SE, Salesforce.com, Inc., Oracle Corporation, IBM Corporation, NetSuite, Inc., Infusion Software, Inc., and Copper CRM, Inc., provide innovative offerings due to substantial developments in emerging technology. These players are keen on offering customer experience enhancement solutions for small and large enterprises.

Similarly, some players continue to enter into strategic partnerships with several other players to strengthen their market position and achieve strong brand advertising. Through partnership and collaboration, the players are offering advanced and efficient solutions.

  • For instance, in June 2021, Amazon Web Services, Inc. partnered with Salesforce.com, Inc. to build and launch customer applications and help customers use the full set of Amazon Web Services (AWS) and Salesforce capabilities to build and deploy business applications to accelerate digital transformation. Further, the partnership will drive customer value through enhanced Salesforce and AWS Products.


  • Copper CRM, Inc. (California, U.S.)

  • Infor, Inc. (New York, U.S.)

  • Infusion Software, Inc. (Keap) (Arizona, U.S.)

  • Netsuite Inc. (California, U.S.)

  • Pipedrive (New York, U.S.)

  • Salesforce.com, Inc. (California, U.S.)

  • Adobe Systems Inc. (California, U.S.)

  • Zendesk, Inc. (California, U.S.)

  • SugarCRM (California, U.S.)

  • Zoho Corporation Pvt. Ltd. (Tamil Nadu, India)


  • November 2020 – Microsoft Corporation announced a strategic alliance with C3.ai and Adobe Systems, Inc. to provide advanced and AI-powered CRM solutions. This advanced offering is expected to provide enhanced predictive capabilities.

  • November 2020 – Infusion Software, Inc. launched smart client management software for small enterprises. The Infusion rebranded its company and solution offering under Keap product to expand in the market.

  • April 2021 – Microsoft Corporation launched Microsoft Power Platform and Microsoft Dynamic 365 to modernize the end-to-end customer experience. The new capabilities will bring together marketing automation and customer experience to engage customers in real-time based on interaction across service, commerce, sales, and marketing. Further, the latest customer analytics capabilities, including product recommendation, churn analysis, segmentation and survey, helps create more personalized customer experiences.

  • May 2020 – Zoho Corporation Pvt. Ltd., one of the leading software providers, launched Bigin, CRM software for small and medium-sized businesses. With the help of Bigin, SMEs will be able to create multiple customer pipelines and make and receive customer calls remotely.

  • April 2019 – Copper CRM, Inc., a recommended solution provider for Google Cloud G Suit, announced the strengthening of its partnership with Google Cloud. The new partnership offers enhanced functionality for emails, documents, and calendars through new ad-on through the partnership. The new system offers the client to connect, access, and share customer data in real-time.

  • February 2021 – Copper CRM, Inc. acquired Sherlock to help clients build more meaningful relations with customers and prospects. Further, it provides professionals with transparency on what their target is doing through the customer journey to drive customer success, action for sales, and account management.


An Infographic Representation of Customer Relationship Management (CRM) Market

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Key insights provided in the global customer relationship management market report are the adoption trends of software and solutions by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.

Report Scope & Segmentation 



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD billion)


Component; Deployment; Enterprise Size; Application; Vertical and Region

By Component

  • Software

  • Services

By Deployment

  • On-Premises

  • Cloud

By Enterprise Size

  • Large Enterprises

  • SMEs

By Application

  • Marketing and Sales Automation

  • Customer Management

  • Lead Generation and Customer Retention

  • Customer Support and Contact Centre

  • Others (Social Media Management, CRM Analytics, etc.)

By Vertical

  • Banking, Financial Services and Insurance (BFSI)

  • Manufacturing

  • IT and Telecommunications

  • Retail and Consumer Goods

  • Healthcare

  • Transportation and Logistics

  • Others (Government, Media, and Entertainment, Education, Etc.)

By Region

  • North America

    • U.S. (By Application)

    • Canada (By Application)

  • Europe

    • U.K. (By Application)

    • Germany (By Application)

    • France (By Application)

    • Russia (By Application)

    • Rest of Europe

  • Asia Pacific

    • China (By Application)

    • Japan (By Application)

    • India (By Application)

    • Australia (By Application)

    • Southeast Asia (By Application)

    • Rest of Asia Pacific

  • Middle East & Africa

    • GCC (By Application)

    • South Africa (By Application)

    • Rest of the Middle East & Africa

  • Latin America

    • Mexico (By Application)

    • Brazil (By Application)

    • Rest of Latin America

Frequently Asked Questions

Fortune Business Insights says that the global market size is set to reach USD 128.97 billion in 2028.

In 2020, the market value stood at USD 52.64 billion.

Registering a CAGR of 12.1%, the market will exhibit steady growth in the forecast period (2021-2028).

By component, the software is expected to lead this market during the forecast period.

Rapid digital transformation is the key factor driving the growth of the market.

SAP SE, Salesforce.com, Inc., and Oracle Corporation, IBM Corporation, NetSuite, Inc., Infusion Software, Inc., and Copper CRM, Inc. are some of the major players in the global market.

North America dominated the market in terms of share in 2020.

Asia Pacific held the highest CAGR in the market.

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Customer Relationship Management (CRM) Market Size, Share and Global Industry Trend Forecast till 2026
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