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Customer Experience Management Market Size, Share and COVID-19 Impact Analysis, By Component (Solution, and Services), By Deployment (Cloud, and On-Premises), By Enterprise Size (Large Enterprises, and Small & Medium Enterprises), By Touchpoint (Call Center, website, Mobile Applications, Email, Social Media, and Others), By End User (BFSI, Retail and Consumer Goods, IT and Telecom, Healthcare, Automotive, Media and Entertainment, Government, and Others) and Regional Forecast 2022-2029

Region : Global | Format: PDF | Report ID: FBI101661

 

KEY MARKET INSIGHTS

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The global customer experience management market was valued at USD 10.11 billion in 2021. The market is projected to grow from USD 11.34 billion in 2022 to USD 32.53 billion in 2029 at a CAGR of 16.2% in the 2022-2029 period. The global COVID-19 pandemic has been unprecedented and staggering, with CEM solutions experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a decline of 0.5% growth in 2020 as compared to 2019.


The report includes the solutions and services offered by companies such as Oracle’s advertising and CX, OpenText Corporation’s customer management solution, Sprinkler’s Unified Customer Experience Management (CEM) platform Verint Systems’ consumer experience software, among others. The rising adoption of artificial intelligence and augmented reality across the consumer experience solutions will fuel the market in the upcoming years. These solutions enable enterprises to reduce customer churn rates and improve customer loyalty and strengthen their brand presence. Organizations are focusing on increasing funding to accelerate product demand and the growth of the market.



  • May 2021 – Airkit announced a USD 40 million funding series B funding round. The company aims to invest in future proof CX solutions. Due to the growing demand for CX solutions, reusability shortens development cycles, creates CX for the future, and improves customer experience.


Such activities are likely to propel the demand for CEM solutions during the forecast period.


COVID-19 IMPACT


Changing Consumer Behavior to Boost Demand for Innovative Consumer Experience Solutions


The impact of COVID-19 pandemic on the customer experience management market was minimal due to the rising trend of online shopping. During these trying times, consumers’ shopping preferences and patterns have fundamentally transformed worldwide. Customers have inclined towards digital channels from traditional shopping patterns. Organizations focus on customer engagement, customer retention, and loyalty. Organizations that have adopted virtual assistants or bots to cater to the customer changing expectations are expected to create new market opportunities for consumer experience solutions.  The global market witnessed slight decline of 0.5% in 2020 as compared to 2019. However, increase in online shopping trend and shifting consumer focus towards adoption of digital platforms have stabilized CEM demand.


The emergence of digital payment applications such as Google Pay, Amazon Pay, PayPal, and others has improved customer experience amid the pandemic. These applications have reduced physical interactions and directed consumers towards contactless shopping and payments, thereby supporting enterprises to improve customer experience.


Post COVID-19 outbreak, businesses across retail, BFSI, and consumer electronics sectors are focusing on offering enhanced customer experience. Businesses are adopting innovative solutions to keep pace with the changing customer requirements. For instance,



  • January 2021: IBM Corporation has collaborated with Audi U.K., an automotive manufacturer, to redesign the company's website to improve the digital customer experience. Due to COVID-19, the company’s online sale inquiries increased by 59% in 2020.

  • December 2020: Virgin Atlantic collaborated with World Network Services (Holdings) Limited to transform customer experience during the COVID-19 pandemic. WNS has deployed a custom intelligent automation solution to process refund requests with speed. The solution enabled the reduction of backlogs and hold times which resulted in customer satisfaction.


LATEST TRENDS


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Integration of Virtual Assistants to Propel the Market Growth


Virtual assistants help automate customer interactions using customer insights generated from historical data. Integration of virtual assistants includes amazon’s Alexa, Apple’s Siri, and others help redefine customer engagement by providing 24x7 customer support, multi-lingual support, fast and accurate response, and others. Similarly, virtual assistants help automate repetitive tasks, accelerate self-service resolutions, and compress organizational hierarchies that improve employee and customer experience. This factor is expected to foster the demand for consumer experience solutions.


Organizations such as SAP SE, Salesforce, and Oracle Corporation are developing virtual assistants for their applications. These virtual assistants or bots help organizations analyze customer sentiments and offer personalized recommendations to customers, which, in turn, will boost the demand for these solutions in the coming years. For instance,



  • October 2020 – SAP SE launched a customer data platform. This new platform will allow organizations to create individual customer profiles. Additionally, this platform will enhance its CX software and its role in building intelligence enterprises.


Virtual assistants help enterprises establish personalized connections with customers and deliver better customer experiences effectively and rapidly. Organizations have incorporated bots or virtual assistants in front office services with advancements in technology to automate routine tasks.



  • December 2020: PWC Analysis stated that 46% of organizations leverage Chatbots to keep up with customers' needs amid the Covid-19 pandemic. Further, it states that AI virtual assistants and chatbots will have a higher adoption rate in the next two years.


This rapid adoption of chatbots and virtual assistants across the industry is expected to boost the demand for CEM solutions in the coming years.


DRIVING FACTORS


Rising Adoption of Artificial Intelligence and Augmented Reality across the Industries Drive Market Growth


The rapid adoption of artificial intelligence (AI) and augmented reality (AR) across the industries such as retail, IT & telecom, BFSI, among others, enhance the customer experience. Integration of AI and machine learning across consumer experience solutions assist in predicting future customer behavior. Predictive analytics and AI-enabled solutions aid the extraction of meaningful insights from customer data. Thus, organizations focus on implementing advanced technologies to improve customer experience. For instance,



  • December 2021: TPG launched Anna, an AI-based customer experience platform that evaluates 15,000% more interactions at high accuracy. The Anna chat bot can evaluate 100% of the customers interaction and provide sample-based evaluation of chat and voice communication with the customers.

  • October 2021: Jio Haptik Technologies Limited subsidiary of Jio Platform group launched advanced self-serving enterprise customer experience platform. The platform helps brands build intelligent virtual assistants for better customer experience.


Organizations adopt advanced AI applications such as facial recognition, biometric measures, chatbots, and digital assistants to improve customer experience. For instance, Facebook Messenger Bots use AI and machine learning to help shoppers find what they are looking for by engaging in simple conversation. This factor helps improve customer experience and increase profitability.


The adoption of augmented reality across retail will help to improve the shopping experience. For example, IKEA has integrated augmented reality to display the furniture in real-time, helping customers make a buying decision and reduce return rates. For instance, the report published by Capgemini states that 54% of customers have AI-enabled interactions such as virtual assistants, bots, and others. Daily and 49% of customers find AI interactions secure and trustworthy. Thus, the rapid adoption of virtual assistants/bots may boost the demand for consumer experience solutions in the coming years.


AI-powered solutions help organizations provide tailored solutions, analyze customer conversations, and understand customer grievances. Voice and text sentiment analysis assist in predicting customer emotions and sentiments. Thus, enterprises focus on implementing advanced technology-enabled consumer experience services to provide customized solutions and improve customer experience. Thus, organizations focus on implementing advanced technologies to improve customer experience. For instance,



  • July 2020 – Adobe Inc., IBM Corporation, and Red Hat Inc., partnered for advancing the customer experience with digital transformation. Initially the company’s focused on using hybrid cloud to enable companies for delivering more personalized experience that drives improved profitability, engagement, and loyalty.


Rising Digital Transformation across Retail and Healthcare Boost the Demand for Consumer Experience Solutions


With the evolution of e-commerce and digital banking, customers have become more inclined towards digital channels. Retailers have shifted from physical stores to digital channels. For instance, as per Statista, in 2020, more than 2 billion people purchased products and services online, and e-retail sales crossed USD 4.5 trillion worldwide. Retailers have adopted AI-enabled virtual trial rooms, chatbots, and surveillance to capture and analyze customers' behavior. Brands use multiple channels such as social media, mobile applications, websites, and others to increase their visibility.


The rising proliferation of social media channels, including Facebook, Instagram, YouTube, Twitter, and Pinterest, has increased brand awareness, marketing, and direct shopping. Various brands are adopting social media shops to ease the customer’s buying process. For instance, Facebook and Instagram shops help retailers acquire new customers and buy directly from social media platforms. Consumer experience solutions help retailers reduce customer churn, extend their lifetime value and retain the customers. Such changing consumer buying behaviors boost the customer experience management market growth.


Digitalization across healthcare has accelerated the adoption of e-health applications, telemedicine, smart health equipment, and wearable devices. Due to digitalization across healthcare, customer expectations such as 24x7 service and instant replies are also changing. Thus, organizations are adopting various strategies to improve customer experience. For instance,



  • In April 2020, MVP healthcare adopted Microsoft 365 customer insights with dynamics 365 customer service to provide personalized support and promote a healthy community. Customer Insights creates profiles based on transactional, behavioral, and historical data of members. AI and ML-enabled Customer Insights help personalize health plans, understand the changing requirements, and deliver accurate information.


RESTRAINING FACTORS


Rising Regulatory Compliance and Data Privacy Concerns to Restrict the Market Growth


Increasing usage of digital platforms has raised concerns for data privacy and security. Rising cybercrimes and data theft activities highly impact the customer experience


The government introduced new regulations in response to rising data breaches and data protection. These government regulations allow data protection and security. For example, General Data Protection Regulation introduced by European Union in May 2018 provides data protection regulations and monitors a person’s behavior within the European Union. Similarly, the Federal government introduced California Consumer Privacy Act in January 2020 to provide customers access or update control over their personal data.


Similarly, other government regulations such as Payment Card Industry Data Security Standard (PCI), Health Insurance Portability and Accountability Act (HIPAA), Sarbanes-Oxley (SOX), Gramm-Leach-Bliley Act (GBLA), and Family Educational Rights and Privacy Act of 1974 (FERPA), provides data protection regulations to secure customer sensitive information. Customer experience solution providers need to address regulatory compliances while leveraging customer data. Such government regulations are likely to impede market growth.


SEGMENTATION


By Component Analysis


Implementation of Consumer Experience Solutions Across Organizations Expected to Boost the Market Development


Based on components, the market is divided into solutions and services. Services are further bifurcated into professional and managed. Among these, the solution held the largest market share in 2021. The rising adoption of mobile applications and an increasing number of call centers to improve customer experience drive the growth of solutions. Consumer experience solutions support organizations to manage interactions with customers.


The service is anticipated to grow with the highest CAGR during the forecast period. Organizations are also providing professional and managed services to end-users, along with customer experience solutions. Professional services are expected to grow with the highest market share during the forecast period, which is likely to fuel market growth across services.


By Deployment Analysis


Rising Adoption of On-Premises to Fuel the Market Growth


Based on deployment, the market is bifurcated into the cloud and on-premises. Key players in the market are providing cloud and on-premises solutions to their customers.  On-premises consumer experience solutions are expected to be the fastest-growing during 2022-2029. The on-premises solutions provide data security with better management. The adoption of on-premises-based solutions are growing due to rising regulatory compliances such as GDPR, CCPA., and updated requirements.


The rising adoption of cloud technology by SMEs fuels the adoption of cloud-based consumer experience solutions. Similarly, the growing adoption of cloud-based consumer experience solutions across industry verticals such as BFSI, healthcare, retail, government, and others is expected to boost the demand and the segment is anticipated to grow with the highest CAGR during the forecast period.


By Enterprise Size Analysis


Adoption of Consumer Experience Solution across Large Enterprises Boost the Market Growth


Based on enterprise size, the market is divided into small & medium enterprises (SMEs) and large enterprises. Among these, the large enterprises are expected to hold the largest market share over 2022-2029. Large enterprises are making a substantial investment in advanced technology solutions to ensure an advanced customer experience. Development of advanced customer services, investment in IT infrastructure, and large workforces drive growth.


Small and medium size enterprises are likely to showcase moderate growth over the projected timeframe. Due to smaller customer databases and limited IT infrastructure, SMEs are focusing on implementing cost-effective and advanced technology-enabled consumer experience solutions. Hence, SMEs are likely to be the potential customers of such solutions.


By Touchpoint Analysis


Rising Adoption of Mobile Consumer Experience Applications to Accelerate the Market Growth


Based on touchpoint, the market is divided into a call center, website, mobile applications, email, social media, and others (Virtual Assistants, Loyalty Programs, and others).


By touchpoint, the call center segment held the largest market share in 2021. Call centers are equipped with all the necessary infrastructure and automated processes required to immediately address client queries. Call/contact centers enable the service provider to manage, monitor, and route the customer's phone calls and engage them effectively. Call center software's equipped with advanced call analytics, predictive dialing features, improved security tools and others are likely to contribute to the major share of call centers in the global market.


Mobile application is projected to grow with highest CAGR during 2022-2029. Mobile applications are driving marketing automation across the industries, this factor is expected to pave the way for new revenue streams for the CEM vendors. The rise in e-commerce and social media platforms is responsible for the website's growth. Social media and others include virtual assistants, loyalty programs, and others.


By End-user Analysis


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Rising Adoption of Consumer Experience Solutions across BFSI and Retail & Consumer Goods Sectors to Foster Market Growth


Based on end-user, the market is divided into BFSI, retail and consumer goods, IT and telecom, healthcare, automotive, media and entertainment, government, and others (Oil and Gas, Education, and others.) Among these, the BFSI is expected to hold a significant market share in the forthcoming years. Rising customer interactions with various touchpoints such as call centers, emails, online banking systems, and social media foster the adoption of consumer experience solutions across BFSI. To offer a convenient, secure and digital customer experience to customers across the BFSI sector, organizations are adopting advanced solutions.


Followed by BFSI, retail and consumer goods sectors are likely to hold a significant share of the market. The adoption of consumer experience solutions anticipates retail and consumer goods demand with optimized supply chains and engaging experiences that boost customer loyalty.


However, other industries, such as healthcare, government, automotive, IT and telecom, media, and entertainment, are expected to showcase moderate growth over 2022-2029.


REGIONAL INSIGHTS


North America Customer Experience Management Market Size, 2021 (USD billion)

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Geographically, the market is fragmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.


North America has registered the highest incremental growth in the market due to its rising investment in research and development activities and a vibrant start-up ecosystem. Also, the U.S. is one of the early adopters of advanced technologies like AI, big data analytics, and cloud computing. The presence of significant CEM vendors such as Salesforce.com Inc., among others, and their strategic business activities such as mergers & acquisitions are likely to drive the regional market growth.



  • July 2020 – Adobe Inc., IBM Corporation, and Red Hat Inc., partnered for developing advanced customer experience solutions with digital transformation. Initially the companies focused on using hybrid cloud to enable businesses for delivering more personalized experience that drives improved profitability, engagement, and loyalty.


The Asia Pacific region is forecast to exhibit a remarkable growth rate during the forecast period. The market stands at third position in the global market. Rapidly increasing adoption of E-commerce has created unprecedented market opportunities for consumers and businesses. The market growth in the region is likely to be spearheaded by China. Seamless Internet connectivity, the proliferation of mobile devices, and increasing demand for digital payments have led e-commerce companies to adopt a unified data platform to target & reach consumers.


Furthermore, the growing digitalization and rising adoption of big data and data analytics in Europe will boost investments in digital platforms. Rising government policies regarding customer data privacy have boosted the adoption of digital platforms among advertisers and marketers. To capitalize on these trends, leading players are developing advanced CEM solutions. For instance, in April 2021, Dentsu launched an advanced platform in collaboration with Merkle Company in North Europe.


The Middle East and Africa market for this is projected to exhibit significant growth, exhibiting a CAGR of during the forecast period. According to GSMA Intelligence’s mobile internet connectivity report 2019, there was 44% mobile social media penetration in 2018 across the Middle East and Africa region. This penetration rate shows that mobile internet adoption and social media users continue to grow across the region. This factor is likely to create lucrative market opportunities for the key players.


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Latin America is anticipated to showcase moderate growth. The market in Latin America is observed to be primarily influenced by the companies headquartered in North America and Europe by providing software services in the region. IT and telecommunication, healthcare, manufacturing, and government are some high technology investors across the region.


KEY INDUSTRY PLAYERS


 Key Players Are Focused on Strengthening Their Market Position with Continuous Developments


The players are investing and interacting with companies for developing advanced technologies to improve the capabilities of consumer experience solutions. Also, the prominent players are involved in the various acquisition, partnerships, collaborations, and mergers to expand the market presence.



  • September, 2021 – Tech Mahindra acquired Activus Connect Customer Experience Management Services and Solutions Company amid the growing work-from-home trend. This acquisition empowers Tech Mahindra to provide advanced CEM services for businesses operating remotely.

  • September, 2021 – IBM Corporation’s Watson launched AI-based Intelligent Watson Assistance with automation features that helps the businesses to transform the customer services. The IBM’s Watson Assistant are designed for helping the businesses to set up voice agent with IntelePeer for seamless customer experience. It addresses customer problems with the rising call volumes using advanced analytics tools.

  • October 2020 – SAP SE launched a customer data platform. This new platform will allow organizations to create individual customer profiles. Additionally, this platform will enhance its customer experience (CX) software and its role in building intelligence enterprises.


List of the Key Companies Profiled:



  • Zendesk Inc. (San Francisco, U.S.)

  • SAP SE (Walldorf, Germany)

  • Oracle Corporation (Texas, U.S.)

  • Adobe Inc. (California, U.S.)

  • Medallia Inc. (California, U.S.)

  • OpenText  Corporation  (Waterloo, Canada)

  • Microsoft Corporation (Washington, U.S.)

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

  • Genesys (California, U.S.)

  • Freshworks Inc. (California, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • In April, 2021 – NICE Ltd, a leading provider of on-premises and cloud enterprise software solutions, launched CXone, an advanced AI-based CEM solution. The CXone software provides personalized content for the customers seeking self-service.

  • February 2021 Oracle Corporation rolled out new updates to its CEM platform. The latest update includes new B2B selling capabilities, new B2C service capabilities, and new loyalty and marketing capabilities. These new capabilities help organizations to create a memorable and dynamic experience for the customers.

  • November, 2020 – Zendesk, Inc. expanded its capabilities services of the customer relationship management solutions that helps companies to provide real time support across messaging channels on social, web, and mobile. The company made strategic partnership with WhatsApp that empowers companies to engage with customers, and to share information.

  • October 2020 – SAP SE launched a customer data platform. This new platform will allow organizations to create individual customer profiles. Additionally, this platform will enhance its customer experience (CX) software and its role in building intelligence enterprises.


REPORT COVERAGE


An Infographic Representation of Customer Experience Management (CEM) Market

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The customer experience management market report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and key market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors, management market size share, and restraints, helping the reader gain in-depth knowledge about the market.


REPORT SCOPE & SEGMENTATION






























































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



 2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion)



Segmentation



By Component, Deployment, Enterprise Size, Touchpoint, End-user, Region



By Component




  • Solution

  • Services

    • Professional

    • Managed





By Deployment




  • Cloud

  • On-Premises



By Enterprise Size




  • Large Enterprises

  • Small and Medium Enterprises



By Touchpoint




  • Call Center

  • Website

  • Mobile Applications

  • Email

  • Social Media

  • Others (Virtual Assistants, Loyalty programs, and others.)



By End-user




  • Banking, financial services and insurance (BFSI)

  • Rental and consumer Goods

  • IT and Telecom

  • Healthcare

  • Automotive

  • Media and Entertainment

  • Government

  • Others (Oil and Gas, Education, and others.)



By Region




  • North America (By Component, Deployment, Enterprise Size, Touchpoint, End User, Country)

    • U.S. (By End-user)

    • Canada (By End-user)



  • Europe (By Component, Deployment, Enterprise Size, Touch Point, End User, Country)

    • U.K. (By End-user)

    • Germany (By End-user)

    • France (By End-user)

    • Italy (By End-user)

    • Spain (By End-user)

    • Rest of Europe





  • Asia Pacific (By Component, Deployment, Enterprise Size, Touch Point, End User, Country)





    • China (By End-user)

    • Japan (By End-user)

    • India (By End-user)

    • Southeast Asia (By End-user)

    • Rest of Asia Pacific





  • The Middle East & Africa (By Component, Deployment, Enterprise Size, Touch Point, End User, Country)

    • GCC (By End-user)

    • South Africa (By End-user)

    • Rest of the Middle East & Africa





  • Latin America (By Component, Deployment, Enterprise Size, Touch Point, End User, Country)

    • Brazil (By End-user)

    • Mexico (By End-user)

    • Rest of Latin America





Frequently Asked Questions

The market is projected to reach USD 32.53 billion by 2029.

In 2021, the market was valued at USD 10.11 billion.

The market is projected to grow at a CAGR of 16.2% during 2022-2029.

The solution segment held the largest market share in 2021.

North America region is expected to hold the highest market share.

Asia Pacific is expected to grow with the remarkable CAGR during 2022-2029.

North America is expected to hold a significant market share in the global market. The market in this region was worth USD 3.50 billion in 2021.

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