The global customer relationship management market is estimated to reach USD 114.4 billion by 2027, registering a CAGR of 14.2% over the forecast period, according to a new report by Grand View Research, Inc. Growing demand for novel ways to analyze information, capabilities to aggregate data, and transforming it into better consumer experience is driving the need of customer relationship management (CRM) solutions across industries. Moreover, the merging of CRM, big data, and AI-powered analytics are likely to bridge the gap between customer expectations and company strategies for a better consumer experience.
Customer relationship management solutions have managed to exhibit an impressive adoption and growth rate in the last of couple of years despite over 20 years of market presence. This growth trend is attributed to numerous benefits of CRM suites, including operational efficiency, reduced cost of marketing, and the ability to complete sales cycle ’on the go.’ Companies are now demanding access to customer data in real-time owing to the rapid proliferation of cloud and mobile solutions. Moreover, owing to increasing penetration of internet and smart mobile devices across the world, service providers are offering Bring Your Own Device (BYOD) solutions, which are expected to boost the customer relationship management solutions in the sales and marketing domain.
Digital optimization to maximize current processes with the help of data and predictive/prescriptive-enabled technologies to develop next best action recommendations using machine learning are becoming two primary drivers of investment and innovation in CRM solutions. For instance, in 2016, Salesforce launched myEinstein services to enable developers and system administrators develop custom AI application. Moreover, the rise in social CRM and mobility has also been driving the growth of a new genre of customer services and relationship management. Many service providers today are offering integrated solutions with various social media platforms such as Facebook, Twitter, and LinkedIn.
Further key findings from the report suggest:
- Considering the COVID19 pandemic crisis across the globe, the value of leveraging technology such as CRM is likely to grow and thrive in the years to come
- The CRM analytics segment is anticipated to register the highest CAGR in the coming years owing to the application of artificial intelligence and machine learning along with growing integration of business intelligence and analytics in CRM software
- Cloud was the most preferred way of deployment of the technology in 2019 and is predicted to maintain its dominance over the next eight years. Connected devices will play a vital role in the changing industry as the demand for mobile applications is increasing
- The Small & Medium Enterprise (SME) segment is expected to be the fastest growing segment in coming years owing to increasing number of SMEs worldwide and their need to identify, prioritize, and minimize their business challenges
- Discrete manufacturing is expected to be the fastest growing segment with the highest CAGR from 2020 to 2027 owing to better sales projection, efficient supply chain, and improved customer services
- The Asia Pacific regional customer relationship management (CRM) market is expected to experience the highest growth over the forecast period, which can be attributed to the presence of emerging economies such as India and China, who possess large customer base across industry verticals
- Customer relationship management market comprises of some prominent players such as Salesforce.com; Microsoft; Adobe; SAP; Oracle; SugarCRM; Zoho; Netsuite Inc.; Insightly Inc.; and Creatio. Large vendors are observed acquiring other players to consolidate their market share, and expand their existing portfolio.