The digital experience platform market is anticipated to register a CAGR of 12.07% over the forecast period 2020 to 2025. The growing inclination of companies for developing customer-centric strategies to deliver superior customer interaction is expected to drive the market growth.
- Furthermore, the rising adoption of the Digital Experience Platforms (DXPs) by marketers has enabled them to seamlessly reach customers through multiple digital devices and promote cross-selling and upselling. DXP allows users to in building and delivering optimized, integrated user experiences across various digital channels.
- The capability of DXPs to collect and analyze the customer buying behavior and unify customer data obtained from multiple touchpoints to create a centralized view is also a significant factor driving the market growth. Moreover, integration of emerging technologies, such as Artificial Intelligence (AI), big data, and Machine Learning (ML) have enabled vital solution providers to upgrade their DXs, thereby driving the demand for digital experience platforms across multiple applications.
- However, rapidly evolving DXP technologies, the integration issues with legacy business processes and infrastructure, and reluctance to upgrade to customer-oriented marketing and communication strategies are the significant challenges impacting the growth of the DXP market. Furthermore, the lack of an experienced workforce to manage multiple solutions as part of the DXPs is a considerable concern for SMEs and startups.
- The Covid-19 pandemic has showcased the value of IT, and digital transformation, and organizations should use this time to accelerate the transition. Now companies are evolving to become more digital with an increasing number of interactions with customers happening, not in person, but over a screen. These efforts by the company are likely to fuel market growth.
Key Market Trends
On Cloud Deployment to Drive the Market Growth
- The cloud-based segment for the market to account for the highest CAGR during the forecast period due to the growing preference for cloud-based DXPs due to the rapid deployment capability and reduced investments in physical infrastructure.
- Owing to their wide-ranging benefits, Various enterprises prefer cloud services. For instance, Small and Medium Enterprises (SMEs) adopt the cloud model, as it helps reduce initial IT costs, such as the costs of hardware setup and power consumption, and requires less physical space. Large enterprises can benefit from cloud services, as they can host their large number of applications in the cloud network, which eases application management.
- The cloud deployment type offers customers a usage-based service model with the pay-per-use facility. Moreover, cloud deployment provides various benefits to enterprises such as faster performance, quick responsiveness, improved collaboration, and greater agility, without having to operate a server infrastructure.
- Furthermore, the cloud-based DXPs have enabled companies to access the platform from multiple devices such as laptops, smartphones, and desktop computers to deliver customized content based on customer buying behavior, preferences, and historical transactions.
Asia-Pacific to Witness Highest Growth
- The region is projected to witness the highest growth during the forecast period due to the widespread adoption of emerging technologies, such as cloud computing, Artificial Intelligence (AI), and analytics. Moreover, the presence of growing economies such as China and India, which are rapidly implementing the latest technologies, is also expected to contribute to the growth of the DXP market in the region.
- Owing to the growing consumer preference coupled with the high adoption of web and mobile shopping applications in developing countries such as India and China, the companies operating in the regional market are further fueling the adoption of DXPs
- The rapid growth of online retailing is also fueling the demand for DXPs in the region. Furthermore, the well-established presence of Information Technology Enabled Service (ITES) and software companies in countries like India, China, Singapore, Japan, and South Korea are also anticipated to facilitate the cost-effective deployment of DXPs.
The Digital Experience Platform market is highly fragmented with the presence of a large number of players globally. Some of the major players include IBM, Microsoft, Adobe, Acquia, and SAP, among others. Players in the market are adopting strategies such as partnership, joint ventures, and other strategies to enhance the company market share with increased coverage and presence. Some of the key developments in the market are:
- March 2020 : SAP SE collaborated with Accenture to launch a co-developed platform for the oil and gas industry. The platform is based on the SAP S/4HANA cloud and will reduce the operational complexity of the upstream oil and gas sector. This will help the company to enhance the customer base and market share of the company.
- January 2020 : Adobe launched Adobe Experience Manager as a cloud service, this application will offer SaaS-like speed and customization to enterprises. It will also provide content and personalization, data and insights, and commerce and advertising solutions.
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