Customer Experience Management Market

Market Study on Customer Experience Management: Enhancing Customer’s Interaction, Covid-19, and New Customer-based Technology fuels Demand

Customer Experience Management Market Segmented By Solution, Services and Professional Services Components on On-premise, Cloud Deployment in with Websites, Stores, Call Centers, Mobile Apps, Social Media, Emails, Virtual Assistants Touch point

Customer Experience Management Market Outlook

The customer experience management market is expected to expand its roots in the global market at a promising CAGR of 11.6% between 2022 and 2032.

The customer experience management market is valued at US$ 10.7 bn in 2022 and is likely to reach US$ 32.1 Bn by 2032. Previously, the market was thriving at a higher CAGR of 12.2% (2015-2021), resulting in market size of US$ 9.5 Bn in 2021.

“Uncertain and unprecedented scenarios triggered by covid-19 have increased and transformed customer interaction with the healthcare sector, driving the customer experience management market and pushing healthcare businesses to upgrade their CEM systems.”

Advertising, marketing, and other sales pushing tactics play an essential role in any business, while customer experience also plays a crucial role. As industries like IT and telecom expand their market spaces, the need for customer experience management systems rises, new customer experience management technology also enables end to end customer interaction and help them with FAQs and queries to enrich their experience. 

Attributes

Details

Customer experience management Market CAGR (2022-2032)

11.6%

Customer experience management Market Value (2022)

US$ 10.7 Bn

Customer experience management Market Value (2032)

US$ 32.1 Bn

Find Out More about the Report Coverage

Companies

  • IBM
  • SAP
  • ORACLE
  • AVAYA
  • OPENTEXT
  • ADOBE
  • VERINT SYSTEMS
  • TERADATA
  • TECH MAHINDRA
  • NOKIA

What is the COVID-19 Impact on the Customer Experience Management Market?

Covid-19 has impacted multiple global markets by rearranging the supply chains due to the market restrictions and logistics bans introduced by governments around the world.

The pandemic has moderately impacted the customer experience management market as it has opened its doors for new businesses while temporarily shutting down for some. For instance, the pandemic adversely impacted the IT and telecom industries because of the shutdown of office spaces.

At the same time, the healthcare and medical sector consumed most of the customer experience management systems, enhancing customer interaction with different components of the company

Other than this, the interaction of customers has increased during the pandemic, fueling customer experience management as small- and large-scale businesses adapt and upgrade their customer experiences management systems.

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What Factors Contributes to the Growth of the Customer Experience Management Market?

The primary driver of the customer experience management market are companies trying to retain customers and enrich customer loyalty. Companies focus on retaining their customers by getting positive feedback from them.

Also, customer experience management systems help acquire more customers through the customer's online journey. Customers journey from surfing through the website to buying any product or service. The customer experience management system makes sure that its processes go smoothly and takes less time.

This includes website speed, concise pictures, and device-friendly design. It also helps in settling the customer-related queries as it leads the vendor to study more about the customer and his journey.

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What Limits the Growth of the Customer Experience Management Market?

The significant factors that limit the growth of customers are the lack of innovation and analyzing skills. This also includes the incompetency of the workforce that implements these systems without a blueprint.

Targeting the right type of customers and segmenting them in order to launch multiple campaigns for different sets of customers enhances the customer experience. As covid-19 impacted the company’s financial conditions, companies have shut down their research facilities, restricting the sales of customer experience management systems.

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What are the Opportunities Prevailing in the Customer Experience Management Market?

The customer experience management market creates opportunities for the vendors to experiment more with the systems, including artificial intelligence and augmented reality. These technological advancements help in enhancing the customer's experience.

Sectors like IT & telecom and BFSI use customer experience management to integrate with artificial intelligence, machine learning, and predictive learning. These elements help in analyzing customer interactions and through checkpoints.

These funnel checkpoints explain where customers are having troubles and help resolve them. Concepts like a chatbot and virtual assistant help customers in resolving their queries. The use of these AI-based systems also helped during the pandemic's peak as there was no customer support there.

What are the Challenges in the Customer Experience Management Market?

The significant challenges that affect the customer experience management market are the high capital investments, low ROI, and poor-quality metrics. Customer experience management systems have huge investments and maintenance costs, increasing the additional costs for operations.

Another factor that restricts the growth of the customer experience management market is rising concerns around data privacy and compliance. The growth in cybercrimes and data theft in industries like IT and telecom raises concerns over data security.

Governments around the world are launching general data regulations, restricting the growth of the customer experience management market.

Comparative View of Adjacent Customer Experience Management Market

Attributes

Customer Experience Management Market

CAGR

(2022-2032)

11.6%

Market Value

(2026)

US$ 16.60 Bn

Growth Factor

High penetration of customer interaction in healthcare and medical sector, advanced systems integrating customer experience management systems.

Opportunity

Advent of artificial intelligence, predictive decision making and machine learning is enhancing the customer experience by solving their problems and answering their queries.

Key Trends

Integration of virtual assistants into customer experience management systems is trending in the market.

Comparative View of Adjacent Outsourced Customer Care Services Market

Attributes

Outsourced Customer Care Services Market

CAGR

(2022-2032)

5.8%

Market Value

(2026)

US$ 116 Bn

Growth Factor

New markets opening up with the skilled and cheap workforce is attracting giants to work with outsourced customer care vendors, penetrating in the regions like India and China.

Opportunity

The market provides opportunities to focus on their core competencies and enhance their operational structure as customer support can be worked out with a third party vendors.

Key Trends

Use of instant messenger form that describes the customer and his/her query is in trend as it saves time and increases the productivity. 

Comparative View of Adjacent Customer Engagement Solutions Market

Attributes

Customer Engagement Solutions Market

CAGR

(2022-2032)

12.4%

Market Value

(2026)

US$ 30.92 Bn

Growth Factor

Customer engagement solutions along with AI and ML are increasing the need for data visualization dashboards for the better business decisions.

Opportunity

Covid-19 pushed the IT services to follow work from home procedures, that led CE market to provide frequent support to the customers with queries and questions.

Key Trends

Usage of customer engagement systems has risen in healthcare and life sciences industry excessively as healthcare business intelligence market also grows post pandemic.

Automated features like chat bots and virtual assistants help in customer’s journey and engagement. This provides 24/7 customer support, including multilingual support and tie bound response. This helped businesses sustain their customer support during the peak of the pandemic.

For instance, amazon’s Alexa, apple’s Siri and Google’s assistant that give 24/7 support to the end users for engaging the customers and helping them with the queries. Through these self-service resolutions, the user interacts more with these systems, fueling the sales of customer experience management systems.

Vendors also add additional technology that is flexible with new innovative technologies like artificial intelligence, machine learning and predictive decision making, making it feasible for new corporate business spaces.

What is the Segmentation Outlook for the Customer Experience Management Market?

The customer experience management market is categorized by components, touchpoint, deployment type, organization size and vertical. These categories are further divided into small segments that hold different market spaces in various regions.

Component category has two segments; Solutions and Services, while touchpoint category holds Websites, Stores, Call Centers, Mobile Apps, social media, emails, Virtual Assistants. There are two types of deployment types in the customer experience management market that are cloud and on-premises deployment.

The market caters for two types of organization sizes; SMEs and Large Enterprises while the vertical category has BFSI, IT & Telecom, Retail, Healthcare & Life sciences, Automotive, Travel & Hospitality, Media & Entertainment, and Public Sector.

Which Segment is Likely to Lead the Customer Experience Management Market by Component?

By component, the solution is the most significant segment in the customer experience management market that thrives on a solid CAGR of 11% between 2022 and 2032. This segment’s growth is due to its easy implementation and high adoption in the healthcare and medical sectors.

Also, higher adoption of mobile applications and an increasing number of call centers and BPOs are opening up in new markets. While the service segment is likely to grow at a moderate CAGR attributed to the mixed-use of customer experience solutions and services.

Which Segment is Likely to Lead the Customer Experience Management Market by Deployment type?

By deployment, cloud deployment holds the biggest portion of the Customer experience management market and is likely to generate the highest revenue in the forecast period, thriving at a CAGR of 10.8% between 2022 and 2032.

The factors attributing to this growth are its high use in small and medium-sized enterprises. Cloud deployment is also implemented in banks and financial services as it provides enlarged storage and an efficient structure so that customers can have a better experience.

Which Segment is Likely to Lead the Customer Experience Management Market by Touchpoint?

By touchpoint, the call center segment is the most significant segment in the customer experience management market that thrives on a strong CAGR between 2022 and 2032. The factors behind this segment’s growth are its penetration into new market spaces.

High demand for customer support and better enhancing of customer experience, new technologies integrating with this telecom industry. This involves call analytics, predictive dialing, and other security tools, `enhancing customer interaction and fueling the sales of customer experience management systems.

Which is the Leading Region in the Customer Experience Management Market?

Regions

CAGR (2022-2032)

United States

11.4%

United Kingdom

11.3%

China

10.5%

Japan

10.7%

South Korea

9.8%

The customer experience management market is divided into regions; North America, Latin America, Asia Pacific, Middle East and Africa (MEA) and Europe. The biggest market is United States, thriving at a CAGR of 11.4% between 2022-2032.

The region is expected to hold a market revenue of US$ 11.1 Bn by the end of 2032. The factors behind the excessive growth of this region in the customer experience management market are the growth in the healthcare, IT and banking industry, and the increasing need for AI-based customer experience management tools.

Apart from this, United Kingdom (UK) is the second highest growing market for customer experience management market. The UK region will hold US$ 1.5 Bn by the end of 2032 as it thrives on a strong CAGR of 11.3% between 2022-2032. Japan also grows along UK with the forecasted value of US$ 0.3 Bn (2032) at a CAGR of 10.7% between 2022-2032, expanding the customer experience management market size.

How does Competition Influence the Customer Experience Management Market?

The global study on customer experience management market explains that the market holds diversified interests as the new cutting edge technology integrates, the new names also come up in the market ecosystem.

Companies focus on experimenting and advancements of customer service technologies. Key players also do collaborations and mergers with other significant brands that help them in enhancing customer experience as there is a tough competition in the market, expanding the customer experience management market in new systems.

  • TPG has introduced its AI-based Anna to enrich the customer experience that holds high accuracy and high customer interactions, fueling the sales of customer experience.
  • Adobe Inc, IBM corporation and Red hat Inc have tied up in order to digitize their communication and develop hybrid cloud to give more personalized experience to the end user.

Report Scope

Attributes

Details

Forecast period

2022-2032

Historical data available for

2015-2021

Market analysis

USD Bn for Value

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Germany
  • Italy
  • France
  • U.K.
  • Spain
  • Russia
  • BENELUX
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Australia and New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

By Market Segments

  • Vertical
  • Organization Size
  • Deployment
  • Touchpoint
  • Component
  • Region

Key Companies Profiled

  • ORACLE
  • ADOBE
  • SAP
  • IBM
  • OPENTEXT

Pricing

Available Upon Request

Key Segments:

By Components

  • Solution
    • Omnichannel
    • Machine Learning
    • Analytics
    • Workforce Optimization
  • Service
  • Professional Services
    • Managed Services

By Deployment

  • On-premise
  • Cloud

By Vertical

  • BFSI
  • IT and Telecom
  • Automotive
  • Healthcare
  • Retail
  • Transportation & Logistics
  • Travel and Hospitality
  • Public Sector
  • Media & Entertainment

By Organization Size

  • Small and Medium Enterprises (SMEs)
  • Large Enterprises

By Touchpoint

  • Websites
  • Stores
  • Call Centers
  • Mobile Apps
  • Social Media
  • Emails
  • Virtual Assistants

Media Release

- FAQs -

Customer experience management market is projected to have a CAGR of 11.6% through 2032.

United States is the leading region with an anticipated CAGR of 11.4% through 2032.

Cloud type deployment lead the market with the projected CAGR of 10.8% by the end of the forecast period.

The customer experience management market is predicted to grow US$ 32.1 Bn by 2032.

Solutions segment leads the market with the projected CAGR of 11% from 2022-2032.

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