Customer Experience Management Market

Global Customer Experience Management Market Size (2024 to 2029)

The global customer experience management market was valued at USD 9.82 billion in 2023. The size of the global market is expected to progress at a CAGR of 14.7% from 2024 to 2029 and be worth USD 22.36 billion by 2029 from USD 11.26 billion in 2024.

 MARKET DRIVERS

The growing digital transformation and increasing adoption of technologies are primarily driving the global customer experience management market's growth.

The advent of AI in the CX field will further accelerate the market's growth rate in the coming years. Machine learning, big data analytics, and other technical advantages are also propelling the market’s growth rate.

Personalized interactions and innovative methods by the companies are promoting global market growth. Today, companies are targeting to build loyalty and expand individualized experiences, data-driven insights, and smooth multichannel engagement. Technologies such as artificial intelligence, integrated platforms, and analytics enhance the effectiveness of customer experience approaches. The market is expanding rapidly as brands are working to meet the requirements and preferences of customers. This shows the ongoing effort to build long and meaningful relationships, which are essential for growing in today's fast-paced commercial environment.

Omnichannel experience and convenience are other factors boosting the customer experience management market share. For instance, IKEA stores worldwide offer a uniform shopping experience. It gives a lot of attention to customer experience. For customers, they've expanded their storefronts, made improvements to their home delivery service, and released a brand-new app.

Artificial intelligence, augmented reality, data security, customer journey mapping, omnichannel delivery, and hyper-personalization are factors that present multiple opportunities for the customer experience management market to expand. Chatbots are likely to develop into integrated engagement tools that replace isolated usage by interacting with users on several platforms, such as social media, messaging apps, and websites. The growing demand in the healthcare sector for better customer experience fuels the growth rate of the global market. The goal of the healthcare sector is to make the patient experience better. By analyzing patient data and offering individualized experiences, customer experience management systems can raise patient happiness and loyalty. Digital health solutions like telemedicine and remote patient monitoring are gaining traction; therefore, integrating them with CEM can provide a better personalized patient experience.

MARKET RESTRAINTS

The weak global economy due to the pandemic and multiple regional conflicts in Europe and the MEA has considerably affected the customer experience management market.

Consumer spending has been impacted by the increasing cost of living and inflation, and shops are battling for market share. Inflation affects 9 out of 10 people in their daily decisions, and nearly 70 percent of them are still worried about how they will pay for food for their family. The need for more CX infrastructure and technology is another issue restricting the customer experience and market growth. Organizations often face difficulties with their CX technology and infrastructure, such as antiquated tools, disconnected data, incompatible platforms, legacy systems, or insufficient devices.

The lack of CX proficiency and competencies is restricting the customer experience management market from evolving further. There are gaps or limitations in the workforce or organizations or stakeholders that undervalue these skills and talents. The problem of data privacy and security is one of the prime factors that has caused limited customer participation in product or service feedback, surveys for improving customer experience, and other programs. Customer trust and loyalty are influenced by data privacy and security. They demand safeguards against misuse and unauthorised access to their data and more control and transparency over it. As per a survey, more than 70 percent of customers will stop working with a company if sensitive information is disclosed without authorization. Over 87 percent of consumers will not even interact once they have security concerns.

Impact of COVID-19 on the Global Customer Experience Management Market

COVID-19 has brought major changes to the customer experience management market. After the pandemic, customers want more immersive and spectacular experiences in restaurants. The restaurant industry is experiencing a shift in its customer base with an increase in younger customers, which is affecting diner needs. The demand for reassuring and sociable experiences has led customers to prefer upscale restaurants due to their reputation and trustworthiness, thus ensuring safe conditions. Also, the adoption of digital customer experience management solutions like chatbots, virtual assistants, and personalized messaging has been accelerated. Maintaining the budget is the most difficult aspect of buying groceries, according to nearly 40% of respondents, while 24% say the most stressful aspect is looking for offers to lower the cost of their goods. All generations of customers are consistently using coupons, with Gen Z and Millennials using them the most. In the second quarter of this year, fifty percent of Gen Z and almost 60 percent of Millennials stated they had utilized digital coupons.

REPORT COVERAGE

SEGMENTAL ANALYSIS 

Global Customer Experience Management Market Analysis By Component

Based on components, the solutions segment dominated the customer experience management market and is anticipated to lead the market throughout the forecast period owing to its affordability, simplicity, self-service options, and quicker adoption. These products are widely used by startups, smaller enterprises, and corporations with standardized procedures and distinct customer experience objectives. They are also a good fit for cost-conscious businesses looking for easily accessible resources.

On the other hand, the services segment is expected to grow at a faster rate in the global market during the forecast period. The need for specialized training and consulting will increase due to the organization’s growing demand for customization, integration, and experience with complicated deployments, which is expected to support the growth of the services segment.

Global Customer Experience Management Market Analysis By Deployment Type

Based on the deployment mode, the cloud segment is the fastest-growing segment in the global market. Reduced initial costs, enhanced updates and scalability, flexibility, remote accessibility, easier administration, and integration with larger cloud ecosystems are some advantages of a cloud-based CEM system. It offers real-time information and personalized engagement across multiple touchpoints, which allows organizations to administer effective customer experience management solutions.

However, the on-premises segment held the leading position in 2023 because it offers more control, customization possibilities, and accessibility. Businesses have complete visibility of their customer experience management environment with this CEM, which guarantees optimal performance, lowers downtime, minimizes server overloads and system failures, and streamlines customer-facing tasks.

Global Customer Experience Management Market Analysis By Vertical

Based on the vertical, the retail segment captured the largest share of the global market in 2023. The demand for data collection, including reviews, comments, and customer requirements, has contributed to the segment's rise. The retail sector is very competitive, with both new entrants and well-established businesses competing for customers by consistently increasing their market share. Retailers may set themselves apart from the competition by offering a better consumer experience. Client loyalty can be built by offering personalized experiences with the capacity to create a cohesive experience across several touchpoints.

REGIONAL ANALYSIS 

North America is expected to remain a leading position in the customer experience management market during the forecast period. This is due to the sophisticated technology infrastructure in the region, the developed market environment, and the unwavering commitment to providing better customer service. Companies are making large investments in advanced technologies, data analytics, and customized engagement tactics to build loyalty and competitiveness. The demand for modern CEM solutions is further fueled by the region's growing consumer base, which is used to flawlessly interact with digital interactions. North America's strong customer-centric approach and rapid adoption of emerging technology are driving the regional market.

Europe is anticipated to hold a significant share of the Customer experience management market due to growing initiatives by several organizations. Like Tata Consultancy Services and Phoenix Group of the UK are collaborating to use the TCS BaNCS platform to digitally transform ReAssure, improving client happiness and retention through analytics and self-service. Moreover, growing digitalization, rising customer expectations, focusing on omnichannel customer experiences, and providing extraordinary experiences are the main reasons behind this trend. Furthermore, the use of AI in retail, IT, telecom, automotive, and healthcare improves customer experience by enabling businesses to gain insightful information through predictive analytics and machine learning solutions.

Asia Pacific is expanding at a rapid pace due to a growing emphasis on customer loyalty, growing customer expectations and increased adoption of digital technology. The retail industry in India is witnessing a digital change driven by smartphones, data plans, and internet connectivity. This requires retailers to provide highly personalized experiences and customized content. In addition to this, government agencies in the Asia Pacific area promote customer experience management services to support digital transformation and stimulate economic growth. Moreover, the customers in the region expect excellent customer service from Western companies, which includes prompt assistance, various support options, spare parts availability, and personal assistance.

Latin America's customer experience management market is estimated to achieve a steady growth rate during the forecast period. Brazilian and Mexican consumers prioritize customer service as a secondary concern, with 70 percent increasing expectations in the past year and 97 percent wanting to spend more on personalized companies. Despite 89 percent of Colombian customer experience leaders stating that customer service is their top priority, only 20 percent of consumers express complete satisfaction with their service.

Middle East and Africa are anticipated to grow at a higher rate in the coming years. The region's social media penetration rate indicates that both the number of people using social media and the use of mobile internet will continue to rise throughout the MEA. This element is probably going to give the major companies a profitable market chance. Additionally, companies in the GCC are attempting to improve the way their goods are integrated with smart cities and sustainability efforts. Therefore, it is expected that the market will develop as more people become aware of the advantages of automated CEM systems.

KEY PLAYERS IN THE CUSTOMER EXPERIENCE MANAGEMENT MARKET

OpenText Corporation, Oracle Corporation, IBM Corporation, Avaya Inc., Tech Mahindra, Nokia Networks, and MaritzCX are some of the major companies in the global customer experience management market.

RECENT HAPPENINGS IN THE GLOBAL CUSTOMER EXPERIENCE MANAGEMENT MARKET

Product Launches:

• In April 2019, Avaya Holdings Corp., the parent company of Avaya Inc., introduced self-service automation abilities with easy-to-navigate conversation interfaces embedded into its Avaya IX Contact Center solutions.
• In March 2019, Adobe announced the availability of its customer experience product, Adobe Experience Cloud, worldwide. This is anticipated to enable users to access customized profiles by collecting information from enterprises and making use of Adobe Sensei artificial intelligence (AI) and machine learning (ML).

Collaborations/Partnerships:

• In April 2019, Oracle collaborated with Prada to provide the company with advanced technology solutions to support its retail processes. This collaboration also includes the provision of Oracle Retail Customer Engagement Cloud Service and Oracle Retail Xstore Point of Service, which will provide Prada with real-time visibility of all customer-related details at each point of contact, allowing customers to experience personalized purchases.
• In February 2019, IBM announced a deal with BUCKiTDREAM to offer Watson Marketing to enhance customized brand engagement experiences with customers. This partnership would analyze customer data models, providing practical information for further discovery and personalization to generate business conversions.
• In January 2019, SAP purchased Qualtrics International, a global leader in experience management software, which is determined to help SAP accelerate the new category of experience management by combining experience and operational data.

DETAILED SEGMENTATION OF THE GLOBAL CUSTOMER EXPERIENCE MANAGEMENT MARKET INCLUDED IN THIS REPORT

This research report on the global customer experience management market has been segmented and sub-segmented based on the component, deployment type, vertical, and region.

By Component

• Solutions
• Services

By Deployment Type

• On-Premises

• Cloud

By Vertical

• IT & Telecom
• BFSI
• Retail
• Healthcare
• Media & Entertainment
• Automotive
• Travel & Hospitality

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa