Customer relationship management (CRM) refers to strategies and technologies that companies use to manage relationships and interactions with existing and potential customers. CRM systems help companies to gather data about customers’ various interactions across multiple channels and streamline processes related to marketing, sales and customer support. The global CRM market caters to industries such as BFSI, healthcare, retail and e-commerce to enhance engagement with their customers. Customer relationship management tools help companies gain valuable customer insights in real-time to personalize marketing campaigns and boost sales.
The Global Customer Relationship Management Market is estimated to be valued at US$ 81.87 billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period from 2024 to 2031.
Key players operating in the customer relationship management market are Microsoft, Oracle, Salesforce, Adobe, SAP, Creatio, Zoho, Dynamics, Freshworks, Pegasystems.
Key Takeaways
Key players: Microsoft dominates the global CRM market with its popular offerings such as Dynamics 365. Oracle also has a strong presence in the market with its Oracle CRM On Demand solution. Salesforce is growing rapidly owing to its expertise in cloud-based CRM.
Key opportunities: Increasing adoption of cloud-based Customer Relationship Management Market Demand solutions especially among small and medium enterprises presents a major opportunity for vendors. Growing focus on customer experience management is another key growth driver.
Global expansion: Key CRM players are expanding globally especially in emerging markets to tap the opportunities arising from increasing digital transformation across industries worldwide. Acquisitions are also helping vendors to enhance their product portfolios and geographical reach.
Market drivers: Rising need for customer insights to improve engagement and personalization is a key market driver. Growing digitization and automation of various business processes are also propelling the demand for CRM systems.
Market restraints: Data privacy and security concerns can hamper the growth to some extent. High implementation and maintenance costs of advanced CRM solutions also act as a challenge, especially for small businesses. Lack of skilled professionals can also restrain the demand for complex CRM tools.
Segment Analysis
The global customer relationship management market is segmented based on type, deployment mode, organization size, vertical, and region. The managed services sub-segment dominates the type segment due to the cost-effectiveness and increased support extended by managed service providers for critical business processes.
Based on deployment mode, the cloud-based sub-segment holds the highest market share in 2021 and is expected to witness a lucrative growth rate during the forecast period 2022-2031. The growth of this segment can be attributed to advantages such as cost-effectiveness and reduced infrastructure.
The small and medium enterprise (SME) sub-segment of the organization size segment is anticipated to display the highest CAGR during the forecast period. This is due to growing awareness about customer relationship management among SMEs and rising focus toward enhancing customer retention and loyalty.
Based on verticals, the BFSI segment dominates over other verticals due to rising focus on enhancing customer experience and building long-term customer relationships in the banking sector.
Global Analysis
North America holds the highest market share in the global customer relationship management market in 2024. Rise in technological advancements and presence of major companies in the region are fueling the market growth. The Asia-Pacific region is expected to grow at the fastest CAGR during the forecast period owing to growing adoption of CRM in emerging economies like India, China, and Japan. Key players are focusing on expanding their footprints in untapped markets of Asia-Pacific and Latin America to leverage lucrative opportunities.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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