The global Customer Experience Management (CEM) market is projected to grow from $7.8 billion U.S. in 2019 to $14.5 billion U.S. by 2024, at a Compound Annual Growth Rate (CAGR) of 13.3% during the forecast period, according to a new market research report by MarketsandMarkets.
The major growth drivers for the market include increasing need to improve customer engagement & reduce customer churn rate, growing deployment of cloud-based solutions, and rising demand for big data analytics.
Base on component, the services segment is expected to grow at a higher rate than the solutions segment during the forecast period. The services segment has a major influence on the Customer Experience Management market’s growth. The demand for services is increasing with the growing adoption of customer experience management by enterprises across major verticals. These services assist end users in reducing costs, lowering operational costs, increasing overall revenues, and improving business performance. With the help of these services, organizations can track, evaluate, and analyze the requirements of their business to make better-informed decisions.
Among services, the managed services segment is expected to witness a higher growth rate than the professional services segment during the forecast period. Managed services help clients manage their customer experience management operations on-premises as well as on the cloud. The prime responsibility of the managed service providers is to improve the efficiency of inbound and outbound operations cost-effectively for enterprises.
North America is expected to hold the largest market size during the forecast period. The US has emerged as the largest market for customer experience management due to the large-scale implementation of customer experience management solutions by organizations and enterprises in the country. The high pace of digital transformation, along with the high growth of AI and data analytics, is attributed to the fast growth of the CEM market in the US.
Key and emerging market players include Adobe Systems (US), Oracle Corporation (US), SAP (Germany), IBM (US), Avaya Inc. (US), NICE Systems (Israel), Nokia (Finland), OpenText (Canada), Tech Mahindra (India), Verint Systems (US), Zendesk (US), SDL (UK), MaritzCX (US), Medallia (US), InMoment (US), SAS Institute (US), Clarabridge (US), and Sitecore (US). These players have adopted various strategies to grow in the Customer Experience Management Market, said MarketsandMarkets in its report.