Customer Relationship Management (CRM) Software Market

Report Overview

The Customer Relationship Management (CRM) Software Market size is expected to be worth around USD 174,174.76 million by 2031 from USD 53,162 million in 2021, growing at a CAGR of 12.6% during the forecast period from 2021 to 2031

Many companies around the globe have developed a roadmap in response to the COVID-19 pandemic and can now share their future plans with customers. Customers across industries are looking for Customer Relationship Management (CRM) software market solutions to increase loyal customer engagement, improve digital operations and enhance customer experience. Over the forecast period, the market is expected to be driven by new technologies like cloud computing technology, Artificial Intelligence/AI, machine learning, and various service models, including IaaS (Infrastructure as a Service ) and Platform as a Service(PaaS).

Global Customer Relationship Management (CRM) software Market Scope:

Solution Analysis

Customer service dominated the market, accounting for more than 22% of revenue in 2021. The relationship management market growth factors are due to the increasing importance of understanding customers and their preferences. Organizations and brands should continue to implement customer relationship management strategies to provide the best customer service performance. The increasing use of digital channels that utilize artificial intelligence and its applications to connect with customers and brands will boost the market.

Over the forecast period, analytics will experience a significant CAGR. This segment is expected to grow due to the availability of many platforms and the increased adoption of analytics features in Global Customer Relationship Management (CRM) Software Market solutions. These features allow companies to gain rich insights from their business data. Analytics is programming that analyzes customer data and assists businesses in making better business decisions. Over the forecast period, there will be a steady demand for digital data processing online.

Deployment Analysis

The cloud software segment dominated the market with a more than 51.1% share in 2021. Cloud deployment of software allows users to access their data from any device. The market is growing among small and medium businesses due to increased product demand. SaaS offers many advantages, including high flexibility, real-time accessibility, cost-effectiveness, and low maintenance cost. Because CRM solutions can be accessed remotely, organizations prefer cloud-based deployment.

SelectHub’s customer relationship management (CRM) software buyer survey found that several large enterprise groups prefer their own on-premise infrastructure over cloud-based ones. Because of the growing demand for data privacy, there has been an increase in demand for on-premise customer relations management solutions. For enhanced data protection, large organizations still prefer the on-premise model. They have business-critical information and must store it on their cloud servers. The segment is expected to be driven by large corporations investing in customer relations management systems.

Enterprise Size Analysis

In 2021, large enterprises accounted for more than 62% of the revenue. CRM solutions are used in large companies to connect customer data and business process management features. They allow users to easily coordinate sales, marketing, customer support, and sales processes and help drive company performance. Big data, artificial Intelligence, and its growing applications by customers in large enterprises are expected to increase the demand for Customer Relationship Management (CRM) software market solutions.

The SME sector is expected to grow at a substantial CAGR during the forecast period due to the increasing acceptance of many government initiatives through digital marketing campaigns, including search engine and video marketing. SMEs can implement customer relationship management solutions across all businesses thanks to increasing demand for internal transparency, collaboration, seamless employee transitions, government funding opportunities, and building brand reputation. The growth in demand for hosted services is also driving the market size for Customer Relationship Management (CRM) software market over the forecast period.

End-Use Analysis

Retail was the largest shareholder in 2021, with a nearly 23.0% market share. The increasing growth of online shopping platforms and mobile applications provides huge customer data for retail businesses. These retailers are now shifting to customer relationship management (CRM) software, which helps them understand market trends and business growth. This segment will also be driven by the increased focus on digital marketing activities and custom-made advanced IT solutions. The rising competition in retail is driving the demand for advanced It is expected that the segment will witness a substantial CAGR over this forecast period. Additionally, online systems allow enterprises to provide efficient customer-centric service.

Innovative Customer Relationship Management (CRM) Software Market solutions and digital solutions that enable multiple channels for sales, offer analyses, and complete data-based oversight over customers and their buying habits are on the rise. These trends in the retail market are expected to drive market growth over the forecast period. Over the forecast period, IT and telecom will be the fastest growing segment. Solutions for customer relationship management (CRM) software in IT and telecom can help you build brand equity and distribute your products. These benefits help organizations continue to thrive in a competitive market. In addition, customers are increasingly demanding on-time delivery of goods. This is driving the market’s growth. Companies must focus on improving their business processes to maximize efficiency.

Key Market Segments:

By Solution

• Customer Experience Management
• Customer Service
• Salesforce Automation
• Social Media Monitoring
• CRM Analytics
• Marketing Automation
• Other Solutions

By Deployment

• On-premise
• Cloud

By Enterprise Size

• Small & Medium Enterprise
• Large Enterprises

By End-use

• Retail
• BFSI
• Discrete Manufacturing
• Healthcare
• IT & Telecom
• Government & Education
• Other End-Uses

Market Dynamics:

According to industry estimates, around 90% of organizations employing more than 10 employees use customer relationship management systems. To provide better experience and feedback and strengthen customer relationships, departments like sales, marketing, customer service, and support are increasingly integrating customer Relationship Management (CRM) Software Market with artificial intelligence. Over the forecast period, organizations will also be able to use Customer Relationship Management tools such as focusing on business content and shifting from push-to-pull marketing strategies.

The market is expected to grow due to improved customer satisfaction use of digital channels to communicate with brands or organizations. SoftClouds has found that around 82% of companies use Customer Relationship Management (CRM) Software Market to automate sales reporting and process control. It provides a deeper understanding of buyer behavior and preferences and allows brands and medium-scale organizations to develop the best customer relationship management strategies. This allows them and their customers to deliver real-time performance. Freshworks Inc., for example, offered Freshdesk Contact Center to 7-Eleven stores in December 2021. This is a global chain with retail stores. This will allow customers to quickly get answers and provide same-in-store conveniences for online and regular customers.

Companies are adopting customer-Customer Relationship Management strategies to improve their performance and stay ahead of their competition. Rapid developments in embedded analytics, the Internet of Things (IoT), business intelligence, and artificial intelligence will lead to product enhancements and innovation by CRM vendors. Salesforce.com, Inc., for instance, introduced new capabilities in digital 360 to assist enterprises in boosting their digital activities and delivering the next generation of commerce, marketing, and digital experiences.

The CRM market will likely struggle between large, emerging, and niche vendors to expand their business reach in new markets. Many Customer Relationship Management companies are partnering with system integrators and independent software vendors (ISV) to stay competitive in this highly competitive market. Customers will be more likely to adopt Customer Relationship Management apps due to their ease of use and price trends.

Regional Analysis

North America dominated Customer Relationship Management (CRM) Software Market and held the largest revenue share at 42.8% in 2021. The U.S. had the largest share in 2021. Many regional enterprises embrace CRM solutions and will be the dominant market players over the forecast period. The North American market is expected to grow due to the continued adoption of digital transformation across different sectors such as banking, retail, hospitality, and others.

Asia Pacific will see the fastest CAGR during the forecast period. The region’s market is growing due to the rising demand for innovative customer relationship management solutions from emerging nations like China and India. It is expected that the growth of the e-commerce industry in Asian countries such as India will drive demand for customer management services. A growing market, a positive growth forecast across economies, and a large customer base will all be key factors driving the Asia Pacific region’s growth in CRM over the forecast period.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • GCC
  • South Africa
  • Israel
  • Rest of the Middle East & Africa

Market Share & Key Players Analysis:

Salesforce.com, Inc., is an enterprise software company that offers software suites for customer management through its cloud segment platform. Microsoft Corporation has also made great strides in the area in recent years. Market leaders invest in research and development to increase their market share and drive organic economic growth. Companies also develop new products to expand their product lines and gain new customers.

Market Key Players:

• IBM Corporation
• Microsoft Corporation
• SAP SE
• Sage Group
• Insightly Inc.
• Oracle Corporation
• ADOBE INC.
• SYNNEX Corporation
• SugarCRM Inc.
• Zoho Corporation Pvt. Ltd
• Copper CRM, Inc.
• Other Major players

For the Customer Relationship Management (CRM) Software Market research study, the following years have been considered to estimate the market size: