Customer Engagement Solutions Market size was over USD 24.5 billion in 2023 and is set to cross USD 72.8 billion by the end of 2036, witnessing more than 12.1% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of customer engagement solutions is estimated at USD 29.3 billion.
The increasing focus on improving client attrition is expected to drive growth in the market. As businesses seek to retain customers and enhance their engagement strategies, there is a rising demand for effective solutions that can mitigate attrition rates and foster long-term customer relationships. This trend highlights the importance of robust customer engagement strategies and technologies in the current competitive landscape. The increasing adoption of customer engagement solutions reflects a need for prioritizing customer-centric strategies and leveraging technology to deliver enhanced experiences. A 2019 report on the State of the Connected Customer by Salesforce, Inc. stated that 84% of consumers consider a company's customer experience to be as important as its products or services.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
12.1% |
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Base Year Market Size (2023) |
USD 24.5 billion |
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Forecast Year Market Size (2036) |
USD 72.8 billion |
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Regional Scope |
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Component (Solution, Services)
solution segment is anticipated to account for around 68.5% customer engagement solutions market share by 2036, attributed to the widespread adoption of smartphones and tablets. With more consumers accessing the internet through smartphones and tablets, businesses have greater opportunities to engage with customers through mobile-friendly websites, applications, and messaging platforms. As of 2024, an estimated 5 billion individuals own a smartphone and this represents a rise in around 645 million new smartphone users between 2023 and 2024. Additionally, the number of smartphone users worldwide has doubled since 2020, adding 2.8 billion new smartphone owners over time.
Moreover, the rise of e-commerce applications and mobile-responsive websites allows businesses to optimize the customer journey, from product discovery to checkout, thereby boosting sales and conversion rates. In 2023, mobile e-commerce sales reached USD 2.5 trillion, accounting for 62% of global e-commerce sales.
Enterprise Size (SMEs, Large)
The large segment in customer engagement solutions market is estimated to register a substantial CAGR by the end of 2036. Large enterprises typically have extensive customer bases and complex organizational structures. They require robust customer engagement solutions capable of managing large volumes of data and interactions across multiple channels effectively. Moreover, as leaders in their respective industries, large enterprises often drive innovation in customer engagement practices. They are early adopters of emerging technologies such as AI, chatbots, machine learning, and IoT-enabled devices to enhance customer experience and gain competitive advantage. A 2021 IoT Signals report, published by Microsoft states that about 66% of enterprises expect to expand their IoT implementation in the coming years. Those who use IoT for cloud security, supply chain management, and sustainability are more likely to see it as vital to their organization's success, perhaps keeping them ahead of the trend.
End-use (BFSI, Retail & consumer goods, Healthcare, IT & telecom, Government, Energy & Utilities, Manufacturing, Travel & Hospitality)
By the end of 2036, the BFSI segment is poised to significantly drive the growth of the customer engagement solutions market. BFSI firms are increasingly investing in digital transformation initiatives to enhance customer experiences. Customer engagement solutions play a crucial role in this transformation by enabling personalized interactions across various channels such as websites, mobile applications, and social media. Additionally, effective customer engagement solutions also support risk management strategies by providing real-time insights into customer behaviors and preferences. This helps in mitigating risks associated with fraud and non-compliance. A national survey report published by the American Bankers Association in 2023 stated that consumers continue to prefer digital banking channels, with 48% of bank customers using mobile apps as their primary method of managing their bank accounts and 23% utilizing online banking via laptop or PC.
Our in-depth analysis of the global market includes the following segments:
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End-use |
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Enterprise Size |
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Deployment |
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Component |
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North America Market Statistics
North America customer engagement solutions market is poised to capture revenue share of over 40.1% by 2036. The market growth is attributed to the rising adoption of customer engagement solutions across various industry domains including healthcare, retail, BFSI, and telecommunications. Each sector utilizes these solutions to enhance customer interactions, improve service delivery, and drive customer loyalty. For instance, the healthcare IoT landscape in the region is estimated to achieve USD 32.5 billion by the end of 2024.
In addition, the market is highly competitive due to the presence of established players and innovative startups offering a wide range of customer engagement solutions. Major players include Salesforce, Oracle Corporation, IBM Corporation, and Microsoft Corporation continue to innovate and expand their product offerings to cater to diverse customer needs.
The U.S. is expected to be the center of innovation and holds a sizable portion of the market owing to the rising spending in digital transformation. Businesses are implementing digital strategies to meet the changing needs of their customers, which enables them to extract insights from massive volumes of data to develop a digital transformation plan that improves its rapport with customers and can assist in offering a superior client experience. For instance, by 2027, businesses in the United States are expected to invest around USD 4 trillion in digital transformation.
It is anticipated that Canada's market for customer engagement solutions will expand owing to its strong omnichannel presence which is a customer-focused sales approach that provides customers with a smooth purchasing experience as they navigate several marketing channels.
APAC Market Analysis
The Asia Pacific region will encounter enormous growth in the customer engagement solutions market in the coming years owing to the growing usage of social media which plays a big part in the customer engagement process. Social media has gained immense popularity among organizations due to its ability to increase consumer engagement, improve satisfaction, and provide customer experience platforms through likes, comments, shares, and conversations. In 2023, more than 55% of all social media users worldwide were based in the Asia-Pacific region.
China is adopting a wide range of customer engagement solutions, such as CRM software, omnichannel communication platforms, customer service tools, and analytics systems designed to optimize customer interactions. As China’s economy and consumer base grow rapidly, the demand for effective customer engagement solutions is also increasing, driven by businesses to provide superior customer experiences in a competitive market.
In India, the customer engagement solution market is rapidly expanding as a result of the country’s increasing digital adoption, burgeoning e-commerce sector, and a growing focus on enhancing customer experiences. According to 2023 estimates, around 70% of all businesses in India are either supported by widespread implementation of digital technologies or are actively undergoing digital transformation.
The key players in the customer engagement solutions market play an important role in delivering cutting-edge technologies and solutions that improve customer experience and engagement. Their major objective is to develop strategies and systems that enable businesses to effectively communicate, engage, and establish long-term relationships with their customers.
Author Credits: Abhishek Verma
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