Customer Experience Management Market Size, Share, Growth & Industry Analysis, By End-Use (BFSI, IT & Telecommunication, Healthcare, Retail, Others), By Touch Point Type (Websites, Stores, Mobile Apps, Call Centers, Others), By Offering (Solutions, Services) By Deployment and Regional Analysis, 2024-2031

Customer Experience Management Market Size

The global Customer Experience Management Market size was valued at USD 11.41 billion in 2023 and is projected to reach USD 34.88 billion by 2031, growing at a CAGR of 15.25% from 2024 to 2031.

The market is witnessing robust expansion, mainly propelled by the escalating significance of customer satisfaction in contemporary businesses. In the scope of work, the report includes products offered by companies such as Oracle, Zendesk, Medallia Inc., Qualtrics, SugarCRM Inc., SAP SE, Freshworks Inc., Genesys, Talkwalker, Emplifi Inc., and others.

The growing shift in consumer preferences toward digital-first interactions is significantly boosting the demand for seamless omnichannel experiences across multiple touchpoints. This trend indicates that there is a need for businesses to adeptly navigate the digital landscape, ensuring well-organized and engaging customer interactions across diverse platforms.

To remain competitive, companies are integrating advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) into their Customer Experience Management (CEM) solutions to drive innovation and further improve customer satisfaction.

• The Digital Transformation Initiative of the World Economic Forum projected that platform-driven interactions would account for nearly two-thirds of the USD 100 trillion digitalized economy by 2025, emphasizing the pivotal role of digital platforms in the evolving market landscape.

Moreover, due to the rising costs associated with acquiring new customers, enterprises are implementing strategies to foster customer retention. These factors are giving way to burgeoning opportunities within the global CEM market. They are prompting organizations to invest in innovative technologies and strategies to effectively cater to the evolving customer expectations and sustain competitive advantage.

The customer experience management market encompasses strategies, technologies, and practices used by organizations to optimize and enhance interactions between customers and brands across various touchpoints. It involves the systematic collection, analysis, and utilization of customer feedback and data to improve products, services, and overall customer experience.

CEM solutions include a wide array of tools and platforms, such as CRM systems, analytics software, omnichannel communication platforms, and customer feedback management tools. CEM initiatives aim to create seamless, personalized, and memorable experiences that foster customer loyalty, retention, and advocacy in highly competitive markets.

Analyst’s Review

The global customer experience management (CEM) market is undergoing transformative growth fueled by technological innovation and evolving consumer expectations. Organizations are adopting novel customer-centric strategies, utilizing data-driven insights to foster deeper engagement and improve satisfaction levels.

A significant focus on demonstrative connections and real-time feedback mechanisms is helping marketers create more holistic and personalized customer experiences. The integration of advanced technologies such as Generative AI is also playing a critical role in enhancing these strategies.

• In November 2023, International Business Machines Corp. (IBM) and NatWest collaborated on a Generative AI initiative to enhance customer experiences. Leveraging IBM's engineering and AI expertise, the partnership aims to augment the functionality of Cora, NatWest's virtual assistant. Central to this initiative is WatsonX, IBM's enterprise AI platform, which is central to NatWest's Generative AI strategy.

This collaboration reaffirms the growing importance of AI-driven solutions in modern CEM strategies, which is expected to drive the market demand.

Customer Experience Management Market Growth Factors

The customer experience management market is poised to witness substantial growth due to the increasing importance of customer loyalty and retention in majority of markets. As businesses increased emphasis on providing superior customer experiences and long-term profitability, investments in CEM solutions will gain pace.

Additionally, the proliferation of digital channels and the rise of the 'always-on' consumer have escalated the demand for seamless, personalized interactions, driving the growth of CEM platforms.

The customer experience management (CEM) market is rapidly evolving, driven by the adoption of contactless and self-service options and integration of AI-powered chatbots to enhance customer support. Regulatory frameworks like GDPR and CCPA are further shaping the landscape by promoting data privacy and security and compelling businesses to invest in compliance-driven CEM solutions.

Additionally, companies are using advanced technologies to achieve large-scale personalization and create individualized customer value.

• In March 2024, Adobe Inc. introduced a suite of enterprise-focused solutions for brands to deliver individualized personalization at scale through generative AI and real-time insights. These offerings enhance Adobe's Customer Experience Management (CXM) solutions by integrating data and content, while also providing brands with AI-driven strategies to maximize customer value and capitalize on the vast potential of large-scale personalization.

However, data security and privacy concerns persist as businesses aim to balance customer experience with safeguarding sensitive information. Robust security measures and transparent consent are important for building trust and preventing breaches.

Additionally, integrating diverse CEM solutions into existing IT infrastructure poses challenges. Streamlining data flow and ensuring seamless operation require meticulous planning and expertise to troubleshoot integration related complexities.

Customer Experience Management Market Trends

The integration of AI-powered personalized solutions is transforming the customer experience management (CEM) landscape by enabling businesses to deliver highly tailored interactions.

By harnessing AI algorithms to analyze extensive datasets, companies are customizing experiences to align with individual preferences and behaviors across multiple touchpoints. This approach enhances customer satisfaction as well as builds loyalty and drives revenue growth through precise marketing strategies and personalized product recommendations.

As the adoption of generative AI accelerates, organizations aim to leverage its capabilities to create more connected and insightful customer interactions.

• In September 2023, Oracle Corp. launched generative AI-powered capabilities designed to bridge its Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems. This innovation would enhance the integration of customer data, enabling businesses to deliver a more cohesive and improved customer experience.

Furthermore, industry players are focusing on customer journey mapping and optimization. Businesses, after recognizing the significance of understanding the entire customer journey, are investing in strategies to map and optimize each stage, from initial engagement to post-purchase interactions.

This approach enables enterprises to identify and address gap points to ensure smoother and more positive customer experiences. These trends are shaping the evolution of the CEM market, with an increasing focus on using technology and data to deliver exceptional customer experience and propel competitive advantage.

Segmentation Analysis

The global customer experience management market has been segmented based on end-use, touch point type, offering, deployment, organization size, and geography.

By End-Use

Based on end-use, the market has been categorized into BFSI, IT & telecommunication, healthcare, retail, and others. The IT & telecommunications segment accounted for the highest revenue of USD 3.87 billion in 2023 due to the intricate nature of services provided by IT & Telecom companies. This sector relies extensively on its customer service. By implementing CEM solutions, IT and telecom companies effectively address customer issues, enhance satisfaction, and reduce churn rates.

Within the fiercely competitive IT & telecom sector, positive customer experiences are a crucial differentiator among market players. Additionally, IT and telecommunications enterprises focus on the early integration of novel technologies. This inclination demonstrates their readiness to adopt state-of-the-art customer experience management (CEM) solutions, including sentiment analysis and data analytics.

By Touch Point Type

Based on touch point type, the customer experience management market has been divided into websites, stores, mobile apps, call centers, and others. The call center segment captured the largest market share of 32.56% in 2023.

Call centers gaining consumer preference as they can address complex inquiries that require comprehensive explanations, technical support, or empathetic assistance. This includes troubleshooting, warranty claims, and complex product inquiries, which necessitate live interaction.

Moreover, modern call centers are seamlessly integrated with CEM systems, which facilitate skill-based routing, real-time data, and analytics provisioning, as well as call recording and sentiment analysis. These features optimize operational efficiency and improve customer satisfaction by ensuring personalized service delivery and identifying areas for continuous improvement.

By Offering

Based on offering, the customer experience management market has been bifurcated into solutions and services. The solutions segment is projected to generate the highest revenue of USD 18.93 billion by 2031.

Businesses are increasingly recognizing the importance of data-driven CEM strategies, which is driving investments in software solutions. Customer feedback management solutions enable the comprehensive capture, analysis, and actionable utilization of customer feedback to drive iterative improvements.

Moreover, customer journey mapping software helps in the visualization and analysis of customer interactions across touchpoints, enabling businesses to focus on areas to achieve optimization. Customer analytics solutions let enterprises derive actionable insights from a vast pool of customer data, which helps them offer personalized experiences, and run predictive analytics to anticipate and meet customer needs.

Customer Experience Management Market Regional Analysis

Based on region, the global customer experience management market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America Customer Experience Management market share stood at 36.27% in 2023 in the global market, with a valuation of USD 4.14 billion. The region benefits from a highly mature and technologically advanced business landscape, characterized by a clear emphasis on innovation and customer-centricity.

Furthermore, rapid digitization across industries along with high consumer expectations for seamless and personalized experiences is fueling the demand for CEM solutions. Moreover, the presence of robust e-commerce ecosystem are propelling the need for advanced CEM strategies for brand differentiation and customer loyalty.

North America is home to a thriving startup ecosystem and a vibrant venture capital market. This facilitates the development and adoption of cutting-edge CEM technologies. As regulatory landscapes evolve and data privacy concerns gain focus, the regional market is projected to witness a significant expansion of CEM companies offering compliant, scalable, and value-driven offerings to meet the unique needs of American companies.

Europe garnered substantial revenue of USD 3.01 billion in 2023. The region's diverse economic landscape encompasses mature markets in Germany and the UK, as well as emerging economies in Eastern Europe, each presenting distinct opportunities for CEM adoption. With stringent data privacy regulations such as GDPR shaping consumer expectations and organizational practices, there is a growing emphasis on compliance and data governance within the CEM space.

The market for customer experience management solutions is witnessing significant growth, driven by the rising adoption of analytical tools and customer engagement software. These tools are being used to streamline sales, enhance customer service, and optimize marketing activities across various industry verticals. The growing need for advanced solutions to support seamless customer interactions and data analysis is further propelling market expansion.

• In February 2023, Virgin Atlantic, the UK-based airline, selected Conduent, a global technology and CEM company, to deliver customer experience management services. This partnership focuses on managing rebookings, providing general customer support, and offering live agent assistance. Conduent’s human-centric approach to customer service will play a key role in improving customer satisfaction and operational efficiency for Virgin Atlantic.

Furthermore, the increasing prevalence of subscription-based business models and the rise of digital-native consumers are driving the demand for agile and personalized CEM solutions. Additionally, Europe's burgeoning fintech and retail sectors are observing innovative CEM technologies gaining a competitive edge across end-use sectors.

As businesses navigate cultural nuances and language barriers across the region, there is a growing need for localization and customization in CEM strategies, presenting opportunities for companies’ adept at addressing diverse market requirements.

Competitive Landscape

The global customer experience management market report provides valuable insights with an emphasis on the fragmented nature of the industry. Prominent players focus on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expanding service offerings, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which is likely to create new opportunities for market growth.

List of Key Companies in Customer Experience Management Market

• Oracle
• Zendesk
• Medallia Inc.
• Qualtrics
• SugarCRM Inc.
• SAP SE
• Freshworks Inc.
• Genesys
• Talkwalker
• Emplifi Inc.

Key Industry Developments

April 2024 (Acquisition): Accenture acquired Unlimited, a renowned integrated customer engagement agency. Following this acquisition, Unlimited was to become a part of Accenture Song, the world’s largest tech-powered creative group.

February 2024 (Acquisition): Genesys, a prominent global cloud provider specializing in AI-driven experience orchestration, formally concluded its acquisition of Radarr Technologies. Radarr Technologies is recognized as a top-tier company in AI-based social and digital listening, analytics, and consumer engagement solutions. Through this acquisition, Genesys aims to expedite the integration and customization of customer experiences by merging Radarr's capabilities with the Genesys Cloud platform.

March 2023 (Product Launch): Q-nomy, a customer journey management solutions provider, introduced Cubu. Cubu combines customer flow management, appointment scheduling, and customer interaction management into a single integrated solution.

The Global Customer Experience Management Market is Segmented as:

By End-Use

• BFSI
• IT & Telecommunication
• Healthcare
• Retail
• Others

By Touch Point Type

• Websites
• Stores
• Mobile Apps
• Call Centers
• Others

By Offering

• Solutions
• Services

By Deployment

• Cloud-based
• On-premise

By Organization Size

• Large Enterprises
• Small and Medium Enterprises

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America