CEM Market Expected to Nearly Double in 5 Years

Research firm MarketsandMarkets projects the customer experience management market to grow from $7.8 billion today to $14.5 billion by 2024, expanding at a compound annual rate of 13.3 percent.

The major growth drivers for the market include an increasing need to improve customer engagement and reduce customer churn, the growing deployment of cloud-based solutions, and rising demand for big data analytics, accordijng to the firm, which also concluded that these drivers allow CEM solution vendors to deliver a wide range of solutions and services that enable the management of customer profiles and real-time tracking of customers and their behavior, which, together,  help in retaining customers and tapping unexplored markets.

Based on component, MarketsandMarkets expects the services segment to record a higher growth rate than solutions segment. Among services, the managed services segment is expected to see higher growth than the professional services segment. 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.

MarketsandMarkets also expects North America in general and the United States in particular to continue holding the largest market size during the forecast period. The high pace of digital transformation, along with the high growth of artificial intelligence and data analytics, accounts for the fast growth of the customer experience management market in the U.S.

But while the U.S. remains the top market, CEM offerings are also very well implemented in Canada by industries such as retail, IT & telecom, and financial services, the firm also found.

Among the key CEM vendors, MarketsandMarkets identified Adobe, Oracle, SAP, IBM, Avaya, NICE, Nokia, OpenText, and Tech Mahindra.