Customer Experience Management and CRM, two fast growing markets

The data are from Fortune Business Insights and do not suggest any misinterpretation: Customer Experience Management (CEM), Customer Experience as a Service (CXaaS) and Customer Relationship Management (CRM) are the three Customer Solutions markets that will grow the most in the coming years.

This emerges from reports:

• ?The global Customer Experience Management (CEM) market size is projected to witness immense growth by reaching USD 32.53 billion by 2029. Fortune Business Insights observes that the market size stood at USD 10.11 billion in 2021 and is projected to exhibit a CAGR of 16.2% between 2022 and 2029. The growing digitization and the surging adoption of artificial intelligence (AI) and augmented reality (AR) are anticipated to boost market growth.
• The global Customer Experience as a Service (CXaaS) market size was USD 1.45 billion in 2020. The market is projected to grow from USD 1.64 billion in 2021 to USD 4.17 billion in 2028 at a CAGR of 14.2% during the 2021.2018 period. The growth of the market is mainly driven by increasing adoption of digitization among various industry verticals, rapid integration of multichannel touchpoints, and a growing need for customer data analysis to drive business growth.
• The global Customer Relationship Management (CRM) market size is predicted to reach USD 145.79 billion by 2029 and exhibit a CAGR of 12.5% during the forecast period. Fortune Business Insights observes that the market size stood at USD 57.83 billion in 2021 and USD 63.91 billion in 2022. CRM solutions are expected to be in high demand due to the integration of new technologies across business domains to improve operations and value delivery to customers.

Beyond the numbers, it is interesting to analyze the forces and the needs that will drive and accelerate market growth, according to analysts.

?Force n. 1: rising Digital Payments to bring new opportunities for CEM

As Fortune Business Insights reports, the sudden emergence of the coronavirus pandemic has drastically impacted the global economy and hampered the growth of several industries and markets. However, the swift digitization observed during the pandemic has accelerated the demand for digital payment application.

The reduced physical consumer interaction facilitated by these applications have boosted the growth of effective customer experience solutions. The pandemic has created dynamic purchasing patterns of consumers and thus, major players in the market are developing ingenious solutions to cater to the changing consumer demand.

?Force n. 2: surging adoption of Artificial Intelligence and Augmented Reality

The technological development and the changing purchasing patterns of consumers have induced organizations to adopt bots or virtual assistants.

Task automation and self-service resolutions can be achieved with the incorporation of AI and AR.?AI-powered consumer experience solutions help organizations provide tailored solutions, analyze customer conversations, understand customer grievances, and others. Voice and text sentiment analysis assist in predicting customer emotions and sentiments. Also, advanced AI applications such as digital assistants, chat bots, biometric measures, and facial recognition improves customer experience and profitability.

?Force n. 3: rapid digital transformation to augment market growth

The COVID-19 pandemic had a significant impact on businesses throughout the world as the disruptions in production, supply chains, labor, and personnel availability caused cross-country border closures.

Businesses have seen an increase in the demand for customer support solutions to facilitate seamless interaction between employees and customers. Businesses were able to improve the customer experience by using live tracking and automated solutions during the pandemic.

As mentioned, CRM solutions are expected to be in high demand due to the integration of new technologies across business domains to improve operations and value delivery to customers. In addition, firms intend to implement business strategies and market trends in order to expand their geographical presence. Following data analysis, this strategy assists organizations in providing a better customer experience.