The software that helps companies understand and serve their customers better is seeing explosive growth, with the market expected to more than triple in size over the next few years. A new report from Allied Market Research shows this market will grow from about $7.6 billion in 2019 to nearly $24 billion by 2027.
Why Such Big Growth?
Two main factors are driving this surge:
- More businesses are adopting “on-demand” models where customers can get what they want, when they want it
- Shoppers are increasingly using multiple channels (like websites, apps, and stores) to make purchases, and companies need better tools to track and improve these experiences
Growing Pains
While the future looks bright, companies face some speed bumps. Many struggle to connect all their customer data smoothly, and sometimes the data they collect doesn’t tell the whole story about their customers’ experiences. However, new developments in artificial intelligence and cloud computing are opening up exciting possibilities for solving these challenges.
Who’s Leading the Way?
North American companies currently buy the most customer experience software, making up over a third of global sales. However, the Asia-Pacific region is catching up fast, with predicted growth of 17.8% per year through 2027 – the highest growth rate of any region.
Key Market Segments and Trends
The research highlights several notable trends across market segments:
Platform Performance
- Mobile apps currently lead platform adoption
- Voice assistants show the highest growth potential among all platforms
- Website, email, and other channels maintain significant market presence
Industry Adoption
- Retail and BFSI (Banking, Financial Services, and Insurance) sectors currently lead implementation
- Healthcare shows promising growth potential, expected to be the fastest-growing sector
- Government, media, and entertainment sectors maintain steady adoption rates
Deployment Preferences
- Cloud deployment dominates current market share
- On-premises solutions continue to serve specific market needs
- Cloud solutions expected to maintain leadership through the forecast period
Component Analysis
- Software segment currently leads the market
- Services segment shows strong growth potential
- Both segments benefit from increasing digital transformation initiatives
The report, which includes Porter’s Five Forces analysis and competitive landscape evaluation, serves as a vital resource for industry stakeholders, from investors to new market entrants, offering crucial insights for strategic decision-making in this rapidly evolving market.
Source– Allied Market Research published a new report, titled, ” Growing CAGR of 15.6%.
