PUBLISHER: IMARC | PRODUCT CODE: 1722419
PUBLISHER: IMARC | PRODUCT CODE: 1722419
The global customer relationship management (CRM) market size reached USD 70.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 158.6 Billion by 2033, exhibiting a growth rate (CAGR) of 9.38% during 2025-2033. The growing demand for enhanced user experience, a shift towards cloud-based solutions, and the integration of advanced technologies, like artificial intelligence (AI), machine learning (ML), and big data analytics, to provide personalized, efficient, and scalable customer interactions are impelling the market growth.
Increasing Demand for Enhanced Customer Experience
Businesses in various sectors are emphasizing customer experience as a key differentiator in a competitive market. The need to understand buyer preferences, behaviors, and feedback is encouraging the adoption of customer relationship management (CRM) solutions. CRM systems allow companies to collect and analyze large quantities of user information, leading to personalized interactions, anticipation of individual needs, and enhanced satisfaction. Improving customer experience results in higher client loyalty and retention, which is essential for sustained success. Moreover, the rise of omnichannel customer engagement, where individuals interact with businesses through multiple touchpoints, is catalyzing the demand for integrated CRM systems to ensure consistent and seamless service across all channels. The increasing focus on providing excellent individual service is a key factor supporting the customer relationship management market growth. In September 2023, Genesys and Salesforce introduced CX Cloud, a combined artificial intelligence (AI)-driven solution for managing customer experiences and relationships that merges Genesys Cloud CX and Salesforce Service Cloud. This collaboration focused on enhancing customer interactions with data, streamlining employee engagement, and improving customized user experiences.
Integration of Advanced Technologies
The deployment of cutting-edge technologies like AI, machine learning (ML), and big data analytics is allowing CRM systems to provide more than just simple customer data organization. AI and ML improve CRM abilities through predictive analytics, which can forecast customer behavior, optimize marketing tactics, and enhance sales predictions. Big data analytics enables the handling and examination of extensive amounts of data, providing a greater understanding of customers and more accurate targeting. The automation functions enabled by these technologies make customer service operations more efficient by cutting response times and improving overall effectiveness. In line with the customer relationship management market recent developments, in May 2024, IBM and Salesforce enhanced their collaboration by combining IBM Watson AI and Data Platform with the Salesforce Einstein Platform. This partnership sought to improve AI and data utilization by offering increased flexibility in large language models, preconfigured CRM actions, and two-way data integration. Salesforce reaffirmed its dedication to ethical AI advancement by becoming a member of the AI Alliance.
Growing Shift Towards Cloud-Based Solutions
Businesses are acknowledging the advantages of cloud technology in terms of scalability, accessibility, and cost-effectiveness. Cloud-based CRM systems enable businesses to remotely access user data and utilize CRM tools from anywhere, facilitating real-time collaboration and supporting remote work. This deployment model decreases the requirement for a large initial investment in information technology (IT) infrastructure and provides adaptable pricing based on subscriptions, making CRM solutions more accessible to small and medium-sized enterprises (SMEs). Furthermore, cloud-based CRMs offer automatic updates and maintenance, guaranteeing that businesses constantly have access to the most recent features and security improvements. The growing need for cloud-based solutions is driven by the importance of flexibility, simplicity, and the capacity to easily adjust to evolving business landscapes, which in turn is speeding up the implementation of CRM systems in different industries. In August 2023, Belsons Technologies introduced Belsio HRMS, a cloud-based CRM solution aimed at improving HR operations. Belsio HRMS streamlines processes, like recruiting, handling leave requests, and managing payroll to improve productivity and communication, within companies.
Software accounts for the majority of the market share
Software accounts for the majority of the market share because of the extensive use of CRM software in different sectors to automate customer interactions, handle sales pipelines, and improve client service. CRM software provides a complete set of tools, such as sales automation, marketing automation, customer service and support, and analytics, allowing businesses to understand individual behavior and preferences better. The rising use of AI, ML, and big data analytics in CRM software is allowing for improved predictive insights, personalized client experiences, and more efficient operations. Businesses are striving to enhance user engagement and retention, which is driving the demand for CRM software.
Cloud-based holds the largest share of the industry
Cloud-based holds the biggest market share because of the transition towards adaptable, scalable, and affordable options. The popularity of cloud-based CRM system stems from its convenience, enabling users to log into the platform from any location with internet access, which supports remote work and international teamwork. Cloud-based CRM is more cost-effective than on-premises solution, appealing to both small and medium-sized enterprises (SMEs) and large corporations attributed to the reduced upfront costs and IT infrastructure expenses. Moreover, cloud-based offers smooth updates, improved security options, and the ability to connect with other cloud services, allowing businesses to expand their operations effortlessly and stay current with technology. In April 2024, Salesforce introduced Pro Suite, a CRM solution tailored for SMEs, which combines marketing, sales, service, and commerce features. Utilizing the Einstein 1 Platform and Data Cloud, Pro Suite was created to assist SMEs in optimizing operations and improving customer interactions.
Large enterprises represent the leading market segment
Large enterprises hold the biggest market share, due to their considerable resources and intricate client interaction requirements. These companies need sophisticated CRM solutions to handle large user databases, improve communication through multiple channels, and enhance customer interaction across various divisions and locations. Large enterprises gain advantages from CRM systems that provide strong analytics, connect with other enterprise systems, and have customization options to meet specific business processes and industry needs. The employment of CRM systems in large enterprises helps with handling data effectively, automating sales and marketing, and providing excellent customer service, enhancing client satisfaction and loyalty. According to the customer relationship management forecast, this trend is expected to continue as large enterprises invest in advanced CRM technologies to maintain their competitive edge.
Customer service exhibits a clear dominance in the market
Customer service represents the largest segment, as efficient client support plays a vital role in business success. Organizations in different sectors place importance on customer service CRM solution to efficiently handle client inquiries, complaints, and support requests. It offers resources for ticketing, case management, live chat, and knowledge base management, guaranteeing prompt and uniform replies to customer problems. Improved customer service abilities result in higher levels of user contentment, commitment, and longevity, which are crucial for sustained business expansion. Incorporating AI and ML into customer service CRM system enhances the effectiveness and customization of individual interactions using chatbots and automated response systems. In October 2023, SAP SE announced the addition of new generative AI capabilities across its Customer Experience portfolio, including the AI copilot Joule. These advancements aimed to automate tasks, analyze enterprise data for actionable insights, and provide personalized customer experiences.
Retail dominates the market
Retail leads the market as per the customer relationship management market outlook due to its strong emphasis on user satisfaction, tailored shopping experiences, and loyalty initiatives. Retailers use CRM systems to handle client information, monitor buying habits, and customize marketing strategies based on individual preferences, ultimately improving customer interaction and loyalty. These systems allow for the smooth incorporation of customer interactions both online and offline, giving a cohesive understanding of individual experiences and facilitating better omnichannel plans. Moreover, CRM systems in the retail industry utilize advanced analytics and AI to provide customized suggestions, enhance inventory control, and simplify processes. In June 2024, SAP introduced new AI-driven customer experience capabilities in its Sales Cloud to optimize its sales effectiveness and simplify operations. The updates featured forecasting solutions, a shopping helper, expert suggestions, and AI-driven account overviews.
North America leads the market, accounting for the largest customer relationship management market share
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for customer relationship management (CRM).
North America dominates the market due to its cutting-edge technological infrastructure and widespread use of innovative CRM solutions. Businesses in the region are focusing on improving user relationships and using data-driven insights to remain competitive, leading to a high demand for advanced CRM systems. Moreover, North American companies are early adopters of emerging technologies, such as AI and ML, which are integrated into CRM solutions to provide predictive analytics and personalized customer experiences. The rising emphasis on client-centric strategies and ongoing investment in digital transformation projects is driving the customer relationship management demand in the region. In November 2023, Microsoft introduced Copilot for Service, which combined generative AI with customer service to improve agent efficiency and productivity. The solution, which works with different CRM systems, offered AI-based insights and automation to simplify customer engagements.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)