PUBLISHER: The Business Research Company | PRODUCT CODE: 1840447
PUBLISHER: The Business Research Company | PRODUCT CODE: 1840447
Customer experience management involves studying how to better understand customers and implementing strategic plans to support cross-functional initiatives and a customer-centric culture. It aims to offer qualitative insights, integrate relationship data throughout the entire customer lifecycle, and prioritize customer experiences.
The key components of customer experience management include solutions and services. Solutions provide a platform for transformational change to address specific present and upcoming business issues. Various touchpoints, such as websites, stores, call centers, mobile apps, social media, emails, virtual assistants, and others, are involved. Deployment types can be on-premises or cloud-based. The organization sizes targeted are small and medium enterprises (SMEs) and large enterprises. Customer experience management is applied across various industries, including IT and telecom, BFSI, retail, healthcare, automotive, travel and hospitality, media and entertainment, public sector, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The customer experience management market research report is one of a series of new reports from The Business Research Company that provides customer experience management market statistics, including customer experience management industry global market size, regional shares, competitors with a customer experience management market share, detailed customer experience management market segments, market trends and opportunities, and any further data you may need to thrive in the customer experience management industry. This customer experience management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The customer experience management market size has grown rapidly in recent years. It will grow from $12.42 billion in 2024 to $14.17 billion in 2025 at a compound annual growth rate (CAGR) of 14.1%. The growth in the historic period can be attributed to competitive advantage through CX, focus on customer lifetime value, demand for seamless customer journeys, rise of social media engagement, voice of customer (voc) insights.
The customer experience management market size is expected to see rapid growth in the next few years. It will grow to $26.14 billion in 2029 at a compound annual growth rate (CAGR) of 16.5%. The growth in the forecast period can be attributed to increasing emphasis on personalization, advanced data analytics and AI integration, rise of omni-channel experiences, real-time engagement strategies. Major trends in the forecast period include integration of feedback loops, emphasis on customer-centric cultures, customer retention and loyalty, focus on customer journey mapping, real-time engagement.
The forecast of 16.5% growth over the next five years reflects a modest reduction of 0.2% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Due to tariffs, acquiring real-time feedback and behavior analysis tools from international providers may delay the optimization of customer experience strategies. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The increasing digital transformations in the retail and healthcare sectors are expected to drive the growth of the customer experience management market moving forward. Digital transformation involves incorporating digital technology across all functional areas of an organization, fundamentally changing its operations and enhancing the value it delivers to customers. By integrating digital technology into every aspect of business, digital transformation significantly alters how companies operate and provide value. For example, an article published by Salesforce, a U.S.-based software company, indicates that 99% of organizations in healthcare and life sciences see digital transformation as valuable, with 12% being fully digital. This presents a substantial opportunity for innovation in the sector, particularly as organizations confront changing business models and tighter budget constraints. Therefore, the rise in digital transformations in retail and healthcare is fueling the growth of the customer experience management market.
The customer experience management market is set to benefit from the increasing adoption of social media. Social media, comprising various digital platforms and applications facilitating content creation, sharing, and community building, plays a pivotal role in customer experience management. Solutions within this market integrate with social media platforms to enable real-time monitoring of brand mentions, customer interactions, and feedback. Moreover, social media serves as a valuable resource for crisis management, obtaining product development feedback, and fostering proactive customer engagement. Notably, Meta Platforms, Inc. reported 1.98 billion average daily active users on Facebook as of September 2022, witnessing a 3% year-over-year increase. Furthermore, global social media users accounted for 61.4%, totaling 4.95 billion users in October 2023, according to Kepios. The increasing adoption of social media is a significant driver fueling the growth of the customer experience management market.
Leading companies in the customer experience management market are developing innovative products, such as the Avaya Experience Platform (AXP) Public Cloud, to enhance customer interactions, streamline communication channels, and boost overall customer satisfaction. The Avaya Experience Platform (AXP) Public Cloud is a cloud-based solution designed for customer experience management, allowing businesses to offer seamless, multi-channel communication and support to their clients. For example, in September 2024, Avaya LLC, a U.S.-based technology company, introduced the Avaya Experience Platform (AXP) Public Cloud in India. This platform features AI-driven self-service capabilities, allowing businesses to implement a new virtual agent-ready framework that integrates intelligent digital assistants for improved customer engagement.
Leading companies in the customer experience management market are developing advanced products, such as generative artificial intelligence (AI), to facilitate personalized customer interactions, automate responses, and improve overall service delivery. Generative artificial intelligence (AI) is a subset of AI technologies capable of producing new content-including text, images, audio, and video-based on input data. For example, in October 2023, OvationCXM, a U.S.-based software company, launched the CXMEngine platform. This next-generation customer experience management platform is fully integrated with generative artificial intelligence (AI). The update aims to enhance customer experience management by equipping organizations with advanced tools for personalizing interactions and optimizing operations. The new features enable the extraction and summarization of customer data from various internal and external interactions.
In January 2022, Medallia, a U.S.-based company specializing in customer and employee experience management, acquired Thunderhead for an undisclosed amount. This acquisition aimed to enhance Medallia's experience management platform by incorporating Thunderhead's journey orchestration capabilities. The integration enables organizations to gain a better understanding of customer interactions across various touchpoints, allowing them to create personalized experiences and proactively address customer needs. Thunderhead is a UK-based company that develops software for customer engagement and customer experience.
Major companies operating in the customer experience management market are Medallia Inc., Clarabridge, Zendesk Inc., Open Text Corporation, International Business Machines Corporation, Tech Mahindra, Verint Systems Inc., Avaya Inc., Oracle Corporation, SAP SE, Adobe Inc., Teradata Corporation, Sprinklr Inc., InMoment Inc., SAS Institute, Sitecore, NGDATA N.V., Amperity, Mixpanel Inc., Segment.io, ZephyrTel Inc., MindTouch, Freshworks Inc., Genesys Telecommunications Laboratories Inc., Nokia Corporation, Algonomy Inc., Sogolytics Ltd., Startek, Microsoft Corporation, Skyvera
North America was the largest region in the customer experience management market in 2024. The regions covered in the customer experience management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the customer experience management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The customer experience management market includes revenues earned by entities by providing customer contact services, multichannel communication, enrolment and engagement, care management, and medical and clinical services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Customer Experience Management Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on customer experience management market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for customer experience management ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The customer experience management market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.