Customer Relationship Management Market

Customer Relationship Management Market Outlook (2024 to 2034)

The global customer relationship management market has been valued at US$ 70.2 billion in 2024, as asserted in the latest report published by Fact.MR. Revenue from CRM solutions is evaluated to accelerate at 9.8% CAGR and reach US$ 178.7 billion by 2034.

The growing use of cutting-edge technologies in various sectors, for instance, retail, e-commerce, and BFSI, for enhancing customer experience and operations is driving demand for customer relationship management systems. There has been an application of artificial intelligence on a larger scale. Similarly, a growing demand for integrating CRM systems and AI in digital technologies for enhanced customer experience is also witnessed. Machine learning, deep learning, and natural language processing-based customer relationship management software help businesses comprehend the psychological conditions of target customers.

Customer relationship management solutions help businesses forge close relationships with their customers. Zoho CRM and Salesforce Einstein’s Zia offer AI-powered CRM solutions that collect client data with the use of speech technologies. In addition, virtual assistants are also employed to minimize human errors and provide automatic responses to emails, data collection, reports from customers, and other responsibilities. Integration of AI technology with CRM systems facilitates improved services with minimal chances of human errors.

Multichannel CRM systems enable businesses to engage with their customers through multiple communication channels, including social media, messaging applications, and email. Furthermore, CRM software offers seamless communication as well as tracking interactions across channels, which is further contributing to customer relationship management market growth.

• North America is forecast to account for a 24.6% share of the global market by the end of 2034.
• Sales of customer relationship management solutions in Japan are estimated to climb at a CAGR of 11.3% from 2024 to 2034.
• Worldwide demand for cloud-based customer relationship management systems is analyzed to increase at 9% CAGR and reach a market value of US$ 116.2 billion by 2034.

Report Attribute	Detail
CRM Market Size (2024E)	US$ 70.2 Billion
Forecasted Market Value (2034F)	US$ 178.7 Billion
Global Market Growth Rate (2024 to 2034)	9.8% CAGR
South Korea Market Growth Rate (2024 to 2034)	11.5% CAGR
Market Share of Retail Sector (2034F)	21%
East Asia Market Share (2034F)	25.8%
Key Companies Profiled	Oracle Corporation; SAP SE; Insightly Inc.; Creatio; Microsoft Corporation; Zoho Corporation Pvt. Ltd.; Copper CRM, Inc.; Salesforce.com, Inc.; ADOBE INC.; Zendesk; SugarCRM Inc.; Nimble; Freshworks Inc.; ClickUp.

Which are the Prominent CRM Market Growth Drivers?

“Implementing Artificial Intelligence in Digital Technologies Acting as Effective Business Strategy”

Increasing requirements for AI-powered software in digital technologies are driving the demand for customer relationship management systems. Organizations using digital transformation methods are able to ensure that their target customers have a seamless experience. Assistance offered through these systems provides auto-generated responses and minimizes manual errors in customer reports and emails, which leads to building more trust among customers about brands or organizations. Integration of AI in customer relationships is helping to enhance the reach of organizations.

What’s Limiting Expansion of Customer Relationship Management Market Size?

“Rising Incidents of Cyber Attacks Limiting Adoption of CRM Solutions”

Increasing cases of data breaches with the use of CRM software are hindering their demand growth to some extent. Personal details such as corporate intelligence, credit card information, sales data, financial information, and patient health data are carried in these systems. Therefore, the safety of this confidential data is becoming one of the most prominent concerns for organizations.

How are Startups Penetrating This Competitive Market Landscape?

“Developing More Improved Customer Management Solutions”

Startups are offering customer relationship management solutions for more advanced systems for social listening, social monitoring, social management, and social middleware to ensure improved customer experience. Presently, CRM is more than improving market activities and increasing sales; it offers efficient customer engagement services to enterprises. Aspiring market players need to leverage these customer relationship management market trends to establish themselves and increase their profit share.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, reveals in its recently updated analysis that East Asia is analyzed to hold a 25.8% share of the global market by 2034. Increased demand for customer relationship management systems in regional countries, such as China, Japan, and South Korea is working as a catalyst for market growth. The constantly expanding e-commerce industry is also generating huge demand for CRM systems for better-understanding customer behavior and preferences.

Why is the United States an Opportunistic Market for CRM Providers?

“Growing Adoption of CRM Solutions in Multiple Sectors”

Attribute	United States
Market Value (2024E)	US$ 8 Billion
Growth Rate (2024 to 2034)	9.7% CAGR
Projected Value (2034F)	US$ 20 Billion

The United States is calculated to possess a share of 45.6% of the market in North America by the end of 2034. Increasing use of advanced technologies, such as AI, ML, and others in the retail sector is contributing to the growing demand for customer relationship management systems for improved customer experience. In addition, the rising adoption of digital transformation in various sectors, such as hospitality, banking, and retail is generating remunerative opportunities for market players.

What Makes China a Lucrative Market for CRM Companies in East Asia?

“Flourishing e-Commerce Industry across the Region”

Attribute	China
Market Value (2024E)	US$ 7.9 Billion
Growth Rate (2024 to 2034)	10.7% CAGR
Projected Value (2034F)	US$ 21.9 Billion

China is expected to capture 47.5% of the East Asian market share by 2034. In recent years, there has been a noteworthy expansion of e-commerce platforms in China with growing internet penetration and the use of smartphones. Thereby, there is an increase in the adoption of CRM solutions for establishing better relationships with customers. These solutions offer cost efficiency, improved customer loyalty, and enhanced services. The growing use of AI-powered automation enables smoother customer engagement.

Why are Customer Relationship Management Companies Investing in Japan?

“High Adoption Rate of Smart Phones and Connected Devices”

Attribute	Japan
Market Value (2024E)	US$ 4.7 Billion
Growth Rate (2024 to 2034)	11.3% CAGR
Projected Value (2034F)	US$ 13.6 Billion

Japan is forecast to occupy a 29.4% share of the market in East Asia by the end of 2034. There is an increase in the adoption of mobile phones and similar connected devices, which is helping more organizations draft innovative strategies in the retail sector. The government in Japan has initiated multiple e-government agendas for the promotion of workforce optimization. It is enabling organizations to utilize electronic media for effective communications with their customers.

Category-wise Insights

Based on solutions, there is increased demand for customer relationship management systems for customer services. This increased demand is attributed to the growing requirement to understand customer preferences and behavior. This is pushing brands to adopt customer relationship management systems to offer seamless experience. The growing use of AI in digital platforms is also augmenting demand for customer relationship management systems.

Why are Cloud-based Customer Relationship Management Systems Widely Deployed?

“Growing Deployment of Cloud-based Systems for High Flexibility and Cost-effectiveness”

Attribute	Cloud
Segment Value (2024E)	US$ 49.1 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 116.2 Billion

Cloud-based customer relationship management systems are projected to account for a 65% share of the global market by the end of 2034. The increasing adoption of cloud-based customer relationship management systems among small and medium enterprises is augmenting their demand. Increased preference for these systems is attributed to their benefits, including cost-effectiveness, real-time assessment, and high flexibility.

What is Contributing to Growing Use of CRM Systems in the Retail Sector?

“Rising Deployment of CRM Solutions for Personalized Interactions”

Attribute	Retail
Segment Value (2024E)	US$ 15.4 Billion
Growth Rate (2024 to 2034)	9.3% CAGR
Projected Value (2034F)	US$ 37.5 Billion

The retail sector is estimated to contribute 21% of the customer relationship management market share by 2034. Customer relationship management solutions help retail businesses to keep track of their respective customer segments and leads. CRMs include data as well as features, such as customer profiles with product preferences and contact details for respective buyers. These systems enable personalized interactions and targeted market campaigns, thereby leading to stronger customer connections.

Competitive Landscape

Key players in the customer relationship management industry are formulating strategies such as partnerships, collaborations, new product development, and acquisitions to expand their reach globally.

For instance :

• Copper CRM, Inc., acquired Sherlock in February 2021 to assist clients in strengthening their customer relations. It also provides professionals with transparency about customer preferences and behavior.
• Microsoft Corporation, in October 2020, established an alliance with C3.AI and Adobe Systems to offer efficient and developed AI-powered CRM solutions.
• Zoho Corporation Pvt. Ltd., in May 2020, launched Bigin. This CRM software was launched for small and medium enterprises enabling them to build various customer pipelines.

Fact.MR provides detailed information about the price points of key providers of customer relationship management solutions positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of CRM Market Research

• By Deployment :

  • Cloud
  • On-premise

• By End Use :

  • Government & Education
  • Healthcare
  • BFSI
  • Retail
  • Discrete Manufacturing
  • IT & Telecom
  • Others

• By Solution :

  • CRM Analytics
  • Social Media Monitoring
  • Marketing Automation
  • Customer Experience Management
  • Salesforce Automation
  • Customer Services
  • Others

• By Enterprise Size :

  • Small & Medium Enterprises
  • Large Enterprises

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA