Market Size of Customer Relationship Management Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 72.95 Billion |
Market Size (2029) | USD 105.91 Billion |
CAGR (2024 - 2029) | 7.74 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Customer Relationship Management (CRM) Market Analysis
The Customer Relationship Management Market size is estimated at USD 72.95 billion in 2024, and is expected to reach USD 105.91 billion by 2029, growing at a CAGR of 7.74% during the forecast period (2024-2029).
This is primarily due to the number of businesses adopting CRM to boost their customer retention and drive sales is seeing a continuous surge. CRM connects multiple support channels to resolve issues ASAP. With its multiple deployment modes, easy mobile access, and scalability as top features, CRM tools see increasing applications globally.
- A CRM solution is a complex platform that stores everything users need to grow, improve, and maintain customer connections. There will be tremendous growth opportunities and operating operations with the help of an integrated CRM solution, such as making the most of customer connections or sales leads.
- In recent times, cloud-based solution has several advantages that can help businesses improve their operations and better use technology. Cloud computing takes pleasure in assisting SMEs in their growth and encourages entrepreneurial behavior at all levels.
- The potential of AI in CRM is huge, and most providers are investing in the same to have predictions and recommendations based on unique business processes. With benefits ranging from Predictive lead scoring to anticipating customer needs across major functions like sales, marketing, and customer service, the adoption of AI in CRM is leading toward growth in the forecasted period.
- The need for more security concerning consumer information privacy and the expensive initial and installation costs of this software may limit the market's global expansion. Furthermore, the growing acceptance of the bring your own device (BYOD) ecosystem and the CRM software's high operational efficiency and low operating costs will generate lucrative prospects in the CRM market throughout the forecast period.
- The COVID-19 pandemic brought digitalization, which led to the growth of data generation and the need to analyze the data generated. It also led to an increase in digitalization to cope with the remote-working environment. Further, due to the pandemic's effects, various businesses have faced severe challenges pertaining to supply chain issues. Businesses and industries have seen a slump in growth. In the post-COVID-19 scenario, the demand for CRM solutions is expected to increase significantly in the region, with higher demand for mobile solutions and SaaS.
Customer Relationship Management (CRM) Industry Segmentation
The customer relationship management (CRM) software market is a subsegment of the enterprise software market geared toward managing external business contacts and communication in marketing, sales, and acquisition. It offers standalone software designed to help end-user companies manage a customer's entire life cycle, including marketing, sales, customer services, and contact center. The study is structured to capture revenues accrued by software vendors through various software offerings and allied services to small and medium businesses throughout the globe.
The market is segmented by Deployment Mode (Cloud-based, On-Premise), Size of Organization (Small and Medium Enterprise, Large Enterprise), End-user Vertical (Healthcare, Retail, BFSI, IT & Telecom, Manufacturing, Media & Entertainment), Application (Sales, Marketing, Customer Service, Digital Commerce) and Geography.
The scope of the report covers customer relationship management software by Deployment, Size of Organisation, Application across important business functions, and End-user Verticals.
The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
By Deployment Mode | |
Cloud-based | |
On-Premise |
By Size of Organisation | |
Small and Medium Enterprise | |
Large Enterprise |
By End-user Vertical | |
Healthcare | |
Retail | |
BFSI | |
IT & Telecom | |
Manufacturing | |
Media & Entertainment | |
Other End-user Verticals |
By Application | |
Sales | |
Marketing | |
Customer Service | |
Digital Commerce | |
Other Applications |
Geography | |
North America | |
Europe | |
Asia - Pacific | |
Latin America | |
Middle East and Africa |
Customer Relationship Management Market Size Summary
The Customer Relationship Management (CRM) industry is experiencing significant growth, driven by the increasing adoption of CRM solutions by businesses aiming to enhance customer retention and boost sales. The market is characterized by the integration of multiple support channels, offering features such as mobile access and scalability, which are gaining traction globally. The shift towards cloud-based solutions is particularly notable, as these platforms provide numerous advantages for businesses, especially small and medium enterprises (SMEs), by facilitating growth and encouraging entrepreneurial activities. The incorporation of artificial intelligence (AI) into CRM systems is also a key trend, with providers investing heavily to offer predictive insights and recommendations, thereby enhancing functionalities across sales, marketing, and customer service domains. Despite challenges such as data privacy concerns and high initial costs, the CRM market is poised for robust expansion, supported by the growing acceptance of bring your own device (BYOD) policies and the software's operational efficiency.
The COVID-19 pandemic has accelerated digital transformation, increasing the demand for CRM solutions as businesses adapt to remote working environments and seek to analyze the surge in data generation. This shift has led to a stronger emphasis on cloud-based CRM services, particularly in developing nations, where organizations are transitioning to customer-centric models. The North American region, in particular, is witnessing a surge in CRM adoption among SMEs, driven by the presence of major CRM providers and the availability of software as a service (SaaS) solutions. The market is highly fragmented, with both global players and SMEs contributing to its dynamism. Companies are focusing on partnerships, innovation, and expansion to enhance their offerings and maintain a competitive edge. Recent developments, such as strategic partnerships and the introduction of specialized CRM platforms, underscore the industry's commitment to leveraging technology for improved customer engagement and business growth.
Customer Relationship Management Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter Five Force
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Assessment of Impact of COVID-19 on The Industry
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2. MARKET SEGMENTATION
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2.1 By Deployment Mode
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2.1.1 Cloud-based
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2.1.2 On-Premise
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2.2 By Size of Organisation
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2.2.1 Small and Medium Enterprise
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2.2.2 Large Enterprise
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2.3 By End-user Vertical
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2.3.1 Healthcare
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2.3.2 Retail
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2.3.3 BFSI
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2.3.4 IT & Telecom
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2.3.5 Manufacturing
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2.3.6 Media & Entertainment
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2.3.7 Other End-user Verticals
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2.4 By Application
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2.4.1 Sales
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2.4.2 Marketing
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2.4.3 Customer Service
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2.4.4 Digital Commerce
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2.4.5 Other Applications
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2.5 Geography
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2.5.1 North America
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2.5.2 Europe
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2.5.3 Asia - Pacific
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2.5.4 Latin America
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2.5.5 Middle East and Africa
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Customer Relationship Management Market Size FAQs
How big is the Customer Relationship Management Market?
The Customer Relationship Management Market size is expected to reach USD 72.95 billion in 2024 and grow at a CAGR of 7.74% to reach USD 105.91 billion by 2029.
What is the current Customer Relationship Management Market size?
In 2024, the Customer Relationship Management Market size is expected to reach USD 72.95 billion.