Customer Engagement Solutions Market by Component (Solution and Services), By Vertical, By Deployment Mode, and By Region -Market Forecast, 2025 – 2034
- Published Date:Sep-2025
- Pages: 115
- Format: PDF
- Report ID: PM2521
- Base Year: 2024
- Historical Data: 2020-2023
Overview
The global customer engagement solutions market size was valued at USD 22.31 billion in 2024. The market is projected to grow at a CAGR of 10.00% during 2025 to 2034. Key factors driving demand for customer engagement solutions include the rise of social media, the growth of e-commerce, and digital transformation.
Key Insights
- The cloud segment is projected to grow at the fastest CAGR in the coming years, owing to its low capital expenditure as well as low maintenance requirements.
- The solution segment accounted for the largest revenue share in the customer engagement solutions market in 2024, due to its ability to identify consumer trends.
- The consumer goods & retail segment is predicted to hold the most significant revenue share in the forecast period, owing to the growing e-commerce sector.
- North America accounted for the largest share of the market in 2024 due to increased adoption of these solutions in the region, especially in the U.S.
Industry Dynamics
- The growing urbanization is propelling the market growth by creating larger and more diverse customer bases.
- The growing data-center business models worldwide are leading to high demand for customer engagement solutions.
- The growing digitalization worldwide is creating a lucrative market opportunity.
- High implementation and maintenance costs are projected to hamper the market growth.
Market Statistics
- 2024 Market Size: USD 22.31 Billion
- 2034 Projected Market Size: USD 57.81 Billion
- CAGR (2025-2034): 10.00%
- North America: Largest Market Share
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AI Impact on Customer Engagement Solutions Market
- AI helps in personalization by analyzing customer behavior.
- AI forecasts customer needs, which allows businesses to engage proactively.
- AI chatbots and virtual assistants streamline support and reduce response time.
- AI create seamless customer journeys by integrating data across platforms.
Customer engagement solution refers to the adoption of different approaches by companies in order to broaden and retain their customers. It helps in reducing customer grievances within less time. Such engagement solution ranges from social media, CRMs, consumer services, web chat, marketing personalization, and others. The solution is predominantly a platform for client engagement and provides analytics, self-service, along with automation. The solution provides the facility to provide a level of interaction between consumers and an organization indirectly or directly through the different channels of communication ranging from offline or online services. This connection helps to improve customer engagement and consumer experience. It helps the consumer to solve their problems and make speedy suggestions on how to improve future services to that particular consumer.
There is increasing implementation of these software solutions post lockdown to provide satisfactory customer experiences across the home, office, and industrial applications. Further, the customer engagement solutions market growth is primarily driven by a focus on consumer experience, operational efficiency, and employee productivity. In addition, contact centers are now considered important for driving consumer loyalty, raising the brand profile, bringing in new consumers, and upselling to existing consumers through ultimate consumer satisfaction. This is leading to the adoption of such solutions by various verticals, such as BFSI and retail sectors worldwide. Moreover, the growing focus on service-driven data-center business models fuels the growth of the consumer engagement solutions market during the forecast period. Governments across the globe are also supportive of such solutions for automation, which provides ample growth opportunities for the industry.
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Industry Dynamics
Growth Drivers
The increased adoption of smart homes, and digitization in the gaming industry, have led to increased use of these solutions. Moreover, the implementation of the Internet of Things (IoT) and connected devices has aggravated the demand for call center AI. Additionally, the adoption of new technologies such as AI, ML, speech analytics, and text analytics drives the growth of the customer engagement solutions market. The need for consumer satisfaction and enhanced consumer experience is expected to contribute towards the high adoption of these solutions.
Report Segmentation
The market is primarily segmented based on development mode, component, vertical, and region.
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By Deployment Mode |
By Component |
By Vertical |
By Region |
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The Cloud Segment is Expected to hold the Significant Revenue Share in the Coming Years
Based on the deployment model, the cloud segment is expected to be the most lucrative segment in the coming years, due to its low capital expenditure as well as low maintenance requirements. It is highly preferred by mid-sized financial institutions. Growth in the adoption of cloud-based call center AI solutions among large and medium-sized enterprises mainly drives the segment growth. The growing urbanization and high investment in cloud computing acorss the globe is also leading to the segment growth.
The Solution Segment is Expected Held the Largest Market Share in 2024
The component segment is categorized into solutions and services. The solution segments account for the largest share in the customer engagement solutions market in 2024. These solutions are used to monitor and measure contact center performance while managing consumer interactions. They help the organization understand the performance of its services and examine data sources to identify consumer trends, as well as interaction opportunities, to serve as a source for modeling. Analytics can be historical or predictive, and data sources include customer feedback, behavior data, demographics, and purchase data.
Consumer Goods & Retail Accounted for the Largest Revenue Share in 2024
The consumer goods & retail segment dominated the revenue share in 2024. A number of players are adopting the e-commerce business model to benefit from the growing smartphone usage. The increased use of e-commerce platforms and the growing adoption of these solutions, as well as smartphones and tablets, are some of the factors leading to the growth of the global customer engagement solutions market.
The North America Region Accounted for a Major Market Share in 2024
The North American region accountED for the largest share of the market in 2024. U.S. and Canada hold a major portion of the industry in this region. This is due to the increased adoption of these solutions in the North American region, especially in the U.S., due to the high penetration of smart devices, growing adoption of smart homes, and adoption of the Internet of Things and connected devices boosting the industry growth.
Competitive Insight
Compnaies in the market are competing to caputure major profitiablity and revenue share. Major players are investing to innvoate newer products in the market so that potentail consumer can purchase their products. Local solutions providers are also investing in expansiuon to attract customers from all across the globe. Some of the major players operating in the global market include Avaya, Inc., Calabrio, Genesys, IBM Corporation, Microsoft Corporation, MoEngage, NICE Systems Ltd., Nuance Communications, Inc., and OpenText Corporation, Oracle Corporation, Salesforce, Sentimeter, SugarCRM, Upshot, and WebEngage.
Recent Developments
In May 2021, Microsoft Corporation acquired Nuance Communications speech recognition company for $19 billion. This acquisition was intended by Microsoft to become a customer engagement platform leader (CEP).
Customer Engagement Solutions Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 22.31 billion |
| Market size value in 2025 | USD 24.50 billion |
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Revenue forecast in 2034 |
USD 57.81 billion |
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CAGR |
10.00% from 2025 - 2034 |
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Base year |
2024 |
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Historical data |
2020 - 2023 |
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Forecast period |
2025 - 2034 |
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Quantitative units |
Revenue in USD billion and CAGR from 2025 to 2034 |
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Segments covered |
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Regional scope |
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Key companies |
Avaya, Inc., Calabrio, Genesys, IBM Corporation, Microsoft Corporation, MoEngage, NICE Systems Ltd., Nuance Communications, Inc., OpenText Corporation, Oracle Corporation, Salesforce, Sentimeter, SugarCRM, Upshot, and WebEngage. |
FAQ's
• The global market size was valued at USD 22.31 billion in 2024 and is projected to grow to USD 57.81 billion by 2034.
• The global market is projected to register a CAGR of 10.00% during the forecast period.
• North America dominated the market in 2024
• A few of the key players in the market are Avaya, Inc., Calabrio, Genesys, IBM Corporation, Microsoft Corporation, MoEngage, NICE Systems Ltd., Nuance Communications, Inc., and OpenText Corporation, Oracle Corporation, Salesforce, Sentimeter, SugarCRM, Upshot, and WebEngage.
• The consumer goods & retail segment dominated the market revenue share in 2024.
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