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customer engagement solutions market

Customer Engagement Solutions Market by Component (Solution, Services), By Vertical (Automotive & Transportation, Consumer Goods & Retail, Healthcare & Life Sciences, Media & Entertainment, Telecommunication); By Development Mode; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Jul 2022
  • Pages: 115
  • Format: PDF
  • Report ID: PM2521
  • Base Year: 2021
  • Historical Data: 2018-2020

Report Summary

The global customer engagement solutions market was valued at USD 18.05 billion in 2021 and is expected to grow at a CAGR of 10.8% during the forecast period. Customer engagement 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, and further increased focus on delivering enhanced customer engagement would be the factors expected to drive the growth of the industry.

Customer Engagement Solutions Market Size
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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.

Growing demand for consumer satisfaction and meaningful engagement surges, and the industry is likely to see substantial growth over the forecast period. 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 as they seek huge profit as well as revenues and higher consumer lifetime value. 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. In addition, governments across the globe are supportive of such solutions for automation, which provides ample growth opportunities for the industry.

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.

Moreover, the need for consumer satisfaction and enhanced consumer experience is expected to contribute towards the high adoption of the industry. High consumer satisfaction is the ultimate goal for any business. They help to identify consumer trends and interaction opportunities to serve as a source for modeling.

Report Segmentation

The market is primarily segmented based on development mode, component, vertical, and region.

By Development Mode

By Component

By Vertical

By Region

  • Cloud
  • On-premises
  • Solution
  • Services
  • Automotive & Transportation
  • Consumer Goods & Retail
  • Healthcare & Life Sciences
  • Media & Entertainment
  • Telecommunication
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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The cloud sector is expected to hold the significant revenue share

Based on the deployment model, the cloud segment is expected to be the most lucrative segment due to its low capital expenditure as well as low maintenance requirements. Therefore, 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 industry growth.

The solution segment is expected to be the largest market in 2021

The component segment is categorized into solutions and services. The solution segments account for the largest share in the customer engagement solutions market. 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 2021

The consumer goods & retail segment is predicted to hold the most significant revenue share in the forecast period. 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 is accounted for the highest market share in 2021

The North American region accounts for the highest share of the market. 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

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).

In May 2018, IBM Corporation launched AI-powered enterprise, Watson Customer Engagement (WCE) services. This was undertaken for marketing cloud services locally from a data center in India.

Customer Engagement Solutions Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 18.05 billion

Revenue forecast in 2030

USD 43.91 billion

CAGR

10.8% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Segments covered

By Component, By Development Mode, By Vertical, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

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.

Key Take-Away
Polaris Market Research
Global Customer Engagement Solutions Market Size Report, 2022 - 2030