The spending in the digital customer experience and engagement solutions market was valued at around USD 412.5 million in 2023. With a projected CAGR of 4.8% for the next ten years, the market is likely to reach a valuation of nearly USD 661.3 million by the end of 2033.
The recent surge in expectation for a good customer experience and personalization has triggered the demand for spending on digital customer experience and engagement solutions.
| Report Attributes | Details |
|---|---|
| Global Spending in Digital Customer Experience And Engagement Solutions Market Size (2022) | USD 399.7 million |
| Global Spending in Digital Customer Experience And Engagement Solutions Market Size (2023) | USD 412.5 million |
| Global Spending in Digital Customer Experience And Engagement Solutions Market Projected Market Value (2033) | USD 661.3 million |
| Global Spending in Digital Customer Experience And Engagement Solutions Market Growth Rate (2023 to 2033) | 4.8% CAGR |
| North America Spending in Digital Customer Experience And Engagement Solutions Market Share (2021) | >35% |
| Key Companies Profiled | Accenture PLC; Capgemini SE; Cognizant; IBM Corporation; Liferay Inc.; MEGA International; Orange Business Services; Tietoevry Corporation; SAS Institute Inc.; KOFAX Inc.; NCR Corporation; Tata Consultancy Services Limited; Zendesk Inc.; SAS Institute Inc. |
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The global market for spending on digital customer experience and engagement solutions expanded at a CAGR of 2.7% over the last five years.
The market growth is projected to benefit from the surge in the B2B customer expectation for an enhanced and personalized customer experience, leading to increased avenues for the key industry players shaping the spending in digital customer experience and engagement solutions industry in the forthcoming years.
The global spending in the digital customer experience and engagement solutions market is predicted to surge at a CAGR of 4.8% and record sales worth USD 661.3 million by the end of 2033. The United States may remain the leading market throughout the analysis period, accounting for over USD 69.2 million absolute dollar opportunity in the coming 10-year epoch.
In the forthcoming years, it is expected that the customer awareness segment of the spending in digital customer experience and engagement solutions market may experience a CAGR of 4.9%.
According to a 2022 survey, around 77% of customers tend to be better at being loyal to businesses offering marvelous services, which further expedites the customer analytics sub-segment of the customer awareness segment, which aids in improving customer experience and loyalty.
As of 2021, over 63% of companies across the globe are focusing more on customer experiences.
Findings of another market survey have noted that around 71% of the customers may discontinue using the services of a company if it is found that their data is shared without permission, a development that directly impacts the growth of the customer data management platforms under the customer awareness segment by solution.
Furthermore, at 2.1 billion, with nearly 30% of the global populace digitizing their shopping experience, the requirement for a personalized omnichannel experience is surging, leading industry players such as Amazon.com Inc.
in the retail and wholesale industry vertical to leverage customer analytics. All these attributes are anticipated to positively impact the spending in digital customer experience and engagement solutions market in the upcoming 10-year epoch.
The business-to-business segment by business type of spending in the digital customer experience and engagement solutions market may be witnessing a CAGR of 4.7 % in the upcoming 10-year epoch.
The business-to-business (B2B) segment by business type becomes convalescent when the B2B organizations work efficiently for customer experience enhancement. With the demand for personalization increasing among customers, B2B e-commerce and sales teams increasingly focus on customer data analytics.
A study has recently found that 80% of the B2B customer cohort post-pandemic tends to expect a buying experience similar to that of the business-to-customer (B2C) segment.
Besides, a 2020 study further estimates that by 2025, around 80% of the net B2B sales transactions may be happening via digital channels. More recently, in 2022, it is predicted that by the end of 2026, over 65% of the B2B sales may be transitioning to data-driven decision-making from intuition-based decision-making.
Nearly 75% of the B2B customers find themselves being extensively influenced by the social media segment by touch point, with 84% of senior executives using the platform to support purchase decisions.
Moreover, automation solutions pertaining to the business-to-business (B2B) segment are estimated to rise during the forthcoming years to keep up with the increasing trends of digitization across the globe.
With key players in the B2B segment focusing on marketing automation and personalizing customer experience and requirements, this segment is anticipated to positively impact the spending in digital customer experience and engagement solutions market.
Asia Pacific may continue to be lucrative for spending in the digital customer experience and engagement solutions market in the forthcoming years. Among the various attributes favoring the market in Asia Pacific, new product launches are also included.
In January 2020, the Cheetah Digital Customer Engagement Suite was launched in Japan, which provides business firms with immaculate ways of marketing to consumers. This also aids the 5.7% CAGR the country is set to witness by the end of 2033.
A recent survey noted that in India, enhancing customer experience across financial services, healthcare, retail, media, telecommunications, and travel may aid the unlocking of USD 200 billion in brand value, along with improving the total valuation of businesses by around 125 to 400%.
Also, taking into account the data related to the CX Index in India, around 80% of customers tend to recommend a brand after a satisfying experience, and only 35% may recommend it after a poor experience.
It is estimated that the North-American region may maintain its market share of more than 35% intact in the spending in the digital customer experience and engagement solutions market.
One of the key attributes associated with the growth of the spending in the digital customer experience and engagement solutions market in the region is the extensive surge in spending witnessed by digital marketing in both Canada and the United States.
As of 2020, the most beneficial advertising medium in Canada was digital media, standing at USD 5.9 billion in ad revenue, accounting for over half of the ad revenue generated in the nation. According to a March 2022 report, the churn rates associated with content streaming platforms in the United States are among the world's leading.
This attribute aids in augmenting the requirement for customer engagement solutions, which helps reduce churn rates, thus leading to a surge in customer engagement. All these factors are anticipated to augment the requirement for spending in the digital customer experience and engagement solutions market in the forthcoming years.
The United States commands a global market share of over 25% in the spending in the digital customer experience and engagement solutions market and may continue to keep it intact.
The country is expected to witness a CAGR of 5.2% coupled with an absolute dollar opportunity of USD 69.2 million to reach a total market valuation of USD 174.7 million by the end of 2033. The most popular form of advertising and marketing used across the industry verticals in the United States is the Social Media segment.
According to a recent report, as of 2021, around 91.9% of the United States business marketers with more than 100 employees tended to use social media for marketing and advertising. Additionally, over USD 153 billion was the cost associated with internet advertising and is estimated to surge ahead in the forthcoming years.
The market growth associated with social media is also expedited by the large cohort of social media users in the country, which is anticipated to increase further during the upcoming 10-year epoch.
Presently, with over 231.5 million people, 72.3% of the total United States population uses social media. Additionally, the United States is among the leading and most mature industries in the world pertaining to adopting B2B e-commerce. B2B e-commerce was valued at USD 6.7 trillion in the United States as of 2019.
The attributes contributing to this growth that may further expedite it in the forthcoming years are the consistent shift of B2B customers to online corporate purchases from the more conservative buying methods. All these attributes may expedite the growth of the Spending in the Digital Customer Experience and Engagement Solutions Market in the United States during the upcoming 10-year forecast period.
Accenture PLC, Capgemini SE, Cognizant, IBM Corporation, Liferay Inc., MEGA International, Orange Business Services, Tietoevry Corporation, SAS Institute Inc., KOFAX Inc., NCR Corporation, Tata Consultancy Services (TCS) Limited, Zendesk Inc., and SAS Institute Inc.
Are among the key players worldwide driving the competitive landscape of the market. Several companies are adopting strategies such as mergers, acquisitions, and partnerships to expand their product portfolio and simultaneously capitalize on the growing market demand.
Recent Developments
By 2033, the market is likely to expand at a 4.8% CAGR.
The 2023 market value is USD 412.5 million.
From 2018 to 2022, the market expanded at a 2.7% CAGR.
The United States is expected to develop at a 5.2% CAGR by 2033.
Business-to-Business (B2B) is expected to be highly preferred.
The spending in digital customer experience and engagement solutions market is segmented based on business type, touchpoints, industry, enterprise size, solution, and region.
Spending In Digital Customer Experience and Engagement Solutions Market
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