Customer Experience Management Market Size, Trends and Growth Analysis by 2027

The customer experience management (CEM) market is anticipated to expand significantly, with projections indicating growth from US$ 11,555.18 million in 2022 to US$ 29,780.95 million by 2028. This growth represents a compound annual growth rate (CAGR) of 17.1% during the period from 2022 to 2028.

As e-commerce and digital banking continue to evolve, consumers are increasingly embracing digital channels. Over the past decade, many retailers have transitioned from traditional brick-and-mortar stores to online platforms. For example, a report from Statista highlighted that in 2020, more than 2 billion individuals made purchases online, contributing to global e-retail sales that surpassed US$ 4.5 trillion. Consequently, retailers are leveraging AI-driven technologies such as virtual rehearsal rooms, chatbots, and analytics tools to monitor and interpret customer behavior. Brands are utilizing various platforms, including social media, mobile apps, and websites, to enhance visibility and engagement. These developments are key drivers of the customer experience management market's growth.

Moreover, the rise of social media platforms like Facebook, Instagram, YouTube, Twitter, and Pinterest is significantly influencing brand visibility, marketing strategies, and direct sales. Many brands are establishing social media shops to streamline the purchasing process for consumers. For instance, Facebook and Instagram shops enable retailers to attract new customers and facilitate direct purchases through social media. Customer experience solutions are instrumental for these retailers in minimizing churn, enhancing customer lifetime value, and fostering loyalty. Thus, the evolving consumer purchasing behavior is a catalyst for market expansion.

In addition, the digitization of the healthcare sector is accelerating the uptake of e-health applications, telemedicine, smart health devices, and wearables. This transformation is reshaping customer expectations, demanding 24/7 service and prompt responses. As a result, companies are implementing diverse digital strategies to enhance customer experiences. The aforementioned factors collectively contribute to the robust growth of the market.

A global survey of executives reveals that business leaders in South America exhibit a strong enthusiasm for adopting customer experience management tools. The report, which surveyed 700 executives, indicates that South American professionals are among the fastest adopters of technology, positioning the region as a promising market for CEM vendors in the coming years. Companies in South America are increasingly embracing technological solutions. For instance, in May 2020, New Relic collaborated with Agencia Sabia, a South American agency, to enhance brand awareness and expand its audience in the region. New Relic aims to localize its efforts and share local narratives, leveraging Sabia's expertise to understand best practices and engage with customers effectively. Such initiatives are expected to drive the growth of the customer experience management market in the forecast period.

The significant presence of call centers in countries like Brazil and Colombia, along with the rising trends in social media, such as social e-commerce and direct-to-consumer (D2C) models, are likely to further stimulate market growth. These businesses heavily rely on customer feedback to enhance their services. Additionally, the ongoing rise of small and medium enterprises (SMEs) in nations like Chile and Argentina is significantly influencing the adoption of CEM solutions to strengthen both regional and global business operations.

The presence of numerous developing nations in South America positions this region as a crucial market for customer experience management. The increasing adoption of cloud-based technologies and a strong emphasis on delivering exceptional customer experiences were already contributing to market growth prior to the COVID-19 pandemic. The pandemic accelerated the adoption of CEM solutions, driven by increased internet access and the heightened demand for superior customer experiences to attract new clients and improve retention rates. According to data from the World Bank, the pandemic posed unprecedented health, social, and economic challenges for Brazil, leading to a 4.1% decline in GDP in 2020. However, the economy began to recover, supported by a resurgence in private consumption and investment. Despite the disruptions caused by the pandemic, 2021 emerged as a recovery year, enhancing the growth prospects for the customer experience management market.

The customer experience management market is categorized based on various factors, including component, deployment mode, organization size, touchpoint, industry vertical, and geography. In terms of components, the market is divided into solutions and services. Regarding deployment modes, it is classified into cloud-based and on-premise options. The organization size segmentation includes large enterprises and small to medium enterprises (SMEs). Touchpoints are categorized into call centers, websites, mobile applications, email, social media, and others. Industry verticals encompass IT & telecom, BFSI, energy & utilities, government, retail, manufacturing, and more. Geographically, the market is segmented into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The overall size of the customer experience management market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market. This process also aims to provide an overview and forecast for the customer experience management market across all segments. Additionally, numerous primary interviews have been conducted with industry participants to validate the data and gain deeper analytical insights. Participants include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants specializing in the customer experience management sector.