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The saas customer relationship management (crm) market size is forecast to increase by USD81.81 billion at a CAGR of 15.7% between 2023 and 2028. The CRM market for businesses utilizing SaaS solutions has experienced significant growth due to the increasing preference for cloud-based technologies. Personalized experiences are a key trend driving this market, as SaaS CRM software enables businesses to offer tailored interactions with customers, leading to enhanced retention rates. Additionally, the integration of advanced analytics into cloud-based CRM solutions has provided specialized industries and various business types with valuable insights, further fueling market expansion. However, data security concerns remain a challenge, necessitating robust security measures to protect sensitive customer information. In summary, the adoption of SaaS CRM solutions continues to rise, fueled by personalized experiences, analytics integration, and the convenience of cloud-based technologies, while data security remains a critical consideration.
The CRM market is witnessing significant shifts as businesses increasingly adopt cloud-based offerings to manage their customer relationships. This transition is driven by the advantages of cloud technology, including cost savings, flexibility, and scalability. Cloud servers have become a preferred data storage solution for CRM software providers. The subscription-based model allows businesses to access advanced CRM analytics and AI-powered insights without the need for large upfront investments. These tools are essential for retailers seeking to deliver personalized experiences and improve customer retention in today's digital economy.
Cloud technology plays a crucial role in enabling work collaboration and real-time data access. CRM analytics, powered by AI and automation, provide valuable insights into customer behavior and preferences. These insights help businesses tailor their offerings and marketing strategies to meet the unique needs of specific industries and business types. Softclouds, a leading CRM solutions provider, is at the forefront of this trend. Their cloud-based CRM solutions offer advanced features, including predictive analytics, AI-driven recommendations, and seamless integration with other digital technology tools. These specialized solutions are designed to cater to the unique requirements of various industries and business types.
The economic uncertainty brought about by the global business landscape has led to increased investment in cloud-based CRM solutions. Businesses are recognizing the value of these tools in helping them navigate the challenges of the current market conditions. With cloud technology providing a stable and flexible platform, CRM solutions are becoming an essential component of any business strategy focused on customer engagement and retention. As the business landscape continues to evolve, cloud-based CRM solutions will remain a key investment for businesses seeking to stay competitive and responsive to customer needs.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2017-2022 for the following segments.
The retail segment is estimated to witness significant growth during the forecast period.In today's business landscape, the retail industry is witnessing a significant shift towards cloud-based Customer Relationship Management (CRM) solutions, specifically Software as a Service (SaaS) CRM. This trend is driven by the expansion and growth of retail and e-commerce companies worldwide. SaaS CRM offers several benefits, including better customer relationship management, increased productivity, and revenue generation. Retail companies are under pressure to stay competitive in the market, leading them to reevaluate their investment strategies. They are opening new stores, developing digital sales models, acquiring other retail businesses, and embracing cloud computing. These strategies are essential for attracting and retaining a growing customer base.
SaaS CRM analytics plays a crucial role in this regard, providing valuable insights into customer behavior and preferences. SaaS CRM is a subscription-based model that offers cloud server access to data storage solutions. This model is particularly attractive to retailers due to its flexibility and scalability. By implementing SaaS CRM, retailers can streamline their sales processes, improve customer engagement, and gain a competitive edge. The banking and telecommunications sectors are also adopting SaaS CRM for similar reasons. In conclusion, SaaS CRM is an essential tool for retailers looking to stay competitive in today's market and meet the evolving needs of their customers.
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The Retail segment accounted for USD 12,385 million in 2017 and showed a gradual increase during the forecast period.
North America is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In North America, the adoption of Software-as-a-Service (SaaS) Customer Relationship Management (CRM) systems is on the rise, primarily due to the widespread use of digital technology and cloud services by businesses. The availability of advanced CRM tools, such as AI-powered insights and work collaboration features, is a significant factor driving this trend. Additionally, the convenience of accessing these tools through the cloud allows for greater flexibility and scalability for businesses. Cloud technology has become a preferred choice for enterprises in North America, as it offers cost savings and the ability to easily integrate various applications. Major cloud service providers, including Microsoft, Salesforce, and Oracle, offer comprehensive CRM solutions that cater to the needs of businesses of all sizes.
These solutions enable access to various enterprise applications, such as CRM, ERP, and HRM, through web browsers using a one-click functionality. The increasing need for CRM analytics to gain valuable customer insights is another factor fueling the growth of the SaaS CRM market in North America. Freshchat and SoftClouds are among the many providers offering advanced analytics capabilities, allowing businesses to make data-driven decisions and improve customer engagement. Overall, the use of SaaS CRM systems in North America is expected to continue growing, as businesses seek to streamline their operations and gain a competitive edge through better customer understanding.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing adoption of SaaS CRM by SMEs is the key driver of the market. SaaS Customer Relationship Management (CRM) solutions have become increasingly popular among Small and Medium-sized Enterprises (SMEs) in the US due to the affordability and accessibility brought about by cloud computing. These applications are now indispensable for businesses in sectors such as retail, finance, healthcare, telecom, and IT, enabling them to optimize marketing and sales operations and align process efficiencies. Previously, SMEs relied on standalone applications for various business functions, including sales management, contact management, marketing management, and productivity management. However, the shift towards SaaS CRM allows for the integration of multiple functions into a single, unified platform. SMEs benefit from improved planning and resource management, streamlined data consolidation, reduced operational expenses, enhanced decision-making capabilities, and increased sales.
Furthermore, the integration of business intelligence, embedded analytics, and Internet of Things (IoT) capabilities in SaaS CRM offers additional advantages, such as real-time data analysis and actionable insights. By adopting SaaS CRM, SMEs can gain a competitive edge and better serve their customers.
Integration of analytics into SaaS CRM is the upcoming trend in the market. In today's business landscape, economic uncertainty calls for efficient and effective customer relationship management (CRM) solutions. SaaS CRM systems have emerged as a preferred choice for businesses of all sizes and sectors, including B2B and B2G enterprises, due to their flexibility and scalability. These systems enable real-time data management and analysis of customer interactions from various sources such as emails, marketing campaigns, and customer calls. Advanced reporting and analytical insights derived from SaaS CRM provide valuable information about customer behavior patterns, enabling businesses to make informed decisions and predict potential customers. SaaS CRM's integration with e-mail, social media, and other platforms, alongside analytics, empowers marketers to capture and assess customer data, streamlining marketing strategies for improved customer engagement and retention.
Investing in a SaaS CRM system can lead to significant improvements in business operations and financial performance, as reflected in annual reports and quarterly earnings. Expert opinions suggest that the use of SaaS CRM with analytics can help businesses optimize their customer engagement efforts, ultimately leading to increased revenue and customer satisfaction.
Data security concerns is a key challenge affecting the market growth. Businesses of all sizes, from SMEs to large enterprises, are adopting cloud-based CRM solutions for personalized experiences and improved customer retention. SaaS CRM software offers numerous advantages, including lower upfront costs, flexibility, and scalability. However, concerns regarding security and privacy persist, as enterprises face increasing cyber threats, leading to revenue losses and production inefficiencies. SMEs, in particular, are at risk due to limited IT security infrastructure and smaller budgets. Cybercriminals often target these businesses through espionage, sabotage, and data theft, resulting in ransomware attacks. To mitigate these risks, it's crucial for businesses to invest in specialized cloud-based CRM solutions tailored to their specific industries and business types.By doing so, they can ensure data security and privacy while reaping the benefits of SaaS CRM solutions.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Capillary Technologies - The company provides two Software-as-a-Service (SaaS) Customer Relationship Management (CRM) applications: Engage plus and Insights plus. These solutions enable businesses to effectively manage their customer interactions and gain valuable insights to enhance customer experience. Engage plus streamlines communication and sales processes, while Insights plus delivers in-depth analytics to inform strategic decision-making. By implementing these applications, businesses can improve customer engagement, increase sales productivity, and ultimately drive growth.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Cloud-based CRM solutions have become the go-to choice for businesses across various industries, including retail, banking, and telecommunications. These solutions, offered by software providers, allow businesses to store and manage customer data on a cloud server using a subscription-based model. The ease of implementation, scalability, flexibility, and affordability of these CRM tools make them an attractive option for businesses undergoing digital transformation. Cloud-based CRM analytics provide actionable data and forward-looking analysis, enabling businesses to gain insights into customer preferences and behavior. The integration of AI and automation in CRM tools offers personalized experiences, leading to increased customer retention. The use of cloud technology also facilitates work collaboration and business intelligence, allowing for real-time data access and embedded analytics.
The CRM market is witnessing significant growth due to the digital technology trend and the increasing adoption of cloud-based applications. The Internet of Things and big data analytics are also driving the demand for CRM solutions in various industries. Cross-platform compatibility and specialized solutions catering to specific industries and business types are further boosting the market growth. Cloud platforms offer businesses the flexibility to invest in CRM software according to their economic uncertainty and level of digitization. Expert opinions suggest that CRM software will continue to play a crucial role in the digital transformation of businesses, with financial management, investment, and financial statements becoming key areas of focus.
Market Scope |
|
Report Coverage |
Details |
Page number |
192 |
Base year |
2023 |
Historic period |
2017-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.7% |
Market growth 2024-2028 |
USD 81810.6 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.76 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 53% |
Key countries |
US, Canada, UK, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Capillary Technologies, Cendyn Group LLC, DataAegis Software Pvt Ltd., Doxim Inc, HCL Technologies Ltd., HubSpot Inc., Infor Inc., International Business Machines Corp., NICE Ltd., Oracle Corp., Pegasystems Inc., Sage Group Plc, Salesforce Inc., SAP SE, SugarCRM Inc., Veeva Systems Inc., Verint Systems Inc., Vtiger Systems India Pvt. Ltd., Zendesk Inc., and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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