The U.S. customer relationship management market is predicted to surpass around USD 64.2 billion by 2030 with a CAGR of 14.2% from 2022 to 2030.
Customer relationship management (CRM) solutions with data-driven insights offer enhanced functionality apart from their traditional role of information gathering, activity tracking, and passive data repository generation. Therefore, these solutions enable companies to analyze buying behavior of customers and simultaneously provide relevant information to augment their sales efforts. Hence, business and organization of all sizes are investing heavily in customer relationship management solutions.
There is a growing demand for these solutions from small and medium sized business. This is likely to present promising growth opportunities for customer relationship management solutions based on software-as-a-service (SaaS) and on-demand models in the U.S. market. This is owing to the fact that these models can minimize the need for upgrading or investing in new hardware infrastructure and can consecutively bring down maintenance and support costs. Presence of major CRM solution providers in the country is also a major factor that drives the adoption of customer relationship management solutions over the forecast period.
CRM software has already gained significant attention from various industries due to its changing nature in terms of growing functionalities and feature set. CRM suites also offer the capability to measure business performance and keep a track of sales trajectory, which have been some of the key factors encouraging businesses to use them. The U.S. market is also witnessing significant growth in cross-sales to existing customers with installed base (in terms of add-ons and upgrades).
Presently, large customer relationship management solution providers such as Salesforce.com, SAP SE, Oracle Corporation, and Microsoft Corporation dominate the U.S. customer relationship management market and have focused on augmenting their collective market share in the U.S. Other key players are trying to access the market by offering identical CRM solutions at a competitive price. This has led to a notable rise in intensity of competition across all sub-segments in the U.S. market.
Scope of The Report
|Revenue Forecast by 2030||USD|
|Growth rate from 2022 to 2030||CAGR of%|
|Forecast Period||2022 to 2030|
|Segmentation||Application, deployment, and end-use
The retail segment dominated the market in 2021. The emergence of artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) technologies is trending in the retail industry in the U.S. Advantages such as easy access to newer markets, seamless customer experience across channels, and capability of building an interpersonal relationship with customers are helping drive the adoption of CRM solutions in the retail sector in the country.
Telecom and IT is expected to emerge as the fastest-growing segment over the forecast period. Factors such as availability of high-speed wireless internet infrastructure and services and booming IT industry are expected to further fuel the growth of the segment. For instance, software-as-a-service (SAAS) for CRM deployment enables companies to own multiple datasets from discrete systems in order to enhance decision-making and customer service delivery. This approach facilitates various organizations with a vertical-specific CRM to serve a dedicated purpose.
The cloud deployment segment is likely to dominate the U.S. CRM market over the forecast period owing to rising awareness regarding the benefits of cloud in terms of cost and flexibility. It offers seamless access to the system from any point or device that proves beneficial for any large-scale business. Owing to the rising focus of U.S.-based companies on developing an automated and customized customer management approach, the development and deployment of cloud software services is expected to rise at a promising pace in the country in the next few years.
The on-premise mode of deployment constitutes a significant share in the U.S. market and is anticipated to witness decent growth over the forecast period owing to rise in the number of paid subscriptions. It involves a system database to be installed on the internal server of the end user wherein security levels are to be managed completely at the organizational level. In addition to offering versatility to upgrade to the newest versions of software as and when needed, this mode proves to be a cost-effective investment. These factors fuel the demand for on-premise deployment, resulting in significant growth prospects.
The large enterprises segment accounted for a significant market share in 2021, thanks to rising need for adoption of customer relationship management platforms to enhance customer engagement. In addition, several key benefits offered by these platforms, such as improvement in internal business processes and customer relation management approach, are also encouraging small- and medium-sized businesses (SMBs) to use CRM services and solutions in the U.S. Furthermore, customer relationship management solutions have also enabled manufactures and service providers to effectively communicate and work with large number of business in emerging economies across regions.
Declining prices of cloud-based CRM solutions are also a key factor driving the adoption of customer relationship management solutions by SMEs in the U.S. As a result, SMBs are anticipated to emerge as the fastest-growing segment during the forecast period owing to increasing rate of digitization in businesses and growing importance of customer engagement. SMBs are also increasingly acknowledging the importance of having a robust CRM platform to complement their sales strategy.