Customer Engagement Solutions Market by Component (Solutions, Services), Deployment Type (Cloud, On-premises), Organization Size, Vertical (BFSI, Telecommunication, Consumer Goods & Retail), and Region - Global Forecast to 2023

The customer engagement solutions market was valued at USD 13.00 billion in 2017 and is expected to reach USD 23.19 billion by 2023, at a CAGR of 10.5% during the forecast period. The base year considered for the study is 2017 and the forecast period is from 2018 to 2023.

Objectives of the study:

• To determine and forecast the customer engagement solutions market based on component, deployment type, organization size, vertical, and region from 2018 to 2023, and analyze various macro- and microeconomic factors that affect market growth
• To forecast the size of market segments with respect to 5 main regions, namely, North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and Latin America
• To provide detailed information regarding major factors such as drivers, restraints, opportunities, and challenges influencing the growth of the market
• To strategically analyze each submarket with respect to individual growth trends, prospects, and contribution to the market
• To analyze opportunities for stakeholders by identifying high-growth segments of the market
• To profile key market players and provide comparative analysis based on business overviews, product offerings, regional presence, business strategies, and key financials with the help of in-house statistical tools to understand the competitive landscape
• To track and analyze competitive developments such as mergers & acquisitions, agreements & contracts, joint ventures, partnerships, and strategic alliances in the customer engagement solutions market

The research methodology used to estimate and forecast the size of the market began with obtaining data on key vendor revenues through secondary sources, such as annual reports, white papers, certified publications, and databases, such as Factiva and Hoovers, press releases, and investor presentations of customer engagement solutions vendors, as well as articles from recognized industry associations, statistics bureaus, and government publishing sources. Vendor offerings were taken into consideration to determine the market segmentation. The bottom-up procedure was used to arrive at the overall size of the customer engagement solutions market by estimating revenues of key market players. After arriving at the overall market size, the total market was split into several segments and subsegments, which were verified through primary research by conducting extensive interviews with key individuals, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments.

The breakdown of profiles of primary participants is depicted in the figure below:

To know about the assumptions considered for the study, download the pdf brochure

The customer engagement solutions market ecosystem includes key players, such as Aspect Software (US), Avaya (US), Calabrio (US), Genesys (US), IBM (US), Microsoft (US), NICE Systems (Israel), Nuance Communications (US), OpenText (Canada), Oracle (US), Pegasystems (US), Pitney Bowes (US), Salesforce (US), SAP (Germany), ServiceNow (US), Verint Systems (US), Zendesk (US), eGain Corporation (US), BPMonline (US), CRMnext (India), Eptica (France), Freshworks (US), IFS-mplsystems (UK), Lithium Technologies (US), and SugarCRM (US).

Key Target Audience

• Providers of Customer Engagement Solutions and Services
• Suppliers of IT Hardware/Software/Services
• Software and System Integrators
• IT Infrastructure Providers
• Marketing Analytics Executives
• System Administrators
• App Developers
• Third-Party Service Providers
• Technology Providers

Scope of the Report

The research report categorizes the customer engagement solutions market to forecast revenues and analyze trends in each of the following submarkets:

By Component

• Solutions
• Services

By Solution Type

• Omnichannel
• Workforce Optimization
• Robotic Process Automation
• Analytics & Reporting

By Organization Size

• Small & Medium Enterprises
• Large Enterprises

By Deployment Type

• Cloud
• On-premises

By Vertical

• BFSI
• Consumer Goods & Retail
• Telecommunication
• Healthcare & Life Sciences
• Automotive & Transportation
• Media & Entertainment
• Travel & Hospitality
• Manufacturing
• Others (Utilities, Power, Education, and Logistics) 

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Available Customizations

Along with the given market data, MarketsandMarkets offers customization as per a company’s specific requirements. The following customization options are available for the report:

Geographic Analysis

• Further breakdown of the US market by component
• Further breakdown of the UK market by component

Company Information

• Detailed analysis and profiles of additional market players

Table of Contents

1 Introduction (Page No. - 16)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Market Segmentation
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Stakeholders

2 Research Methodology (Page No. - 19)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Data Triangulation
    2.4 Research Assumptions
    2.5 Limitations

3 Executive Summary (Page No. - 27)

4 Premium Insights (Page No. - 32)
    4.1 Attractive Opportunities in the Customer Engagement Solutions Market
    4.2 North America: Market By Component
    4.3 Europe: Market By Deployment Type
    4.4 Middle East & Africa: Market By Organization Size
    4.5 Asia Pacific: Market By Vertical
    4.6 Market By Vertical & Region

5 Market Overview and Industry Trends (Page No. - 36)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increasing Adoption of Customer Engagement Solutions to Reduce Customer Churn Rate
                    5.2.1.2 Increasing Use of E-Commerce and M-Commerce Platforms
                    5.2.1.3 Increasing Focus on Delivering Enhanced Customer Engagement Through Omnichannel
                    5.2.1.4 Rising Adoption of Smartphones and Tablets
           5.2.2 Restraints
                    5.2.2.1 Data Synchronization Between Customer Engagement Solutions and Other Technologies
                    5.2.2.2 Personalized Expectations of Customers
           5.2.3 Opportunities
                    5.2.3.1 Increased Applicability of Big Data and Machine Learning
                    5.2.3.2 Increased Investments in Artificial Intelligence (AI)
                    5.2.3.3 Increased Cross-Selling and Upselling Activities
           5.2.4 Challenges
                    5.2.4.1 Managing Security With Multiple Customer Touchpoints
                    5.2.4.2 Choosing the Proper Mix of Technology and Personnel
    5.3 Industry Trends
           5.3.1 Case Studies
                    5.3.1.1 Case Study 1: Mma Enhances Existing Sales Strategy With Online Chat to Increase Global Conversion Rates
                    5.3.1.2 Case Study 2: Dixons Carphone Ramps Up Its Live Helpdesk Functionality With the Help of Nuance Live Chat Solution
                    5.3.1.3 Case Study 3: Citi Mortgage Accelerated Interaction With Potential Buyers With the Help of Nuance Proactive Engagement Platform

6 Customer Engagement Solutions Market, By Component (Page No. - 43)
    6.1 Introduction
    6.2 Solutions
           6.2.1 Omnichannel
           6.2.2 Workforce Optimization
           6.2.3 Robotic Process Optimization
           6.2.4 Analytics & Reporting
    6.3 Services
           6.3.1 Professional Services
                    6.3.1.1 Implementation & Integration Services
                    6.3.1.2 Support & Maintenance Services
                    6.3.1.3 Consulting Services
           6.3.2 Managed Services

7 Market By Deployment Type (Page No. - 53)
    7.1 Introduction
    7.2 Cloud
    7.3 On-Premises

8 Customer Engagement Solutions Market, By Organization Size (Page No. - 57)
    8.1 Introduction
    8.2 Small & Medium Enterprises
    8.3 Large Enterprises

9 Market By Vertical (Page No. - 61)
    9.1 Introduction
    9.2 BFSI
    9.3 Consumer Goods & Retail
    9.4 Telecommunication
    9.5 Healthcare & Life Sciences
    9.6 Automotive & Transportation
    9.7 Media & Entertainment
    9.8 Travel & Hospitality
    9.9 Manufacturing
    9.10 Others

10 Regional Analysis (Page No. - 72)
     10.1 Introduction
     10.2 North America
             10.2.1 US
             10.2.2 Canada
     10.3 Europe
             10.3.1 UK
             10.3.2 Germany
             10.3.3 Rest of Europe
     10.4 Asia Pacific
             10.4.1 China
             10.4.2 India
             10.4.3 Japan
             10.4.4 Rest of Asia Pacific
     10.5 Middle East & Africa
             10.5.1 Saudi Arabia
             10.5.2 South Africa
             10.5.3 Rest of Middle East & Africa
     10.6 Latin America
             10.6.1 Mexico
             10.6.2 Brazil
             10.6.3 Rest of Latin America

11 Competitive Landscape (Page No. - 94)
     11.1 Overview
     11.2 Competitive Situation and Trends
             11.2.1 New Product Launches & Product Enhancements
             11.2.2 Agreements, Collaborations, and Partnerships
             11.2.3 Acquisitions
             11.2.4 Expansions
     11.3 Market Ranking of Key Players

12 Company Profiles (Page No. - 101)
(Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View)*
     12.1 Avaya
     12.2 Aspect Software
     12.3 Calabrio
     12.4 Genesys
     12.5 IBM
     12.6 Microsoft
     12.7 Nice Systems
     12.8 Nuance Communications
     12.9 Opentext
     12.10 Oracle
     12.11 Pegasystems
     12.12 Pitney Bowes
     12.13 Salesforce
     12.14 SAP
     12.15 Servicenow
     12.16 Verint Systems
     12.17 Zendesk
     12.18 Key Innovators
             12.18.1 Egain Corporation
             12.18.2 Bpmonline
             12.18.3 Crmnext
             12.18.4 Eptica
             12.18.5 Freshworks
             12.18.6 Ifs-Mplsystems
             12.18.7 Lithium Technologies
             12.18.8 Sugarcrm

*Details on Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.

13 Appendix (Page No. - 152)
     13.1 Industry Excerpts
     13.2 Discussion Guide
     13.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     13.4 Introducing RT: Real-Time Market Intelligence
     13.5 Available Customizations
     13.6 Related Reports
     13.7 Author Details

List of Tables (69 Tables)

Table 1 Customer Engagement Solutions Market Size, By Component, 2016–2023 (USD Million)
Table 2 Market Size By Solution Type, 2016–2023 (USD Million)
Table 3 Solutions: Market Size By Region, 2016–2023 (USD Million)
Table 4 Omnichannel: Market Size By Region, 2016–2023 (USD Million)
Table 5 Workforce Optimization: Market Size By Region, 2016–2023 (USD Million)
Table 6 Robotic Process Optimization: Market Size By Region, 2016–2023 (USD Million)
Table 7 Analytics & Reporting: Market Size, By Region, 2016–2023 (USD Million)
Table 8 Customer Engagement Solutions Market Size, By Service Type, 2016–2023 (USD Million)
Table 9 Services: Market Size By Region, 2016–2023 (USD Million)
Table 10 Professional Services: Market Size By Region, 2016–2023 (USD Million)
Table 11 Managed Services: Market Size By Region, 2016–2023 (USD Million)
Table 12 Market Size By Deployment Type, 2016-2023 (USD Billion)
Table 13 Cloud: Market Size By Region, 2016–2023 (USD Million)
Table 14 On-Premises: Market Size By Region, 2016–2023 (USD Million)
Table 15 Market Size By Organization Size, 2016-2023 (USD Billion)
Table 16 Small & Medium Enterprises: Market Size By Region, 2016-2023 (USD Million)
Table 17 Large Enterprises: Market Size By Region, 2016-2023 (USD Million)
Table 18 Customer Engagement Solutions Market Size, By Vertical, 2016-2023 (USD Billion)
Table 19 BFSI: Market Size By Region, 2016-2023 (USD Million)
Table 20 Consumer Goods & Retail: Market Size By Region, 2016-2023 (USD Million)
Table 21 Telecommunication: Market Size By Region, 2016-2023 (USD Million)
Table 22 Healthcare & Life Sciences: Market Size By Region, 2016-2023 (USD Million)
Table 23 Automotive & Transportation: Market Size By Region, 2016-2023 (USD Million)
Table 24 Media & Entertainment: Market Size By Region, 2016-2023 (USD Million)
Table 25 Travel & Hospitality: Market Size By Region, 2016-2023 (USD Million)
Table 26 Manufacturing: Market Size By Region, 2016-2023 (USD Million)
Table 27 Others: Market Size By Region, 2016-2023 (USD Million)
Table 28 Customer Engagement Solutions Market, By Region, 2016–2023 (USD Billion)
Table 29 North America Market By Component, 2016–2023 (USD Million)
Table 30 North America Market By Solution Type, 2016–2023 (USD Million)
Table 31 North America Market By Service Type, 2016–2023 (USD Million)
Table 32 North America Market By Organization Size, 2016–2023 (USD Million)
Table 33 North America Market By Deployment Type, 2016–2023 (USD Million)
Table 34 North America Market By Vertical, 2016–2023 (USD Million)
Table 35 North America Market By Country, 2016–2023 (USD Million)
Table 36 Europe Customer Engagement Solutions Market, By Component, 2016–2023 (USD Million)
Table 37 Europe Market By Solution Type, 2016–2023 (USD Million)
Table 38 Europe Market By Service Type, 2016–2023 (USD Million)
Table 39 Europe Market By Organization Size, 2016–2023 (USD Million)
Table 40 Europe Market By Deployment Type, 2016–2023 (USD Million)
Table 41 Europe Market By Vertical, 2016–2023 (USD Million)
Table 42 Europe Market By Country, 2016–2023 (USD Million)
Table 43 Asia Pacific Customer Engagement Solutions Market, By Component, 2016–2023 (USD Million)
Table 44 Asia Pacific Market By Solution Type, 2016–2023 (USD Million)
Table 45 Asia Pacific Market By Service Type, 2016–2023 (USD Million)
Table 46 Asia Pacific Market By Organization Size, 2016–2023 (USD Million)
Table 47 Asia Pacific Market By Deployment Type, 2016–2023 (USD Million)
Table 48 Asia Pacific Market By Vertical, 2016–2023 (USD Million)
Table 49 Asia Pacific Market By Country, 2016–2023 (USD Million)
Table 50 Middle East & Africa Customer Engagement Solutions Market, By Component, 2016–2023 (USD Million)
Table 51 Middle East & Africa Market By Solutions, 2016–2023 (USD Million)
Table 52 Middle East & Africa Market By Services, 2016–2023 (USD Million)
Table 53 Middle East & Africa Market By Organization Size, 2016–2023 (USD Million)
Table 54 Middle East & Africa Market By Deployment Type, 2016–2023 (USD Million)
Table 55 Middle East & Africa Market By Vertical, 2016–2023 (USD Million)
Table 56 Middle East & Africa Market By Country, 2016–2023 (USD Million)
Table 57 Latin America Customer Engagement Solutions Market, By Component, 2016–2023 (USD Million)
Table 58 Latin America Market By Solutions Type, 2016–2023 (USD Million)
Table 59 Latin America Market By Services Type, 2016–2023 (USD Million)
Table 60 Latin America Market By Organization Size, 2016–2023 (USD Million)
Table 61 Latin America Market By Deployment Type, 2016–2023 (USD Million)
Table 62 Latin America Market By Vertical, 2016–2023 (USD Million)
Table 63 Latin America Market By Country, 2016–2023 (USD Million)
Table 64 Market Evaluation Framework
Table 65 New Product Launches & Product Enhancements, March 2018- June 2018
Table 66 Agreements, Collaborations, and Partnerships, July 2017- June 2018
Table 67 Acquisitions, August 2016-May 2018
Table 68 Expansions, October 2016-March 2018
Table 69 Market Ranking of the Key Players in the Customer Engagement Solutions Market in 2017

List of Figures (44 Figures)

Figure 1 Market Segmentation: Customer Engagement Solutions Market
Figure 2 Market Research Design
Figure 3 Breakdown of Primary Interviews: By Company Type, Designation, and Region
Figure 4 Market Size Estimation Methodology: Bottom-Up Approach
Figure 5 Market Size Estimation Methodology: Top-Down Approach
Figure 6 Data Triangulation
Figure 7 Customer Engagement Solutions Market, By Component, 2018 & 2023 (USD Billion)
Figure 8 Market By Deployment Type, 2018 & 2023 (USD Billion)
Figure 9 Market By Organization Size, 2018 & 2023 (USD Billion)
Figure 10 Market Share By Vertical, 2018
Figure 11 Market By Region, 2018 & 2023 (USD Billion)
Figure 12 Asia Pacific Customer Engagement Solutions Market Projected to Grow at the Highest CAGR From 2018 to 2023
Figure 13 Increasing Adoption of Customer Engagement Solutions to Reduce Customer Churn Rate is Driving the Growth of the Market
Figure 14 Services Segment of the Market Projected to Grow at A Higher CAGR Than Solutions Segment From 2018 to 2023
Figure 15 Cloud Segment of the Market Projected to Grow at A Higher CAGR Than On-Premises Segment From 2018 to 2023
Figure 16 Small & Medium Enterprises Segment of the Market Projected to Grow at A Higher CAGR Than Large Enterprises Segment From 2018 to 2023
Figure 17 BFSI Segment of the Market Projected to Grow at the Highest CAGR From 2018 to 2023
Figure 18 North America and BFSI Vertical Segment Expected to Lead the Market in 2018
Figure 19 Customer Engagement Solutions Market: Drivers, Restraints, Opportunities, and Challenges
Figure 20 Solutions Segment Expected to Grow at Higher CAGR During Forecast Period as Compared to Services Segment
Figure 21 Analytics & Reporting Segment Expected to Grow at Highest CAGR During Forecast Period
Figure 22 Managed Services Segment Expected to Grow at Higher CAGR During Forecast Period as Compared to Professional Services Segment
Figure 23 Cloud Segment Estimated to Lead Market in 2018
Figure 24 Large Enterprises Segment Estimated to Lead Market in 2018
Figure 25 BFSI Segment Estimated to Lead Market in 2018
Figure 26 North America Estimated to Be Largest Market for Market in 2018
Figure 27 Customer Engagement Solutions Market in Asia Pacific Projected to Grow at Highest CAGR During Forecast Period
Figure 28 North America Market Snapshot
Figure 29 Asia Pacific Market Snapshot
Figure 30 Companies Adopted New Product Launches & Product Enhancements as Key Growth Strategies Between January 2016 and June 2018
Figure 31 Avaya: Company Snapshot
Figure 32 IBM: Company Snapshot
Figure 33 Microsoft: Company Snapshot
Figure 34 Nice Systems: Company Snapshot
Figure 35 Nuance Communications: Company Snapshot
Figure 36 Opentext: Company Snapshot
Figure 37 Oracle: Company Snapshot
Figure 38 Pegasystems: Company Snapshot
Figure 39 Pitney Bowes: Company Snapshot
Figure 40 Salesforce: Company Snapshot
Figure 41 SAP: Company Snapshot
Figure 42 Servicenow: Company Snapshot
Figure 43 Verint Systems: Company Snapshot
Figure 44 Zendesk: Company Snapshot

The customer engagement solutions market is projected to grow from USD 14.08 billion in 2018 to USD 23.19 billion by 2023, at a CAGR of 10.5% during the forecast period. The increasing adoption of customer engagement solutions to reduce customer churn rate, increasing use of e-commerce and m-commerce platforms, and increasing focus on delivering enhanced customer engagement through omnichannel are significant factors projected to drive the growth of the market.

The customer engagement solutions market has been segmented based on component, deployment type, organization size, vertical, and region. Based on component, the market has been segmented into solutions and services. The solutions component segment of the market has been further classified into omnichannel, workforce optimization, robotic process automation, and analytics & reporting. The services component segment of the market has been further classified into professional services and managed services.

The analytics & reporting subsegment of the solutions segment is projected to grow at the highest CAGR during the forecast period. Analytics is a technology that uses multiple algorithms to process and obtain data from speech and text-based information. Analytics & reporting allow organizations to use artificial intelligence to help them offer tailored solutions. The increasing use of the Internet of Things (IoT) in business processes helps organizations increase the use of analytical capabilities. All the above-mentioned factors are expected to drive the demand for analytics & reporting solutions.

Based on deployment type, the customer engagement solutions market has been segmented into on-premises and cloud. Based on organization size, the small & medium enterprises segment of the market is projected to grow at a higher CAGR during the forecast period as compared to the large enterprises segment. Cost-effectiveness is important for SMEs, as they have a limited budget. Hence, the implementation of cloud-based customer engagement solutions is expected to result in increased revenues, desired business outcomes, and improved business efficiency for SMEs. The large enterprises segment is projected to lead the market during the forecast period.

Based on vertical, the BFSI segment is projected to lead the customer engagement solutions market from 2018 to 2023. The growth of the BFSI segment can be attributed to the increased adoption of customer engagement solutions in the BFSI vertical, as these solutions help BFSI companies automate their customer interaction processes through chatbots, thereby reducing the service delivery time.

The customer engagement solutions market has been studied for North America (the US and Canada), Europe (the UK, Germany, and Rest of Europe), Asia Pacific (China, India, Japan, and Rest of Asia Pacific), the Middle East & Africa (Saudi Arabia, South Africa, and Rest of Middle East & Africa), and Latin America (Mexico, Brazil, and Rest of Latin America). The Asia Pacific market is projected to grow at the highest CAGR from 2018 to 2023. The growth of the Asia Pacific market can be attributed to the increased adoption of cloud computing by different organizations in this region. Small & medium enterprises across various countries, such as Australia, Malaysia, Japan, and Singapore, are investing in information technology to compete, secure, and capture digital opportunities present in the market.

Issues related to data synchronization between customer engagement solutions and other technologies are restraining the growth of the customer engagement solutions market during the forecast period.

Key players operating in the customer engagement solutions market are Avaya (US), Aspect Software (US), Calabrio (US), Genesys (US), IBM (US), Microsoft (US), NICE Systems (Israel), Nuance Communications (US), OpenText (Canada), Oracle (US), Pegasystems (US), Pitney Bowes (US), Salesforce (US), SAP (Germany), ServiceNow (US), Verint Systems (US), and Zendesk (US). These companies are adopting various growth strategies such as expansions, agreements, collaborations, partnerships, acquisitions, and new product launches & product enhancements to increase their market shares.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst