U.S. Customer Relationship Management Market, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: U.S. Customer Relationship Management Market


The U.S. Customer Relationship Management market size was valued at USD 25.8 billion in 2018 and is anticipated to register a CAGR of 14.0% from 2019 to 2025. Growing adoption of cloud-enabled social and mobile CRM solutions is expected to boost the growth of the U.S. market during the forecast period. In addition, companies are now acknowledging the growing importance of these solutions for B2B and B2C business processes, which is also expected to fuel the adoption of customer relationship management solutions in the U.S. over the forecast period.
Entry of new market players with an innovative approach toward offering value-based results to end users is triggering market demand. For instance, increased number of CRM solutions that focus on user-friendliness are being introduced in the market and the rising adoption of such solutions is boding well for the market. It is also estimated that AI-enabled customer relationship management software, which offer benefits such as quicker implementation ofrepetitive and mundane tasks, improved customer retention, and lead customization, would result in high revenue generation in the next few years.

The market offers substantial growth opportunities owing to presence of several well-established players, well-developed business ecosystems, and existence of a high consumerist culture. There is a high impetus by solution providers upon training and certification programs in order to create a workforce that is technically sound with CRM functionalities and operations.

A key trend in the market is the increased adoption of social and mobile solutions. This can be attributed to the fact that there are several mobile customer relationship management solutions in the market that deliver a wide range of capabilities on any device connected to the network. Real-time access to such solutions is another major advantage offered by mobile CRM. In addition, the number of smartphone users is increasing exponentially across the globe, which is consequently widening the potential customer base of these solutions.

CRM applications integrated with wearable devices is being touted as the next big thing in the field. If these applications are embedded within wearable computing devices, businesses can modify and improve their customer relationship management strategy based on real-time information about customers and can engage with them on a more personalized level.

However, not all businesses may benefit from a CRM software. This is especially true for businesses that work on a highly standardized customer interaction model. For instance, a process-driven sales channel might not be a major concern for a small-scale organization. Similarly, a large-scale organization may demand a robust CRM capable of driving the business as well as addressing customer queries. In addition, security concerns are likely to exist in a centralized data server environment, which may discourage businesses dealing with critical business or consumer data from adopting such solutions. For instance, the General Data Protection Regulation (GDPR) regulation levies heavy penalties on organizations in case they are unable to provide privacy protections to all their customers.

Application Insights of U.S. Customer Relationship Management Market

The retail segment dominated the market in 2018. 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.

Deployment Insights of U.S. Customer Relationship Management Market

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.

End-use Insights

The large enterprises segment accounted for a significant market share in 2018, 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.

Market Share Insights of U.S. Customer Relationship Management Market

Some of the key vendors in the market are Adobe Systems Inc.; Genesys; Hubspot Inc.; Insightly Inc.; Microsoft Corporation; Nimble; Oracle Corporation; Salesforce.com Inc.; and SAP SE. Mergers and acquisitions, product launches, and strategic collaborations are some of the leading strategies adopted by players for business expansion.
For instance, in June 2019, Genesys introduced new analytics dashboards, namely PureEngage and PureConnect, as part of its CRM portfolio. This new initiative is expected to enhance the functionality of the companys customer relationship management portfolio and provide users with improved representation of their business operations. In February 2018, the company acquired Altocloud Ltd. to enhance its customer engagement capability.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of U.S. Customer Relationship Management Market Research Report

This report forecasts revenue growth at country level and provides an analysis on the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the U.S. Customer Relationship Management (CRM) market report based on application, deployment, and end use:

Application Outlook (Revenue, USD Billion, 2019 - 2030)

  
BFSI
  
Retail
  
Healthcare
  
Telecom & IT
  
Discrete Manufacturing
  
Government & Education
  
Others

Deployment Outlook (Revenue, USD Billion, 2019 - 2030)

  
On-premise
  
Cloud

End-use Outlook (Revenue, USD Billion, 2019 - 2030)

  
Large Enterprises
  
SMBs