The Global Customer Engagement Solutions Market size was valued at USD 16.89 Billion in 2022 and is projected to reach USD 48.11 Billion by 2030, growing at a CAGR of 12.34% from 2023 to 2030.

Customer Engagement Solutions Market Overview:

Customer engagement solutions refer to business communications and interactions employing a variety of strategies to broaden and retain consumers. Customer engagement solutions also include software that manages marketing personalization, customer service, web chat, omni-channel, and more. This solution has broad applicability in workforce optimization, participatory application development and automation.

Increasing adoption of customer engagement solutions to reduce customer churn and increasing use of e-commerce and m-commerce platforms are driving the growth of the customer engagement solutions market. Additionally, the focus on providing enhanced customer engagement through omnichannel drives the market for customer engagement solutions. However, synchronization of data between customer engagement solutions systems and customer engagement solutions and other technologies for data security and privacy concerns limits the growth of the customer engagement solutions market. Conversely, increasing investment in artificial intelligence (AI) in customer engagement solutions is expected to provide rewarding opportunities for customer engagement solutions market expansion over the forecast period.

Customer Engagement Solutions market size, estimates and forecasts are provided in terms of sales volume (K units) and revenue (million USD), with historical and forecast data for the period 2017 to 2030, with 2022 being considered as the base year. This report segments the global Customer Engagement Solutions market in detail. Regional market sizes related to products by type, by application, and by player are also delivered. In estimating the size of the market, we took into account the impact of COVID-19 and the Russian-Ukraine war.

Key Market Updates:

• May 2022 - Avaya, Inc announced that it has expanded its global partnership with Microsoft Azure to give organizations more options to increase productivity and customer engagement with unmatched reliability, agility and scale. The partnership will offer the Avaya OneCloud portfolio on Azure for customers seeking maximum flexibility to deploy in a hybrid, public or private cloud environment.
• June 2021 - Customer experience intelligence company Calabrio announced the availability of its cloud Workforce Engagement Management (WEM) platform through its local offices in Singapore. WEM cloud services will help meet the growing demand for cloud-first contact center services from regional and global organizations looking to move to Southeast Asia.

Major Market Segments Covered in Customer Engagement Solutions Industry Research:

Market Key Players:
Avaya Inc., Aspect Software Inc., Calabrio Inc., Genesys, IBM Corporation, Verint Systems Inc, Nice Systems, Nuance Communications Inc., OpenText Corporation, Oracle Corporation, and Pegasystems Inc.

By Type:

• Cloud
• On-Premises

By Component:

• Solution
• Services

By Application:

• BFSI
• Telecom and IT
• Retail and Consumer Goods
• Media and Entertainment
• Other End-user Industries

By Organization Size:

• Small & Medium Enterprises
• Large Enterprise

By Region:

North America customer engagement solutions market growth is expected to be the fastest growing at a CAGR of 10.5% during the forecast period. The continent's leading software vendors offer a range of customer engagement solutions to help businesses solve end-customer problems in a timely manner. These solutions deliver metrics and actionable insights that help improve the overall customer experience, increasing brand loyalty and reducing churn.

North America is also a hub for the healthcare, IT & telecommunications, energy and utilities sectors as business shifts towards digital transformation are driving the increasing use of emerging technologies such as machine learning and industrial automation.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Denmark
  • Finland
  • Iceland
  • Sweden
  • Norway
  • Belgium
  • The Netherlands
  • Luxembourg
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Benelux Union
• Rest of Europe
• Asia-Pacific
  • Indonesia
  • Thailand
  • Malaysia
  • Singapore
  • Rest of Southeast Asia
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Significant Market Dynamics:

Driver:

According to HubSpot's State of Inbound 2021 Report, more than 50% of businesses have seen lead generation. Increasing customer satisfaction is a top priority for marketing in the coming years and has remained consistent over the past few years. A Harvard Business School report claims that, on average, a 5% increase in customer retention increases revenue by 25% to 95%. Poor customer experience is one of the leading causes of increased customer churn. With the help of customer engagement solutions, a poor customer experience can be turned into a positive brand image for your company. Customer engagement is about engaging customers through various touchpoints such as social media, surveys, advertising campaigns, and direct interactions. Customer analytics, which form part of a customer engagement solution, not only provides periodic analytical insight into customer churn rates, but also ensures effective relationship management between an organization and its customers. Adopting customer engagement solutions helps organizations improve customer retention and customer loyalty.

Restraint:

Customer information is an important component of customer engagement because it helps facilitate interactions between customers and organizations. The complexity of the touchpoints in the customer feedback process has helped companies collect valuable data related to customer behavior and expectations. Customer contact centers generate large amounts of data. When this data is not synchronized with other technologies, organizations face data synchronization challenges. Data is collected at different touchpoints, and businesses need to segment data based on customer needs and expectations. Data collected from various touchpoints such as company website, web, mobile phone, social media, and email is different and difficult to organize in different forms across organizations. Analyzing large amounts of structured and unstructured data requires cost, time, and expertise. This creates challenges in customer engagement solutions that prevent optimal return on investment (RoI).

Opportunity:

Established companies such as Alibaba, BT Global Services, Lexus, Nubank, Uber, and Zurich Insurance are using AI technology in chatbots and guiding customer analytics capabilities in the customer engagement process. This indicates that engaging customers at every stage of their journey, aided by advanced technologies such as AI, has always been a key growth strategy for incumbents. Additionally, these organizations are finding that automated, AI-powered tools are most effective when they complement and extend the capabilities of their customer support teams. As such, the majority of major global brands are making significant investments in AI technologies to improve customer engagement levels. In April 2021, Microsoft acquired Nuance Communications (NUAN), a maker of speech recognition software whose AI tools are widely used in the healthcare market. Alphabet, Microsoft, Facebook, and Amazon are all spending big on AI technology. These companies are deploying AI in consumer products and services such as voice-activated smart home devices. Google and Facebook use AI tools in digital advertising. Businesses are looking for an effective combination of employee and automated customer communication channels to enhance customer engagement. Therefore, increasing investment in AI is providing lucrative growth opportunities for developers of customer engagement solutions.

Challenge:

The increasing popularity of web, mobile, cloud and social media is raising organizational concerns about keeping customer data secure. The presence of multiple touchpoints increases the potential for exposure of customer data to hostile, unauthorized personnel. Organizations need to protect customer data from security breaches and hackers. Since the implementation of customer engagement solutions requires handling large amounts of unstructured data, securely managing customer data is a key challenge for the growth of the customer engagement solutions market.

Customer Engagement Solutions Market report scope:

Report Attributes	Details
Growth Rate	CAGR of 12.34% from 2022 to 2030.
By Type	Cloud, On-Premises
By Application	BFSI, Telecom and IT, Retail and Consumer Goods, Media and Entertainment, Other End-user Industries
By Companies	Avaya Inc., Aspect Software Inc., Calabrio Inc., Genesys, IBM Corporation, Verint Systems Inc, Nice Systems, Nuance Communications Inc., OpenText Corporation, Oracle Corporation, and Pegasystems Inc.
Regions  and Countries  Covered	North America: (US, Canada, Mexico, Rest of North America) Europe(Germany, France, Italy, Spain, UK, Nordic Countries, Benelux Union, Rest of Europe) Asia-Pacific (Japan, China, India, Australia, South Korea, Southeast Asia, Rest of Asia-Pacific) The Middle East & Africa(Saudi Arabia, UAE, Egypt, South Africa, Rest of the Middle East & Africa) Latin America(Brazil, Argentina, Rest of Latin America) Rest Of the World
Base Year	2022
Historical Year	2017 to 2022
Forecast Year	2023 to 2030

Key Takeaways from this Customer Engagement Solutions Report

• Estimate Customer Engagement Solutions market potential through analyzing growth rates (CAGR %), Volume (Units) and Value ($M) data given at country level - for product types, applications and by different industry verticals.
• Understand the supply chain in depth on the value growth at each step, in order to optimize value and bring effectiveness in your processes.
• Know the different dynamics affecting the market - challenges, key driving factors and opportunities.
• Get a quick viewpoint on the Customer Engagement Solutions market entropy - M&A's, deals, partnerships, product launches of all key companies for the historical 5 years.
• Estimate the supply-demand gaps, import-export data and regulatory landscape for more than top 20 countries worldwide for the market.
• Get complete insights on your competitor performance - market shares, strategies, financial benchmarking, product benchmarking, SWOT and more.
• Study the sales and distribution channels over key geographies to improve top-line revenues.

Frequently Asked Questions-

What is the CAGR of Customer Engagement Solutions market?

The Customer Engagement Solutions Market is growing at a CAGR of 12.34% During Forecast Period.

What are the key types of Customer Engagement Solutions market?

Cloud, On-Premises

What are the key applications of Customer Engagement Solutions market?

BFSI, Telecom and IT, Retail and Consumer Goods, Media and Entertainment, Other End-user Industries

Who are the key players in Customer Engagement Solutions market?

Avaya Inc., Aspect Software Inc., Calabrio Inc., Genesys, IBM Corporation, Verint Systems Inc, Nice Systems, Nuance Communications Inc., OpenText Corporation, Oracle Corporation, and Pegasystems Inc.