Austin, Texas, USA, October 30, 2024
Market Growth Is Driven by Increased Spending on Technologies to Support More Granular Personalized Experiences and the Desire to Incorporate Advanced AI Tools and Capabilities Within CRM Platforms
The CRM market is expanding rapidly, driven by the growing demand for personalized customer experiences and the integration of AI and ML. According to Futurum Group’s analysis, the CRM market reached US$52.7 billion by the first half of 2024 and is projected to grow to US$80 billion annually by 2028, reflecting a compound annual growth rate (CAGR) of 10.7%.
Figure 1: Futurum’s Estimate of 2023-2028 CRM Software Revenue, World Markets
Source: Futurum Research, 2H 2024 Enterprise Applications Market Sizing & Forecast Report
CRM software often serves as the central repository for customer information, incorporating not only basic customer details, such as their name, address, and contact information, but also a full record of their previous interactions with a company. The data held within a CRM is exceptionally valuable to organizations that are trying to create more targeted, personalized, and relevant customer experiences to differentiate their offerings from competitors.
“Data held within CRM software is often seen as the single source of truth for customer data and journey information, which has increasingly become important in the age of hyper personalization, real-time marketing, and cookie-less digital targeting,” said Keith Kirkpatrick, Research Director, Enterprise Applications at Futurum. “Organizations are identifying the CRM software that makes it easier to surface insights hidden within their data, as well as selecting platforms that are leveraging generative AI to make it easier to interact with data, automate repetitive tasks, and support customer-facing self-service features.”
Market Growth
Organizations have been focused on driving more relevant and personalized experiences. In an era where third-party data is being deprioritized, the value of first-party data held within the CRM has been elevated. As such, organizations have sought out CRM applications that are capable of not only holding customer data securely, but making it available for use by multiple departments within the organization, including marketing, sales, service, and support, among others.
Moreover, the platforms that are seeing adoption by the market are those that are incorporating technology – notably artificial intelligence – to automate basic and repetitive tasks, as well as surface key insights and provide next-best steps designed to guide humans to take the actions that will drive business growth.
In addition, CRM vendors are seeking to retain and attract new customers by enabling CRM data to be accessed and manipulated within other applications, including collaboration apps such as Slack, or visualization tools such as PowerBI. The end goal is to demonstrate that the application (and vendor, by extension) will play nice in the technology stack sandbox, and let the customer decide where and how to deploy the software.
Leveraging Cloud Infrastructure to Deploy AI
The increasing adoption of cloud-based CRM software is another significant driver of market growth. Cloud-based CRM software provides several advantages, including scalability, accessibility, and cost-effectiveness. End customers can easily scale their CRM infrastructure to meet changing needs without investing in expensive hardware and software, and cloud-based solutions enable sales teams to collaborate effectively and serve customers from anywhere. Additionally, cloud providers can provide strong security measures to protect sensitive customer data, ensuring compliance with data privacy regulations.
Futurum clients can read more in the report: 2H 2024 Enterprise Applications Market Sizing and Five-Year Forecast.
About Futurum Intelligence for Market Leaders
Futurum Intelligence’s Enterprise Applications IQ service provides actionable insight from analysts, reports, and interactive visualization datasets, helping leaders drive their organizations through transformation and business growth. Additional information is available at Futurum Intelligence.
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Other insights from The Futurum Group:
Enterprise Applications June 2024 Monthly Market Snapshot Report
Leveraging Intelligence to Maximize the Value of CRM Data
Zoho’s Major CRM Customization Announcements and Their Impact on Customers – Six Five On the Road
