Cloud CRM Market - Forecast(2024 - 2030)

Overview

Cloud CRM Market size is estimated at US$43.1 billion in 2023, and is expected to reach US$68.3 billion by 2030, growing at a CAGR of 8.2% during the forecast period 2024-2030. CRM systems are increasingly leveraging AI and ML capabilities to enhance customer insights, automate repetitive tasks, and personalize customer interactions. By analyzing large datasets and predicting customer behavior, AI-powered CRM systems enable businesses to deliver more targeted marketing campaigns, improve sales forecasting accuracy, and provide proactive customer service. There is a growing preference for cloud-based CRM solutions over traditional on-premises systems due to their flexibility, scalability, and cost-effectiveness. Cloud CRM platforms offer anytime, anywhere access to customer data, seamless integration with other business applications, and automatic software updates. This trend is driven by the need for businesses to adapt to remote work environments, improve collaboration among teams, and reduce IT infrastructure costs. Furthermore, advances in cloud computing technology, the emergence of serverless computing and hybrid cloud computing, and the availability of various service models such as SaaS, Infrastructure as a Service (IaaS), and Platform as a Service (PaaS) are expected to propel the CRM market particularly for marketing automation and business process management over the forecast period.

Market Snapshot:

The report: “Cloud CRM Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Cloud CRM Market.
By Offering Type: Solutions (Social Monitoring and Social Listening, Social Mapping, Social Middleware, Social Management, Social Measurement), Services.
By Organization Size: Small Enterprises, Medium Enterprises, Large Enterprises
By Application: Customer Service and Support, Marketing, Sales, Other
By End-user-industry: Academia and Government, Consumer Goods and Retail, Healthcare, Oil and Gas, Telecom and It and others
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Aus and Others), South America (Brazil, Argentina and others) and RoW (Middle east and Africa)

Key Takeaways

• North America dominated held the major market share in 2023. This is mainly attributed to the early adoption of new technologies, wide scale implementation by large enterprises and others.
• The demand for Customer Relationship Management (Crm) is estimated to witness significant upsurge during the forecast period, owing to the growing adoption of to the adoption of these services by SMEs globally.

Cloud CRM Market Segment Analysis – By Organization Size

By component, Cloud CRM Market is segmented into Small Enterprises, Medium Enterprises, and Large Enterprises. Large Enterprises held the highest market share of 62.3% in 2023. The market growth is attributed to high marketing and IT expenditure capacity, need to handle high volume of customer data, others. CRM systems are used to assist combine buyer data with business process management capabilities and enable users to seamlessly coordinate their sales, marketing, and customer support operations in large businesses due to the existence of various operational divisions. Furthermore, the segment's expansion is projected to be fueled by the large variety of CRM systems that offer scalable capabilities to match businesses' changing needs. Moreover, the rising use of big data, artificial intelligence, and machine learning in major businesses is likely to promote CRM adoption. Thus, above mentioned factors are analyzed to drive the market in the forecast period 2024-2030. 

Cloud CRM Market Segment Analysis – By End-Use Industry

Chemical & petrochemical sector held the largest share in the Cloud CRM Market in 2023 and is growing at a CAGR of 5.2% during this forecast period of 2024-2030, as compressor oil increases the service of machine, reduces operational cost & power consumption during operation. Thus, the increasing chemical & petrochemical industry is estimated to grow the consumption of compressor oil. Apart from this, according to the U.S. Energy Information Administration, the total natural gas production is projected to contribute 30% and more than 75% in Canada & Mexico, respectively by 2040. Hence, all factors are estimated to grow the consumption of compressor oil. The use of compressor oils in the chemical and petrochemicals industry is to guarantee the untroubled functioning of the machine parts and also help in minimizing the expenses and increasing the lifetime of the machine.

By Geography - Segment Analysis

North America dominated the market by a market share of approximately 44% in 2023. The market growth is due to the increasing use of emerging technologies such as machine learning, and industrial automation and major shift of business towards the digital transformation and North America is becoming a hub for a variety of industrial verticals, including healthcare, information technology and telecommunications, and the energy and utilities sector. Customers in these industrial verticals are likely to be numerous, necessitating the use of customer relationship management software. Furthermore, APAC is projected to have the fastest growth during 2024-2030, owing to increasing investment across industries, rapid digitalization, economic development and growing penetration of advanced technologies. The rising need for innovative CRM solutions from emerging nations such as China and India is also fuelling market expansion. The expected growth of the e-commerce business in Asian countries is expected to fuel demand for CRM systems. There is an increased demand for CRM solutions for small and medium businesses in the United States. SMBs in the region are presented with growth opportunities by gaining insights into business operations; hence SMBs are opting for software as a service (Saas) and on-demand modules of CRM in the United States.

Drivers – The Cloud CRM Market   

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Cloud CRM Market Drivers

Cloud CRM Market is expected to be largely influenced by changes in the Bring Your Own Device (BYOD) trend and the shift of organizations towards virtualization technologies:

Traditional corporate procedures have changed as a result of enterprise mobility. The BYOD movement is gaining in popularity in business contexts, owing to the rapid improvements in mobile computing. With the rise of BYOD, businesses must streamline device administration and operations by enhancing the entire user experience. Furthermore, this tendency has given rise to end user computing solutions, which allow workers to use and build these solutions without having to worry about IT general controls. According to Frost and Sullivan, 78.48% of organizations in the US had BYOD activities since 2018. According to CISCO, BYOD produces an average of $350 in value per mobile employee each year. BYOD provides organizations with an estimated $300-$1300 per year benefit from the average employee. 

Trend towards integration of Artificial Intelligence propels the market growth:

Currently, businesses are looking for the finest CRM software with AI capabilities. CRM systems are data aggregation technologies that help organizations gather, store, manage, and organize interactions more effectively. Long-term customer connections are nurtured through more efficient administration and automated client engagement. Organizational demands have evolved as the volume of data created everyday has increased dramatically. Businesses now want CRM technology that can extract, analyze, and interpret data in real time in order to make fast, fact-based business choices. 

Cloud CRM Market Challenges

The rising concern related to Security act as hindrance to the market growth for End User Computing:

The transition toward new technology by many businesses results in the production of more complicated data, raising security threats. The connectivity of increasingly connected devices raises concerns about security breaches. According to the Center for Strategic and International Studies (CSIS) and McAfee, cybercrimes, which include damage and destruction of data, stolen money, lost property, intellectual property theft, and other areas, currently cost the world almost USD 600 billion each year, or 0.8% of the global GDP. This major emergence of security challenges has resulted in growing concern about data security and encryption, which has hampered the market expansion of Customer Relationship Management (CRM).

Cloud CRM Market Landscape

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Cloud CRM Market. In 2023, the market of Customer Relationship Management (CRM) industry outlook has been fragmented by several companies.  Customer Relationship Management (CRM) top 10 companies include.

1. Salesforce Inc.
2. Microsoft Corporation
3. SAP SE
4. Oracle Corporation
5. ADOBE INC.
6. SugarCRM Inc.
7. Zoho Corporation Pvt. Ltd
8. Copper CRM, Inc.
9. Insightly Inc.
10. HubSpot 

Developments:

• March 2022 - HubSpot announced a partnership with the alternative financing platform Pipe. This partnership provides the company access to USD 100 million for fee-free funding for HubSpot for startup customers. This partnership enabled startups to pursue business growth with HubSpot's CRM platform while accessing capital from Pipo.

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