Customer Engagement Solutions Market Size, Share, Industry, Forecast and outlook (2024-2031)

Customer Engagement Solutions Market is Segmented By Component (Software, Services), By Deployment Mode (On-Premise, Cloud), By End-User (BFSI, Healthcare, Retail & E-Commerce, Education, IT & IT Services, Government, Others), By Organization Size (Small & Medium Enterprises, Large Enterprises), AND BY REGION (NORTH AMERICA, LATIN AMERICA, EUROPE, ASIA PACIFIC, MIDDLE EAST, AND AFRICA) – SHARE, SIZE, OUTLOOK, AND OPPORTUNITY ANALYSIS, 2024-2031

Market Overview

Global Customer Engagement Solutions Market reached USD 19.1 billion in 2022 and is expected to reach USD 33.2 billion by 2030, growing with a CAGR of 10.7% during the forecast period 2023-2030. Customer engagement solutions use data analytics and AI to understand customer preferences, behaviors and purchase history. It enables businesses to deliver tailored content, product recommendations and that offer, engaging and relevant experiences.

North America is expected to hold more than 1/3rd share of the global customer engagement soutions in 2022. The region has a highly developed digital infrastructure, with widespread internet connectivity and access to cutting-edge technologies. The technological advancement in the region has paved the way for customer interactions across various digital channels and driven the demand for customer engagement solutions.

For instance, on, 23 February 2023, BMO (Bank of Montreal) recently announced a partnership with Agent IQ, a digital customer engagement solutions provider. In the collaboration, BMO will leverage Agent IQ's secure chat platform, Lynq, to enhance its digital banking services. 

Market Scope

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Market Dynamics

Rise in Technology Advancement 

Advanced data analytics and Big Data technologies helps businesses to analyze large volumes of customer data in real-time. The analysis provides valuable insights into customer behavior and preferences, which enables businesses to deliver experience. Virtual and Augmented Reality technologies have found applications in customer engagement, especially in the retail and entertainment industries.

For instance, on 12 July 2023, 8×8, a cloud communications platform provider, introduced the 8×8 Technology Partner Ecosystem, which includes more than 30 partners. The ecosystem aims to enhance customer engagement solutions in the e-commerce and retail industry through open architecture and AI integration. Partners like Cognigy are helping 8×8 deliver conversational AI capabilities, improving customer interactions and support.

The Rising Virtual Front Desk Solutions 

The rising adoption of virtual front desk solutions is a significant driver in the customer engagement solution market. Virtual front desk solutions offer advanced technologies such as artificial intelligence (AI) and natural language processing (NLP) that enhance the overall customer experience and improve operational efficiency in various industries.

For instance, on 24 July 2023, a leading hotel chain company OYO introduced a virtual front desk solution powered by GPT-4 for its partner hotels in UK. The innovative technology aims to enhance customer experience and operational efficiency. Guests can enjoy a quick 5-minute check-in experience, eliminating waiting time. The virtual front desk also supports over 80 languages, providing real-time assistance to international travelers who may not speak the local language.

Time Consuming and Cost Effective

For implementing customer engagement solutions requires integration with existing systems and databases, which can be complex and time-consuming, especially in larger organizations with systems. Many small businesses need software licenses and subscriptions which adds up costs and may be prohibitive for smaller businesses.

Customer engagement solutions can involve significant upfront and ongoing costs, including software licenses, hardware, maintenance and training. Small businesses or startups with limited budgets may find it challenging to invest in such solutions. Due to this, there is a downfall in the growth of the market.

Segment Analysis

The global customer engagement solutions market is segmented based on component, deployment mode organization size, end-user and region.

Rise in Cloud-Based Software 

Cloud deployment is expected to hold more than 1/3rd of the global customer engagement solutions market in 2022. Cloud computing has transformed the way customer engagement solutions are delivered and accessed. Cloud-based solutions offer scalability, flexibility and cost-effectiveness which makes them attractive to businesses. Cloud-based platforms offer real-time data processing and analytics capabilities that analyze customer data and get valuable insights.

For instance, on 17 April 2023, Teckinfo Solutions Pvt. Ltd., a prominent software provider which has specializations in call center solutions, launched its latest offering, the ID Cloud - Premium Contact Center Solution. The cutting-edge solution is designed to enhance the needs of call center and their customer engagement capabilities. The ID Cloud platform leverages the latest advancements in artificial intelligence (AI) and chatbot technologies which enables call centers to automate customer interactions effectively.

Geographical Penetration

Growing Advancement in Technologies in Asia-Pacific

Asia-Pacific in the global customer engagement solutions market is expected to grow at the highest CAGR during the forecast period 2023-203. Artificial intelligence (AI) and chatbot technologies are gaining traction in Asia-Pacific customer engagement landscape. The technologies enable businesses to automate customer interactions, improve response times and handle high volumes of inquiries efficiently. The shift towards virtual events has risen demand for virtual customer engagement solutions.

For instance, on 7 Jun 2023, Tata Motors launched a new customer engagement program called ‘Evolve’. The program's focused on customer engagement activities that include community-benefiting initiatives and upgrade programs. By engaging with their customers through these activities, Tata Motors seeks to foster a stronger connection with the Tata EV community and incentivize their support in expanding the electric vehicle family.

Competitive Landscape

The major global players include IBM Corporation, Aspect Software Inc., Calabrio Inc., Verint Systems Inc., Nice Systems, Nuance Communications Inc., OpenText Corporation, Salesforce.com Inc., Pegasystems Inc. and Oracle Corporation.

COVID-19 Impact Analysis

The pandemic forced many businesses to fast-track their digital transformation efforts to stay connected with customers. Customer engagement solutions that enable remote interactions, virtual meetings and online support became essential for maintaining customer relationships during lockdowns.

During COVID many call centers faces disruptions and businesses turned to chatbots and AI-powered virtual assistants to handle the surge in customer inquiries. Due to these factors, technologies provide 24/7 support and quick responses and also ensure uninterrupted service during peak hours.

AI Impact 

AI-driven chatbots and virtual assistance become essential tools for customer support. In which they handle inquiries and provides quick response to customers, even resolving issues without human intervention, these factors lead to faster customer service. It also offers 24/7 support to customers which has the ability to offer timely support to customers.

For instance, on 8 May 2023, Amrutam and Avimee are two SMBs that have embraced AI-powered solutions, such as ChatGPT and SemRush, to simplify and automate marketing tasks. ChatGPT has allowed Amrutam to generate proposal emails and social media plans quickly, saving time for crucial business operations. 

Russia- Ukraine War Impact 

At the times of conflict, there are disruptions in communication infrastructure, such as internet and mobile networks, in the affected regions. It causes various challenges in delivering customer engagement services that cause delays or interruptions in customer interactions. Due to this, the factor market witnessed a downfall during war.

Armed conflicts in the region have severe economic consequences for the involved countries and the global economy. Businesses, including those offering customer engagement solutions, faces financial constraints, as companies are not investing in these regions which reduced budgets or changes in consumer spending behavior.

By Component

• Software
• Services

By Deployment Mode

• Software
• On-Premise
• Cloud

By Organization Size

• Small & Medium Enterprises
• Large Enterprises

By End-User

• Retail & E-Commerce
• BFSI
• Healthcare
• Education
• IT & IT Services
• Government
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On, 16 May 2023, EnableX, a communications platform and solution provider, has unveiled WhatsApp for Business APIs and Broadcasting. Its offering enables businesses to create personalized communication workflows using video, voice, SMS and WhatsApp, enhancing real-time customer engagement.
• On, 12 June 2023, Nigerian communications platform-as-a-service startup, Termii,Its newly launched mobile app, TermiiGo, offers OTP generation and calling features to increase transaction numbers. The app also supports eSIM activation and international calling for enterprise businesses, promoting remote working and customer engagement services.
• On, 5 April 2023, Denny's Corporation has partnered with Sparkfly and Olo to launch a next-generation customer engagement ecosystem. The partnership showcases the power of an open platform, allowing Denny's to integrate Sparkfly with its existing Olo solutions.

Why Purchase the Report?

• To visualize the global customer engagement solutions market segmentation based on component, deployment mode organization size, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of customer engagement solutions market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global customer engagement solutions market report would provide approximately 69 tables, 68 figures and 181 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies