Customer Experience Management Market Report 2025

The customer experience management market size has grown rapidly in recent years. It will grow from $12.42 billion in 2024 to $14.23 billion in 2025 at a compound annual growth rate (CAGR) of 14.5%. The growth in the historic period can be attributed to competitive advantage through CX, focus on customer lifetime value, demand for seamless customer journeys, rise of social media engagement, voice of customer (voc) insights.

The customer experience management market size is expected to see rapid growth in the next few years. It will grow to $26.44 billion in 2029 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to increasing emphasis on personalization, advanced data analytics and AI integration, rise of omni-channel experiences, real-time engagement strategies. Major trends in the forecast period include integration of feedback loops, emphasis on customer-centric cultures, customer retention and loyalty, focus on customer journey mapping, real-time engagement.

The increasing digital transformations in the retail and healthcare sectors are expected to drive the growth of the customer experience management market moving forward. Digital transformation involves incorporating digital technology across all functional areas of an organization, fundamentally changing its operations and enhancing the value it delivers to customers. By integrating digital technology into every aspect of business, digital transformation significantly alters how companies operate and provide value. For example, an article published by Salesforce, a U.S.-based software company, indicates that 99% of organizations in healthcare and life sciences see digital transformation as valuable, with 12% being fully digital. This presents a substantial opportunity for innovation in the sector, particularly as organizations confront changing business models and tighter budget constraints. Therefore, the rise in digital transformations in retail and healthcare is fueling the growth of the customer experience management market.

The customer experience management market is set to benefit from the increasing adoption of social media. Social media, comprising various digital platforms and applications facilitating content creation, sharing, and community building, plays a pivotal role in customer experience management. Solutions within this market integrate with social media platforms to enable real-time monitoring of brand mentions, customer interactions, and feedback. Moreover, social media serves as a valuable resource for crisis management, obtaining product development feedback, and fostering proactive customer engagement. Notably, Meta Platforms, Inc. reported 1.98 billion average daily active users on Facebook as of September 2022, witnessing a 3% year-over-year increase. Furthermore, global social media users accounted for 61.4%, totaling 4.95 billion users in October 2023, according to Kepios. The increasing adoption of social media is a significant driver fueling the growth of the customer experience management market.

Leading companies in the customer experience management market are developing innovative products, such as the Avaya Experience Platform (AXP) Public Cloud, to enhance customer interactions, streamline communication channels, and boost overall customer satisfaction. The Avaya Experience Platform (AXP) Public Cloud is a cloud-based solution designed for customer experience management, allowing businesses to offer seamless, multi-channel communication and support to their clients. For example, in September 2024, Avaya LLC, a U.S.-based technology company, introduced the Avaya Experience Platform (AXP) Public Cloud in India. This platform features AI-driven self-service capabilities, allowing businesses to implement a new virtual agent-ready framework that integrates intelligent digital assistants for improved customer engagement.

Leading companies in the customer experience management market are developing advanced products, such as generative artificial intelligence (AI), to facilitate personalized customer interactions, automate responses, and improve overall service delivery. Generative artificial intelligence (AI) is a subset of AI technologies capable of producing new content - including text, images, audio, and video - based on input data. For example, in October 2023, OvationCXM, a U.S.-based software company, launched the CXMEngine platform. This next-generation customer experience management platform is fully integrated with generative artificial intelligence (AI). The update aims to enhance customer experience management by equipping organizations with advanced tools for personalizing interactions and optimizing operations. The new features enable the extraction and summarization of customer data from various internal and external interactions.

In January 2022, Medallia, a U.S.-based company specializing in customer and employee experience management, acquired Thunderhead for an undisclosed amount. This acquisition aimed to enhance Medallia's experience management platform by incorporating Thunderhead's journey orchestration capabilities. The integration enables organizations to gain a better understanding of customer interactions across various touchpoints, allowing them to create personalized experiences and proactively address customer needs. Thunderhead is a UK-based company that develops software for customer engagement and customer experience.

Major companies operating in the customer experience management market are Medallia Inc., Clarabridge, Zendesk Inc., Open Text Corporation, International Business Machines Corporation, Tech Mahindra, Verint Systems Inc., Avaya Inc., Oracle Corporation, SAP SE, Adobe Inc., Teradata Corporation, Sprinklr Inc., InMoment Inc., SAS Institute, Sitecore, NGDATA N.V., Amperity, Mixpanel Inc., Segment.io, ZephyrTel Inc., MindTouch, Freshworks Inc., Genesys Telecommunications Laboratories Inc., Nokia Corporation, Algonomy Inc., Sogolytics Ltd., Startek, Microsoft Corporation, Skyvera.

North America was the largest region in the customer experience management market in 2024. The regions covered in the customer experience management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the customer experience management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Customer experience management involves studying how to better understand customers and implementing strategic plans to support cross-functional initiatives and a customer-centric culture. It aims to offer qualitative insights, integrate relationship data throughout the entire customer lifecycle, and prioritize customer experiences.

The key components of customer experience management include solutions and services. Solutions provide a platform for transformational change to address specific present and upcoming business issues. Various touchpoints, such as websites, stores, call centers, mobile apps, social media, emails, virtual assistants, and others, are involved. Deployment types can be on-premises or cloud-based. The organization sizes targeted are small and medium enterprises (SMEs) and large enterprises. Customer experience management is applied across various industries, including IT and telecom, BFSI, retail, healthcare, automotive, travel and hospitality, media and entertainment, public sector, and others.

The customer experience management market research report is one of a series of new reports that provides customer experience management market statistics, including customer experience management industry global market size, regional shares, competitors with a customer experience management market share, detailed customer experience management market segments, market trends and opportunities, and any further data you may need to thrive in the customer experience management industry. This customer experience management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The customer experience management market includes revenues earned by entities by providing customer contact services, multichannel communication, enrolment and engagement, care management, and medical and clinical services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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