Customer Service Software Market Report 2025

The customer service software market size has grown rapidly in recent years. It will grow from $9.29 billion in 2024 to $11.01 billion in 2025 at a compound annual growth rate (CAGR) of 18.6%. The growth in the historic period can be attributed to rise of e-commerce and online businesses, growing customer expectations, globalization and business expansion, integration with corm systems, increasing complexity of customer inquiries.

The customer service software market size is expected to see rapid growth in the next few years. It will grow to $22.47 billion in 2029 at a compound annual growth rate (CAGR) of 19.5%. The growth in the forecast period can be attributed to increasing adoption of AI and automation, data analytics for customer insights, emphasis on omnichannel customer experience, focus on proactive customer service, cybersecurity considerations. Major trends in the forecast period include advancements in technology, AI-powered automation, omnichannel support, personalization and customer insights, self-service portals.

The escalating significance of customer experience serves as the catalyst propelling the customer service software market. Customer experience encapsulates the holistic perception encompassing a customer's sentiments across all touchpoints with a business or brand. Leveraging customer service software becomes instrumental in elevating these experiences by optimizing communication channels and fortifying customer engagement protocols. Moreover, it enables businesses to adeptly gather customer feedback, empowering them to craft data-informed strategies for enhancing customer experiences. For example, in June 2022, a survey by Verint Systems, a US-based customer engagement solutions company, encompassed over 2,000 respondents aged 18 to 75. The findings revealed that 39 percent of participants were inclined to dissuade their social circles from patronizing a brand due to a negative customer experience, with 64 percent having already severed ties with such companies. A staggering 79 percent of respondents under 45 underscored the pivotal role of a seamless digital experience. This trend underscores how the burgeoning emphasis on customer experience is the driving force behind the progressive expansion of the customer service software market.

The increasing adoption of cloud technology is projected to accelerate the growth of the customer service software market. Cloud adoption refers to the widespread use of cloud computing services by individuals, organizations, or industries for the remote storage, management, and access of data and applications. By transitioning customer service software to the cloud, businesses are unlocking a wealth of advantages that enhance performance, boost customer satisfaction, and foster overall business growth. For example, a December 2023 report from Eurostat, a Europe-based intergovernmental organization, revealed that 45.2% of EU businesses have utilized cloud computing services for accessing software, processing power, storage capacity, and other resources. Thus, the rising trend of cloud adoption is expected to propel the growth of the customer service software market.

Technological advancements are a significant trend gaining traction in the customer service software market. Leading companies in this sector are developing advanced technology-based software solutions to maintain their competitive edge. For example, in April 2023, SuperOffice, a Norway-based software company specializing in business-to-business solutions, launched a new version of its cloud-based service software. This update improves request management by offering a unified interface that allows customer-facing teams to access all customer interactions, purchase histories, and service requests seamlessly. Key features of this update include tabbed navigation for managing multiple requests at once and customizable views to enhance productivity. The objective is to streamline communication, minimize context-switching, and improve collaboration among teams, ultimately enhancing customer experiences and fostering long-term relationships.

Leading enterprises within the customer service software domain are actively pursuing innovative strategies, particularly in the realm of on-demand software solutions and services. This approach involves delivering adaptable and customizable software offerings that cater to the specific needs of clients. For instance, in September 2023, Valeo, a France-based automotive supplier serving both automakers and the aftermarket, introduced Valeo anSWer. This groundbreaking initiative offers software as both a product and a service, encompassing top-tier applications, middleware, and services tailored for customers. Its comprehensive and scalable nature fulfills the dynamic software requirements within the automotive industry. Emphasizing cutting-edge applications, adaptable middleware, and customized support for OEMs, this initiative aligns closely with the evolving landscape of automotive software needs. Valeo's move holds significant relevance within the customer service software market, as it not only meets but advances the expectations of the automotive sector by delivering superior applications, middleware, and support services, thereby driving the progression of customer service software within this industry.

In February 2022, Meta Platforms Inc., an American multinational technology company, completed the acquisition of Customer Inc. for an undisclosed sum. This strategic move by Meta aimed to leverage Customer Inc.'s capabilities to facilitate businesses in utilizing WhatsApp and Messenger for customer support. The acquisition was intended to streamline and enhance communication experiences for both consumers and businesses. Kustomer, the acquired company, is a US-based provider of diverse customer service software solutions.

Major companies operating in the customer service software market include Oracle Corporation, SAP SE, Salesforce Inc., Yekaliva.ai, Atlassian Corporation, Atlassian Corporation plc, Genesys Telecommunications Laboratories Inc., BMC Software Inc., HubSpot Inc., Zendesk Inc., Nuance Communications Inc., Zoho Corporation Pvt. Ltd., Verint Systems Inc., SolarWinds Worldwide LLC, Freshworks Inc., Intercom Inc, Microsoft Corporation, Kayako Infortech Ltd., LiveChat Software Inc., Help Scout PBC, Agile CRM Inc., HappyFox Inc., FocalScope, PhaseWare Inc., LiveAgent, Hiver Inc., Vivantio Ltd.

North America was the largest region in the customer service software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global customer service software market forecast period. The regions covered in the customer service software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the customer service software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Customer service software comprises computer programs used to manage and enhance customer support operations, aiming to provide efficient and personalized customer service.

Customer service software comprises two main components such as software and services. Software involves a collection of instructions or programs tailored to execute specific tasks on electronic devices such as computers. These software solutions are deployed through various means, such as cloud-based and on-premises setups. They find application across diverse sectors, serving both large enterprises and small and medium-sized enterprises (SMEs). Primary end-users encompass government entities, manufacturing firms, financial institutions, internet and telecom companies, and other industries seeking robust customer service solutions.

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

The customer service software market consists of revenues earned by entities by providing services such as ticket management, communication tools, knowledge management, customer data management, analytics, and reporting 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 customer service software market also includes sales of support & help desk software, shared inbox software, knowledge-based and other software that is used in providing customer services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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