Cloud Customer Relationship Management (CRM) Market Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3425
Cloud CRM Market size is set witness significant growth from 2019 to 2025 driven by increasing necessity to address the changing customer demands. The changing customer needs make it difficult for business owners to retain old customers and acquire new customers as there is a vast availability of options to customers. Attracting new customers is necessary to drive the business as the cost associated to acquire new customers is much less than retaining old customers. The CRM software helps to analyze the requirement of customers by analyzing customer behavior, increasing the customer base.
The organizations will spend a growing proportion of their CRM software spending on cloud deployment model as it is easy to implement and less expensive and has high flexibility and increased business agility. In addition, users of the cloud-model can easily acquire software updates from vendors in an ecosystem of add-on apps, which doesn’t require in-house capabilities or updates.
With the technological advancements of AI and big data analytics, the market for SaaS-based CRM products is increasing. It is expected that around 35% of SMEs will use any kind of AI to augment at least one of their primary sales processes. The SMEs are adopting the cloud solution due to the low cost of deployment and understanding the importance of CRM to drive the sales force. Some organizations still use excel to store customers’ data. Additionally, the security and privacy restraints also obstruct the cloud CRM organization from reaching its utmost goal. There is a fear of loss of valuable data among some of the organizations that prevents the adoption of the cloud-based CRM.
The increasing cloud service adoption by start-ups is also another factor propelling the growth of the cloud CRM market. There is a huge investment in cloud-based systems by start-ups as they have understood the importance of CRM solution in providing new insights into improving the customer experience, customer retention strategies, and accelerate new product development.
The cloud CRM market is spread across various industry verticals such as education, government, transport & logistics, BFSI, retail, automotive, healthcare, and telecom & IT. The CRM solution is widely used in the education sector to acquire new students and retain old ones. Through the CRM software, educational institutes understand the behavior of students and thus create new leads. Also, it uses CRM software to store the data of old students and new students. Additionally, the growing demand for customer acquisition in the telecom sector has increased the adoption of the CRM software in the telecom sector. Telecom companies are relying on the CRM software to store data and generate leads.
North America dominates the cloud CRM market due to high cloud adoption. According to the 2018 BSA Global Cloud Computing Scorecard, the U.S. had 82% of cloud adoption. The increasing cloud adoption in the country is due to the availability of the technological infrastructure and the easy availability of cloud services. Furthermore, the increasing digitalization and government compliances for non-profit organizations are increasing the deployment of cloud CRM in the region. Additionally, the increasing cloud adoption in the country has surpassed the U.S. The cloud adoption in 2018 in Germany was 84 %, which is 2% more than the U.S.
The vendors operating in the cloud CRM market are Salesforce, Microsoft, Oracle, RightNow, SugarCRM, Insightly, Nice Systems, Zendesk, Verint Systems Inc, CenturyLink, SAP, Inside View, and Zoho. The key players are leveraging the strategy of new product developments to expand their product portfolio. For instance, in April 2019, Microsoft Dynamics 365 announced the addition of new features to its product Dynamics 365 Customer Service Insights. The new feature release aims at providing an enhanced CRM solution to its customers and diversifying its product portfolio. Similarly, Zoho launched ZIA Voice for the sales team. The new product launch facilities the sales force to perform voice & chat, deal prediction, and email sentiment.
Cloud CRM Market, By Application, 2014-2025 (USD Million)
- Customer Service and Support
Cloud CRM Market, By Deployment Model, 2014-2025 (USD Million)
Cloud CRM Market, By End-use, 2014-2025 (USD Million)
- Large Enterprises
- Small and Medium Enterprises
The above information has been provided for the following regions and countries:
- North America
- Australia & New Zealand (ANZ)
- South Korea
- Latin America
- South Africa
- Saudi Arabia
- Microsoft Dynamics
- Oracle Corp.
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