Customer Analytics Market Analysis

Customer Analytics Market Overview

The Customer Analytics Market size is projected to grow from USD 20.85 Billion in 2024 to USD 65.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.47% during the forecast period (2024 - 2032). Additionally, the market size for customer analytics was valued at USD 17.7 Billion in 2023.

Increasing focus on customer experience and the growing prevalence of social media are the key market drivers enhancing market growth.

Figure 1: Customer Analytics Market Size, 2022-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Customer Analytics Market Trends

• Growing focus on customer experience is driving the market growth

Market CAGR for customer analytics is driven by the rising customer experience and satisfaction. The desire for greater customer happiness is growing, which drives the customer analytics market growth. Retailers frequently employ customer data to develop individualized communications and marketing efforts. Identifying which customers are buying particular items and tailoring marketing based on shopper data might help improve customer experience and loyalty. According to Accenture, a positive shopping experience boosts referrals, revenues and engagement. Customer experience and satisfaction in customer analytics will boost market growth.

Additionally, the industry under discussion is largely driven by a rise in social media usage. By linking a company’s catalog to e-commerce websites, social media analytics combines measurement, monitoring, and analytical technologies to identify user attitudes and connect businesses with customers via social media platforms, facilitating connection building and relationship monitoring. Leading shops like Amazon and Walmart have benefited greatly from social media sites like Facebook and Twitter. As a result, the customer analytics market is anticipated to grow throughout the projection period due to rising customer satisfaction and experience. Thus, driving the customer analytics market revenue.

Customer Analytics Market Segment Insights

Customer Analytics Solution Insights

The Customer Analytics Market segmentation, based on solutions, includes web analytical tools, social analysis tools and reporting. The social analysis tools segment dominated the market, accounting for maximum revenue. A social analysis tool tracks, evaluates, and improves social media performance. By connecting their products list with e-commerce websites, social media analytics maximizes the advantages of social networking. In developing economies, category growth is driven by increasing consumer awareness of social media.

The web analytical tool segment is anticipated to be the fastest-growing segment in the projected period. The major driving factors of the segment growth include companies' need to increase their revenue by providing personalized content for customers, maintaining a brand presence, and enhancing interactions with customers online.

Customer Analytics Services Insights

The Customer Analytics Market segmentation, based on services, includes Professional services, maintenance and support services. The maintenance and support services segment holds the maximum market revenue. Due to the increasing demand for installing equipment with cutting-edge technologies for higher operating efficiencies and the essential need for maintenance in periodic cycles, the sector is dominating.

The professional services segment is the fastest-growing segment in the projected period.

Customer Analytics Organization Size

The Customer Analytics Market segmentation, based on organization size, includes large enterprises and SMEs. The SMEs segment is dominated the major market share. Customer analytics is crucial in small and medium enterprises to fulfill customer demand and satisfaction. With the help of customer analytics, customers’ response is recorded to change the products accordingly.

The large enterprises category is anticipated to be the fastest-growing due to the rising demand for customer analytics in the projected period.

Customer Analytics Deployment Insights

The Customer Analytics Market segmentation, based on deployment, includes cloud and on-premises. The on-premise category generated the most income. A large number of companies are adopting automated systems then manual systems for carrying out a variety of operations. The demand for on-premise customer analytics has growing owing to the increasing demand for data privacy.

The cloud segment is predicted to be the fastest-growing segment in the projected period. Due to the cloud segment accessibility and integration ease, cloud CEM solutions are becoming increasingly popular as the use of AI, big data, IoT, and connected devices grows.

Figure 2: Customer Analytics Market, by Deployment 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Customer Analytics End-User Insights

The Customer Analytics Market segmentation, based on end-user, includes healthcare, hospitality and travel, media and entertainment, government and defense, telecommunication and IT, manufacturing, BFSI, Transportation and logistics, retail, and others. The retail category accounted for the largest market share. The retail industry makes significant investments in product marketing and promotion to entice customers and boost sales.

In the projection period, the BFSI segment is predicted to be the fastest-growing segment. Increased demand for customer analytics, particularly in contact centers, might be linked to the segment expansion.

Customer Analytics Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American customer analytics market will dominate. Increasing customer information through the number of data sources is driving new development and improved integration in new and existing customer analytics services and solutions to provide several business and customer needs.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: CUSTOMER ANALYTICS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's customer analytics market accounts for the second-largest market share due to the deployment of customer analytical tools for storing customer data to stay competitive in the market. Further, the German customer analytics market held the largest market share, and the UK customer analytics market was the fastest-growing market in the European region.

The Asia-Pacific customer analytics market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to new technological advancement and rising per capita disposable income. Moreover, China’s customer analytics market held the largest market share, and the Indian customer analytics market was the fastest-growing market in the Asia-Pacific region.

Customer Analytics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the customer analytics market, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The customer analytics industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s use in the global customer analytics industry to benefit clients and increase the market sector. In recent years, the customer analytics industry has offered organizations some of the most significant advantages. Major players in the customer analytics market, including Adobe Systems Incorporated (US), Actuate Software Corporation (US), Angoss Software Corporation (US), Fair Isaac Corporation (Fico)(US), IBM Corporation (US), Oracle Corporation (US), Pitney Bowes (Germany), SAS Institute (US), Teoco Corporation (US), Verint System (US), SAP AG (Germany), and others, are attempting to increase market demand by investing in research and development operations.

The American analytics software company SAS Institute, also known as SAS, is headquartered in Cary, North Carolina. SAS creates and sells a collection of analytics software, often known as SAS, that facilitates access to the management of, analysis of and reporting on data to support decision-making. The corporation is the world's largest privately held software company, and most Fortune 500 companies utilize its software. For instance: In January 2022, SAS Customer Intelligence 360 automatically found more effective ways to find shared characteristics across customer data. Utilizing AI and machine learning, this embedded customer analytics enhances customer insights. Additionally, it provides clients with out-of-the-box analytical automation support to help them make choices.

Google LLC is an American multinational technology firm with an emphasis on consumer electronics, cloud computing, computer software, quantum computing, internet advertising, and search engine technology. Because to its market domination, data collecting, and technical advances in the field of artificial intelligence, it has been referred to as “the most powerful company in the world and one of the most valuable brands in the world”. For instance: In March 2020, to provide businesses with cloud analytics, Google Cloud partnered with ThoughtSpot, a pioneer in search and AI-driven analytics. As part of the cooperation, the firms would introduce Embrace for Google Cloud, a tool that enables businesses to use Google BigQuery directly for search and AI-driven analytics without transferring or caching any data.

Key Companies in the Customer Analytics market include

• Adobe Systems Incorporated (US)


• Actuate Software Corporation (US)


• Fair Isaac Corporation (Fico)(US)


• IBM Corporation (US)


• Oracle Corporation (US)


• Pitney Bowes (Germany)


• SAS Institute (US)


• Teoco Corporation (US)


• Verint System (US)


• SAP AG (Germany)

Customer Analytics Industry Developments

July 2021 Microsoft, a well-known provider of consumer spending insights that enables businesses to proactively manage customer spending by transforming data from various sources, has announced its acquisition of Suplari. Microsoft is an American multinational corporation that makes computer software, consumer electronics, personal computers, and many other products. Through this purchase, the firms hoped to support businesses in becoming insight-driven, enabling business executives to take strategic action.

March 2022 Adobe Experience Cloud now includes a new Customer Journey Analytics function. To help companies better understand how even little changes may impact the total customer experience across all of their products, Adobe developed a new experimentation tool in Experience Analytics. This feature enables companies to test real-world scenarios, and analysis has also been combined to enhance Adobe’s capacity to identify customer categories.

Customer Analytics Market Segmentation

Customer Analytics Solution Outlook

• Web Analytical Tools


• Social Analysis Tool


• Reporting

Customer Analytics Service Outlook

• Professional Service


• Support and Maintenance Service

Customer Analytics Organization Size Outlook

• Large Enterprise


• SMEs

Customer Analytics Deployment Outlook

• Cloud


• On-Premise

Customer Analytics End-User Outlook

• Healthcare


• Hospitality and Travel


• Media and Entertainment


• Government and Defence


• Telecommunication and IT


• Manufacturing


• BFSI


• Transportation and Logistics


• Retail


• Others

Customer Analytics Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America