Customer Engagement Hub Market Overview
As per MRFR analysis, the Customer Engagement Hub Market Size was estimated at 25.38 (USD Billion) in 2022.
The Customer Engagement Hub Market Industry is expected to grow from 28.14(USD Billion) in 2023 to 71.5 (USD Billion) by 2032. The Customer Engagement Hub Market CAGR (growth rate) is expected to be around 10.91% during the forecast period (2024 - 2032).
Key Customer Engagement Hub Market Trends Highlighted
The market is transforming, demanding a seamless and personalized customer experience across multiple touchpoints. The need for advanced customer engagement solutions is soaring, prompting businesses to adopt Customer Engagement Hubs (CEHs) that enable centralized management and orchestration of customer interactions. CEHs empower businesses to unify customer data, anticipate needs, and deliver tailored experiences.
Key market drivers include the surge in digital transformation, escalating customer expectations, and the growing adoption of omnichannel engagement strategies. Organizations recognize the significance of leveraging customer data to improve decision-making, enhance personalization, and drive business outcomes. The rise of mobile commerce, artificial intelligence (AI), and the Internet of Things (IoT) further propels the CEH market's growth.
Recent trends indicate a shift towards cloud-based solutions, leveraging AI for automation and predictive analytics. Businesses seek CEHs that offer real-time insights, enable personalized marketing campaigns, and drive customer loyalty. The market presents ample opportunities for vendors to cater to industry-specific requirements and integrate advanced technologies, such as conversational AI and machine learning. By addressing these market trends and evolving customer demands, providers can capture significant growth opportunities in the global Customer Engagement Hub market.
Figure 1: Customer Engagement Hub Market Size, 2023-2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Customer Engagement Hub Market Drivers
Increasing demand for personalized customer experiences
The days when customers took what service or product they were given are gone, as now they are looking to engage with brands that pay attention to them and adjust their services to individual needs and preferences. Customer engagement hubs provide businesses with the necessary tools to aggregate and analyze customer information, determine segments, and link them with particular ads or customer service. By using customer engagement hubs, brands make their communication more personalized, which ensures a high standard of customer satisfaction and leads a customer to become loyal.
One of the examples of how a business applied a customer engagement hub was done by a leading e-commerce company. By analyzing their customers’ buying habits, the company managed to determine several customer segments and approach each with a unique marketing response. Some groups would benefit more from being offered discounts on product purchasing or to be given coupon offers, while others should better receive recommendations on what products to purchase as a bundle.
The use of a customer engagement hub allowed the company to avoid sending irrelevant information to customers, and, as a result, their sales grew by a large margin.
Growing adoption of cloud-based customer engagement solutions
Benefits There are several advantages of cloud-based customer engagement solutions over their on-premises alternatives, including cost reduction, flexibility, and better scalability. This is why the number of businesses adopting cloud-based customer engagement solutions is growing rapidly. One of the most important factors is that businesses can access their client data and applications anytime and anywhere, a feature absolutely vital for those who, for example, have multiple locations or remote workers.
Moreover, a cloud-based customer engagement hub is less limited than an on-premises one in its ability to be scaled up and down, and it can be useful for a company working from an office-based contact center. An example of the deployment of a cloud-based customer engagement hub is the global manufacturing organisation which aimed to improve its customer service endeavours. The previous on-premises customer engagement system was no longer capable of serving its purpose, as the customer base of the company was growing.
The response and resolution times available for the on-premises system were no longer in line with the expectations of the company. With the deployment of the cloud-based customer engagement hub, the company successfully reduced the costs of its customer support operations.
Rising need for improved customer service and support
Customers today expect high levels of customer service and support from the brands they interact with. Customer engagement hubs provide businesses with the tools and capabilities to deliver exceptional customer service and support. By providing a central platform for managing all customer interactions, customer engagement hubs enable businesses to resolve customer issues quickly and efficiently. Additionally, customer engagement hubs can be used to track customer feedback and identify areas for improvement.
For instance, a leading telecommunications company implemented a customer engagement hub to improve its customer service operations. The company's previous customer service system was fragmented and inefficient, resulting in long wait times and poor customer satisfaction. By deploying a customer engagement hub, the company was able to streamline its customer service operations and improve its customer satisfaction scores.
Customer Engagement Hub Market Segment Insights
Customer Engagement Hub Market Deployment Model Insights
The Global Customer Engagement Hub Market is segmented by deployment model into cloud-based and on-premise. The cloud-based segment is expected to hold a larger market share because businesses of all sizes are adopting more cloud-based solutions. They have several distinct advantages over on-premise solutions, such as being less costly and more flexible and scalable. However, the on-premise segment is also set to grow at a significant pace due to the need for some businesses to store data and applications on-premises for security and regulatory compliance reasons.
In 2023, the cloud-based segment of the Global Customer Engagement Hub Market accounted for USD 12.5 billion, and it is estimated to reach USD 25.9 billion by 2032, growing at a CAGR of 10.3%. The on-premise segment was worth USD 7.8 billion in 2023, and it is projected to reach USD 17.2 billion by 2032, expanding at a CAGR of 9.6%. The primary growth drivers for these two segments are as follows. With regard to the cloud-based segment, these are use and adoption drivers, and they are the reason that is responsible for the increase in cloud-based solutions purchases by firms of all sizes.
The market trend can be characterized by the growing popularity of the SaaS and PaaS models and of cloud-based solutions that are solution-specific. As for the on-premise segment, it is also an important market trend due to the fact that it is the result of the need to keep the applications and data companies hold on their premises.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Customer Engagement Hub Market User Type Insights
In the user type segment, the SMEs held the larger size of the global customer engagement hub market share in 2023, and it is expected to continue to lead the market during the predicted year. The growth of the SME category is mainly attributed to the fact that more and more small and medium-sized enterprises are adopting customer engagement solutions to augment their customer services and deliver their operations more efficiently. On the other hand, it is expected that, during the projected year, large enterprises will also generate substantial value to the market due to their increasing willingness to invest in customer engagement solutions to have an edge over their competitors.
Therefore, “Global Customer Engagement Hub Market” is projected to generate a value of USD 71.5 billion during 2032, up from USD 28.14 billion during 2023, with a CAGR of 10.91 during the year projection according to “Global Customer Engagement Hub Market” data. The growth of the market is driven by the increasing adoption of customer engagement solutions by businesses of all sizes to enhance their customer services and effectiveness.
Customer Engagement Hub Market Industry Vertical Insights
The Global Customer Engagement Hub Market is segmented into various industry verticals, including Retail, Financial Services, Healthcare, Manufacturing, and IT and Telecom. Among these, the Retail industry is expected to hold a significant market share in 2023, owing to the increasing adoption of omnichannel retailing and the need to enhance customer experiences. The Financial Services industry is also expected to contribute significantly to the market growth, driven by the need to improve customer engagement and loyalty. The Healthcare industry is witnessing a growing demand for customer engagement solutions to improve patient care and outcomes.
Manufacturing, IT, and Telecom are other key industry verticals that are expected to drive the growth of the Global Customer Engagement Hub Market.
Customer Engagement Hub Market Functional Area Insights
The Functional Area segment of the Global Customer Engagement Hub Market is categorized into Marketing, Sales, Customer Service, and Support. Among these, Marketing held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. The increasing adoption of customer relationship management (CRM) solutions by marketing teams to enhance customer engagement and drive personalized marketing campaigns is a major factor driving the growth of this segment. Sales is another significant segment, with a growing need for tools that can help sales teams track customer interactions, manage leads, and close deals more efficiently.
The Customer Service and Support segment is also expected to witness substantial growth as organizations prioritize improving customer satisfaction and resolving customer queries promptly. Overall, the Functional Area segment is expected to contribute significantly to the overall growth of the Global Customer Engagement Hub Market, with a projected revenue of USD 32.5 billion by 2027, exhibiting a CAGR of 12.4% during the forecast period.
Customer Engagement Hub Market Specific Functionality Insights
The Customer Relationship Management (CRM) segment held the largest share of the Global Customer Engagement Hub Market in 2023, and it is projected to continue to dominate the market throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of CRM solutions by businesses of all sizes to manage their customer relationships more effectively. The Email Marketing segment is expected to experience significant growth over the forecast period due to the increasing popularity of email marketing as a cost-effective way to reach and engage customers.
The Social Media Management segment is also expected to grow steadily over the forecast period as businesses increasingly use social media to connect with their customers and build relationships. The Analytics and Reporting segment is expected to grow at a moderate pace over the forecast period as businesses increasingly use data to understand their customers and improve their marketing campaigns. Overall, the Global Customer Engagement Hub Market is expected to experience strong growth over the forecast period, driven by the increasing adoption of customer engagement solutions by businesses of all sizes.
Customer Engagement Hub Market Regional Insights
The regional segment of the Global Customer Engagement Hub Market offers valuable insights into the geographical distribution of market growth and opportunities. North America is projected to hold a significant market share due to the presence of established vendors and early adoption of advanced technologies. Europe follows closely, driven by increasing demand for personalized customer experiences and stringent data privacy regulations. APAC is anticipated to witness substantial growth, fueled by the rapid adoption of digital channels and a growing middle class.
South America and MEA are emerging markets with promising potential, as businesses recognize the importance of customer engagement in driving growth. The Global Customer Engagement Hub Market revenue is expected to reach USD 59.51 Billion in 2024, reflecting the increasing significance of regional market segmentation for businesses seeking to optimize their customer engagement strategies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Customer Engagement Hub Market Key Players And Competitive Insights
In the Customer Engagement Hub Market industry, the major players are continuously involved in strategic activities to give an edge over other players in the market. The leading players in the Customer Engagement Hub Market are investing in research and development and developing innovative and advanced solutions for customers. There are various players that are expanding their operations through partnership and collaboration. For instance, in June 2023, Salesforce announced a partnership with Amazon Web Services to offer a customer engagement platform to customers. The integration allows businesses to use AWS infrastructure and its services to optimize customer interactions.
Customer Engagement Hub Market is the Salesforce market as it provides the platform to the customers. Salesforce offers a CRM solution as a customer engagement hub. Salesforce’s customer engagement hub solution is a user interaction management solution. The user-centric solution provides a suite of tools from which businesses can enter into the customer’s heart by connecting with them on different platforms such as social media, email, and live chat. The sales force is also a leading player in the marketing automation market, providing email marketing, lead generation, and campaign management in the customer engagement hub.
The leading player, Adobe, offers a customer engagement hub, Adobe Experience Cloud, which is a cloud-based environment with personalized solutions for marketing, advertising, analyzing, and customer managing. Adobe helps businesses to personalize customer experience across all touch-points. Adobe is a leading player in digital experience management, and its customer engagement hub, Adobe Experience Cloud, comprises solutions such as personalization of websites, content, and social media.
Key Companies in the Customer Engagement Hub Market Include
Customer Engagement Hub Market Industry Developments
The Customer Engagement Hub Market is projected to reach a valuation of USD 71.5 billion by 2032, expanding at a CAGR of 10.91% from 2023 to 2032. The market growth is driven by the increasing adoption of cloud-based customer engagement solutions, rising demand for personalized customer experiences, and the proliferation of digital channels. Recent developments include the integration of artificial intelligence (AI) and machine learning (ML) into customer engagement platforms, enabling businesses to automate tasks and gain insights into customer behavior. Key players in the market are investing in research and development to enhance their offerings and cater to evolving customer needs. The market is expected to witness significant growth in emerging economies, driven by the increasing adoption of mobile devices and the growing middle class.
Customer Engagement Hub Market Segmentation Insights
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Customer Engagement Hub Market Deployment Model Outlook
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Customer Engagement Hub Market User Type Outlook
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Customer Engagement Hub Market Industry Vertical Outlook
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Retail
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Financial Services
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Healthcare
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Manufacturing
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IT and Telecom
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Customer Engagement Hub Market Functional Area Outlook
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Marketing
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Sales
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Customer Service
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Support
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Customer Engagement Hub Market Specific Functionality Outlook
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Customer Engagement Hub Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
25.38 (USD Billion) |
| Market Size 2023 |
28.14 (USD Billion) |
| Market Size 2032 |
71.5 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
10.91% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
HubSpot, Avaya, Pegasystems, Salesforce, SAP, Freshworks, Twilio, NICE, Google, Oracle, Microsoft, Genesys, Amazon Web Services (AWS), Adobe, Zendesk |
| Segments Covered |
Deployment Model, User Type, Industry Vertical, Functional Area, Specific Functionality, Regional |
| Key Market Opportunities |
AI-Powered Personalization Leverage AI to deliver tailored customer experiences across channels.Omnichannel Integration Connects multiple channels seamlessly to provide a consistent brand experience.DataDriven Insights Utilize analytics to gain insights into customer behavior and optimize engagement strategies.SelfService Capabilities Empower customers with self-service options to resolve issues quickly and convenientlyPredictive Analytics Forecast customer needs and proactively address potential issues. |
| Key Market Dynamics |
1 Increasing adoption of cloud-based solutions2 Growing need for personalized customer experiences3 Rising demand for real-time customer engagement4 Integration with artificial intelligence AI and machine learning ML5 Focus on customer journey optimization |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global Customer Engagement Hub Market size was valued at USD 14.88 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 10.91% from 2024 to 2032, reaching USD 71.5 billion by 2032.
North America held the largest market share in 2023, accounting for over 40% of the global revenue. Asia Pacific is projected to grow at the highest CAGR during the forecast period due to the increasing adoption of customer engagement solutions by businesses in the region.
Customer engagement hubs are used across various industries, including retail, banking, healthcare, and manufacturing. Key applications include customer relationship management (CRM), marketing automation, sales automation, and customer service.
Major players in the global Customer Engagement Hub Market include Salesforce, Oracle, Adobe, SAP, Microsoft, IBM, Pegasystems, Genesys, NICE inContact, and Zendesk.
Key trends driving the growth of the market include the increasing adoption of cloud-based solutions, the need for improved customer experience, the rise of omnichannel customer engagement, and the growing use of artificial intelligence (AI) and machine learning (ML) in customer engagement solutions.
Challenges faced by the market include the high cost of implementation and maintenance, the lack of skilled professionals, and the need for effective data integration and management.
Opportunities for the market include the growing adoption of cloud-based solutions, the increasing demand for personalized customer experiences, and the rise of new technologies such as AI and ML.
The global Customer Engagement Hub Market is expected to grow at a CAGR of 10.91% from 2024 to 2032.
Key factors that will influence the growth of the market include the increasing adoption of cloud-based solutions, the need for improved customer experience, the rise of omnichannel customer engagement, and the growing use of AI and ML in customer engagement solutions.
The global Customer Engagement Hub Market is segmented by deployment type (on-premises, cloud), organization size (small and medium-sized businesses, large enterprises), industry vertical (retail, banking, healthcare, manufacturing), and region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa).
