The U.S. over the years has remained one of the early adopters of the latest technologies. On account of this, the demand for customized communication solutions is considerably high, rendering the U.S. customer communication management (CCM) market highly competitive. As the existing retailers enjoy a strong presence, the market doesn’t provide much scope for the entry of new players, finds Transparency Market Research (TMR) in a new study. In addition, the market is reeling under the availability of substitutes, which makes sustenance of market share difficult key players.
“Considering the scenario, the leading CCM vendors are focusing on offering diverse customized solutions by developing and integrated CCM software with cloud environment,” said a lead TMR analyst. Also the presence of several large companies has exacerbated the prevailing competition.
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Currently, companies such as HP Enterprises, Pitney Bowes Inc., OpenText Corp., and Adobe Systems Incorporated hold strong position in the U.S. customer communication management market. Together these companies held the dominant share of 30.6% in the U.S. CCM market in 2016.
Furthermore, Oracle Corporation, EMC Corp. (Dell), and Cincom Systems, Inc., are among the other prominent vendors in the U.S. CCM market. According to TMR, the U.S. CCM market stood at US$423.1 mn in 2016. Rising at a CAGR of 11% between 2017 and 2025, the market is forecast to reach US$1.06 bn by the end of 2025.
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Among various solutions available in the market, software suite held the dominant share of 46.9% in the overall market in 2016. By end use, the IT & Telecom emerged as the lead holding over 20.5% of the market in the same year. The aforementioned segments are also expected to remain dominant through the course of the forecast period.
Demand for Multifarious Communication Channels to Drive Growth
Customer communication has become more dynamic with the advent of ground-breaking communication channels. These innovations over the last few years and knowledge about benefits they offer have brought organizations to their feet.
They are now keener on multifarious communication channels to establish their presence across diverse platforms as these technologies have empowered them to connect with customers in any corner of the world. Consequently, the demand for customer communication management is accelerated and the trend is less likely to slow down any time soon.
It is important to note that the U.S. is a relatively mature market. The enterprises operating from this nation are therefore more interested in batch, interactive and on-demand communication solutions. This is further triggered by the rising demand for solutions that will help organizations acquire, serve, and grow customer relationship.
As on-demand CCM systems support non-linear development model, they help organizations rationalize messy application platforms. This is one of the key factors driving the customer communication management market in the U.S. In addition, the rising emphasis on context-rich information and multi-channel output will impel companies invest more in advanced customer communication management solutions.
Security Concerns Related to CCM Software may Hamper Growth
On the flip side, security concerns related to CCM software could act against the market in the near future. Sectors such as BFSI, government, healthcare, and retail require robust customer interaction platform. While CCM software caters to the requirement, it is yet to eliminate a few inherent security concerns that comes with the technology. This could hinder the market’s trajectory to an extent.
Nevertheless, the evolution of the CCM software technology to cloud will facilitate the deployment of communication software without much complexity or incurring huge expense. “The evolution of cloud-based environment will enable customer communication management software to cater to small, medium, as well as large enterprises,” observed the TMR report’s author. This will open lucrative opportunities for the market’s growth in the near future.