Customer Relationship Management Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Component:

Based on component, the market is segmented into software, and services.

Trends in the component:

• Increasing technological advancements associated with CRM software such as integration of artificial intelligence (AI) and machine learning (ML) among others.
• Rising utilization of CRM software in BFSI, retail, and healthcare sectors for improving customer relationships and improving operational efficiency.

Software segment accounted for the largest revenue share in the overall customer relationship management market share in 2024, and it is anticipated to register significant CAGR growth during the forecast period.

• CRM software is designed to assist business enterprise to easily track all communications and improve relationships with their leads and customers.
• It helps business organizations to stay connected to its customers while streamlining processes and improving profitability.
• Additionally, CRM software offers various features such as simple and customizable user interface with real-time updates, improved sales, enhanced productivity, increased customer retention, and others.
• For instance, Creatio offers CRM software in its solution offerings. The CRM software provides a single platform for automating end-to-end customer journey with maximum degree of freedom.
• According to the market analysis, the rising advancements related to CRM software are driving the customer relationship management market trends.

By Deployment:

Based on deployment, the market is segmented into on-premise and cloud.

Trends in the deployment:

• Rising trend towards adoption of on-premise deployment due to higher security and privacy, lower network bandwidth costs, and more control over server hardware.
• Factors including the ease of integration, rapid deployment, and increasing consumer preference for flexible, scalable, reliable, and cost-effective CRM solutions are driving the cloud deployment segment.

On-premise segment accounted for a substantial revenue in the total customer relationship management market in 2024.

• On-premise deployment enables enterprises to manage and have complete control over its integrations, and maintain tighter control over the CRM system’s security aspects as compared to cloud-based deployment.
• Factors including higher security and privacy, lower network bandwidth costs, and more control over server hardware are vital aspects driving the on-premise deployment segment.
• For instance, Maximizer offers on-premise CRM solutions in its solution offerings. The on-premise solution is ideal for business enterprises that prioritize data security, customization, and regulatory compliance along with industries with strict data protection requirements.
• According to the analysis, increasing advancements associated with on-premise CRM solutions are driving the market.

Cloud segment is anticipated to register fastest CAGR growth during the forecast period.

• The cloud-based deployment offers a seamless collaboration along with fast and cost-effective access to CRM software by multiple users irrespective of the time and location of the user.
• Moreover, cloud-based deployment provides a range of benefits such as minimal capital expense, rapid implementation, ease of utilization and integration, faster processing, and higher scalability.
• For instance, in January 2025, Hollat launched a new cloud-based CRM along with a new investment round of USD 3 million within the seed phase. The cloud-based CRM version is developed for supporting companies and government entities.
• According to the customer relationship management market analysis, the increasing advancements related to cloud-based CRM solutions are anticipated to boost the customer relationship management market trends during the forecast period.

By Enterprise Size:

Based on the enterprise size, the market is segmented into large enterprise and small and medium enterprise (SME).

Trends in the enterprise size:

• Increasing adoption of CRM solution in large enterprises for improving customer service and relationship while enhancing productivity.
• Factors including growing investments in development of small and medium enterprises and rising deployment of cloud-based CRM solutions in SMEs are driving the small and medium enterprise segment.

Large enterprise segment accounted for the largest revenue in the overall market in 2024.

• Large enterprises refer to companies that have an above-average business size, perform large operations, and have high economies of scale.
• Large enterprises primarily comprise of a larger workforce, generate a high amount of revenue, and have a greater competitive capacity in comparison to small and medium enterprises.
• Moreover, the deployment of CRM solution in large enterprises offer several benefits such as improved customer service and relationship, enhanced productivity, actionable analytics, better customer retention, streamlined operations, and others.
• For instance, Zendesk offers CRM software for large enterprises in its solution offerings. The Zendesk CRM enables large business enterprises to maintain pipeline visibility, maximize productivity, and grow revenue.
• Therefore, the increasing adoption of CRM solutions in large enterprises is driving the customer relationship management market size.

Small and medium enterprise (SME) segment is anticipated to register fastest CAGR growth during the forecast period.

• Small and medium enterprises refer to companies that maintain revenues, workforce, and assets below a certain threshold.
• SMEs often account for the majority of the businesses that are operating across the world.
• Moreover, CRM solution is often deployed in SMEs to increase sales, improve customer service, improve data management, and automate business processes among others.
• For instance, according to the Eurostat, the European Union (EU) comprised of over 32.3 million enterprises in 2022, among which 99% of the total enterprises were micro and small enterprises
• Thus, the rising number of small and medium enterprises is driving the adoption of CRM solutions, in turn, propelling the market during the forecast period.

By End User:

Based on the end user, the market is segmented into BFSI, retail & e-commerce, manufacturing, healthcare, IT & telecommunication, education, government, and others.

Trends in the end user:

• Increasing adoption of CRM solution in BFSI sector for managing customer relationships, automating workflows, increasing operational efficiency, and others.
• There is a rising trend towards utilization of CRM solution in retail & e-commerce sector for enhancing customer service, increasing customer retention, and streamlining inventory management.

BFSI segment accounted for the largest revenue share of 31.53% in the total customer relationship management market share in 2024.

• This dominance is attributed to the rising adoption of CRM solutions in BFSI sector for streamlining operations by automating critical processes such as sales management and customer service workflows.
• CRM software helps BFSI firms to reduce their manual workloads while allowing staff to emphasize on strategic, value-adding tasks.
• Moreover, the deployment of CRM solutions in BFSI sector offers several benefits such as streamlined banking operations, interaction tracking, data analytics and reporting, data-driven decisions, and others.
• For instance, HubSpot Inc. offers CRM software for utilization in BFSI sector. The CRM is capable of tracking customer interactions over multiple platforms and channels, including telephone calls, text messages, emails, and bank app usage.
• Therefore, the increasing development of CRM solutions for utilization in BFSI sector is propelling the market.

Retail & e-commerce segment is anticipated to register a substantial CAGR growth during the forecast period.

• CRM solution is used in retail and e-commerce industry for enhancing customer service, improving contact management, increasing customer retention, automating workflows, and streamlining inventory management among others.
• Moreover, the utilization of CRM solutions in retail & e-commerce sector enables retail businesses to keep track of their customer segments and lead.
• For instance, according to India Brand Equity Foundation, the retail sector in India was valued at USD 1,200 billion in 2023, and it is projected to grow up to USD 1,884 billion by 2030.
• Hence, the growing retail & e-commerce sector is projected to increase the utilization of CRM solution is driving the market during the forecast period.