Community Engagement Software Market Size, Share, Analysis, Trends, Growth Report, 2030

Community Engagement Software Industry Prospective:

The global community engagement software market size was worth around USD 2,002.48 million in 2022 and is predicted to grow to around USD 2,900.84 million by 2030 with a compound annual growth rate (CAGR) of roughly 4.74% between 2023 and 2030.

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Community Engagement Software Market: Overview

Community engagement software is an information technology application that facilitates the establishment of virtual gathering places for individuals with common interests. Community engagement is the imaginative process of creating a significant online community that shares views, experiences, information, and expertise as well as objectives and other significant insights. Community engagement software is a digital platform that facilitates the connection and growth of such communities. There is often a common thread across the communities that grow on these types of platforms.

For instance, a brand may create an online engagement software platform to discuss upcoming launches, and product history, or to encourage customers to share their experiences. Such tools work both ways. On one end they allow customers to become closer to the brand while on the other side, brand owners get access to first-hand information on key insights related to their products. Several companies are currently operational in the community engagement software industry as the world becomes more digital with every passing year.

Key Insights:

• As per the analysis shared by our research analyst, the global community engagement software market is estimated to grow annually at a CAGR of around 4.74% over the forecast period (2023-2030).
• In terms of revenue, the global community engagement software market size was valued at around USD 2,002.48 million in 2022 and is projected to reach USD 2,900.84 million, by 2030.
• The community engagement software market is projected to grow at a significant rate due to the growing access to the Internet.
• Based on end-user industry segmentation, healthcare & hospitality were predicted to show maximum market share in the year 2022.
• Based on component segmentation, managed services were the leading segment in 2022.
• On the basis of region, North America was the leading revenue generator in 2022.

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Community Engagement Software Market: Growth Drivers

Growing access to the Internet will aid the market growth rate

The global community engagement software market is expected to grow as the world population continues to gain higher access to the Internet. Until a few years ago, the World Wide Web (WWW) was considered an elite digital technology that only a few people could access. However, in recent times, the Internet has managed to penetrate deep into the markets including remote locations. One of the leading reasons for higher access to the Internet is the current affordable pricing strategy adopted by market leaders. As the number of Internet providers has increased globally, the cost of using the digital tool has reduced. In addition to this, the growing sale of smart consumer electronics such as laptops, computers, smartphones, and wearables has further fueled the demand for faster, cost-efficient, and reliable Internet connection.

As per official reports, more than 60% of the world population currently uses the Internet. In the coming years, more investments are expected in 5G technology which is projected to disrupt the IT world in terms of establishing a secure and faster digital connection. In November 2023, Orange, a leading telecom operator, announced that it has extensive plans in place to launch 5G in the emerging economies of the African continent. The company has already established a basic infrastructure in the form of research laboratories in Africa and is expected to launch 5G networks across cities in 2024.

Options of customization on community engagement tools to attract more consumers

Developers of community engagement platforms are increasingly providing options to customize solutions depending on the final requirements of the users. This allows the global community engagement software companies to cater to a diverse set of audience and gather more revenue. For instance, they offer in-built themes for quicker delivery. Furthermore, they are also experimenting with higher options to create more engagement within the community.

Community Engagement Software Market: Restraints

Chances of incurring high costs if proper execution is not implemented thus restricting market adoption

The solutions available in the global community engagement software industry must be executed with concrete plans. These tools can be beneficial to companies using paid services. However, if the execution has been poorly planned, the use of community engagement software can lead to excess cost with minimal returns on investment. Users must be aware of the exact expectations that they have in terms of revenue the tools will indirectly generate from them along with customer loyalty. However, haphazard decisions related to the platforms may lead to additional costs.

Community Engagement Software Market: Opportunities

Integration with advanced technologies such as machine learning (ML) has exceptional growth possibilities

The global community engagement software market may trend rapidly as businesses operating in the segment are increasingly investing in integrating advanced technologies such as ML and artificial intelligence (AI) for improved performance and outcomes from the tool.

In November 2023, Coto, a women-centric Web3-based application used for community engagement, launched a new AI-enabled feature on the tool with regards to the questions & answers (Q&A) segment. The move has made Coto the only women-centric application to use AI technology. In addition to this, the application is now hosting a new set of other features including Unique Text Edit mode, Anonymous Posting, and Tagging Experts.

In October 2023, Hivebrite, a community and engagement platform, announced that it had raised around USD 37 million in series B funding. The brand is the owner of a Software-as-a-Service (SaaS) platform meant for corporate houses and businesses to develop and engage branded communities. Currently, it has more than 900 brands associated with the firm. Hivebrite is expected to use the funds toward innovation and global expansion.

Community Engagement Software Market: Challenges

Growing online fraud and data theft are challenges for market players

The global market for community engagement software is vulnerable to online threats, especially during current times as online data theft and fraud incidents are on the rise. Although all solutions providers try to ensure optimum safety against online threats, there is always a risk of critical information including the personal details of users being stolen. Community engagement software platforms must have zero scope of being affected by online theft for survival in the long run.

Community Engagement Software Market: Segmentation

The global community engagement software market is segmented based on end-user industry, deployment mode, component, and region.

Based on the end-user industry, the global market segments are healthcare & hospitality, BFSI, manufacturing, government & public utilities, retail, media & entertainment, and others. In 2022, the highest growth was observed in the healthcare & hospitality sector. This is mainly due to increased acceptance of online platforms where people can anonymously discuss private issues related to their health and medical conditions, especially for issues that otherwise have social stigma attached to them. The retail sector is another leading contributor as it relies heavily on novel marketing techniques to reach consumer groups. In 2023, Nike spent nearly 4 billion on promotion and advertisement.

Based on deployment mode, the global community engagement software industry was divided into on-premises and cloud-based.

Based on component, the global market segments are training & education, support & maintenance, professional services, managed services, and others. In 2022, the highest demand was registered in the managed services segment. Once the platforms are rolled out for users, they must be managed in terms of ensuring that the tool runs smoothly throughout its lifestyle. Managed services are required to avoid any form of data loss or glitch. During the forecast period, the same trend is expected. Bettermode, a leading community engagement software, connects around 10 million people globally.

Community Engagement Software Market: Report Scope

Community Engagement Software Market: Regional Analysis

North America to deliver the best results during the forecast period

The global community engagement software market will be led by North America during the forecast period. The reason for the higher growth rate is the existence of a mature market in the US and Canada regions. The countries are hosting several community engagement software developers who have pioneered and shaped the industry. Canada-based Bettermod, an emerging and popular community engagement software, announced that it had received seed funding of USD 7.5 million from CRV and Bessemer Venture Partners. Additionally, the number of platform users across North America is equally high. Europe is a crucial market that holds a significant share in the global revenue. The growing acceptance of digital platforms for community-based discussion aids regional growth.

In June 2023, Commonplace, a UK-based community engagement platform for citizens, procured £2.1 million as the company plans to continue strategic expansion. Asia-Pacific is showing signs of a lucrative market. The regional population is steadily becoming aware of the importance of digital platforms that allow synonyms but transparent communication. In October 2023, the Greater Chennai Corporation (GCC) of India announced the launch of a new platform equipped with a chatbot for improving grievance redressal procedures.

Community Engagement Software Market: Competitive Analysis

The global community engagement software market is led by players like:

• Higher Logic
• Salesforce
• Lithium Technologies
• Vanilla Forums
• vBulletin
• Discourse
• MyBB
• Influitive
• Hivebrite
• Jive (Aurea)
• Mobilize
• Zoho Connect
• VanillaSoft
• Igloo Software

The global community engagement software market is segmented as follows:

By End-User Industry

• Healthcare & Hospitality
• BFSI, Manufacturing
• Government & Public Utilities
• Retail
• Media & Entertainment
• Others

By Deployment Mode

• On-Premises
• Cloud-Based

By Component

• Training & Education
• Support & Maintenance
• Professional Services
• Managed Services
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa