Customer Service Software Market Trend, Share, Growth, Size and Forecast 2030

Customer Service Software Industry Prospective:

The global customer service software market size was worth around USD 10.50 billion in 2022 and is predicted to grow to around USD 22.85 billion by 2030 with a compound annual growth rate (CAGR) of roughly 10.21% between 2023 and 2030.

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Customer Service Software Market: Overview

Customer service software are digital program and application used by companies, businesses, or organizations to gather information and provide improved customer service. These tools are multifunctional and perform several roles. However, the end goal is to ensure smoother and more efficient customer support. Some of the essential role parameters are collecting information, analyzing, interpreting data, and final reporting. Certain customer service software also provides options to integrate customer communication channels such as email, chat, text, and others with these applications.

Applications meant for customer service are available in several forms including online forums, case-management systems, automated call-back systems, and many others depending on the exact requirements of the business. Voice over Internet Protocol (VoIP) is one of the leading and most crucial elements of customer service software as it improves application efficiency. Other elements include automated agents, phone support tools, self-service software, case management software, workflow software, customer relationship management (CRM), and others.

Key Insights:

• As per the analysis shared by our research analyst, the global customer service software market is estimated to grow annually at a CAGR of around 10.21% over the forecast period (2023-2030)
• In terms of revenue, the global customer service software market size was valued at around USD 10.50 billion in 2022 and is projected to reach USD 22.85 billion, by 2030.
• The market is projected to grow at a significant rate due to rising customer expectations and changing customer service level
• Based on end-user industry segmentation, retail & e-commerce was predicted to show maximum market share in the year 2022
• Based on component segmentation, services was the leading segment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Customer Service Software Market: Growth Drivers

Rising customer expectations and changing customer service levels may drive market growth

The global customer service software market is projected to grow owing to the changing consumer expectations from businesses. Modern customers are more demanding in terms of a smooth buying experience. The expectations have further risen due to the excellent customer service provided by e-commerce websites including door-step delivery, easy return policies, and high transaction transparency. Customers are now expecting the same or similar worry-free buying experience from all companies selling products or services. As competition across industries has risen tremendously in the last few decades, companies have also realized the importance of improved customer service for long-term survival.

For instance, an official survey conducted by Custify concluded that nearly 64% of customers prioritize customer experience over the final price of the product or service. Additionally, nearly 89% of buyers are willing to go back to the same brand in case they have had a seamless buying experience. These numbers indicate that customer service has become one of the crucial parameters of business survival. Organizations or service providers cannot take customers for granted since the customer-brand relationship has become more long-term in recent times.

Business expansion and globalization trigger demand for customized service software

Businesses are expanding into new markets, especially in emerging economies. Customer buying trends may vary depending on several external factors. For instance, regional culture and values are known to greatly influence the buying habits of the general population, and customer service programs must align with culturally influenced buying habits. As companies enter previously unknown territories, their customer service policies and programs must be drafted accordingly thus driving the demand for customized solutions in the global customer service software market.

Customer Service Software Market: Restraints

Limited rate of return (ROI) for smaller companies may restrict market demand

The global customer service software market is projected to be restricted due to the limited ROI, especially in the case of smaller companies with limited clients. Businesses that do not cater to a vast group of consumers, tend to prefer manual methods of customer service that include the efficiency of skilled customer service agents. Since customer service software is significantly priced, small or medium-sized companies may not find customer service applications cost-efficient. Additionally, they will have to spend on personnel training, information technology (IT) infrastructure, and other such expenses thus leading to higher overall costs.

Customer Service Software Market: Opportunities

Increasing innovation in terms of service offerings may create higher growth opportunities

The global customer service software market is expected to register a shift in growth momentum owing to the increasing rate of innovation strategies adopted by providers of applications meant for customer service. These developments are not restricted to customer service programs only as they extend to other areas that eventually lead to ensuring seamless customer experience. In April 2023, SuperOffice, a Europe-based supplier of customer relationship management (CRM) software operating in the business-to-business (B2B) sector, announced the launch of the next version of its existing Service software that works on cloud-based technology. The new application is expected to deliver comprehensive results as more teams will be interconnected through the platform thus allowing access to all important customer-related information.

In December 2021, Wolken Software, a rising Indian software company, launched a new customer service platform in the form of Wolken Care. It is a self-service Software-as-a-Service (SaaS) program especially targeting small and medium-sized firms. The company caters to international clients spread across the globe including companies belonging to the Forbes 100.

Integration of customer service platforms and generative artificial intelligence (AI) holds the potential to disrupt market trends

The global customer service software industry holds high growth potential in the form of integration with generative AI. The technology can be used to provide more personalized customer service since it works on advanced systems such as deep learning techniques and large language models (LLMs). The generative AI technology can efficiently manage complex doubts and customer inquiries with seamless ease and can perform more organic or natural-appearing conversations with customers.

Customer Service Software Market: Challenges

Concerns over customer data loss and privacy infringement may challenge market demand

The global customer service software market will be impacted by the growing concerns and cases of customer data loss. Countries across the globe have curated strict regulations to ensure consumer privacy protection. However, in recent times, online data theft has grown leading to personal information being leaked to external agents. Customer service software providers must provide optimum safety against online security breaches.

Customer Service Software Market: Segmentation

The global customer service software market is segmented based on end-user industry, deployment, component, and region.

Based on end-user industry, the global market segments are manufacturing, healthcare, government, BFSI, IT & telecommunication, retail & e-commerce, and others. In 2022, the highest growth rate was recorded in the retail & e-commerce segment. The change in consumer service expectations has been highly influenced by the ways in which e-commerce companies provide customer service. Their programs are designed to ascertain that customers do not face any type of difficulty in buying a product as well as during other post-purchase services. The growing consumer base of e-commerce portals and excessive demand for retail items are responsible for a higher segmental growth rate. Amazon, the leading e-commerce giant, hosts nearly 310 million customers.

Based on deployment, the global customer service software industry is divided into SaaS and cloud-based.

Based on components, the global market is divided into services and software. In 2022, the highest revenue-generating segment was services. The companies providing customer service solutions offer several services that work coherently to improve the overall performance of the tool. Furthermore, they may scale their prices depending on the services preferred by the users. The demand for self-service options such as chatbots is increasing rapidly since it helps businesses manage basic queries through the tool without requiring the help of a customer care agent. As per official research, the introduction of chatbots in sales or customer service can improve conversations rated by 30.5%.

Customer Service Software Market: Report Scope

Customer Service Software Market: Regional Analysis

North America to deliver the highest growth rate during the projection period

The global customer service software market is projected to be led by North America during the forecast period. The US and Canadian markets offer high customer satisfaction trends. For instance, the former nation boasts of a 95.61% customer satisfaction rate while Canada is around 95.82%. Furthermore, the region is home to several customer service software developers. Several US-based programs have garnered higher acceptance in the international market.

Freshdesk, a US cloud-based customer service software company, announced that its yearly revenue in 2022 grew by 34% from 2021. In 2016, the company launched all-in-one CRM solutions and since then the tool has become widely accepted globally. In addition to this, the regional commercial environment is customer-oriented. The high consumer awareness about their rights and higher liability on the side of businesses in case of customer dissatisfaction leads to greater regional revenue.

Europe is an important market since it holds a significant share of the global revenue. The increasing number of customers as well as rising customer expectation complexities encourage more companies to use customer service software. Asia-Pacific is a rapidly growing market. India, China, Singapore, Japan, and South Korea are key growth contributors.

Customer Service Software Market: Competitive Analysis

The global customer service software market is led by players like:

• Freshdesk
• Zendesk
• Microsoft Dynamics 365 Customer Service
• Kayako
• Salesforce Service Cloud
• HappyFox
• HubSpot Service Hub
• Gorgias
• Zoho Desk
• ServiceNow
• Desk.com
• LiveChat
• Help Scout
• Oracle Service Cloud

The global customer service software market is segmented as follows:

By End-User Industry

• Manufacturing
• Healthcare
• Government
• BFSI
• IT & Telecommunication
• Retail & E-Commerce
• Others

By Deployment

• SaaS
• Cloud-Based

By Component

• Services
• Software

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