CRM software market in the Asia Pacific to keep growing
Customer relationship management has now evolved into customer experience (CX). Processes other than sales are becoming customer-oriented too, and so, customer-data driven technology is permeating all areas of business operations. CRM software is being implemented globally by a growing number of businesses of all sizes. Both traditional and technological organizations consider it a necessary tool today.
According to Market Research Future (MRFR), the global CRM software market is forecasted to reach USD 35 billion by the year 2023. The report says the CRM software market in the Asia Pacific will continue to grow because of the manufacturing industry in Japan, China, South Korea, and India.
CRM software market in Asia Pacific region as a subset of the global SaaS market
It is well known by now that SaaS has been the gamechanger for the easy adoption of CRM worldwide. With the global SaaS market expected to expand, the CRM software market will continue to burgeon too. In the context of SaaS adoption, Japan still leads the pack in the Asia Pacific. At the same time, it continues to be conservative in terms of encouraging global SaaS companies to enter its local market.
Most notably, India has recently outpaced the global growth of the CRM software market. According to Gartner, the Indian CRM software market has been growing at a rate of 20.5% while the global CRM market has been doing so at the rate of 15.5%.
Nonetheless, the CRM software market in the Asia Pacific will have its share of challenges to overcome, according to Market Watch. According to the report, several countries in the Asia Pacific are still considered to be developing economies and have a dynamic business environment. So, the businesses operating in the region will have to balance their cost efficiency with their specific business needs continually.
Global trends will affect the CRM software market in the Asia Pacific
As per the market trends in the last five years, a rise in the CRM software market in the Asia Pacific has not been unprecedented. It experienced the fastest growth worldwide in the CRM software market half a decade ago. Both medium-sized and large enterprises had invested in the CRM market to improve their customer experience. It is evident from the fact that industries like IT, communications, and media formed almost a quarter of CRM spending in 2014.
Fast forward to 2017, Asia Pacific tech spending experienced only moderate growth. However, according to the same report by Forrester, it was then expected to grow by six percent the following year. So, in 2018, CRM SaaS spending was the largest among all the categories in the tech sector. As mentioned earlier, the report?s prediction about Japan and India has proved to be true. However, as of now, the CRM software market in the Asia Pacific is still the third largest in the world after the US and Europe.
The use of CRM in the Asia Pacific will continue to surge, owing to the trending factors globally. Let?s look at some of them.
Any development in AI is bound to affect the CRM software market in all the regions worldwide, including the Asia Pacific. The spending on AI for advancing CRM software is expected to increase exponentially in the coming decade as per a report by Zion Market Research.
The need to stand out in the market and offer personalized service will be the main reasons for organizations to adopt AI and its advantages. Zion Market Research has further predicted that AI market for CRM will grow at the highest rate in the Asia Pacific region, and they anticipate that China, South Korea, and India as the primary spenders. However, despite the increase in spending, inadequate progress in AI may impact the CRM market during this period.
According to Market Watch, the healthcare industry is expected to spend more on CRM because of growing global chains of hospitals in rural regions. Some healthcare brands have found that CRM systems make it easier to follow up with the patients and manage data.
Finally, the small and medium-sized businesses (SMBs) will perhaps invest the most in CRM software. They seem to be keen on automating more tasks and smoothening workflows across different business operation areas. With more and more software moving to cloud-based systems, it is now affordable and convenient for small businesses to spend on CRM. Moreover, today, CRM vendors cater to organizations of all sizes and budgets, so they have become quite a cost-efficient solution. Large enterprises would want to continue to reap the benefits of CRM adoption, and thus, they would not cut down their CRM spending.
So, it could be safe to assume that industry and verticals of all sizes would continue to consider CRM software in their annual budgets. However, the CRM software market in the Asia Pacific would need to improve its infrastructure to make the most of its spending.