Saudi Arabia Customer Experience Management Market Size, Share & Industry Analysis, By Component (Solutions and Services), By Deployment (Cloud and On-premises), By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By Touchpoint (Call Center, Website, Mobile Application, Email, Social Media, and Others), By End-user (BFSI, Retail & Consumer Goods, IT & Telecom, Healthcare, Travel & Hospitality, Media & Entertainment, Utilities, and Others), and Country Forecast, 2024-2032

The Saudi Arabia customer experience management market size was valued at USD 156.2 million in 2023. The market is projected to grow from USD 181.2 million in 2024 to USD 746.7 million by 2032, exhibiting a CAGR of 19.4% during the forecast period.

Customer experience management is a system that manages a customer’s journey and is all about creating an exceptional journey for customers. The market is witnessing strong growth in Saudi Arabia due to factors including high investments in technologies, such as Artificial Intelligence (AI) and Machine Learning (ML). Moreover, government authorities and businesses in the country have shifted to cloud technology to increase operational efficiency and find a balance between security and agility. As per the 2023 Tech Survey Saudi Arabia report by KPMG, around 88% of businesses stated that they were advanced in their adoption of cloud. The advent of cloud technology has significantly boosted the customer experience management market in Saudi Arabia by providing businesses with scalable, flexible, and cost-effective solutions to improve their customer interactions.

The COVID-19 pandemic led to a surge in call volumes regarding various types of information across countries in the Middle East. Industries, including healthcare, travel, and hospitality witnessed a significant increase in call volumes. As commercial airlines were stranded, call centers were flooded with calls from concerned travelers looking for more information on cancellation and refunds or to modify their itineraries. Similarly, the medical sector experienced a major rise in-bound call volumes by panic-stricken people wanting to obtain more information on some of the symptoms they may be facing. However, the emergence of digital payment applications, such as Google Pay, Amazon Pay, and PayPal improved customer satisfaction amid the pandemic. They reduced physical interactions and directed consumers toward contactless shopping and payments. Small and medium-sized businesses started adopting online payments methods to avoid physical contact amid the pandemic. Tourism companies in Egypt, Saudi Arabia, and the UAE adopted various touchpoints to answer customers’ queries related to cancellation of booking of resorts and hotels.

Saudi Arabia Customer Experience Management Market Trends

Thriving Tourism Sector to Propel Market Growth

The tourism industry in Saudi Arabia is growing rapidly on account of various government initiatives, investments in infrastructure, and efforts to diversify the economy. The country hosted a total of 106.2 million tourists in 2023, a 12% increase from 2022. Spending by tourists amounted to USD 66 billion in 2023, contributing 4% to the country’s GDP. The Vision 2030 initiative is an ambitious plan that aims to diversify the economy and reduce Saudi Arabia’s dependence on oil by developing sectors, such as tourism and hospitality. As part of this vision, Saudi Arabia has undertaken ambitious plans to boost the tourism infrastructure, attract international visitors, and promote domestic tourism. For instance,

• On March 05, 2024, Ahmed bin Aqil al-Khateeb, the Minister of Tourism in Saudi Arabia, announced the launch of a Tourism Investment Enabler Program (TIEP) to further advance the nation’s rapidly growing tourism sector. This program is intended to increase the feasibility and efficiency of investing in Saudi tourism for both international and domestic investors.

With more tourists visiting Saudi Arabia, governments and businesses are under pressure to deliver exceptional experiences. This will drive the demand for customer experience solutions to enable users to better understand, engage with, and satisfy tourists. As tourists come from diverse cultural backgrounds and preferences, there is a growing requirement for personalized and localized experiences. CX platforms can help businesses tailor their services and offerings based on tourist demographics, behavior, and feedback, leading to higher satisfaction levels.

Therefore, the above-mentioned factors are boosting the customer experience management market share.

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Saudi Arabia Customer Experience Management Market Growth Factors

Rapid Digitalization and Government Initiatives to Boost Market Growth

Saudi Arabia is witnessing a remarkable digital revolution, which is aligned with its Vision 2030 goal. Various government initiatives and significant adoption of advanced technologies are driving the nation toward becoming one of the major digital economies in the world. In 2022, the Kingdom of Saudi Arabia rose to the 31st place from the 52nd place in 2018 in the U.N. digital government programs. In addition, Saudi Arabia ranked 2nd in 2021 among the G20 nations in the Digital Competitiveness Index published by the European Center for Digital Competitiveness. The rapid digital transformation in Saudi Arabia is reshaping customer expectations. Consumers are increasingly preferring seamless digital experiences across various touchpoints, thereby driving businesses to invest in customer experience management solutions to meet these demands.

A survey of 1,000 consumers from Qatar, Saudi Arabia, and the UAE by Mitto discovered that positive customer experience and support were a priority for most consumers, and around 61% of consumers stated that they would lose trust in a business following a negative customer experience. In addition, Saudi Arabia has one of the highest rates of smartphone penetration across the globe. In 2024, around 92% of the total population in Saudi Arabia had access to or owned a smartphone. There were also more than 36.31 million internet users in the country at the start of 2023. By 2025, the internet penetration is expected to reach 97%, up from 84% in 2019.

To summarize, rapid digitalization, changes in consumer behavior, robust government initiatives, and remarkable technological advancements are propelling significant growth and innovation in the market in Saudi Arabia. Businesses that are focusing on customer-centric strategies and investing in advanced technologies are well-positioned to thrive in this rapidly evolving market.

Therefore, the above factors are driving the customer experience management market growth.

RESTRAINING FACTORS

Regulatory Challenges and Cybersecurity Concerns to Hamper Market Growth

In 2023, the Saudi Arabia Government Authority for Data and Artificial Intelligence announced the implementation of regulations for personal data protection and regulations on personal data transfer outside Saudi Arabia. Compliance with data privacy regulations, such as the KSA Personal Data Protection Law (PDPL) poses challenges for businesses capturing and analyzing customer data. Adhering to regulatory requirements while delivering personalized experiences needs careful navigation and investment in compliance measures. These regulations are applicable across all sectors in the Kingdom and mandate stringent obligations, such as reporting data breaches within 72 hours, performing data protection impact assessments, and keeping a record of processing activities.

Additionally, cyberattacks and data breaches are major concerns for businesses operating in Saudi Arabia. Protecting sensitive data and ensuring data security & privacy are crucial in customer experience management initiatives, demanding robust security measures and investments in cybersecurity technologies.

Saudi Arabia Customer Experience Management Market Segmentation Analysis

By Component Analysis

Solutions Segment Dominates as Adoption of CXM Solutions Delivers Enhanced Experience

By component, the market is segmented into solutions and services.

The solutions segment dominated the market in 2023 as CXM platforms/solutions assist businesses in delivering enhanced customer experience and improving their productivity. The solution provides an elaborated view of the customer’s behavior as well as preference across various touchpoints and the software helps to build long lasting relationships with customer that helps to boost loyalty and retention.

The services segment is predicted to show the highest growth rate during the forecast period owing to the need for consulting, implementation, and maintenance services before and after deploying customer experience platforms.

By Deployment Analysis

Increasing Adoption of Cloud-based Solutions for Analyzing Customer Data Aid’s Cloud Segment’s Growth

By deployment, the market is segmented into cloud and on-premises.

The cloud segment is estimated to record the highest CAGR during the forecast period as cloud-based CXM solutions are used for collecting and analyzing real time data and improving customer interaction to create better customer experience. Cloud-based solutions make it easy to track customer behavior over time, identify trends, and make decisions about what products and services can be offered to customers. They also help businesses understand how they are performing in comparison to their competitors.

The on-premises segment generated the maximum revenue in 2023 as on-premises solutions offer enhanced security to the company’s data and reduce the total cost of ownership. On-premise solutions provide continuous access to essential business information. On-premise solution setting up is more expensive and updating infrastructure also requires regular and significant investments.

By Enterprise Type Analysis

Demand for CX Solution among Large Enterprises to Boost Segment Growth

By enterprise type, the market is segmented into large enterprises and SMEs.

The large enterprises segment dominated the market in 2023 and is estimated to record the highest CAGR during the forecast period. Large enterprises have to mandatorily scale their infrastructure to address the requirements and meet new demands raised by the remote workforce, also the enterprises need to maintain infrastructure support for their services and products. Therefore, the large enterprises are increasingly adopting the customer experience management solutions.

SMEs are estimated to showcase steady growth as SMEs often struggle multiple priorities with limited resources and due to this balancing operational priorities and implementing CX strategies become real challenge for SMEs. As SMEs have limited budget they are not able to invest more in CX strategies. SMEs are utilizing social media for monitoring target customers and gather feedback from this channel as it is more affordable for SMEs.

By Touchpoint Analysis

Mobile Application Segment’s Leading Position Driven by Adoption of Mobile Apps to Improve Customer Journey

By touchpoint, the market is segmented into call center, website, mobile application, email, social media, and others.

The mobile application segment dominated the market in 2023 and is projected to show a notable CAGR during the forecast period. Mobile applications are driving marketing automation across various industries. This factor is expected to pave the way for new revenue streams for the customer experience management vendors. Mobile applications involve leveraging insights, surveys, and feedback to improve user journeys across all the online platforms.

The social media segment is estimated to record a steady growth rate as social media is a tool used by businesses to directly communicate with their target audience and more specifically, their customers. Also, through social media companies can do research for discovering pain points in the customer journey and channel for reaching the right customers at the right time.

By End-user Analysis

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Retail & Consumer Goods Lead with Increasing Demand for CX Solution among Retail Companies to Enhance Customer Experience

By end-user, the market is segmented into BFSI, retail & consumer goods, IT & telecom, healthcare, travel & hospitality, media & entertainment, utilities, and others.

The retail & consumer goods segment dominated the Saudi Arabia customer experience management market share in 2023. In Saudi Arabia’s retail industry, there are some key factors behind a consumer’s choice of brand that involves product variety, integrity, and personalization. Saudi Arabia’s e-commerce market has grown exponentially in the past few years, highlighting its potential and forcing retail companies to leverage online shopping platforms for enhancing their customer base. Innovations in personalized marketing, adapting to appropriate customers, and creating a better experience of shopping online became essential for companies to keep their consumers engaged.

The travel & hospitality segment is estimated to record the highest CAGR during the forecast period as the adoption of customer experience management solutions is increasing steadily in Saudi Arabia’s tourism sector. This is because Saudi Arabia is setting a new benchmark for responsible tourism, developing projects that first and foremost, preserve the planet and its people. Giga projects, such as Neom, Diriyah, and Red Sea, which have received funds worth a whopping USD 600 billion from the Public Investment Fund, are being developed to increase Saudi Arabia’s ability to host visitors, events, and new residents, and also revise the quality of life and the cultural, heritage, environmental sustainability, leisure experiences, and innovation expectations of next-generation tourists.

COUNTRY INSIGHTS

The market is witnessing significant growth in Saudi Arabia. Saudi Arabia is one of the fastest developing economies with a growth rate of 8.7%. The country is planning various futuristic projects and an essential part of this is the Saudi Vision 2030. This vision is planned for reducing the country’s dependency on oil and diversifying its economic growth. Due to this, Saudi Arabia is now observed as one of the prominent countries globally for Customer Experience (CX). As per industry experts, in Saudi Arabia, around 96% of businesses listed customer experience as a top priority. The businesses in Saudi Arabia are focusing on providing customized products and services to their customers as a great customer experience can foster loyalty. It also increases happiness and creates a sense of positive well-being. Through the Saudi Vision 2030, Saudi Arabia has gained a major opportunity to create a blueprint for defining what ‘excellent’ looks like.

In 2023, the World of Customer Experience Forum entered a partnership with the Customer Experience Association, the first Saudi association licensed for supporting and developing the customer experience industry in Saudi Arabia. This partnership focuses on supporting the forum, launching initiatives, inviting expert speakers, hosting events for the forum. It will also focus on organizing workshops for raising the level of services and solutions provided to customers in light of digital transformation and innovation. As 67% of the Middle Eastern customers are shifting toward digital channels to engage with brands, the companies in Saudi Arabia are widely adopting the CXM solutions. Therefore, the above factors are driving the Saudi Arabia customer experience management market growth.

KEY INDUSTRY PLAYERS

Major Players to Focus on Adopting Advanced Technologies to Strengthen Market Positions and Enhance their Presence

Companies operating in the market are actively acquiring their competitors to access new technologies, enhance their product offerings, boost revenues, and improve their overall market position. They are also collaborating with other firms to expand their product offerings, strengthen their market reach, and leverage complementary expertise. To stand out in the market, key companies are increasingly embracing digital channels and technologies, such as AI, chatbots, mobile apps, and social media platforms to improve customer engagement, streamline processes, and provide seamless omnichannel experiences across various touchpoints.

LIST OF TOP CUSTOMER EXPERIENCE MANAGEMENT COMPANIES IN SAUDI ARABIA/ LIST OF TOP CUSTOMER EXPERIENCE MANAGEMENT COMPANIES:

• RAYA CUSTOMER EXPERIENCE (Egypt)


• e& enterprise (e& etisalat and) (UAE)


• 2P Perfect Presentation (Saudi Arabia)


• ccc (Saudi Telecom Company) (Saudi Arabia)


• Teleperformance SE (France)


• Lucidya LLC (Saudi Arabia)


• KPMG Professional Services (Netherlands)


• AlasilaCX (Saudi Arabia)


• SAP SE (Germany)


• XEBO.ai (Survey2Connect) (India)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Saudia, the flag carrier of Saudi Arabia, announced a partnership with SAP SE to incorporate the RISE with SAP solution on Google Cloud.


• February 2024: 2P secured a project worth USD 53.5 million to handle the Saudi Arabia Ministry of Health’s contact centers for 2 years. The project involves the activation, operation, and development of interactive omnichannels to improve communication with beneficiaries.


• January 2024: e& enterprise announced its participation as a strategic partner in the Customer Experience World Forum 2024 held in Riyadh, Saudi Arabia. During the summit, e& enterprise showcased its various offerings aimed at enhancing customer experiences.


• October 2023: Teleperformance SE completed the acquisition of Majorel, a provider of end-to-end customer experience management solutions, to expand its expertise across a highly diversified client portfolio and offer a broad range of digital transformation services.


• May 2023: CXKSA signed a deal with Xebo.ai (Survey2Connect) to become its partner and distributor in Saudi Arabia. Abdulaziz Alshamsan, CEO of CXKSA, and Yash Sultania, CEO of Survey2Connect, signed this agreement to work on projects together and expand their product offerings.

REPORT COVERAGE

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The market report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and top applications of the product. Besides, it offers insights into the latest market trends and highlights the competitive landscape. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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