Global Customer Information System Market Size, Share & Trends Analysis Report By Component (Solution and Services), By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Customer Information System Market Size, Share & Trends Analysis Report By Component (Solution and Services), By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Customer Information System Market size is expected to reach $3.1 billion by 2031, rising at a market growth of 11.9% CAGR during the forecast period.

China has ambitious plans to construct or renovate 80,000 km of wastewater collection pipeline networks to improve this infrastructure further. This expansion will improve the efficiency of wastewater collection and treatment and necessitate sophisticated management systems. Customer Information Systems will be essential in managing the vast amounts of data these infrastructure projects generate. Hence, in 2023, the Asia Pacific region generated 26% revenue share in the market. Rapid urbanization, expanding utility sectors, and increasing government initiatives to modernize infrastructure contribute to this region’s growth. Additionally, the rising adoption of digital solutions and the need to manage large customer bases efficiently propel the demand for customer information systems in Asia Pacific.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In August, 2024, Cayenta, a subsidiary of Harris Computer, partnered with KUBRA, a customer experiences solutions provider, to enhance utility customer experience management by integrating KUBRA's innovative solutions with Cayenta's CIS software. Additionally, In August, 2023, IBM Corporation partnered with Salesforce, a cloud computing company, to accelerate AI adoption for CRM. IBM Consulting would help clients integrate Salesforce AI technologies, using its expertise and watsonx platform.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation are the forerunners in the Customer Information System Market. Companies such as Oracle Corporation, IBM Corporation, SAP SE are some of the key innovators in Customer Information System Market. In September, 2023, Oracle Corporation teamed up with Microsoft, an American technology company, announced Oracle Database@Azure, enabling direct access to Oracle database services within Microsoft Azure datacenters.

Market Growth Factors

Efficient billing systems automate invoicing, reducing manual errors and ensuring timely billing. This automation leads to quicker payment cycles and improved cash flow for businesses. Automated billing minimizes discrepancies arising from manual entries, ensuring customers are correctly billed. This accuracy helps build trust and reduce customer disputes related to billing. Modern CIS solutions allow businesses to offer multiple payment options to customers, catering to their preferences and improving the likelihood of on-time payments. Thus, increasing demand for efficient billing and customer management drives the market’s growth.

Omnichannel strategies prioritize a unified brand voice and messaging across all platforms. Customer Information Systems enable businesses to maintain this consistency by consolidating customer data and interactions from various channels into a single view, ensuring that all communications are coherent and relevant. CIS solutions facilitate smoother transitions between channels by providing a holistic view of customer interactions, allowing customers to engage with a brand fluidly, whether online or offline. This approach offers a comprehensive understanding of customer requirements. Therefore, the expansion of omnichannel communication strategies is propelling the market’s growth.

Market Restraining Factors

Implementing a CIS often requires substantial hardware, software, and network infrastructure investments. Organizations must budget for servers, storage solutions, and other necessary technology components, which can lead to high upfront costs. Many CIS solutions involve substantial licensing fees, especially for enterprise-grade systems. These costs can accumulate quickly, placing a financial strain on businesses. This training often requires additional resource investment in time and money, which can significantly burden organizations. Hence, high implementation and maintenance costs are impeding the market’s growth.

Component Outlook

Based on component, the market is divided into solution and services. The services segment attained 34% revenue share in the market in 2023. This segment includes various professional services such as consulting, implementation, support, and maintenance. The growing complexity of customer information systems drives the demand for specialized services to ensure successful deployment and operation. Organizations often rely on these services to optimize their systems, ensure compliance with regulatory requirements, and enhance overall customer experience.

Services Type Outlook

On the basis of services type, the market is segmented into legacy extension consulting service, customer information system implementation service, and support service. In 2023, the support service segment attained 32% revenue share in the market. Support services include ongoing maintenance, troubleshooting, system upgrades, and technical assistance, essential for customer information systems’ smooth functioning and longevity. The continuous need for these services to address technical issues, ensure system stability, and provide regular updates contributes significantly to their revenue generation.

Application Outlook

By application, the market is divided into water and wastewater management, electricity and power management, and utility gas management. The utility gas management segment procured 13% revenue share in the customer information system market in 2023. The significant revenue share in this segment can be linked to the increasing adoption of customer information systems to manage gas distribution, meter reading, and customer billing. These systems help gas utility companies improve accuracy in billing, manage customer accounts effectively, and ensure regulatory compliance, thereby driving revenue growth.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 39% revenue share in the market in 2023. This can be attributed to the high adoption rate of advanced technologies, well-established utility sectors, and significant investments in infrastructure modernization. The presence of major market players and the focus on enhancing customer service and operational efficiency further drive the demand for customer information systems in this region.

Recent Strategies Deployed in the Market

• Sep-2024: Gentrack released a new-age billing and CRM solution designed to empower utilities in the energy sector to meet ESG demands and enhance customer experiences. This composable software enables rapid service innovation, allowing utilities to expand offerings like EV charging and energy management.
• Feb-2024: Hansen Technologies, Ltd. took over powercloud GmbH, a German customer experience services provider. The acquisition enhances Hansen's billing and customer management capabilities in the energy sector.
• Jan-2024: SAP announced new AI-driven capabilities to help retailers optimize processes, enhance customer experiences, and drive profitability. These solutions include predictive demand planning, replenishment, and order management, alongside integrations with TikTok and LinkedIn for targeted digital ads, all designed to improve personalization and operational efficiency.
• Nov-2023: Gentrack has inaugurated its Middle East hub in Riyadh, Saudi Arabia, advancing its "50 in 15" expansion strategy. This hub aimed to enhance utility and airport management solutions.
• Sep-2023: Oracle Cloud Infrastructure (OCI) introduced three new managed open-source data services: PostgreSQL, Redis, and Data Lake, along with enhancements to OpenSearch, Apache Spark, and Data Catalog. These services improve performance, security, and data management capabilities, enabling organizations to optimize data operations and streamline cloud-based workflows efficiently.

List of Key Companies Profiled

• IBM Corporation
• SAP SE
• Oracle Corporation
• Harris Computer (Constellation Software, Inc.)
• Microsoft Corporation
• Fluentgrid Limited
• Gentrack Group Limited
• Hansen Technologies, Ltd.
• Itineris NV
• Wipro Limited

Global Customer Information System Market Report Segmentation

By Component

• Solution
• Services

By Service Type

• Customer Information System Implementation Service
• Support Service
• Legacy Extension Consulting Service

By Application

• Electricity & Power Management
• Water & Wastewater Management
• Utility Gas Management

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA