Digital Experience Platform Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Digital Experience Platform Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Digital Experience Platform Market size is estimated at USD 11.95 billion in 2024, and is expected to reach USD 24.44 billion by 2029, growing at a CAGR of 11.87% during the forecast period (2024-2029).

The surge in social networking, video sharing, hosted services, web applications, and podcasting has become instrumental in compelling businesses to channel resources into digital experience platforms (DXPs). DXPs empower organizations to discern customers' immediate needs and deliver tailored content across diverse digital channels. Beyond this, DXPs provide additional benefits like real-time client activity tracking, integrated advanced analytics, and seamless incorporation into existing frameworks.

Moreover, within a DXP, artificial intelligence leverages user behavior, preferences, and contextual data for personalized content delivery, product recommendations, and customer journeys. This heightened personalization significantly boosts user engagement and satisfaction. Machine learning bolsters analytics, facilitating the extracting of actionable insights from extensive data. These insights empower data-driven decisions and strategies, elevating the overall digital experience platforms.

Enterprises push for integrated, personalized, optimized user engagement across diverse marketing channels, fueling the segment's growth. Digital Experience Platform (DXP) solutions promise tailored digital experiences, enhanced customer interactions, and boosted business efficiency. With a heightened focus on top-notch digital experiences, many vendors are adopting outcome-based revenue models. These dynamics collectively propel the growth of the service segment.

A cloud-based digital experience platform (DXP) utilizes cloud infrastructure to offer the flexibility, scalability, and accessibility required for effective digital experience management. By entrusting infrastructure updates and maintenance to cloud providers, companies benefit from reduced maintenance costs and ensure a consistent, high-quality experience across all customer touchpoints.

The rapid installation and gap analysis capabilities of a digital experience platform's CMS are pivotal for its triumph. A notable impediment to the global digital experience platform market's expansion is the need for more infrastructure to address prevalent issues. Both global and regional companies operating in the digital experience platform sector encounter notable obstacles due to escalating data privacy and security worries. These concerns are poised to impede the market's growth trajectory in the coming years.

Digital Experience Platform Market Trends

Retractable Safety Syringes Segment Expected to Witness Significant Growth During the Forecast Period

• Cloud deployment in a digital experience platform (DXP) refers to hosting the platform's infrastructure, applications, and services on cloud servers rather than on-premises hardware. This approach allows for scalable, flexible, and cost-effective management of digital customer experiences, ensuring easier maintenance, automatic updates, and better resource allocation.
• The players in the market are collaborating with cloud solutions or service providers to enhance the customer experience. For instance, in May 2024, Contentstack and Google Cloud forged a new partnership, broadening the scope of composable digital experiences. This collaboration equips global brands with enhanced capabilities to craft, oversee, and deliver solutions. By leveraging this partnership, Contentstack's clientele gains access to a secure and scalable cloud platform, marking Contentstack as the inaugural DXP provider to be endorsed by all three major global cloud service providers.
• According to the Flexera Software Report 2023-2023, 47% of SMB respondents indicated that they were already using AWS CloudFormation templates. AWS CloudFormation helps create templates for quick and reliable provisioning of the applications or services called "stacks."
• In late 2023, 29% of the enterprise respondents indicated that their organizations spent more than USD 12 million on public cloud annually. Public cloud spending remains strong as organizations continuously migrate to the cloud as part of their digital transformation plans.
• By late 2024, 45% of small and medium-sized businesses are expected to invest up to USD 600,000 annually in public cloud services. These services, offered by various providers, typically encompass applications, virtual machines, and storage. One of the key advantages of public clouds is their cost-effectiveness, with organizations paying solely for the services they utilize.
• Unlike traditional systems, cloud DXPs provide scalability, flexibility, and real-time data processing, which are essential for adapting to dynamic market conditions and customer preferences. They enable businesses to deliver personalized content and experiences by leveraging advanced analytics, artificial intelligence, and machine learning. This data-driven approach allows for more precise targeting and engagement, improving customer satisfaction and loyalty.

North America Expected to Hold Significant Market Share During the Forecast Period

• The Asia-Pacific region has experienced significant growth in digital experience platforms (DXPs), driven by the rapid digital transformation across various industries, particularly retail, financial services, and telecommunications.
• This surge is attributed to the region's burgeoning internet penetration, widespread adoption of mobile devices, and a tech-savvy population eager for enhanced digital interactions. Businesses in APAC are increasingly investing in DXPs to deliver personalized, seamless, and engaging digital experiences to their customers, a necessity in today's competitive market.
• In December 2023, Rabbit's Tale, a creative and digital experience agency based in Bangkok, joined Accenture Song, formerly known as Accenture Interactive. Known for aiding clients in Thailand and other regions through brand strategy, content creation, advertising, digital marketing, customer experience, CRM, and data analysis, Rabbit's Tale's integration will bolster Accenture's ability to support local enterprises and cultivate local talent. This move aims to deliver impactful and tailored digital experiences that resonate with the distinct demands and tastes of the regional market.
• In addition, the regional market's development is anticipated to be further supported by the growing adoption of voice commerce as a channel for selling various products and services. The robust e-commerce sector enhances digital commerce, establishing a dual channel for generating revenue and sharing profits.

Digital Experience Platform Industry Overview

The digital experience platform market is semi-consolidated, with numerous players worldwide. The major players are Adobe Inc., Oracle Corporation, SAP SE, IBM Corporation, and PROGRESS SOFTWARE CORPORATION. The market poses low to moderate barriers to entry for new players, enabling several new entrants to gain traction.

March 2024 - Databricks and Adobe unveiled a strategic partnership to empower their shared clients to maximize their data's potential, enabling more intelligent and scalable consumer interactions. Customers now have the capability to seamlessly integrate data between the Databricks Data Intelligence Platform and the Adobe Experience Platform, including its applications. Additionally, they can also import their own models from Databricks to Adobe.

October 2023- Sitecore unveiled its latest offerings within its cloud-based digital experience platform. The two new solutions, XM Cloud Plus and Sitecore Accelerate aim to streamline and expedite brands' transition to the cloud. They make the journey to SaaS more accessible and empower businesses to harness robust enterprise solutions. These offerings, tailored by Sitecore, equip brands with the necessary tools and offer the requisite support, facilitating a seamless migration to Sitecore's cloud-based composable solutions.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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