Salesforce Services Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Salesforce Services Market Data

The global salesforce services market generated revenue of USD 14.1 billion in 2023, and it is expected to progress with a CAGR of 19.2% during the forecast period 2024–2030. The key driver for the growth of the industry is the increasing demand for these services in the banking, financial services, and insurance (BFSI) industry.

Moreover, these services help small and large enterprises automate processes, analyze data, and make personalized customer experiences. These services will enable faster growth of SMEs by providing tools that will stack the sales pipeline through smarter marketing, improved sales productivity and efficiency, and client retention capabilities.

Further, salesforce services for SMEs provide service agents with more opportunities to add value to offerings and sell more services to customers. Since SMEs form the backbone of advanced as well as emerging economies, their evolution will massively affect countries’ economic growth.

In addition, the increasing adoption of platform-as-a-service (PaaS) solutions in enterprises is also propelling the need for salesforce services, which help in increasing digital transformation.

Furthermore, these services help streamline business and automate processes, to create an effective work environment. Marketing Cloud and several other tools can make use of customer segmentation and email promotion to increase the total sales.

Salesforce Services Market Trends & Drivers

Enhanced Customer Satisfaction with Salesforce Services

• Leveraging a quality CRM tool, such as Salesforce, enables ease of communication, improved customer service, and data organization, which leads to process streamlining and timely resolution of issues.
• Salesforce services offer intuitive, autonomous, and intelligent software that enables a thorough analysis and efficient use of customer feedback.
• This includes reviewing and collecting customer data by leveraging software that allows for automatic segmentation to ensure fast and effective responses to the representation of customer demographics.
• Further, these services include recommendations, custom application development and modernization, advisory, and training, among others, which allow for the classification of customer inquiries as per the case context.
• Automated responses help businesses handle customers initially through systems and allocate them to respective executives by analyzing received inputs, if necessary. Thus, enhancing customer satisfaction levels with salesforce services is one of the major trends in the market.

Leveraging Artificial Intelligence (AI) Capabilities

• Salesforce services are integrated with AI capabilities, which enable businesses and developers to have a set of platform services to create smarter applications and customize AI as per their requirements.
• The services enable a user to develop custom AI models to predict business outcomes, such as the lifetime value of a service, in order to train and deploy bots customized as per the business’s CRM suite.
• Further, with the help of advanced machine learning technology, the platform is able to identify the intent of a body text to draw out the context of that text to enable effective decision-making, further by leveraging image recognition capabilities through deep learning models the system can recognize products and brands.
• The AI-powered insights of salesforce services can aid in enhancing productivity and recognizing relevant patterns in the company’s data to avoid any deviations from the target plan of action. Hence, leveraging AI capabilities of salesforce services is one of the major factors driving the growth of the market.

Security Concerns and High Deployment Cost of Salesforce Services

• Salesforce services are majorly deployed over a cloud-based platform and are exposed to both internal and external risks. Internal risks comprise data breaches that originate within organizations, such as data theft by a disgruntled employee.
• Whereas, external risks consist of spam, cyberattacks, malware, and customer error, wherein hackers or cyber attackers can target confidential data, such as customers’ personal details, financial information, and trade secrets of a business.
• Data encryption and database security to some extent can mitigate the risks arising externally. Hence, security concerns regarding salesforce services are restraining the global market growth.
• Moreover, deploying salesforce services involved high costs. The total cost of ownership in consideration of deploying salesforce services is impacted by a number of factors, such as the software subscription or purchase fees, premium upgrades, such as reporting features, customizations, IT resources required, hardware and software requirements, and the necessary staff training.
• Other factors, such as data migration, ensuring the quality of operations as part of change management, and converting business operations for salesforce services deployment, further push the total costs of salesforce services implementation. Further, the business requires a proper planning phase before deploying salesforce services in order to eliminate any hidden costs that might arise as a result of implementing these services. Hence, the huge costs of deploying these solutions are negatively impacting the growth of the market, globally.

In-Depth Segmentation Analysis

Deployment Model Insight

• The cloud category under the deployment model segment generated larger revenue in the salesforce services market in 2023.
• This is due to the enhanced scalability and flexibility of cloud-based solutions, which enable clients to customize services as per their specific business requirements.
• Moreover, since SMEs are unable to spend on expensive in-house IT infrastructure, they look at the cloud as a cost-effective way to procure software and IT services.

By deployment model, the market is divided into the following:

• Cloud (Larger and Faster-Growing Category)
• On-Premises

Services Type Analysis

• The system management category under the service type segment is expected to record the fastest growth, advancing at a CAGR of around 19.5%, during the forecast period.
• This can be primarily attributed to the increasing demand for salesforce monitoring, which provides smart alerts to support teams to predict and prevent all major application-related issues.
• Moreover, the digital transformation is increasing the demand for system management services.
• The increased digitalization requires platforms that can consolidate sales.

The following service types are included in the report:

• Planning
  • Advisory
  • Change management
• Execution
  • Integration
  • Application upgradation
  • Custom application development
  • Testing
• System Management (Largest and Fastest-Growing Category)
  • Monitoring
  • Upgradation
  • Governance
  • Helpdesk
  • Training
  • Others

Application Insight

• The sales category under the application segment held the largest share of the market in 2023. This is due to the increasing adoption of salesforce services for sales purposes.
• These services help in the customization of customer information in an integrated platform, which further facilitates lead generation, marketing, sales, business analytics, and effective customer service, ultimately helping companies increase revenue and compete in their respective industries.

Further, the following application categories are included in the report:

• Sales (Largest Category)
• Marketing
• Commerce Cloud (Fastest-Growing Category)
• Analytics
• Others

Industry Insights

• Based on industry, the BFSI category held the largest share, of around 35%, in 2023. The BFSI category is projected to grow further at the highest CAGR of 19.8% throughout the forecast period.
• The growth in BFSI can be attributed to the heavy focus of the BFSI sector on customer engagement through offerings such as digital applications and payment services.
• Salesforce services have revolutionized customer engagement and hence have witnessed a massive adoption in the BFSI domain.
• Salesforce services for BFSI aid insurance agents and bankers by providing a complete 360-degree view of data pertaining to customers such as accounts and service inquiries, allowing banks and financial institutions to provide faster service and make informed decisions.
• Salesforce services allow the establishment of a customer-centric model, wherein bankers are able to communicate with the customers, to deliver effective customer service and meet financial goals.
• The bankers are also able to track customer data, including service or loan requirements, which allows them to deliver a personalized experience to the customers. By creating an extensive customer portfolio, salesforce services make marketing efforts more effective.

Industry further divided into six categories:

• Banking, Financial Services, & Insurance (BFSI) (Largest and Fastest-Growing Category)
• Manufacturing
• Retail & E-Commerce
• Government
• Healthcare
• IT & Telecom

North America is Prime Revenue Contributor

• Globally, North America recorded the largest revenue share, of around 50%, in 2023, owing to the highest cloud and CRM adoption rates.
• Moreover, large IT spending, technological advancement, and early adoption of emerging technologies are some other factors that support the growth of the market in the region.
• Additionally, since salesforce services, even those available via the cloud, are expensive, the presence of large, well-financed organizations in the U.S. and Canada benefits the regional market.
• On the basis of country, the U.S. market held a larger share, of around 80%, in North America and is further projected to grow at a higher CAGR, of 19.6%, during the forecast period, as the country has a high adoption rate of cloud-based CRM solutions
• The U.S. is home to some of the world’s largest salesforce services vendors, such as Microsoft Corporation, Adobe Systems Inc., and Salesforce.com Inc., among others.

Further, regions and countries were analyzed for this report:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany
  • U.K. (Largest and Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Fastest-Growing Country Market)
  • Japan (Largest Country Market)
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Fastest-Growing Country Market)
  • Mexico (Largest Country Market Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market is Fragmented

The global salesforce services market has a fragmented structure, due to the presence of many players. The majority of the market share is held by SAP SE, Oracle Corporation, Microsoft Corporation, Salesforce.com Inc., Adobe Inc., and DXC Technology, as these are the primary choice of consumers for salesforce service solutions due to their reliable support services and high product quality.

Salesforce Services Industry News

• In August 2023, International Business Machines Corporation (IBM) and Salesforce announced a partnership to help businesses globally across industries accelerate the adoption of artificial intelligence for customer relationship management.
• In November 2023, Amazon Web Services and Salesforce announced an extension of their partnership for artificial intelligence (AI) and deepening product integrations across data. The aim of this expansion is to make it easier for consumer to securely manage their data.
• In September 2023, Genesys Cloud Services Inc., a provider of AI-powered experience orchestration, announced a partnership with Salesforce, to help businesses bring together their data. Companies are launching AI-powered customer experience that integrates salesforce service and Genesys Cloud CX.
• In November 2023, Accenture plc acquired Incapsulate LLC, a consulting of digital transformation company that is mainly involved in Salesforce solutions. The objective of this acquisition is to strengthen companies’ salesforce services.