Microsoft Dynamics Services Market to be Worth USD 11,239.5 Million by 2026; Growing Adoption of Cloud-based Solutions to Drive Market Growth
The global Microsoft dynamics services market was valued at USD 3,368.7 Million in 2017 and is expected to expand at a CAGR of 14.5% from 2018 to 2026, according to a new report published by a research firm, titled, “Microsoft Dynamics Services Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018-2026.”
North America is expected to be at the forefront of global demand, with the market in the region expanding at a CAGR of above 14%. A shift in preference of enterprise application buyers from traditional systems toward the cloud-first approach, increasing digitization within enterprises, and rising demand for increasing efficiency of enterprise operations is expected to boost the Microsoft Dynamics services market significantly.
Factors such as digital transformation, rising number of connected devices, and integration of AI with CRM systems driving the market
Presently, various enterprises continue to digitize important tasks across their value chain. This has gained immense importance in several organizations, as customers demand more control over their interactions with businesses and organizations. Furthermore, increasing competitive pressure and strict adherence to new regulations and compliance among enterprises is playing an important role in the digital transformation within enterprises.
Old technology is being replaced or existing solutions are being upgraded to address more challenging applications, as IT continues to change over time. Businesses across the globe are experiencing the benefits of automating manual tasks to reduce manual errors, and utilize customer data and analytics to decide what to offer, and drive efficient sales strategy.
Organizations are employing Microsoft Dynamics services solution to engage with customers in a more personalized way including information regarding products, previous transactions, and interactions. Moreover, enterprises are implementing Microsoft Dynamics to streamline business operations and utilize real-time data for effective decision-making.
Cost-effective cloud-based solutions play an important role in the expansion of the market
Microsoft Dynamics services market can be segmented based on deployment type, product type, service type, end-user, and geography. In terms of deployment type, the cloud-based deployment model is significantly popular among users. Expansion of cloud-based Microsoft Dynamics services solutions is primarily due to its flexible pricing models, cost-effectiveness, and increase in demand for solutions from small and medium businesses.
The cloud-based segment is expected to expand at a CAGR of above 17% during the forecast period. Furthermore, in terms of service type, the implementation segment continues to hold a prominent share of the market in 2018.
Increasing investments by IT & telecom, manufacturing, banking & insurance, and retail sectors in digitization is driving the Microsoft Dynamics services market
Several end-use industry verticals, especially IT & telecom, manufacturing, retail, and banking & finance are looking for Microsoft Dynamics product solutions to keep track of all their interactions with customers and manage operations of different operations and functions in an efficient way. Demand for Microsoft Dynamics services continues to rise due to increasing adoption of Microsoft Dynamics products for its flexible architecture, deployment options, familiar user interface, and strong partner support across various locations.
North America‘s dominance of the Microsoft Dynamics Services market is projected to continue
In terms of geography, the Microsoft Dynamics Services market is segmented into five regions namely, North America, South America, Middle East & Africa, Asia Pacific, and Europe. Among these, North America is expected to hold a major share of above 45% of the market, in terms of revenue, by 2026.
Expansion of the Microsoft Dynamics Services market in North America is owing to the increasing adoption of Microsoft Dynamics Services solutions by IT & telecom, BFSI, and retail industries to keep track of customer interaction, manage enterprise operations, and enhance customer experience to drive sales. The market in APAC is expected to expand at a significant CAGR during the forecast period. Increasing cloud penetration and digitization across the region are major reasons for the expansion of the Microsoft Dynamics services market in the APAC. In APAC, India, China, and Japan are major contributors to the Microsoft Dynamics services market owing to the increasing digitization in these countries.
Major players operating in the global Microsoft Dynamics services market include Tata Consultancy Services Limited, IBM Corporation, Capgemini SE, DXC Technology Company, Cognizant Technology Solutions Corporation, HCL Technologies Limited, Hitachi Solutions, Ltd., Infosys Limited, Wipro Limited, and Avanade Inc. These players are focusing on acquisitions and new strategic collaborations in order to increase their market share in the global Microsoft Dynamics services market..