Global Statistics Representing User Research Software Market Scenario
The global user research software market, in the last few years, has witnessed a significant rise due to increasing smartphone and internet penetration. According to a study conducted by Deloitte, in developed countries such as the U.S., the U.K., and Canada, 70% of the population owns a smartphone, and this figure is expected to escalate up to 90% by 2020. This growing use of internet-connected devices and the fast-growing internet-connected ecosystem have impacted nearly every aspect of the consumer’s daily life and their buying behavior. They are becoming digital-friendly with the rapid adaptation of the internet-connected devices. For instance, Avendus found high penetration of digital buyers in North America in 2017.
The user research software market is expected to grow at a CAGR of 13.7% during the forecast period, 2019–2026.
The cloud-based deployment model is expected to augment the user research software market. Organizations are adopting cloud-based infrastructure to avoid the server and hardware cost. Advantages such as low upfront and storage cost have encouraged the growth of cloud services. Storage can be extended without any surplus hardware cost. Unlike web-based deployment, cloud services are generally deployed within a day as on-site hardware and software installation is not required. Cloud services are highly scalable. Thus, the emergence of cloud-based user research software is expected to affect market growth positively.
Several large enterprises are paying attention to user research software and are employing it for improving business value, customer relation, and overall user experience. Moreover, the software helps the enterprises to generate more revenue by analyzing existing customer, stabilizing finances, reducing customer acquisition costs, and identifying new and protentional revenue pockets. Today, the software is available in affordable price range, easy to use, and viable to utilizie it across various industries, which is eventually encouraging several SMEs to adopt the user research software.
North America is expected to witness dynamic growth in the user research software market due to the existing technologically advanced infrastructure and the strong presence of several established enterprises in the U.S. and Canada. Furthermore, a range of public and private sector organizations, including large enterprises and SMEs in the region are adopting the user research software. For instance, Amazon, the Internet retail giant, climbed the ladder of success by utilizing user research software.
Europe is the second-largest region in the global user research software market. The U.K. is a primary market contributor in the regional market. Rising e-commerce markets in the U.K. and extensive usage of the internet for electronic business over traditional brick and mortar store is boosting the demand for user research software.
Asia-Pacific is expected to witness significant growth in the market due to massive population base, internet penetration, changing customer demographics, expansion of SMEs and e-commerce industry, and favorable government policies for FDI. China has experienced rapid economic developments in the last few years. To withstand the competitive business environment, Chinese companies are focusing on enhancing the user experience of their products and services, which is driving the market growth in the country.
The LAMEA user research software market is expected to witness considerable growth in the Middle East due to the rapid adoption of technologies, rising digital coverage, and increasing demand for best services. The region has substantial smartphone penetration in countries such as the UAE, Bahrain, and Qatar. Besides, social media is becoming more popular, and consumers are getting familiar with the brands. Therefore, the utilization of digital technology on the business front for user research is improving the customer-business relationship expeditiously.
Some of the prominent players in the global user research software market are UserTesting Inc., Hotjar Ltd., Lookback, Validately, Userlytics Corporation, UserZoom, dScout, Inc., 20|20 Research, Inc., FocusVision, Over the Shoulder, User Interviews, Inc., Alpha UX, Inc., Gainsight, Inc., and Loop11.
Several companies are heavily investing in R&D to develop innovative technologies and widen their business potential. For instance, in March 2019, UserTesting Inc. announced the launch of Product Insight application, which allows product development teams to incorporate customer feedback in each phase of the development process. Apart from this, several companies are adopting growth strategies such as acquisitions, partnerships, and mergers to gain a competitive edge. For instance, in January 2018, UserZoom announced the acquisition of WhatUsersDo to strengthen its market leadership. In October 2018, Gainsight, Inc., acquired Aptrinsic to expand subscription business by combining customer success and product management teams.
User Research Software Market Segmentation