Magic Quadrant for the CRM Customer Engagement Center
Vendors or products added in this year’s report may indicate a change in the market, change in evaluation criteria, or change of focus by the vendor.
Vendors or products dropped from one year to the next may indicate a change in the market, change in evaluation criteria, or change of focus by the vendor.
The CRM CEC market is experiencing significant disruption with vendors racing to deliver GenAI-powered autonomous agents for customer service. This is accelerating the convergence of CRM CEC and CCaaS markets. The market remains fragmented but highly competitive, with the top 10 vendors commanding 50.7% of market share. Vendors are increasingly focusing on AI agents that can execute tasks autonomously to fulfill customer outcomes, moving beyond traditional AI assistants. The $38.7 billion customer service and support software market grew 16.5% year-over-year, with CEC representing 44.7% of this market in 2023.
A: Vendors appear in the Magic Quadrant one year and not the next due to several factors: (1) Changes in market focus - vendors may shift their strategic focus away from the CRM customer engagement center market to pursue other opportunities; (2) Market adjustments - as markets evolve, Gartner reviews and adjusts inclusion criteria for Magic Quadrants, which can affect vendor eligibility; (3) Changes in vendor positioning - a vendor's appearance or absence does not necessarily indicate a change in Gartner's opinion of that vendor, but may reflect changes in market dynamics or evaluation criteria; (4) Market momentum - vendors must meet minimum thresholds for revenue traction, market presence, and growth to qualify for inclusion. If a vendor's performance falls below these thresholds or they pivot away from the defined market, they may be excluded from subsequent reports.