Contact Center as a Service (CCaaS) Market Size, Share & COVID-19 Impact Analysis, By Function (Interactive Voice Response (IVR), Multichannel, Automatic Call Distribution, Computer Telephony Integration (CTI), Reporting and Analytics, Workforce Optimization, Customer Collaboration, and Others), By Enterprise Size (Small & Medium Enterprises and Large Enterprises), By Industry (BFSI, IT & Telecommunications, Government, Healthcare, Consumer Goods & Retail, Travel & Hospitality, Media & Entertainment, and Others), and Regional Forecast, 2021-2028

The global contact center as a service (CCaaS) market size was USD 3.53 billion in 2020. The market is projected to grow from USD 4.07 billion in 2021 to USD 11.76 billion in 2028 at a CAGR of 16.4% during the 2021 to 2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the contact center as a service witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 15.2% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.’

The market size has slightly declined due to COVID-19, owing to a lack of demand across all regions amid the pandemic. However, in 2021, the global market has shown an increase in demand due to a surge in cloud-based software and service CCaaS market adoption for the remote working population around the globe.

In the market study, we have considered CCaaS products and services offered by market players such as Luware AG., Anywhere 365, Computer Talk Technology Inc., 8x8, Inc., Content Guru, Enghouse Interactive., Genesys, and others operating across the globe and regions. The product and services offered by these players include cloud contact center solutions, interactive voice response system (IVR), contact center management services, Voicebots, chatbots, and many other services.

The leading players are launching AI-powered contact center platform solutions to enhance customer experience, which is expected to drive market growth.  

• In June 2021, -IQVIA, a provider of advanced analytic solutions for the life sciences sector, launched AI-powered technology-based medical information (MI) contact center service. The medical contact center service helps through the skilled agents to the inquiries from patients, consumers, and healthcare professionals (HCPs) around the globe.

COVID-19 Impact

Slight Decline in Digital Technology Spending in End-User Industries amid COVID-19

During the COVID-19 pandemic, the overall economies around the globe have shown a slight decline in their GDP owing to the closure of businesses. However, in the healthcare sector, the customer service and contact centers have shown an exceptional increase in the overall volume of calls from consumers around the globe.

Most of the leading companies in this market are launching AI-powered chat tools and cloud-based contact centers. Banks and financial service providers, and government organizations have shown an increase in demand during the Covid-19 pandemic for contact center services. Various corporate companies have adopted and launched technology-based Ccaas solutions to maintain customer relationships and the workforce in remote locations. Also, several leading players are investing considerable amounts in launching advanced technology tools. For instance,

• In August 2021, Talkdesk, a cloud-based contact center software provider, received Series-D funding of USD 230 million from the Whale Rock Capital Management investor. Talkdesk adopted advanced technologies, such as machine learning and artificial intelligence, to improve enterprise businesses' customer service. The company has more than 1,800 clients, including IBM Corporation, Trivago N.V., Acxiom, LLC, Fujitsu Ltd, and others.

LATEST TRENDS

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Growing Trend of Work from Home In Various Industries for Higher Client Retention

Omnichannel contact centers providers are launching advanced analytics programs for building dashboards with statistics that affect their businesses. CCaaS trends of displaying the statistical dashboards on user interfaces to get real-time updates on customer experiences are witnessing potential market growth. For instance,

• In November 2020, Atos SE and Colt Technology Services Group Limited partnered to deliver the CCaaS. Colt offers CCaaS solutions through its voice and cloud solutions integrated with Atos’ cloud contact center solution. This partnership has enabled seamless customer interactions via several omnichannel such as social media, phone, chat, and other innovative AI-based solutions.


• In October 2020, SugarCRM Inc., a marketing and service software provider, launched omnichannel customer service SugarLive, an advanced platform. This platform is integrated with contact service Amazon Connect for chat, voice, and text messaging tasks. SugerLive offers seamless advanced, omnichannel contact center services to empower teams with powerful tools and facilitate better customer service interaction.

DRIVING FACTORS

Increasing Adoption of Application Programming Interface (API) based Contact Center to Aid Market Growth

The rise in the adoption of AI-powered chatbots and cloud-based software as services has propelled the contact center as a service (CCaaS) market growth. The rising launch of application programming interface (API) based contact centers solutions by the major companies is driving the demand for market growth during the forecast period. The API-based contact center service offers online customer service by handling phone calls, live chat, emails, messages, texts, SMS, and support tickets for organizations. Several leading players are launching API-based contact centers for customer experience, which promotes market growth. For instance,

• In September 2020, Amazon Web Services launched API-based contact flow management Amazon Connect platform. The platform enables users to manage phone numbers, queues, contact flows, and many other operations. Amazon Connect could describe, create, describe, publish, and update the contact flows with the help of API. Contact-center administrator programmatically configures and tests contact flows that could automate the progression of contact flows during the development stages.


• In October 2019, Vonage cloud communications service provider launched Conversation API-based Meetings and App Center platform. Conversation Vonage API platform can create customized, real-time conversations context across multiple channels, including voice and messaging.

RESTRAINING FACTORS

Rising Threat of Fraudulent Cases, Security Concern, and Data Breaches Activity May Hinder Market Growth

The rising adoption of digital technologies such as cloud computing and artificial intelligence has increased the risk of data breaches and cyber threats across the contact centers. With increased connections and internet adoption, there is an increased demand for security, compliance, and data protection. For instance, Statistics by NICE solutions provider shows that contact centers located worldwide handle more than 100 billion calls per month; among this, one in every 1,700 calls are detected as a fraud.  The contact center platform handles a huge amount of data related to its customers, which is often subjected to the high risk of data security.

SEGMENTATION

By Function Analysis

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Rising demand for Effective Interactions with Healthcare Professional Amid COVID-19 Pandemic Aid the Market Growth

Based on function, the market is segmented into multichannel, interactive voice response (IVR), computer telephony integration (CTI), automatic call distribution,  reporting and analytics, customer collaboration, workforce optimization, and others (recording, dialer, etc.).

The interactive voice response (IVR) segment is expected to dominate during the forecast period. This interactive voice response (IVR) is the automated computer system for interacting with customers and business employees. During the Covid-19 pandemic, several organizations have adopted the interactive voice response technology for seeking information about the symptoms of COVID-19 and the patient’s health status. For instance,

• In April 2020, the Tamil Nadu e-Government Agency in India, in collaboration with the State Health Department from IIT Madras and Department of Telecom in the Government of India, launched an Interactive Voice Response System (IVRS). This platform helped the people in the state with the information related to Covid-19, health status, to acknowledge the symptoms of COVID-19.

The multichannel, computer telephony integration (CTI), customer collaboration, workforce optimization, automatic call distribution, reporting and analytics, and others (recording, dialer, etc.) are anticipated to showcase stable growth owing to the growing demand in the rising digital services sector.

By Enterprise Size Analysis

Growing Number of SMEs in the IT and Telecommunication Sector to Drive Market

The global contact center as a service market is bifurcated into SMEs and large enterprises based on the enterprise size.

The small and medium enterprises are anticipated to dominate the market share during the forecast period. This is primarily attributed to the key players' increasing number of start-ups and surge in investment in cloud-based software solutions.

By Industry Analysis

Increasing Investment in the IT and Telecommunications Sector with Surge in Digitalization Globally to Aid Market Growth

Based on industry, the market is categorized into BFSI, IT and telecommunications, government, healthcare, consumer goods and retail, travel and hospitality, media and entertainment, and others.

The IT and telecommunications industry is anticipated to hold a significant market share during the forecast period. The majority of CCaaS has usage in this sector, owing to the rising focus on customer needs with a digital technology approach for customer engagement. According to the IDC Report, in 2020, global revenue generated in the IT sector was valued at USD 4.8 trillion and was expected to reach USD 5 trillion in 2021. The growth in this sector has witnessed potential demand for market growth in the IT and telecommunication sector.

The BFSI, government, healthcare, consumer goods, and retail, travel, and hospitality, and media & entertainment industries are expected to showcase steady growth owing to rising demand to monetize advanced wireless networks through new products, services, and business models.

REGIONAL INSIGHTS

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The market has been analyzed across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America is expected to dominate the global contact center as a services market during the forecast period. The growing investment in cloud-based software and several leading players based in the U.S. have fueled the market growth. For instance, according to the U.S. Federal Government, the annual federal government spending on cloud computing reached USD 6.8 Billion and is expected to reach USD 7.8 billion by 2022. In the U.S., there are several contact centers as services providers such as 8x8, Inc., Genesys Telecommunication Laboratories, Inc., Talkdesk, Inc., and many others. This surges the demand for contact center as a services in this region.

Asia Pacific is expected to grow with the highest CAGR during the forecast period. China and Japan are likely to lead the Asia Pacific and are among the fastest-growing regions in the market. The growth in this region is also owing to rising investment by the key players for automating the business processes. For instance,

• In April 2018, Avaya Inc. launched its contact center as a service in Asia Pacific to meet the growing demand for automating business processes and enhancing workforce efficiency.

Europe is expected to hold the second-largest position in the market owing to the surge in adoption of cloud technology with government support and investments in the manufacturing and healthcare sector for simplifying the business processes.

Key players in the market are investing and launching CCaaS in the developing countries in Latin America, Middle East, and Africa, such as South Africa, Brazil, GCC, Chile, the Philippines, Columbia, Mexico, and others. For instance,

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• In July 2021- GoContact, a contact center-as-a-service solutions provider, expanded its sales and service operations in Angola and Colombia.


• In June 2021: Israel -based NICE Systems Ltd. launched the latest AI voice of the customer solution, which is an integration of AI with NICE Satmetrix Voice of the Customer. This solution helps to minimize costly repeat calls and customer churn.

KEY INDUSTRY PLAYERS:

Rising Launching of AI-powered Tools by Key Market Players Aid Market Growth

The contact center as a service companies such as 8x8, Inc., NICE, Talkdesk Inc., Cisco Systems, Evolve IP, LLC, Luware AG., and among others, are focused on launching advanced technology-based AI-powered innovative cloud-based solutions. These players are expanding their investment in cloud platforms to cater to the growing demand of the customers with advanced tools. The players are adopting several strategies such as mergers, acquisitions, partnerships, and collaboration to enhance their businesses across the globe. For instance,

• May 2021: Content Guru Limited announced a strategic partnership with Wavenet. The company’s key aspect of this partnership is the ongoing strategy of merging with high-value partners in the major market and expanding the contact center as a service software worldwide.


• February 2021: Computer Talk Technology Inc. launched the latest version of the ice contact center as “ice contact center 11”. This updated version offers multi-contact handling, enhanced survey efficiency, segmented recording, redesigned ice monitor, and enhancements to increase usability and accessibility.


• January 2021: Talkdesk, Inc. expanded its machine learning abilities with Amazon Web Services and Contact Center Intelligence solutions. This solution helps customers to combine off-the-shelf AWS machine learning functions with their current contact center provider to generate higher efficiencies and offer increasingly personalized customer experiences.

List of the Key Companies Profiled:

• Anywhere365 Enterprise Dialogue Management (Rotterdam, Netherlands)


• Computer Talk Technology Inc. (Toronto, Canada)


• 8x8, Inc. (California, U.S.)


• Content Guru Limited (Bracknell, U.K.)


• Enghouse Interactive (Phoenix, U.S.)


• Genesys Telecommunication Laboratories, Inc (California, U.S.)


• NICE Systems Ltd. (Ra’anana, Israel)


• Talkdesk  Inc. (San Francisco, U.S.)


• Luware AG. (Zurich, Switzerland)


• Evolve IP, LLC (Pennsylvania, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2021: NICE Systems Ltd. announced GWA Group Limited had implemented NICE CXone for technology innovation and digital transformation. This implementation enables the company's shift to a digital contact center platform that is capable of managing remote work while enhancing customer experiences.


• July 2021: Genesys Telecommunication Laboratories, Inc. introduced the latest capabilities which enable quick innovation for AI-driven customer experience. These latest tools are a simpler way for organizations to create and coordinate their own bot experiences, integrate third-party messaging apps, and provide technical training to their workforce. 


• April 2021: 8x8, Inc. announced a distribution agreement with Westcon Group, Inc. The partnership offers updated cloud communication and contact center solution while also providing Unified communications as a service (UCaaS) and CCaaS public cloud services to Westcon's partners on a wholesale basis.


• February 2021: Anywhere365 entered into a strategic partnership with ASC technologies to integrate compliance call recording to Microsoft Teams Contact Centers. Throughout this partnership, Anywhere365 company will add ASC Recording Insights software in its Azure-based Dialogue Cloud Platform.

REPORT COVERAGE

An Infographic Representation of Contact Center as a Service (CCaaS) Market

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The contact center as a service market research report highlights leading regions worldwide to understand the user better. Furthermore, the report provides insights into the latest industry and market trends and analyses technologies deployed rapidly globally. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION