"Smart Strategies, Giving Speed to your Growth Trajectory"
The global contact center software market size was USD 20.72 billion in 2019 and is projected to reach USD 60.35 billion by 2027, exhibiting a CAGR of 14.3% during the forecast period.
Trailblazing technologies such as artificial intelligence, cloud, predictive analysis, machine learning are expected to enrich contact center capabilities. The increasing awareness regarding consumer rights has increased the number of customer inquiries across industries. The customer service-oriented industries such as consumer goods & retail, BFSI, healthcare, and others are rapidly investing in contact centers to enhance the customer experience and to ensure service satisfaction.
The advancements in the technologies have enabled the customers to approach the companies through all the available platforms such as calls, video chats, emails, social media among others. The contact center solution provides Omni-channel solutions to reach customers across channels. For instance, Capital One implemented Amazon Connect cloud-based contact center service to provide seamless and intelligent customer experience. Thus, the increasing competition to retain loyal customers with seamless services is likely to drive the market of contact center software.
Surging Demand for Support Services to Accelerate Contact Center Adoption During Pandemic
Organizations across the globe are vastly adopting work-from-home policies to deal with the crisis and respect social distancing norms. This has highly affected the contact center services across the industries. Also, owing to the pandemic crises and underlying uncertainties, the organizations are observing sudden behavioral changes among its customer base. The customers are demanding instant solutions for their queries. Many organizations have shifted their customer service on a cloud platform as maximum employees are working from a remote location. For instance, Avaya Holdings Corp. launched remote contact center solutions for the employees working from home. The company has sold its software across 5 million contact center agents and helped more than 150,000 remote agents to tackle problems in this pandemic situation. Cloud facilities provide smooth communication between the customer and the agent working from remote locations.
The implementation of cloud-based solutions during the pandemic assures employees' safety by providing remote access to data. According to the survey conducted by the Cisco System, Inc. on the global contact center, 2020, 62% of industries are planning to implement a cloud contact center in the next 18 months. The pandemic is further likely to accelerate the adoption of cloud-based contact centers. Also, an intelligent cloud contact center solution offered by Five9 Inc. is being used across the United States for handling COVID-19 hotlines.
Similarly, artificial intelligence technology is supporting contact center services during the pandemic crisis. Due to the current situation, the centers are experiencing an increased number of customer inquiries. Thus, the companies are adopting intelligent voice assistance and Chatbots to manage the calls, which in turn, will fuel the demand for contact center solutions in the forthcoming years.
Request a Free sample to learn more about this report.
Artificial Intelligence Integrated Software to Augment Market Growth
The vendors are integrating artificial intelligence to enhance the software’s efficiency. AI-based software assists in analyzing customer behavior at every stage of service. It provides customer insights and estimates the future behavior of the customer in real-time. This analysis helps the agents to handle and guide the customers with the right solutions throughout the call. AI-enables Chatbots can reduce the waiting time of customers by engaging and filtering the conversation. The data captured through the conversation is fed to the analytics engine that helps in optimizing the contact center process.
Similarly, sentimental analysis along with predictive analysis searches the keyword to predict the tone of customers’ expressions. The NLP and machine learning support agents in making decisions to improve customer service and callers' experience. According to the global management consulting firm Kearney, the implementation of AI and robotic process automation can reduce the service time of agents by 25% by the year 2022.
Rising Implementation of Omnichannel Services to Ensure Customer Satisfaction
The omnichannel solution allows customers to communicate with the organization by choosing any channels such as emails, social media, SMS, calls, video, live chats, and more. It offers personalized communication with customers that boost customer satisfaction. The contact center solution helps in improving the number of customer complaints and reduces customer service costs. The presence of service providers across all the available channels helps in building trust with the client. It also provides real-time insights of customers across channels to the agents dealing with the customer. This helps the agent to build better customer relationships and enhance the customer experience. This is expected to drive the growth of the contact center software market.
Increasing Demand for Cloud-based Contact Center to Augment Market Growth
The advancements in cloud technology are boosting its implementation across industries. The rising competition and increasing expense of on-premise solutions have urged companies to opt for cloud-based software. The cloud-based software offers more flexibility and scalability than traditional contact centers in an organization. It offers instant support to the agent to provide better service to the customer. The agents can access the information stored on the cloud to assist the customer within the defined time frame. This helps in reducing customer waiting time and improves customer loyalty towards the brand.
High-Cost Investment to Hinder Market Demand
The companies are facing challenges owing to the increasing cost of the contact center solutions. The on-premises contact center requires in-house hardware that requires continuous maintenance and services. The need for service maintenance and dedicated staff leads to enormous company expenses. Similarly, in cloud-based software, the risk of extended downtime can cost huge to the business. The companies enabling cloud systems need to provide dedicated cybersecurity solutions owing to rising cloud attacks. This is likely to hamper the market growth during the forecast period.
Rising Demand for Enhanced Customer Experience to Propel Contact Center Solution Growth
Based on the component segment, the market is categorized into solutions and services. The solution segment is further segmented into interactive voice response (IVR), automatic call distribution, computer telephony integration (CTI), call recording, reporting and analytics, dialer, workforce optimization, customer collaboration, and others.
The services segment is further bifurcated into professional services and managed services. The service segment is expected to gain traction during the forecast period owing to the increasing adoption of software. The contact center services help the enterprises to deploy and implement the solutions without disrupting the existing network. Similarly, the implementation of technical support and maintenance service reduces the chances of communication interruption.
The solution segment is expected to gain major share for contact center software market during the forecast period. The integration of advanced technologies such as artificial intelligence, robotic process automation, predictive analytics, and more with the contact center solutions is driving the growth of the market. IVR solutions are expected to dominate the solution segment share. The intelligent IVR uses speech recognition to understand the requirements of the customers and alerts the agents about the updates. Similarly, workforce optimization is likely to show rapid growth as it lifts the performance and efficiency of the agents. The solution analyses customer communication and provides insights to the agents. The call center solutions altogether offer intelligent communication networks to the industries.
Flexibility and Scalability Offered by Cloud is likely to Fuel Market Demand
Based on deployment, the market is categorized into the cloud and on-premises. The on-premises segment is expected to gain maximum revenue share. However, it is expected to witness declining growth over the forecast period owing to high investment costs. The cloud-based software is expected to show significant growth during the forecast period owing to its capabilities such as ease of implementation, service by deployment, upgrades, and more without affecting the system. The adoption of cloud based technology also helps in reducing the operational expenses of the enterprises. This is expected to drive the cloud-based software market.
Growing Competition in Small and Medium Enterprises is Expected to Boost the Market Size
Based on enterprise size, the market is segmented as large enterprises and small & medium enterprises. The large enterprises are expected to gain major revenue share during the forecast period. The integration of cloud services and artificial intelligence with the contact center is driving the adoption of software across large enterprises. Small and medium enterprises are expected to gain traction owing to increasing competition to increase the customer base. The software offers analytical skills to the agents that help in ensuring customer satisfaction during the communication. Also, the cloud-based software offers superior experience at a lower cost.
To know how our report can help streamline your business, Speak to Analyst
Increasing Demand for Online Trade to Boost BFSI Market Share
Based on end-user, the market is segmented into BFSI, ITES, IT and telecom, government, healthcare, consumer goods and retail, travel and hospitality, media and entertainment, and others. The healthcare industry is likely to witness rapid growth owing to increasing customer inquiries across the industry. The industry’s increasing focus towards patient-centric services is expected to drive the market growth. The pandemic crises have further accelerated the demand for contact center solutions in healthcare to offer full-time hotline services.
The consumer goods and retail industry is also witnessing a significant demand for software. The growing online shopping is increasing the need for continuous customer service facilities. The software enriches the customer experience by offering omnichannel services to retailers. The growing customer inquiries in the consumer goods and retail sector is expected to drive the contact center solution demand. The BFSI industry is likely to lead the market with the majority of market share during the forecast period. The increasing cross-selling and up-selling of the financial portfolio is driving the adoption of contact center software in the BFSI industry.
North America Contact Center Software Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
North America to account for maximum market share during the forecast period. The US is expected to gain traction owing to the increasing integration and innovation in technologies such as cloud, big data, and artificial intelligence. These advanced technologies are enhancing the contact center software with real-time analytics capabilities. The BFSI, retail, healthcare, and government sectors are more focused on providing excellent customer service. Likewise, Europe is expected to show steady growth during the forecast period owing to growing service-based industries in the region. Germany and the UK are expected to lead the market in the region.
Asia Pacific region is expected to show rapid growth during the forecast period owing to the presence of a large number of IT and ITES companies. The region is witnessing exponential growth across industries such as healthcare, BFSI, consumer goods, and retail among others. This is expected to boost the demand for this software of contact center. The increasing investment in small and medium enterprises is likely to drive the market. Increasing competition among the local and international companies to drive the demand for the contact center software solutions. The Middle East & Africa and Latin America to gain steady growth during the forecast period.
Key Players to expand Product Portfolio through Strategic Acquisition and Collaborations
Cisco Systems, Inc. is offering advanced software solutions by integrating AI and automation tools and is strategically expanding its offerings by acquiring small and medium vendors. The other key companies such as Genesis, NEC corporation, NICE corporation, Mitel Networks Corporation, Microsoft Corporation, among others are focused on expanding their businesses by offering innovative and advanced solutions. These companies are collaborating on cloud services to automate the contact center software. Also, these companies are investing in providing unique and innovative solutions for clients working from remote locations during the pandemic crises.
October 2019 – Aspect Software partnered with workforce automation firm Intradiem to offer contact center workforce management solution for coaching, training, and real-time processes. Intradiem to provide its solutions on Aspect’s work from home platform as an add-on feature. Aspect Software will sell Intradiem’s solutions to its contact center's large customer base.
August 2019 – Cisco Systems, Inc. announced the acquisition of CloudCherry, a customer experience management provider. With the acquisition, the company aims to imply predictive analytics to enhance customer journey and agent’s productivity.
An Infographic Representation of Contact Center Software Market
To get information on various segments, share your queries with us
The contact center software market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.
Value (USD Billion)
By Enterprise Size
The global market is projected to reach USD 60.35 billion by 2027.
In 2019, the market was valued at USD 20.72 billion.
The market is projected to grow at a CAGR of 14.3%.
The solution segment likely to lead in the market
The rising implementation of omnichannel services is expected to drive market growth.
Cisco Systems, Inc., Genesys Telecommunications Laboratories, Inc., Five9, NEC Corporation, Oracle Corporation, Avaya Inc., SAP SE, Mitel Networks Corporation, and Bright Pattern, Inc. are some of the top players in the market.
The North America region is expected to hold the highest market share.
Asia Pacific is expected to grow with a significant growth rate.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry