Contact Center As A Service Market Size, Share & Trends Analysis Report By Enterprise Size (Large, SME), By End Use (BFSI, Consumer Goods & Retail, Healthcare), By Service, By Solution, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global contact center as a service market size was valued at USD 3.48 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 15.7% from 2021 to 2028. The future growth prospects of businesses largely depend on customer satisfaction. As organizations realize this and focus on the need to enhance customer experience, the demand for better contact center services is expected to rise, driving the market over the forecast period. Contact Center as a Service (CCaaS) is a cloud-based deployment model that allows a business to use a contact center provider’s customer experience solution to provide suitable services to its customers. It allows businesses to effectively utilize a contact center provider’s software and purchase only the technology they mostly need, thereby reducing the need for internal IT support.

The CCaaS platform offers scalability as operational business needs change. The use of the CCaaS model allows for the quick deployment of new features, channels, and functions based on changing business needs. The emergence of Machine Learning (ML) and Artificial Intelligence (AI) and the subsequent penetration of these technologies in contact center businesses are expected to create growth opportunities for the market. The AI technology helps businesses determine services that best fit the customer’s profile according to their communication history and appropriately route their calls to an agent. The rising demand for remote-working is forcing contact center businesses to shift their focus toward cloud-based services. The cloud-based model is widely adopted by businesses to reduce integration, support, and IT costs.

The demand for the CCaaS model has been rising as the model is affordable, adaptable, and always prepared to deliver the newest communication tools. Easy access to disruptive tools is expected to be the major selling point of cloud-based technologies. Businesses with access to AI are expected to get a higher increase in revenue year over year. Moreover, CCaaS provides businesses with easy access to AI technology. These factors are expected to create growth opportunities for the market.

However, increasing data security concerns are expected to hinder market growth over the forecast period. Contact centers store critical customer information, such as payment card numbers and health information, and carry a high risk of external as well as internal data hacking and breaches. Moreover, cloud computing faces external security challenges due to the integration of databases, networks, operating systems, transaction management, and virtualization, among others. These factors are anticipated to hamper market growth.

COVID-19 Impact Analysis

The COVID-19 pandemic is expected to have a positive impact on the market. The CCaaS model provides remote location working capabilities. Businesses are increasingly adopting cloud-based solutions and are encouraging work-from-home policies to effectively maintain the customer experience. Moreover, increasing online transactions and the rise in online purchases during the COVID-19 crisis have increased the need for implementing cloud-based solutions.

Solution Insights

The automatic call distribution segment accounted for the highest revenue share of more than 22.0% in 2020. The automatic call distribution solution is widely adopted in contact centers as it helps them to handle a large volume of inbound calls. This solution effectively routes incoming calls to contact center employees or agents with specific skills. This helps businesses in offering a better customer experience.

The customer collaboration segment is anticipated to register the fastest CAGR over the forecast period. Customer collaboration solutions transform simple customer phone transactions into efficient interactions that use the web, email, video, and voice to provide unique and personalized services. The increasing need to gather and use customer feedback to improve product or service offerings is expected to drive the segment growth over the forecast period. Moreover, customer collaboration tools enable contact center supervisors and managers to review thorough reports and dashboards related to agent productivity.

Service Insights

The integration & deployment segment dominated the market in 2020 accounting for more than 42.0% of the global revenue. The rapid pace of digitalization across industries is compelling businesses to focus on constant transformation and up-gradation of their IT infrastructure. This trend is creating promising growth opportunities for the integration & deployment segment in the contact center industry. Moreover, contact center businesses have to manage a diverse user base across various channels. This is anticipated to drive the adoption of integration & deployment services to deploy various contact center solutions in their IT infrastructure.

The managed services segment is expected to register the fastest growth rate over the forecast period. The need to simplify the management of complex systems and deliver continuous operation improvement among contact centers is expected to drive the adoption of managed services over the forecast period. Managed services streamline technology operations across applications and network and infrastructure domains for contact centers. Managed service providers manage contact center solutions and allow businesses to solely focus on meeting and delivering customer expectations.

Enterprise Size Insights

The large enterprises segment dominated the market in 2020 and accounted for more than 56.0% of the global revenue. Technological advancements are driving the demand for CCaaS across large enterprises. These services assist large enterprises in offering a better customer experience and reducing operational costs. As large enterprises deal with high call volumes, they adopt CCaaS solutions to offer an excellent customer experience.

The Small & Medium Enterprises (SMEs) segment is expected to register the fastest CAGR over the forecast period. Benefits, such as convenient service delivery and low investment cost, are boosting the adoption of CCaaS solutions across SMEs. The lack of customer service representatives and on-board IT staff in SMEs is also fueling the market growth. CCaaS solutions help SMEs enhance the overall customer experience and maximize agent productivity.

End-use Insights

The BFSI segment dominated the market in 2020 and accounted for the largest revenue share of more than 25.0%. The growth of the segment can be attributed to the growing amount of customer interaction owing to digitization in the BFSI industry. Customers are increasingly reaching out to banking institutes using various channels. This is further driving the adoption of cloud-based customer service systems in the BFSI industry. CCaaS solutions are helping the industry build strong customer relationships.

The consumer goods & retail segment is anticipated to register the fastest CAGR over the forecast period. The increasing use of online channels for buying consumer goods is fueling the demand for CCaaS solutions in the consumer goods & retail industry. CCaaS solutions enable representatives to provide customers with quick and personalized services. These solutions also streamline omnichannel and cross-channel communications while improving agent and customer experiences.

Regional Insights

North American was the largest regional market in 2020 and accounted for a revenue share of over 36.0%. The rapid pace of digital transformation and increasing demand for omnichannel service delivery, coupled with the adoption of new technologies, such as AI, are encouraging future-oriented technology acquisitions and investments in the region. Several businesses in the region are shifting to cloud-based services. This is expected to create growth opportunities for the regional market over the forecast period.

Asia Pacific is estimated to be the fastest-growing regional market over the forecast period. The e-commerce industry in the region is making a significant contribution to the rising demand for CCaaS solutions in contact centers. The promising pace of industrial expansion and development in the region is also anticipated to create growth opportunities for the regional market growth. Furthermore, several SMEs in the region are adopting CCaaS solutions owing to the various benefits offered, including the reduction of operational costs, increase in ROI, and enhanced customer experience.

Key Companies & Market Share Insights

The competitive landscape of the market is highly fragmented and characterized by the presence of a large number of players. Vendors are focusing on providing fully scalable, flexible CCaaS offerings through a monthly subscription to enable quick deployment of new functions, channels, and features and effectively deliver lower Total Cost of Ownership (TCO). Moreover, market players are focusing on offering better agent assistance solutions and services.

The vendors are investing in the development of omnichannel solutions for various end-use industries, such as BFSI, government, healthcare, and IT & telecom. Market players are also investing in new product development and launches to increase their customer base and strengthen their industry positions. For instance, in October 2019, NICE launched its first digital omnichannel interface called NICE in Contact CXone. The new interface for CXone Agent delivers enhanced functionality and a streamlined design, which strengthens CXone integration with the CRM solution. Some prominent players in the global contact center as a service (CCaaS) market are:

• Alcatel Lucent Enterprise

• Avaya, Inc.

• Cisco Systems, Inc.

• Enghouse Interactive, Inc.

• Five9, Inc.

• Genesys

• Microsoft Corp.

• NICE inContact

• SAP SE

• Unify, Inc.

Contact Center As A Service Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global contact center as a service market report based on solution, service, enterprise size, end use, and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2028)

  • Automatic Call Distribution

  • Call Recording

  • Computer Telephony Integration

  • Customer Collaboration

  • Dialer

  • Interactive Voice Response

  • Reporting & Analytics

  • Workforce Optimization

  • Others

• Service Outlook (Revenue, USD Million, 2016 - 2028)

  • Integration & Deployment

  • Support & Maintenance

  • Training & Consulting

  • Managed Services

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2028)

  • Large Enterprises

  • Small & Medium Enterprises (SMEs)

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • BFSI

  • Consumer Goods & Retail

  • Government

  • Healthcare

  • IT & Telecom

  • Travel & Hospitality

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa