Contact Center As A Service Market Size, Share & Trends Analysis Report By Solution, By Service, By Enterprise Size, By End Use, By Region And Segment Forecasts, 2023 - 2030

Report Overview

The global contact center as a service market size was valued at USD 4.43 billion in 2022 and is expected to register a compound annual growth rate (CAGR) of 19.1% from 2023 to 2030. The market growth can be attributed to the rising adoption of advanced contact center technologies to maintain better business continuity and streamline customer interactions to provide higher customer satisfaction. Moreover, the incorporation of Artificial Intelligence (AI) and Machine Learning (ML) technologies in contact center solutions is expected to create more demand for the contact center as a service (CCaaS) market over the forecast period.

Numerous players are developing cloud contact centers to enhance operational functionality and flexibility for users. For instance, in April 2020, ServiceNow announced the launch of the Amazon Connect Integration with Cloud Call Center, a cloud contact center solution that offers employees better IT support functionalities. Amazon Connect Integration with Cloud Call Center provides native integration with AWS’s natural language AI technology, Comprehend and Transcribe, Lex with ServiceNow.’s IT workflow, and the service capabilities.

Various companies are also focusing on providing artificial intelligence-based cloud contact center solutions to increase accuracy and meet the changing customer needs. For instance, in October 2021, Automation Anywhere, Inc., an automation technology provider, announced the launch of the Automation Anywhere for Contact Centers, an AI-driven, cloud-native solution that facilitates businesses to provide faster customer services. Automation Anywhere for Contact Centers enables agents to be more efficient in finding, and updating the information as well as executing the client transactions quickly to deliver faster services.

Organizations that do not provide timely responses to customer emails experience potential loss of customers. Hence, it has become essential for organizations to deliver a better customer experience across all channels. Improved customer experience provides better support to the entire customer journey, from the first point of contact to becoming a loyal customer. Customer experience is an integral part of Customer Relationship Management (CRM) and is important because the customer who has a positive experience with the business is more likely to become a loyal customer.

Organizations can save maintenance service charges and hardware installation expenses by implementing the contact center as a service solution. Additionally, cloud-based contact center software does not incur any IT services and components expenditure. Cloud-based services also help decrease downtime and reduce power consumption. Furthermore, they can be offered in a subscription model, allowing companies to select the model according to their requirements, leading to cost savings. Companies with limited funds adopt cloud-based contact centers, thus boosting the adoption of these systems in small and medium enterprises. However, as contact centers store critical customer information such as payment card numbers and health information, increasing data security concerns are expected to hinder the market growth.

COVID-19 Impact Analysis

The COVID-19 pandemic is expected to have a positive impact on the market. The contact center as a service model provides remote location working capabilities. Businesses are increasingly adopting cloud-based solutions as they offer advantages such as scalability and flexibility, and are encouraging work from home policies to maintain the customer experience effectively. 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 dominated the market in 2022 and accounted for more than 22.0% share of the global revenue. 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 routes the incoming calls to specific agents or departments within an organization based on the pre-set distribution rules. It also assists the callers when the call volume is too high, or the call center agents are busy, thus providing a better customer experience.

The customer collaboration segment is anticipated to register the fastest CAGR over the forecast period. Customer collaboration provides enterprises with enhanced customer satisfaction by promptly solving and attending to their issues. 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 2022 and accounted for more than 40.0% of the global revenue. Growing adoption of the cloud-based contact center as a service to provide better flexibility and customer experience is expected to drive the segment growth over the forecast period. 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 userbase 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 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, streamlined technology operations across applications and network and infrastructure domains for contact centers. Managed services offer features such as incident and problem management, proactive performance management, configuration management, performance reporting, and change management.

Enterprise Size Insights

The large enterprise's segment dominated the market in 2022 and accounted for more than 54.0% of the global revenue. Large enterprises have a customer base spread widely across the globe, and hence to maintain business continuity efficiently, large enterprises are aggressively investing in the advanced contact center as a service technology. 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 provide an excellent customer experience.

The small & medium enterprises segment is expected to register the fastest growth over the forecast period. Small & medium enterprises prefer cloud-based contact center solutions as the IT support and components expenditure required are less, leading to a  low investment cost and better cost savings. The lack of customer service representatives and on-board IT staff in small & medium enterprises is also fueling the market growth. CCaaS solutions help small & medium enterprises enhance the overall customer experience and maximize agent productivity.

End-Use Insights

The BFSI segment dominated the market in 2022 and accounted for over 25.0% of the global revenue. 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. The customer expects the banks to deliver services across all the touchpoints continuously without having to restart the conversation. 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 a promising CAGR over the forecast period. Shift in consumer demands and buying behavior are reshaping the consumer goods & retail segment. 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 America regional market dominated the contact center as a service market in 2022 and accounted for over 35.0% of the global revenue. Numerous players across this region are focusing on developing the CCaaS aimed to provide better customer service. For instance, in November 2021, Microsoft, a technology provider, announced the launch of the Dynamics 365 Customer Service, which offers a 360-degree view of the customers across all the channels, allowing the agents to understand the customer journey quickly. Such initiatives bode well for the growth of the regional segment.

Asia Pacific regional market is expected to record the highest CAGR 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, the small & medium enterprises 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 a 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 market positions. For instance, in July 2020, NICE LTD announced the launch of Real-Time Interaction Guidance, a solution powered by the company’s ENLIGHTEN AI platform. Based on predictive behavioral models, the solution helps in determining and scoring agent behavior to increase customer satisfaction and improve sales opportunity identification. This solution forms an integral part of NICE's CXone platform. Some prominent players in the global contact center as a service market include:

• Alcatel Lucent Enterprise

• Avaya, Inc.

• Cisco Systems, Inc.

• Enghouse Interactive Inc.

• Five9, Inc.

• Genesys

• Microsoft Corporation

• NICE inContact

• SAP SE

• Unify Inc.

Contact Center As A Service Market Report Scope

Global Contact Center as a Service Market Segmentation

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 2017 to 2030. For this study, Grand View Research has segmented the global contact center as a service market based on solution, service, enterprise size, end-use, and region:

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Automatic Call Distribution

  • Call Recording

  • Computer Telephony Integration

  • Customer Collaboration

  • Dialer

  • Interactive Voice Response

  • Reporting & Analytics

  • Workforce Optimization

  • Others

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Integration & Deployment

  • Support & Maintenance

  • Training & Consulting

  • Managed Services

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Consumer Goods & Retail

  • Government

  • Healthcare

  • IT & Telecom

  • Travel & Hospitality

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa