Contact Center Software Market (2024 - 2030) Size, Share, & Trends Analysis Report By Solution, By Service, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts

Contact Center Software Market Size & Trends

The global contact center software market size was valued at USD 33.38 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 23.9% from 2023 to 2030. The increasing demand for enhanced customer experience is expected to significantly drive the market growth. Businesses understand the importance of providing exceptional customer service and invest in contact center software to streamline customer interactions, improve response times, and personalize the customer experience. Moreover, the rise of omnichannel communication is driving the adoption of contact center software.

Customers now expect to interact with businesses through various channels such as voice, email, chat, social media, and more. Contact center software enables businesses to manage and integrate these channels, providing a seamless and consistent experience across all touchpoints. Furthermore, the increasing focus on data analytics and AI-powered technologies drives the demand for advanced contact center software. Businesses are leveraging AI-powered features such as chatbots, speech analytics, and predictive analytics to automate processes, gain valuable insights from customer interactions, and improve operational efficiency.

The need for cost optimization and operational efficiency is a major driving factor. Contact center software helps businesses streamline their operations, reduce manual tasks, and improve agent productivity. With features like call routing, workforce management, and real-time reporting, businesses can optimize their resources and improve overall efficiency. In addition, the globalization of businesses is also driving the adoption of contact center software.

As companies expand their operations internationally, they need contact center solutions that can support multiple languages, time zones, and geographical locations. Advanced contact center software provides multi-site capabilities and language support, enabling businesses to deliver consistent customer service across borders. Moreover, regulatory compliance requirements push businesses to invest in contact center software. With increasing data privacy regulations, businesses need to ensure that customer data is handled securely and in compliance with industry standards. Contact center software with built-in security features and compliance tools helps businesses meet these requirements and avoid potential legal issues.

One of the major restraints of the contact center software market is the complexity and integration challenges associated with implementing new software solutions. Integrating contact center software with existing systems and infrastructure can be a complex process that requires careful planning and coordination. Legacy systems and outdated infrastructure may not be compatible with modern contact center software, resulting in integration difficulties and potential disruptions in operations. To overcome this restraint, businesses can take several steps. First, thoroughly assessing the existing systems and infrastructure is crucial to identify gaps or compatibility issues. This assessment can help businesses plan for upgrades or modifications to ensure seamless integration.

Market Concentration & Characteristics

Market growth stage is high, and pace of the market growth is accelerating. The growing use of the internet and the proliferation of digital channels have increased the level of convenience while doing business. New mobile applications and social collaboration software provide flexibility to employees.

The contact center software market is also characterized by a high level of partnership and collaboration activity by the market players. The market players have adopted these strategies to gain a significant share of the market. Furthermore, the market players have developed novel concepts & ideas, improved manufacturing techniques, upgraded the current set of products, and enhanced their profitability to sustain the intense competition in the market.

Contact center solution providers need to abide by some of the basic regulations related to the security of their customers’ data. For instance, the ISO/IEC 27000 has laid down regulations for the security of customer information. Similarly, the Telephone Consumer Protection Act (TCPA) regulates auto-dialed calls, messages, and prerecorded calls by prohibiting advertisements before 8 am and after 9 pm.

The contact center software market is lucrative and constantly encounters technological developments in products and services. Product competition is expected to increase owing to the introduction of artificial intelligence, process automation, and mobile technology. These new features or innovative products, such as omnichannel services for enhanced customer experience and the use of mobile applications for enhanced flexibility, are increasingly being integrated with the existing contact center systems. Cloud contact center software and solutions can act as substitutes for legacy on-premise systems, and the demand for these solutions is expected to surge.

The end users of contact center solutions include government agencies as well as incumbents of various sectors and industries such as BFSI, consumer goods & retail, healthcare, IT & telecom, media & entertainment, and travel & hospitality. Factors such as growing emphasis on customer satisfaction, customer loyalty, and implementation of predictive analytics at contact centers are expected to drive the growth of the contact center software market over the forecast period.

Solution Insights

The interactive voice responses (IVR) segment dominated the market in 2022 and accounted for a revenue share of more than 21.0%. IVR systems provide an efficient and automated way to handle customer interactions by allowing callers to navigate through menu options using voice or keypad inputs. This enables self-service capabilities, reducing the need for live agent assistance for routine inquiries and simple tasks. The convenience and time-saving benefits of IVR systems have made them widely adopted by businesses across various industries.

The customer collaboration segment is expected to register the fastest growth over the forecast period. Customer collaboration solutions allow businesses to interact with both existing and potential customers in a better way. These solutions help businesses quickly tracking, receiving, and resolving customer support issues while simultaneously gathering and utilizing customer feedback to improve the products and service offerings. The strong emphasis on enhancing collaboration by using images and videos to communicate effectively with the clients is expected to drive the growth of the segment over the forecast period.

Service Insights

The integration and deployment segment dominated the market in 2022 and accounted for a revenue share of more than 41.0%. The increasing adoption of cloud-based contact center software solutions is expected to drive the adoption of integration & deployment services over the forecast period. Businesses across the globe are investing aggressively in integrating multiple applications and tools, such as customer relationship management (CRM), into their business processes, thereby driving the growth of the integration & deployment segment. The rising need for rapid deployment of cloud-based solutions and business agility also bodes well for the growth of the integration & deployment segment over the forecast period.

The managed services segment is expected to register the fastest growth over the forecast period. Managed services allow businesses to focus on their core products and services while handing over the company’s IT-related tasks to managed service providers. Managed services help businesses in keeping their applications running for end users leveraging configuration management, provisioning, standard change management, and patch management tools. Managed services also include an array of value-added services to help businesses achieve the most from contact center solutions in terms of performance and reliability while keeping operational costs under control. The growing adoption of cloud solutions bodes well for the growth of the managed services segment.

Deployment Insights

The on-premise segment dominated the contact center software market in 2022 and accounted for a global revenue share of over 57.0%. On-premise deployment envisages deploying all the hardware and software required to operate and maintain a contact center at the customer’s property. On-premise solutions provide integrability, reliability, customizability, and also scalability to some extent. However, they can be very difficult and expensive to deploy at times. The customizability benefits of on-premise solutions can be realized only when businesses invest heavily in professional services.

The hosted segment is anticipated to register the fastest growth over the forecast period. Businesses across the globe are preferring cloud-based contact center solutions over on-premise solutions owing to the ability of cloud-based contact center solutions to scale services. Cloud solutions are designed to connect contact center agents to effectively centralized contact center applications while offering a secure intranet for employees to collaborate and communicate with each other. Cloud-based solutions are also capable of offering in-depth information about the agents and customers, which executives would not be able to track using on-premise solutions. According to a study by RingCentral, Inc., shifting to cloud-based solutions can help in improving customer call answer rates by around 5% while reducing the average speed of answer (ASA) by as much as 50%.

Enterprise Size Insights

The large enterprise segment dominated the contact center software market in 2022 and reported for a global revenue share of over 57.0%. Large enterprises have their customers spread across the globe. Hence, large enterprises are more likely to invest in the latest, advanced technologies to run their business effectively and ensure business continuity. Moreover, large enterprises typically prefer solutions and services that can potentially help in augmenting profitability. The integration of AI with contact center operations is also driving the adoption of contact center software by large enterprises.

The small & medium enterprise segment is anticipated to register the fastest growth over the forecast period. The growing implementation of customer care solutions by small & medium enterprises across the globe is expected to drive the growth of the segment over the forecast period. Small & medium enterprises are adopting these solutions as part of the efforts to ease the workloads of carrying out the normal, mundane tasks while allowing contact center agents to focus on organizational development. The growing number of small- and medium-sized businesses across the globe is anticipated to create new growth opportunities for the segment over the forecast period.

End Use Insights

The IT & telecom segment dominated the market in 2022 and reported a revenue share of more than 24.0%. The IT & telecom industry relies heavily on customer support and interaction to address technical issues, provide assistance, and deliver exceptional service. Contact center software plays a crucial role in managing and optimizing these customer interactions, ensuring seamless communication between customers and IT & telecom companies. These software solutions offer features such as call routing, automatic call distribution, and customer relationship management integration, which help IT & telecom companies efficiently manage large volumes of customer inquiries and provide timely resolutions.

The consumer goods and retail segment is anticipated to register the fastest growth over the forecast period. Customers are moving continuously toward digital channels for their shopping needs. Moreover, customers are also utilizing the latest technologies and channels, thereby prompting consumer goods & retail businesses to opt for contact center solutions for providing exceptional customer experiences. These solutions are helping retailers and businesses in striking personalized interactions with customers and building strong customer relationships. Contact center software is also helping brands and retailers in delivering automated, high-quality service while freeing agents to focus on revenue generation and brand enhancement activities with the help of AI.

Regional Insights

North America dominated the contact center software market in 2022 and accounted for a revenue share of over 35.0%. The region has a highly developed and technologically advanced business landscape, with a large number of enterprises across various industries. These organizations have recognized the importance of delivering exceptional customer experiences and have therefore invested significantly in contact center solutions. In addition, North America is home to several major players in the contact center software industry who have a strong presence and extensive market reach.

Asia Pacific is projected to emerge as the fastest-growing regional market over the forecast period. The growth of the regional contact center software market can be attributed to the existence of a large number of Information Technology-enabled Services (ITES) and IT companies in the region. The growing adoption of contact center solutions by both large and small & medium enterprises is anticipated to drive the growth of the regional market. The favorable initiatives governments in the region have been pursuing to encourage the adoption of cloud-based systems and automation of business processes are also expected to play a decisive role in driving the growth of the regional market. The fact that several organizations across the globe remain keen on investing in Asia Pacific bodes equally well for the growth of the regional market.

Key Companies & Market Share Insights

Some of the key players operating in the market include Alcatel-Lucent Enterprise, Cisco Systems, Inc., Avaya Inc., SAP SE, Enghouse Interactive Inc., and Five9, Inc.

• Avaya, Inc. is a provider of communication software and services. The company’s product offerings include contact center solutions and unified communications solutions, offered either for on-premise deployment, hybrid deployment, or cloud deployment. The company has developed omnichannel contact center applications that can potentially fulfill an organization’s customer-centric communication requirements. The solutions are compatible with several web applications and enable seamless communication through e-mails, voice-based channels, social media, and video calls.
• Alcatel-Lucent Enterprise is engaged in providing contact center software and solutions categorized for different applications. The company’s main aim while designing these solutions is to offer its clients omnichannel services that are available for cloud deployment as well as on-premise deployment.

NEC Corporation, 8X8, Inc., Twilio Inc, and ConvergeOne Holding, Inc are some of the emerging market participants in the contact center software market.

• 8X8, Inc. is engaged in providing configurable and scalable cloud communication platforms for video and voice interactions, chat and team collaboration, contact center, and analytics for enterprises of all sizes. The company markets their services directly to end users through various channels, including third-party lead generation sources, search engine marketing and optimization, industry conferences, digital advertising, webinars, and trade shows.

• Twilio Inc. is engaged in providing cloud communications solutions and services to businesses across the globe. The company’s Application Programming Interfaces (APIs) allow developers to build, operate, and scale real-time communications within their software applications. The reliability and flexibility offered by the company’s software building blocks empower businesses of all sizes to build engagement into their customer experience.

Recent Developments

• In May 2023, BT Group plc and Five9, Inc. announced the expansion of partnership to provide cloud-based contact centers across the globe. Through the partnership end use companies can access Five9 Intelligent CX Platform which is embedded with data and voice services of BT Group plc.

• In March 2023, Five9, Inc. introduced an Agent Assist 2.0 solution. It is integrated with AI summary and powered by OpenAI. The solution help end use companies to improve agent performance, processes, and customer experience.

• In January 2023, NICE, a New York-based contact center software provider, unveiled a global strategic partnership with Cognizant to expedite customer experience (CX) transformation. This collaboration brings together the extensive consulting and business transformation expertise of Cognizant and the powerful, all-encompassing cloud platform of NICE CXone. By leveraging advanced CX solutions such as digital, analytics, and conversational AI, this partnership aims to drive the widespread adoption of innovative CX offerings. Both NICE and Cognizant anticipate significant growth opportunities within their respective customer bases through this strategic alliance.

• In May 2022, Amazon Web Services and IBM signed a strategic collaboration agreement. This agreement enabled IBM to provide a wide range of its software portfolio as Software-as-a-Service (SaaS) on Amazon Web Services.

Contact Center Software Market Report Scope

Global Contact Center Software Market Report 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 the purpose of this study, Grand View Research has segmented the global contact center software market report based on solution, service, deployment, enterprise size, end use, and region.

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

  • Automatic Call Distribution (ACD)

  • Call Recording

  • Computer Telephony Integration (CTI)

  • Customer Collaboration

  • Dialer

  • Interactive Voice Responses (IVR)

  • Reporting & Analytics

  • Workforce Optimization

  • Others

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

  • Integration & Deployment

  • Support & Maintenance

  • Training & Consulting

  • Managed Services

• Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

  • Hosted

  • On-premise

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

  • Large Enterprise

  • Small & Medium Enterprise

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

  • BFSI

  • Consumer Goods & Retail

  • Government

  • Healthcare

  • IT & Telecom

  • Travel & Hospitality

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Spain

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa