The global contact center software market size was valued at USD 16.28 billion in 2018, at a CAGR of 17.6% from 2019 to 2025. Rapid technological advancements in the field of customer relationship management and integration of machine learning and artificial intelligence into business processes are anticipated to boost the growth.
The evolution of contact centers, from traditional voice-centric facilities, followed by multimedia customer interaction, to the unified communication social media with integrated channels, has enabled professionals to retain their customers. The emergence of the omnichannel customer experience towards contact center software is expected to accelerate the growth over the forecast period.
Nowadays, buyers widely prefer cloud-based systems owing to benefits, such as usage flexibility, elimination of installation time and costs, and reduced maintenance charges. Subsequently, several customer relationship solution providers have extended their offerings to the cloud platform, enabling easy access to data from virtually any system across an organization.
Robotic Process Automation (RPA) is likely to be a vital part of the contact center software market over the forecast period as RPA reduces errors and improves work quality. Organizations are seeking solutions that allow managers and agents in the customer relationship management department to invest their time in analytical activities and decision-making for organizational development and rely on robots for routine task.
Increasing demand for flexibility in conducting banking activities, wherever and whenever required by customers, has resulted in the Banking, Financial Services, and Insurance (BFSI) sector adopting advanced customer service solutions. These solutions also find application in the healthcare, government, media and entertainment, and travel and hospitality segments for resolving various customer queries. As a result, the demand for contact center solutions is anticipated to grow over the forecast period.
The Interactive Voice Response (IVR) segment accounted for a major revenue share in 2018 owing to the high demand for quick resolution of queries over calls. IVR solutions enable customers to resolve product related issues by themselves rather than relying on customer care representatives. Moreover, innovative uses of IVR, such as marketing for customers, feedback surveys, and payment processing, are projected to boost the growth. Some of the applications of IVR include call center forwarding, office calls routing, and surveys and polls, among others.
The customer collaboration segment was valued at USD 388.1 million in 2018 and is anticipated to grow rapidly over the forecast period. The customer collaboration software allows organizations to interact with their existing and potential customers in a better way. It also helps them establish a long-term bond with their customers and upgrade product quality through feedback, thereby, improving the overall performance of a company.
The integration and deployment function accounted for the largest market share and was valued at USD 2.18 billion in 2018. The large-scale demand for the implementation of new contact center systems and integration of new systems with the existing systems at the workplace is expected to drive the growth. Integration and deployment function takes care of data privacy needs, regulatory compliance, and specific business continuity requirements; thereby creating growth opportunities for the segment over the forecast period.
The recent years have witnessed technological changes at a considerable pace, resulting in continuous upgrades in the contact center software services. There exists a significant demand for updating customer experience software and solutions with the varying technologies. The buyers require vendor support for troubleshooting and resolving technical issues, which might have a positive influence on the growth of the support and maintenance segment.
The transition of customer care departments from manually noting problems to automatically resolving queries and issues through IVRs and self-service portals has resulted in substantial changes in the business process automation technology. Prior to the advent of cloud-based solutions, the most feasible option for companies was the implementation of on-premise solutions as it is easy to deploy and requires less capital investment. The hosted deployment enables the organizations to manage technical and operational needs of their respective contact centers.
The availability of affordable internet connections is expected to increase the demand for hosted deployment of contact center solutions in organizations. Various organizations widely prefer this deployment mode as it is hosted on a vendor’s server and can be accessed by only authorized people through a web browser. The hosted deployment segment was valued at USD 6.09 billion in 2018 and is expected to grow remarkably over the forecast period.
The Small and Medium Enterprise (SME) segment is projected to register the highest CAGR over the forecast period, owing to rising implementation of customer care solutions to reduce the burden of carrying out regular mundane tasks and to allow employees to focus on organizational development. Increasing awareness related to enhancing customer service management, improving reporting features, and enhancing productivity and efficiency of SMEs is expected to further drive the growth.
Large enterprises have enormous amounts of customer data that needs to be managed effectively in local offices as well as overseas. In order to manage this data, such enterprises implement contact center systems, thereby, allowing professionals to focus on customer retention and critical queries instead of resolving traditional queries. In large enterprises, contact center software allows employees from various domains to communicate and share accurate information about their clients through updates.
Increasing demand from IT and telecom, BFSI, government, consumer goods and retail, travel and hospitality, and healthcare sectors is anticipated to drive the growth. The contact centers and unified collaboration software increasingly offer flexibility and multimedia to customers, thereby, enhancing customer satisfaction and ensuring brand loyalty. These software enhance efficiency and productivity which eventually help reduce operations costs; thereby increasing the adoption in end use industries.
As a part of the e-government initiative, offices and public organizations are expected to implement contact center solutions to efficiently carry out online processes related to citizen complaints, queries, inquiries, and feedback, among others. Globalization of the IT industry has resulted in a large customer/client database. The database is spread across the globe and needs to be managed effectively. This is subsequently increasing the demand for these solutions in end use industries.
The presence of a large number of contact center software vendors in North America has resulted in increased awareness among local organizations about these software, thereby resulting in the large-scale adoption of the systems by the companies. The North America market was valued at USD 6.05 billion in the year 2018. Also, a large number of businesses are migrating to cloud storage; thereby creating growth opportunities for the regional market.
Asia Pacific is experiencing immense growth owing to the increasing number of favorable government initiatives for supporting automation of business processes and adoption of cloud-based systems. The presence of a large number of contact centers and customer experience regarding benefits associated with these software are instrumental in driving the market growth.
The key vendors in the market include Alcatel-Lucent Enterprise; Avaya, Inc.; Cisco Systems, Inc.; Enghouse Interactive, Inc.; Five9, Inc.; Genesys; Microsoft Corporation; NEC Corporation; Mitel Corporation; SAP SE; Nice Systems Ltd.; and Huawei Technologies Co., Ltd.; among others. These companies develop and deploy contact center solutions for organizations that are desire to streamline their customer experience processes.
The presence of stiff competition in the market has resulted in the formation of strategic business units by organizations. Consequently, this has led to increased emphasis on customer feedback and its incorporation into streamline their operations and improving customer satisfaction. Additionally, companies are also investing in R&D to offer innovative products and to enhance customer experience.
Several companies are also focusing on inorganic growth strategies. For instance, in January 2018, Avaya Holdings Corporation acquired Spoken Communications, a Contact Center as a Service (CCaaS) solutions provider. This acquisition helped existing customers of Avaya Holdings to migrate from premise-based services to cloud service offerings at their respective pace.
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Attribute |
Details |
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Base year for estimation |
2018 |
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Actual estimates/Historical data |
2014 - 2017 |
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Forecast period |
2019 - 2025 |
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Market representation |
Revenue in USD Million and CAGR from 2019 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, and MEA |
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Country scope |
U.S., Canada, Germany, U.K., India, Japan, China, and Brazil |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. 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 Million, 2014 - 2025)
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 Million, 2014 - 2025)
Integration & Deployment
Support & Maintenance
Training & Consulting
Managed Services
Deployment Outlook (Revenue, USD Million, 2014 - 2025)
Hosted
On-premise
Enterprise Size Outlook (Revenue, USD Million, 2014 - 2025)
Large Enterprise
Small & Medium Enterprise (SME)
End Use Outlook (Revenue, USD Million, 2014 - 2025)
Banking, Financial Services and Insurance (BFSI)
Consumer Goods & Retail
Government
Healthcare
IT & Telecom
Travel & Hospitality
Others
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
U.S.
Canada
Europe
Germany
U.K.
Asia Pacific
China
India
Japan
Latin America
Brazil
MEA
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