Contact Center Software Market Size, Share & Trends Analysis Report By Solution (ACD, IVR), By Enterprise Size (Large, Small & Medium), By End Use (BFSI, IT & Telecom), By Service, By Deployment, And Segment Forecasts, 2022 - 2030

Report Overview

The global contact center software market size was valued at USD 23.94 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 23.2% from 2022 to 2030. The growth of the market can be attributed to the growing adoption of cloud-based and virtual contact center solutions to achieve better business continuity. Contact centers across the globe are focusing on transforming customer experience from a single interaction to an entire journey of consistent and personalized interactions. At this juncture, contact center software is helping businesses in ensuring a seamless customer experience across all communication channels. The strong emphasis businesses are putting on streamlining and personalizing customer interactions to enhance customer satisfaction is driving the growth of the market.

According to a study by Salesforce.com, Inc., around 84% of customers consider the experience provided by a particular company equally important as its products and services. Businesses have also realized that improved customer service can aid in augmenting profitability. Hence, businesses are aggressively adopting contact center solutions as part of their efforts to improve customer service, thereby contributing to market growth. Businesses have realized the potential of cloud-based computing and management tools. Hence, several businesses across the globe are focusing on switching to cloud-based contact centers.

Contact center managers and administrators are adopting cloud technology for various reasons, such as improved security and efficiency. Apart from cloud computing, businesses are also adopting other omnichannel solutions, including video chat assistance and chatbots, based on the latest technologies such as Artificial Intelligence (AI) to improve customer experience. Several organizations have already started automating multiple business functions leveraging AI. Prescriptive AI, the next generation of this technology, offers a wide variety of new capabilities, ranging from more optimized case routing to efficient inquiry resolution and scheduling management.

Prescriptive AI is also expected to add a new dimension to the ways businesses can anticipate the evolving needs of customers, and help in extending customer interactions from discovery and onboarding to post-purchase support. Prescriptive AI can also be used for internal purposes, such as restocking based on demand and optimization of field resources. However, Interactive Voice Response (IVR) fraud or fraudulent activities occurring within the IVR systems may restrain the market growth over the forecast period.

Contact centers are increasingly being exposed to the risk of fraud attacks and the subsequent losses as they continue to adopt IVR systems, webchats, and self-service channels as part of the efforts to address the growing volumes of calls being received by the agents. Contact centers are constantly at the risk of cyberattacks as they store large volumes of critical customer data. Thus, the growing instances of cyberattacks on contact center business operations are also expected to hinder the growth of the market.

COVID-19 Impact Analysis

The COVID-19 pandemic is expected to drive the adoption of contact center software. Contact centers adopted AI-based virtual agents to ensure seamless customer services amid the significant rise in call volumes in the wake of the outbreak of the pandemic. Virtual agents ensure instant, on-demand service while delivering a conversational experience, providing automated support, and handling the same intents as human agents. AI human assist can potentially divert telephonic traffic to chat and provide access to digital experts while building the capacity to resolve customer inquiries.

Solution Insights

The IVR segment dominated the market in 2021 and accounted for a revenue share of more than 22.0%. Interactive voice response solutions can interpret tones and accents with more precision than conventional speech recognition software. Interactive voice response systems can help businesses in assigning the caller to the concerned departments or agents on a case-by-case basis. Furthermore, IVR solutions can also help clients in resolving product-related queries by themselves rather than depending on customer care representatives. Contact centers with high call volumes typically adopt IVR solutions to handle multiple calls simultaneously without letting the customers notice that there are other callers on the line.

The customer collaboration solution segment is anticipated to register the fastest CAGR 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 in 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 & deployment segment dominated the market in 2021 with a revenue share of more than 42.0%. The increasing adoption of cloud-based contact center software solutions is expected to drive the segment growth 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 this segment. The growing need for business agility and rapid deployment of cloud-based solutions also bode well for the growth of the integration & deployment segment. The managed services segment is anticipated to register the fastest growth rate 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 by leveraging configuration management, provisioning, standard change management, and patch management tools. These services also include an array of value-added services to help businesses in achieving 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 market in 2021 and accounted for a revenue share of more than 58.0%. 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 CAGR over the forecast period.

Businesses across the globe are preferring cloud-based contact center solutions over on-premise solutions owing to their ability to scale services. Cloud solutions are designed to connect agents to 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 market in 2021 and accounted for a revenue share of more than 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 (SME) segment is anticipated to register the fastest CAGR from 2022 to 2030. The growing implementation of customer care solutions by SMEs across the globe is expected to drive the segment growth over the forecast period. Small & medium enterprises are adopting these solutions as part of the efforts to ease the burdens of carrying out the normal, mundane tasks while allowing 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 in the coming years.

End-use Insights

The IT & telecom segment dominated the market in 2021 and accounted for a revenue share of more than 25.0%. The intensifying competition in the IT & telecom industry shows no signs of abating. Several new entrants are making a foray into the industry and pursuing innovative methods and approaches to achieve success. As a result, companies that have already established themselves in the industry are aggressively adopting contact center solutions to increase the efficiency of business operations. Moreover, IT & telecom businesses are thriving for innovation and focusing on augmenting their profits by implementing appropriate tools to make sure that their client service is always up and running and are effectively harnessing the large volumes of customer data for gaining actionable insights.

The consumer goods & retail segment is anticipated to register the fastest CAGR 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 businesses and retailers in striking personalized interactions with customers and building strong customer relationships. Contact center software also helps 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 global market in 2021 with a revenue share of more than 36.0%. North America is home to some of the prominent market players. Moreover, organizations in North American countries are investing aggressively in emerging technologies, such as big data, analytics, and cloud platforms. The emphasis on increasing efficiency by improving outbound and inbound operations has also been growing among both large as well as small & medium enterprises in the region. The omnichannel approach to sales, which has been gaining traction, coupled with the rapidly growing e-commerce industry is further expected to propel the regional market growth.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period owing to the presence 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 as well as small & medium enterprises is anticipated to drive the growth of the regional market. The favorable initiatives by local governments 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 the APAC regional market bodes equally well for the growth of the regional market.

Key Companies & Market Share Insights

The global market is highly fragmented. Prominent players are pursuing various strategies, such as strategic partnerships and joint ventures, product innovation, R&D initiatives, M&As, and geographical expansion, to strengthen their foothold in the market. Players are focusing on offering both on-premise and cloud-based solutions to enterprises of all sizes. These solutions are also being designed particularly to assist enterprises in managing the high volume of customer queries efficiently.

Vendors are focusing on developing and deploying contact center solutions for organizations that are willing to streamline their customer care processes. For instance, in December 2021, 8X8, Inc. announced that DMV Veterinary Centers, an emergency and specialty pet hospitals and services provider in Canada, deployed an 8x8 Contact Center for Microsoft Teams, which is certified by Microsoft. The solution allows DMV Veterinary Centers to meet the growing demand for veterinary services and effectively enhance the customer experience for pet owners. The solution provides advanced omnichannel contact center capabilities to ensure quick resolution of customer issues across the four veterinary centers in Canada. Some of the prominent players in the global contact center software market include:

• 8X8, Inc.

• ALE International

• Altivon

• Amazon Web Services, Inc.

• Ameyo

• Amtelco

• Aspect Software

• Avaya Inc.

• Avoxi

• Cisco Systems, Inc.

• Enghouse Interactive Inc.

• Exotel Techcom Pvt. Ltd.

• Five9, Inc.

• Genesys

• Microsoft Corp.

• NEC Corp.

• SAP SE

• Spok, Inc.

• Talkdesk, Inc.

• Twilio Inc.

• UiPath

• Unify Inc.

• VCC Live

Contact Center Software 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 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 Million, 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 Million, 2017 - 2030)

  • Integration & Deployment

  • Support & Maintenance

  • Training & Consulting

  • Managed Services

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

  • Hosted

  • On-premise

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

  • Large Enterprise

  • Small & Medium Enterprise

• 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.

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa