The global contact center software market size was valued at USD 20.5 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.1% from 2021 to 2028. Numerous businesses across the globe are focusing on understanding client concerns, responsiveness, and using competitive rates to lure leads away from their competitors. Nowadays, enhanced customer experience is of the utmost importance. Increasing emphasis on enhancing customer experience using omnichannel solutions is expected to drive the market over the forecast period.
Nowadays, businesses across the globe are changing at a relatively faster pace. Businesses are focusing on improving customer experience, refining service provision, enhancing customer satisfaction, and enhancing organization sales. Contact center software is providing businesses with a futuristic look at the usage of Artificial Intelligence (AI) and how digital transformation is expected to help in providing optimal customer service. Numerous businesses across the globe have started making investments in AI integrated solutions, thereby creating growth opportunities for market growth over the forecast period.
Contact center software solutions enable businesses to redirect incoming client calls to available agents. This redirecting process helps managers in saving time, which primarily had to dedicate long hours to coding routing algorithms. Moreover, artificial intelligence technology helps businesses in predicting the best available group to efficiently cater to the client’s communication history and profile and send a call to the respective agent. These aforementioned factors are expected to contribute towards the growth of the market for contact center software over the forecast period.
The emergence of omnichannel communication solutions for delivering an effective customer experience is anticipated to accelerate market growth over the forecast period. These solutions keep the communication unified and consistent across channels and touchpoints for efficient follow-up. Moreover, agents can pull up the customer's information from their chat history or previous interactions instead of compelling them to repeat their queries over and over again. According to the research carried out by the Aberdeen Group, businesses with omnichannel customer engagement approaches retain, on average, 89% of their customers.
The outbreak of COVID-19 is anticipated to have a positive impact on the market for contact center software. While contact center executives are putting a strong emphasis on making instant decisions on serving their customers efficiently during the crisis, many executives are also actively focusing on improving customer service and operations in the long term. However, low First Call Resolution (FCA) and the inability to attain a higher Average Speed of Answer (ASA) is expected to hamper the growth of the market for contact center software. Also, businesses constantly need to design business processes to be compliant with data laws and regulations.
The interactive voice response segment led the market for contact center software and accounted for more than 23.0% share of the global revenue in 2020. Interactive voice response solutions can interpret tones and accents with more precision than traditional speech recognition software. Interactive voice response systems help businesses in assigning the caller to concerned departments or agents on a case-by-case basis. Furthermore, an interactive voice response solution enables clients to resolve product-related queries by themselves rather than depending on customer care representatives.
The customer collaboration segment is anticipated to register the highest growth over the forecast period. The solution allows businesses to interact with their potential and existing customers in a better way. Moreover, this solution enables businesses to quickly track, receive, and resolve customer support issues. The increasing need to enhance collaboration by using images and videos to communicate effectively with clients is expected to drive the segment growth over the forecast period.
The integration and deployment segment dominated the market for contact center software and accounted for more than a 42.0% share of the global revenue in 2020. The increasing adoption of cloud-based contact center software solutions is expected to drive the usage of integration and deployment services over the forecast period. Businesses across the globe are making significant investments in integrating multiple applications and tools, such as Customer Relationship Management (CRM), in their business processes. This, as a result, is expected to drive the integration and deployment segment growth over the forecast period.
The managed services segment is anticipated to register the highest growth over the forecast period. Managed services allow businesses to focus on their services and core products while handling IT-related tasks for the company. Managed service providers are helping businesses in keeping applications running for end-users with configuration management, provisioning, standard change management, and patch management tools. Furthermore, managed services offer an array of value-added services to help businesses achieve the most in performance and reliability from contact center software solutions while keeping operational costs under control.
The on-premise segment led the market for contact center software and accounted for more than 59.0% share of the global revenue in 2020. On-premise deployment is a model where all hardware and software required to operate and maintain a contact center is located on a customer’s property. These on-premise solutions provide integrability, reliability, customizability, and some amount of scale but are difficult and expensive to deploy. The customizability benefits of these on-premise solutions can only be realized when businesses invest heavily in professional services.
The hosted segment is anticipated to register the highest growth over the forecast period. Businesses across the globe are focusing on adopting cloud-based contact center solutions over on-premise solutions owing to their ability to scale services. Cloud solutions connect agents to centralized contact center applications, along with offering a secure intranet for employees to collaborate and communicate with each other. Also, cloud-based solutions are able to offer in-depth information about agents and customers that executives wouldn’t be able to track with on-premise solutions.
The large enterprise segment dominated the market for contact center software and accounted for more than a 58.0% share of the global revenue in 2020. Large enterprises have their customers located across regions. Large enterprises are anticipated to invest in the latest and advanced technologies to run their business effectively. Moreover, large enterprises prefer implementing solutions and services that are anticipated to assist them in enhancing their profit. This, as a result, is expected to drive the adoption of contact center software solutions in large enterprises.
The small and medium enterprise segment is anticipated to register the fastest growth over the forecast period. The growing implementation of customer care solutions by small and medium enterprises across the globe is expected to drive the segment growth over the forecast period. Also, small and medium enterprises are adopting these solutions to decrease the burden of carrying out normal mundane tasks and to allow agents to focus on organizational development. This, as a result, is expected to drive the adoption of contact center software solutions in small and medium enterprises.
The IT and telecom segment led the market for contact center software and accounted for more than 26.0% share of the global revenue in 2020. The IT and telecom industry is becoming more competitive than ever. Multiple new companies are entering the industry bringing in their innovative methods and approaches to achieve success. As a result, companies that have already established themselves in the industry are widely adopting contact center software solutions to increase the efficiency of business operations.
The consumer goods and retail segment is anticipated to register the fastest growth over the forecast period. Customers are moving towards digital channels for their shopping needs. In addition, the adoption of new technologies and channels by consumers has forced consumer goods and retail businesses to adapt to contact center software solutions for providing exceptional customer experiences. These solutions help businesses and retailers build strong customer relationships through personalized customer interactions.
North America dominated the contact center software market and accounted for more than a 36.0% share of the global revenue in 2020. North America is home to some of the prominent market players. In this region, organizations have rapidly invested in emerging technologies, such as big data, analytics, and cloud platforms. Furthermore, there has been an increasing demand among large as well as small and medium enterprises to increase their efficiency by improving outbound and inbound operations in the region. These factors are expected to drive the market in North America.
Asia Pacific is expected to emerge as the fastest-growing regional market for contact center software over the forecast period. The growing adoption of contact center software solutions by large as well as small and medium enterprises is anticipated to drive the market in the region. The increasing number of favorable government initiatives for supporting the adoption of cloud-based systems and automation of business processes is expected to fuel the regional market growth. Also, numerous organizations across the globe are keen on investing in the region, which is expected to create growth opportunities for the market.
The market for contact center software is highly fragmented in nature. Prominent players are adopting various strategies, such as partnerships, product innovation, strategic joint ventures, research and development initiatives, mergers and acquisitions, geographical expansion, to cement their foothold in the market. Players are focusing on offering both on-premise and cloud-based solutions to large as well as small and medium enterprises. These solutions are designed to assist enterprises in efficiently managing the high-volume of customer queries.
Vendors are focusing on developing and deploying contact center software solutions for organizations that are willing to streamline their customer care processes. Businesses are partnering with solution providers to efficiently handle customer queries. For instance, in February 2020, 8X8, Inc. partnered with Dermalogica, a provider of skincare products across the U.K. and Ireland. The partnership envisages Dermalogica replacing its aging telephony system with 8X8, Inc.’s 8X8 X Series cloud communications and contact center platform to transform the way its employees communicate with the clients and subsequently improve its customer service experience in the U.K. and Ireland. Some of the prominent players in the 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 Corporation
NEC Corporation
SAP SE
Spok, Inc.
Talkdesk, Inc.
Twilio Inc.
UiPath
Unify Inc.
VCC Live
Report Attribute |
Details |
Market size value in 2021 |
USD 23.6 billion |
Revenue forecast in 2028 |
USD 90.6 billion |
Growth rate |
CAGR of 21.1% from 2021 to 2028 |
Base year of estimation |
2020 |
Historical data |
2016 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company market share, competitive landscape, growth factors, and trends |
Segments covered |
Solution, services, deployment, enterprise size, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; Germany; U.K.; Spain; China; India; Japan; Brazil |
Key companies profiled |
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 Corporation; NEC Corporation; SAP SE; Spok, Inc.; Talkdesk, Inc.; Twilio Inc.; UiPath; Unify Inc.; VCC Live |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional and segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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 contact center software market report based on solution, service, deployment, enterprise size, end-use, and region.
Solution Outlook (Revenue, USD Million, 2016 - 2028)
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, 2016 - 2028)
Integration & Deployment
Support & Maintenance
Training & Consulting
Managed Services
Deployment Outlook (Revenue, USD Million, 2016 - 2028)
Hosted
On-premise
Enterprise Size Outlook (Revenue, USD Million, 2016 - 2028)
Large Enterprise
Small & Medium Enterprise
End-use Outlook (Revenue, USD Million, 2016 - 2028)
Banking, Financial Services and Insurance (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.
Spain
Asia Pacific
China
India
Japan
Latin America
Brazil
Middle East & Africa
b. The global contact center software market size was estimated at USD 20.5 billion in 2020 and is expected to reach USD 23.6 billion in 2021.
b. The global contact center software market is expected to witness a compound annual growth rate of 21.1% from 2021 to 2028 to reach USD 90.6 billion by 2028.
b. North America dominated the contact center software market with a share of 36.90% in 2020. This is attributable to the presence of a large number of contact center software vendors in the region.
b. Some key players operating in the contact center software market include Avaya, Inc.; Cisco Systems, Inc.; Five9, Inc.; Genesys; Microsoft Corporation; NEC Corporation; Mitel Corporation; SAP SE; Nice Systems Ltd.; and Huawei Technologies Co., Ltd., among others.
b. Key factors that are driving the market growth include increasing demand for the automation of contact center solutions, the growing emphasis on enhancing customer experience through omnichannel solutions, and surging adoption of cloud-based contact centers.
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.