The contact center transformation - software and service market size was USD 24.32 billion in 2019 and expected to reach USD 97.37 billion by 2027; this converts into a compound annual growth rate (CAGR) of 18.94% for the forecast period.
Based on geography, the market is segmented as below:
Contact centers in comparison to call centers handle a wide variety of modes of communication to improve overall customer experience. These solutions offer a range of services like real-time & on-demand service, personalized attention and response, video conferencing, analytics and more.
The shift towards the digital medium has given rise to contact centers. These centers due to the advantages such as cost-efficient, easier to set up & maintain, better control over operations, increased effectiveness, ability to integrate newer technologies have necessitated the development of contact center services in the form of software and services. Organizations are investing in such solutions to gain hold of their market through better customer care experience. Although government regulations and compliance with data laws may restrict the market growth, the demand will certainly create an upsurge for the contact center transformation – software & solutions market.
The use of cloud-based contact center solutions results in a decreased demand for office space, thus minimizing overall costs. Also, these solutions offer flexible login, scalability, multi-channel communication, and more. Moreover, conventional legacy systems are difficult to maintain and expensive. These systems do not allow for the integration of IoT, artificial intelligence, machine learning, and other technologies. Additionally, they do not support digital and analytics. All of these factors are increasing the demand for contact center solutions that assist businesses to improve their customer experience.
The interactive voice response solution segment is anticipated to register a CAGR of approximately 20.5% during the forecast years. The high growth rate can be attributed to its better accuracy to interpret tones and accents then traditional speech recognition software. However, the services segment dominated the market capturing nearly 20% in 2019.
Among the various deployment method, the on-premise segment accounted for over 65% of the market in 2019, owing to its wide spread application and preference amongst enterprises. Nevertheless, the hosted deployment type, on account of the advantages it offers, is estimated to expand at a CAGR of 21% between 2020 and 2027.
The need to stay up-to-date and enhance profits have resulted in the large enterprise segment’s lead in 2019. The segment secured nearly 80% of the contact center transformation – software and services market. Increasing awareness regarding its benefits are encouraging small & medium enterprises to make use of contact center solutions. Consequently, the segment is projected to register a CAGR of over 20% during the forecast timeline.
The retail end user segment will witness an approximate 20% CAGR from 2020 to 2027, due to the rising transition towards digital mediums for providing improved customer experience. On the other hand, the others end-user segment held around 30% of the market in 2019.
Presence of well-established organizations, increase in investments in advanced technologies and the adoption of contact center solutions among the numerous small and medium enterprises have contributed to North America’s dominance of the market in 2019. Asia-Pacific will display the fastest growth rate due to supportive government initiatives promoting cloud-based systems and automation, proliferation of smartphones, foreign investments and growing number of contact center solutions.
A few key players include, but not limited to: RingCentral Inc., NICE Systems Inc., 8x8 Inc., Genesys Telecommunications Laboratories, Five9 Inc., Avaya Inc., Enghouse Interactive Inc., Vocalcom SA, Mitel Networks Corp, Altitude Software, Aspect Software Inc.