The global Contact center software market was valued at USD 23.9 billion in 2020 and is expected to reach USD 75.7 billion by 2027, growing at a Compound Annual Growth Rate (CAGR) of 21.1% during the forecast period (2021-2027).
The global contact center software market is majorly driven by the rising need to improve customer experience, at relatively lower costs. Various types of customer communication include VoIP calls, phone calls, live chat, SMS/text, fax, email and social media messaging among many others. The prime function of cloud center software is to route customers to agents, along with reporting and tracking critical metrics in relation to customer interactions. The contact center software allows organizations to carry out their customer interaction over the internet, without the requirement for an on-premise PBX phone system. Thus, the contact center software is easier to set up & maintain, cost-efficient and provides organizations with better control and visibility in their operations. The software also helps in improving the efficiency and effectiveness of a contact center, with their prime focus on interactions between customers and contact center agents.
Global Contact Center Software Market (in US$ Billions):
Key Highlights of the Global Contact Center Software Market:
|Component (US$ bn)
|Large Enterprise XX
|Retail and Consumer goods XX
|Retail and Consumer goods XX
In addition, rapid technological advancements such as predictive analysis, artificial intelligence and machine learning are expected to positively drive the market. The increasing application of artificial intelligence (AI) has resulted in introduction of the Business Process Automation, and therefore resulted in reducing the workload of customer care representatives. The rising adoption of automatic call distribution (ACD) and interactive voice response (IVR) software has further resulted in improving the productivity of customer-centric organizations. Moreover, the increasing adoption of cloud-based contact center software is further expected to drive the market. The prime function that cloud-based contact center software provides is improving the integration of workforce management. With the use of cloud-based contact software systems, employees in the organizations that have a high employee engagement are improving their productivity by scheduling their work. These benefits are greatly helping in improving the demand of contact center software globally.
Moreover, the covid-19 outbreak globally has positively impacted the contact center software market globally. Due to this pandemic, many employees are now working from remote locations. Therefore, a lot of organizations are now moving to cloud contact center software to achieve better business continuity which is further expected to drive the market. For instance, according to NICE inContact survey, an Israel-based company, specializing in data security, surveillance, telephone voice recording and Robotic Process Automation showed that 66 percent of its contact centers respondents who do not rely on the cloud are accelerating their adoption as a result of COVID-19. This will further fuel the contact center software market growth.
The Global Contact Center Software Market Segmentation:
By Deployment model:
By Organization size:
By End-Use industry
Company Profiles and Competitive Intelligence
The key players operating in the market are:
On the basis of components, the solution segment has shown the most lucrative growth in the contact center software market in 2020 and is expected to exhibit similar trends during the forecast period.
On the basis of components, the global contact center software market can be segmented as solutions and services. Among these, the solution segment has shown the most lucrative growth in the contact center software market in 2020 and is expected to exhibit similar trends during the forecast period. This is mainly due to the growing demand of interactive voice response (IVR) solutions to get a quick resolution of queries over the calls. Contact center solutions provide customers the opportunity to resolve any product-related issues by themselves rather than depending on customer care executives. Many companies such as Amazon, Uber, Zomato uses IVR solutions to better serve its customers. However, the services segment is expected to witness the highest growth, owing to extensive adoption of services among end-users, as it ensures effective functioning of contact center software throughout the process. Owing to this advantage, the solution segment has positively impacted the contact center software globally.
Based on deployment, the cloud-based deployment is expected to witness a high growth trend in the forecast period. and is expected to hold a large share in the forecast period.
On the basis of deployment, the global contact center software market is segmented as an on-premise and cloud segments. Among these, on-premises deployment has a significant share in contact center software market globally. This is mainly because large enterprises with employee sizes of more than 1000 are reluctant to get away from on-premise solutions. The on-premise contact center software are mainly responsible for updates and maintenance. The on-premises deployment model also helps in managing business processes, risks and organization’s internal policies. In addition, it provides the flexibility to customize solutions as required and help in integrating the existing business applications, such as finance, HR, CRM and SCM platforms; voice, video, and messaging APIs; and out-of-the-box applications, adds to on-premises deployments in the contact center software market.
However, the cloud-based deployment is expected to witness a high growth trend in the forecast period. This is because many organizations are now shifting to cloud-based deployment of contact center solutions due to the availability of affordable internet connections. The rising adoption of cloud-based contact center services has provided the opportunity to organizations in reinforcing the security of customers’ confidential information via centralized database and web security. Moreover, cloud-based deployment provides multiple customer point of contact that allow access to all the necessary data from anywhere and at any time across the globe.
Based on End-Use Industry, Retail and consumer goods industry is expected to have the fastest growth in the global contact center software market during the forecast period.
On the basis of end-use industry, the global contact center software market can be segmented as Retail and Consumer Goods, Manufacturing, IT and Telecommunications, Government and Public Sector, Energy and Utilities and Others. Retail and consumer goods industry is the fastest growing end-use segment in the global contact center software market. Retail and consumer goods industries are no longer a single channel contact centers. The rapid adoption of e-commerce platform and the increasing volume of omnichannel sales has now made it even more challenging to manage the post sales services offered to the customers. This has opened up a huge opportunity for the contact center software market in retail and consumer goods industry. Moreover, increase in the demand for personalized services in the retail and consumer goods industry is further driving the market.
IT & Telecommunications industry holds a prominent market share in the global contact center software market in the year 2020. Telecommunications companies are now investing in developing innovative solution to maximise their revenues by using right resources at right places to improve their customer service and harness massive customer data for improving actionable insights. Therefore, for interactions with agents and for easier and faster processing of useful data, contact center software companies are bringing innovative solution for telecommunication companies to achieve workflow automation and advanced data analytics. For instance, In June 2020, ServiceNow launched Telecommunications Network Performance Management and Telecommunications Service Management products that will help service providers in delivering better experiences to customers, contact center agents, and network operations teams to maximize their network technology investments by reduce costs.
Based on region, North America dominated the contact center software market in 2020 and is expected to show similar trends in forecast period.
On the basis of region, the global contact center software market can be segmented as North America, Europe, Asia Pacific, Latin America and Middle East & Africa. Among these, North America dominated the contact center software market in 2020 and is expected to show similar trends in forecast period. This is because, several end-use industries in this region are investing and adopting in emerging technologies, such as, cloud platforms, big data and analytics. The organizations are shifting their focus towards cloud-based solutions to enhance their efficiencies and scalabilities. For instance, in October 2018, PHH Mortgage, leading sub-servicers of residential mortgages in the U.S., in partnership with Serenova which is a contact centre-as-a-service (CCaaS) provider., moved its contact center to cloud-based architecture.
Moreover, the adoption of contact center solutions, especially after COVID-19 outbreak, has further driven the contact center software market growth in this region. The US government and public sector call centers across the US, including Harris County, Hudson Valley Region 211, Marion County, 211 San Diego, LA County 211 and Integral Care have adopted contact center solutions from various contact center software companies to ensure the convenience and safety of the citizens. Moreover, the presence of a large number of contact centre software companies in the region such as., IBM Corporation, Cisco Systems, Inc, NICE Ltd., Oracle Corporation, 8x8, Inc., Aspect Software Parent, Avaya, 3Clogic, Verizon Communications, Inc., and BT Group has also resulted in increased awareness among local organizations about this software.
The unique insights provided by this report also includes the following:
The report also provides in-depth analysis of market dynamics such as drivers, restraints opportunities and challenges
The report also provides in-depth analysis of key market trends
|The ongoing trend of work from home (WFH) during the pandemic is expected to fuel the co+G14:I16ntact center software market growth. It is due to the rising adoption of contact center for ensuring business continuity and improving productivity. For instance, in April 2020, VOO, a leading Belgium telecommunication company moved its 188 employees to work remotely in one week and implemented an agile cloud contact center solution. This has led to absenteeism dropped from 62% to 5% as well as daily calls per team rose from 1300 to 1800, a 38% increase in productivity.
|Rapid adoption of advanced technology such has Artificial Intelligence and bigdata has positively driven the market. Artificial Intelligence is widely adopted to develop bots and automated messaging, thereby enabling a positive impact on the overall operational efficiency of contact centers. Moreover, big data analytics has enabled enterprises to access both customer as well as employee insights and use this information to address issues related to employee performance or customer experience.
The report also provides in-depth analysis of recent News Developments and Investments
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