|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 26.5 Billion||USD 148.1 Billion||24%||2022|
Contact Center Software Market
The global contact center software market size was worth around USD 26.5 billion in 2022 and is predicted to grow to around USD 148.1 billion by 2030 with a compound annual growth rate (CAGR) of roughly 24% between 2023 and 2030.
The market for contact center software is made up of sales of contact center software and related services made by businesses (partnerships, sole proprietorships, and organizations). These products and services are used to communicate with customers and streamline business processes by allocating customer contacts to agents, monitoring calls in real-time, and collecting, analyzing, & reporting critical data via a centralized platform. Contact center software is a communication tool that helps increase a contact center's productivity by focusing on interactions between employees and customers.
The development of cutting-edge technology drives market growth
The advantages and possibilities of implementing technology like artificial intelligence (AI), cloud computing, machine learning, and predictive analytics have been recognized by contact centers worldwide. Because of this, they have begun integrating them into their systems. Adoption of these technologies has given vendors in the industry an attractive opportunity to offer seamless consumer experiences. Businesses now have access to insights and data that help them make wise business decisions because of the development in popularity of these technologies. AI is being used quickly to create bots and automated messaging, which has improved contact centers' overall operating efficiency. Besides, businesses may now use employee and consumer insights through big data analytics, and utilize this knowledge to solve problems with customer experience or staff performance. Thus, this is expected to drive the global contact center software market growth over the forecast period.
Insufficient mean reaction time and unsatisfactory first call resolution hamper the market growth
Reduced customer & agent satisfaction, high abandonment rates, extended handle times, and increased contact center expenses are just a few of the negative consequences that low FCR (First Call Resolution) and high ASA (Average Speed of Answer) have on contact centers. There is still a significant gap between the number of incoming phone calls attended and the number of questions answered on the first call, even if many contact center solution providers are taking several measures to ensure that customer inquiries are addressed within the allocated time. Contact center metrics like FCR and ASA may be used to evaluate how effective the contact centers are. Businesses have struggled to provide the necessary customer service, despite the constant rise in customer demands. In a phone queue, customers shouldn't have to wait more than 20 seconds. The ASA is limited to 20 seconds in light of this. Call volume or the number of calls handled each day is negatively impacted by customer wait times exceeding twenty seconds.
Increased use of contact center software by businesses offers a lucrative opportunity for market growth
Contact centers are quickly utilizing contact center software to handle customer communications by phone, email, and fax. Contact center software gives businesses across a range of sectors a competitive edge by automating the inbound and outgoing contact center processes, resulting in higher efficiency. An increasing number of companies worldwide are turning their attention to giving clients an all-inclusive experience. Furthermore, in today's fiercely competitive market, consumer requirements are always evolving, making customer experience a critical component that influences client retention. This element is a major driver of contact center software industry expansion.
High cost poses a challenge to market growth
It can be costly to install and maintain contact center software, particularly more complex and feature-rich options. It might be difficult for smaller companies to set aside the funds that are required for this kind of software. Thus, the high cost of contact center software is expected to pose a major challenge to the contact center software market growth during the forecast period.
The global Contact Center Software industry is segmented based on component, software type, deployment mode, enterprise size, industry vertical, and region.
Based on the component, the global market is bifurcated into solutions and services. The solution segment is expected to hold the largest market share over the forecast period due to the increasing acceptance of interactive voice response (IVR) systems for prompt call-based query resolution. Solutions give consumers the independence to handle product-related issues without the assistance of customer support representatives.
Based on the software type, the global Contact Center Software industry is bifurcated into intelligent call routing, IVR, workforce management, reporting and analytics, security functions, intelligent virtual assistants, and others.
Based on the deployment mode, the contact center software market is bifurcated into cloud and on-premise. The on-premise segment is expected to capture a significant market share over the forecast period. The goal of on-premise deployment is to set up all the gear and software needed to run and manage a contact center on the client's premises. Integrability, dependability, customization, and, to some extent, scalability are all offered by on-premise systems. They may, however, occasionally be exceedingly costly and challenging to implement. Only when companies make significant investments in professional services can they profit from on-premise solutions' customizability.
Based on the enterprise size, the contact center software industry is bifurcated into large enterprises and SMEs. The large enterprises segment is expected to dominate the market during the forecast period. Customers of large businesses are dispersed around the world. Large businesses are therefore more inclined to make investments in cutting-edge technology to maintain company continuity and manage their operations efficiently. Furthermore, large companies usually choose products and services that can increase revenue. Large businesses' use of contact center software is also being fueled by the incorporation of AI into contact center operations. Thereby, driving the market growth.
Based on the industry vertical, the market is bifurcated into BFSI, healthcare, retail & e-commerce, government & education, IT & telecom, travel & hospitality, and others. The IT and telecom segment is expected to capture the largest revenue share of the market over the forecast period. The customer support and engagement sector of the IT and telecom business is critical to resolving technical difficulties, offering help, and providing outstanding service. For these client contacts to be managed & optimized and for telecom & IT enterprises to maintain a smooth connection with their consumers, contact center software is essential. These software solutions assist IT & telecom businesses in effectively handling high customer inquiry volumes and delivering prompt responses by providing features like call routing, automated call distribution, and customer relationship management integration.
|Report Attributes||Report Details|
|Report Name||Contact Center Software Market|
|Market Size in 2022||USD 26.5 Billion|
|Market Forecast in 2030||USD 148.1 Billion|
|Growth Rate||CAGR of 24%|
|Number of Pages||222|
|Key Companies Covered||Amazon Web Services Inc., 8X8 Inc., Ameyo, Altivon, ALE International, Amtelco, Enghouse Interactive Inc., Aspect Software, Avaya Inc., Avoxi, Cisco Systems Inc., Exotel Techcom Pvt. Ltd., Five9 Inc., Microsoft Corporation, NEC Corporation, Genesys, Spok Inc., SAP SE, Talkdesk Inc., Twilio Inc., UiPath, Unify Inc., VCC Live, and others.|
|Segments Covered||By Component, By Software Type, By Deployment Mode, By Enterprise Size, By Industry Vertical, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America is expected to dominate the market over the projected period
North America is expected to dominate the global contact center software market over the projected period. The business environment in the area is highly developed and technologically sophisticated, with many businesses operating in a variety of industries. These companies have made large investments in contact center solutions because they understand how important it is to provide outstanding client experiences. Furthermore, several significant companies with a significant market presence and reach in the contact center software sector are based in North America.
Besides, the Asia Pacific is expected to grow at the highest CAGR over the forecast period. The abundance of IT firms and information technology-enabled services (ITES) in the region is responsible for the expansion of the regional contact center software industry. It is projected that the expanding use of contact center solutions by small and medium-sized businesses would propel the regional market's expansion. The favorable policies that the governments in the area have been implementing to promote the use of cloud-based systems and the automation of corporate operations are also anticipated to be a major factor in the market's expansion. Thus, this is expected to drive the market growth in these regions.
The global Contact Center Software market is dominated by players like:
By Software Type
By Deployment Mode
By Enterprise Size
By Industry Vertical
The market for contact center software is made up of sales of contact center software and related services made by businesses (partnerships, sole proprietorships, and organizations). These products and services are used to communicate with customers and streamline business processes by allocating customer contacts to agents, monitoring calls in real-time, and collecting, analyzing, and reporting critical data via a centralized platform. Contact center software is a communication tool that helps increase a contact center's productivity by focusing on interactions between employees and customers.
The Contact Center Software market is driven by various factors such as growing product launches, rising investment and others.
According to the report, the global contact center software market size was worth around USD 26.5 billion in 2022 and is predicted to grow to around USD 148.1 billion by 2030.
The global Contact Center Software market is expected to grow at a CAGR of 24% during the forecast period.
The global Contact Center Software market growth is expected to be driven by North America. It is currently the world’s highest revenue-generating market due to the presence of major players.
The global Contact Center Software market is dominated by players like Amazon Web Services, Inc., 8X8, Inc., Ameyo, Altivon, ALE International, Amtelco, Enghouse Interactive Inc., Aspect Software, Avaya Inc., Avoxi, Cisco Systems, Inc., Exotel Techcom Pvt. Ltd., Five9, Inc., Microsoft Corporation, NEC Corporation, Genesys, Spok, Inc., SAP SE, Talkdesk, Inc., Twilio Inc., UiPath, Unify Inc. and VCC Live among others.
The Contact Center Software market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, sentiment analysis, PESTLE analysis, trend analysis, SWOT analysis, trade area analysis, demand & supply analysis, Porter’s five forces analysis, and value chain analysis.