Call Center AI Market Analysis by Component (Solutions, Services), Application (Workforce Optimization, Predictive Call Routing, Journey Orchestration, Agent Performance Management, Sentiment Analysis, Appointment Scheduling), Organization Size (SME, Large Enterprises), Deployment Mode (Cloud, On-Premises), End Use (BFSI, Retail & E-Commerce, Media & Entertainment, Healthcare, IT & Telecom, Travel & Hospitality) – Demand Forecast Through 2030

Market Overview

The global call center AI market size was valued at $1,982.9 million in 2021, and it will advance at a 23.1% CAGR during 2021–2030, to reach $12,910.6 million by 2030. The growth of the industry is primarily attributed to the surging need for improved data analytical capabilities to deal with customer inquiries in real-time and increase customer engagement via social media.

Moreover, to accelerate the 4th industrial revolution, businesses across industries leverage advanced technologies, including ML, Al, and mobile supercomputing, which, in turn, will further drive the demand for call center AI software in the coming years. As per a survey, of over 7,500 businesses across the globe, the AI adoption rate is around 35% in 2022, up by over 4% from 2021. Moreover, over 66% of companies are either executing or planning to apply AI to address their sustainability goals in the coming years, making the use of AI practically ubiquitous.

Cloud Category To Witness Fastest Growth

The cloud category is expected to record the fastest growth, advancing at a CAGR of 24.3%, during 2021–2030. This is because it covers private, public, and hybrid cloud technologies and offers flexibility & remote access. Organizations prefer this mode of deployment because the software is hosted on a vendor’s server and can be accessed through a web browser. This feature eliminates the need to regularly upgrade systems and enables users to access data from any location without hassles.

Traditionally cloud-based call centers are much cheaper in comparison to on-premises call centers. Minimal capital and ease of deployment make cloud technology lucrative for businesses to adopt. Cloud-based software offers multiple plans to choose from, based on the needs and budget, as it is a pay-per-use subscription model. Moreover, the proliferation in demand for the software is due to its cost-effectiveness, scalability, and easy to use. This software helps enhance the efficiency of daily operations, saves operating expenses, and improves employee productivity.

Moreover, it eliminates working full-time from the call center itself, making it more cost-efficient for small and medium companies. Applications such as interactive voice response technology help further reduce costs associated with live call attending services, as it directly routes the call to the appropriate department agent through voice commands. All these factors are expected to drive the market size of this category in the forecast period.

The outbreak of the COVID-19 pandemic had a positive impact on the call center AI market. The overall call volume to call centers grew significantly during the catastrophe. As per a report, call centers witnessed over 300% more calls than usual during the early stages of the pandemic. While IBM Watson Assistant witnessed over 60% growth in monthly active users from January to December 2020. This led businesses in investing for software to automate processes and improve the efficiency of redundant tasks.

Rising Development in Customer Engagement Through Social Media Platforms

With the proliferation of platforms, such as Facebook, Twitter, and WhatsApp, the reach of social channels has grown exponentially. For instance, Facebook alone had about 3 billion monthly active users in April 2022. Customers resort to these online platforms to find information and engage in communities to resolve service issues. They increasingly rely on social media to learn about brands or companies especially the young generation and millennial consumers. Thus, organizations have strategized to make constructive use of social channels, to improve customer engagement. This would help propagate the call center AI market in the forecast period.

Furthermore, with the help of AI and ML technologies and advancements, corporations now have better access to customers’ data to personalize their experience, thereby they are using AI in their customer service. For instance, AI-based chatbots along with social media management can help customers find solutions to queries and grievances in real-time and with great ease.

Moreover, technologies such as intelligent virtual assistants (IVAs) can help make recommendations to prospective clients while enabling agents with insightful data to cross and up-sell to the customers. Businesses leverage virtual agents and AI-enabled chatbots to carry out miscellaneous tasks and automate manual and repetitive processes, including general inquires, balance inquires, order placement, and others. Thus, this allows representatives to carry out analyses and make effective use of the data gathered.

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Small & Medium Enterprises Category To Witness Fastest Growth

The small & medium enterprises category is expected to record the fastest growth, advancing at a CAGR of 24.0%, during 2021–2030. This can be ascribed to the surging number of small & medium companies, which are increasingly using call center AI solutions. Moreover, owing to the reduced implementation, maintenance, and upgrade costs, smaller organizations have started adopting cloud technology. This allows easy access to data stored from any place, and easy integration with old legacy systems with improved efficiency. This saves time and operational costs for these organizations.

BFSI Sector Leads the Market

The BFSI category holds the major share in the market. This is ascribed to the increasing customer demand for mobility and flexibility to carry out banking transactions. Banking institutions face challenges in adequately catering to complex queries. This has led financial institutions to increasingly adopt AI-powered call centers to effectively manage calls and customers as well as to ensure the security of transactions.

The IT & telecom category accounts for a significant share of the market. With the presence of multiple IT & telecom companies competing for the limited market base, the stiff competition makes it imperative for the players to provide quality services at competitive prices. This has increased the usage of AI-based call centers, which enable quick access to customer information, thereby reducing the time to address queries.

North America Holds the Largest Share in the Market

North America leads the call center AI market, globally. The regional market is expected to generate a revenue of $6,582.4 million in 2030, registering a CAGR of 23.3% from 2021 to 2030. This is due to the presence of major players in the region and the increased expenditure on call centers to provide efficient services across industries to retain customers.

As per a report, in the U.S., companies lose over 100 billion dollars from consumer switching. This makes it extremely critical for companies to optimize their customer services for better customer engagement. With the early adoption of AI technologies in call centers, businesses streamline the process of customer relationship management. Thus, businesses across industries use AI solutions and services to operationalize and get better access to customer insights. This factor drives the demand for call center AI software in the region.

Market Players Are Involved in Partnerships and Collaborations to Gain Competitive Edge

The market is consolidated in nature, with the presence of a few major players controlling a major share of the market. In recent years, they have been involved in partnerships and collaborations, to stay ahead of their competitors. For instance:

• In January 2022, Sprinklr partnered with Google Cloud, to help enterprises reimagine its customer experience management strategies. The partnership with Google will help Sprinklr to accelerate its go-to-market strategy and grow awareness among its joint customers.
• In September 2021, Leidos announced its partnership with Nuance Omnichannel Conversational AI Platform, to improve digital patient engagement solutions for healthcare companies. Using Nuance's AI technology, Leidos develops solutions that advance their customers' assignments, to enhance care quality, outcomes, and costs, by building tailored solutions for digital patient engagement.

Top Players in Call Center AI Market Are:

• IBM
• Microsoft Corporation
• Oracle Corporation
• Amazon Web Services Inc.
• SAP
• Google
• Avaya Inc.
• NICE Ltd.
• Nuance Communications Inc.
• Genesys
• Artificial Solutions International AB

Market Size Breakdown by Segment

The study offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Component

• Solutions
• Services
  • By Professional Services
    • Training and Consulting
    • System integration and implementations
    • Support and Maintenance
  • Managed Services

Based on Application

• Workforce Optimization
• Predictive Call Routing
• Journey Orchestration
• Agent Performance Management
• Sentiment Analysis
• Appointment Scheduling

Based on Organization Size

• Small & Medium Enterprises
• Large Enterprises

Based on Deployment Mode

• Cloud
• On-premises

Based on End Use

• BFSI
• Retail & eCommerce
• Media & Entertainment
• Healthcare
• IT & Telecom
• Travel & Hospitality

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • Spain
  • U.K.
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America (LATAM)
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • Saudi Arabia
  • U.A.E.
  • South Africa