Contact Center Software Market Outlook by Solution (Automatic Call Distribution, Call Recording, Computer Telephony Integration, Customer Collaboration, Dialer, Interactive Voice Response, Reporting & Analytics, Workforce Optimization), Service (Integration & Deployment, Support & Maintenance, Training & Consulting, Managed Services), Deployment (Cloud, On-Premise), Organization Size (Large Enterprises, SME), Industry (BFSI, Consumer Goods & Retail, Government, Healthcare, IT & Telecom, Travel & Hospitality) – Demand Forecast to 2030

Market Overview

The contact center software market size was valued at $23,161.7 million in 2021, and it is expected to grow at a CAGR of 18.0% during 2021–2030. The growth of the industry can be primarily attributed to the surging integration of AI-powered software into cloud-based contact centers, to enrich customer experience. Moreover, businesses leverage smart technologies, such as mobile supercomputing, ML, and AI, to accelerate the 4th industrial revolution, which, in turn, drives the demand for contact center software.

The outbreak of the COVID-19 pandemic had a positive impact on the market. The overall call volume to contact centers rose significantly during the crisis. As per a report, the contact centers witnessed over 300% more calls than usual during the initial stages of the pandemic. This led businesses in investing for software to automate processes.

Further, according to a survey, more than 81% of respondents consider robotic automation along with bots, which are extremely important features in order to propagate the growth in demand for software. While more than 60% of businesses are considered to implement cloud contact centers in the next 1.5 years. Also, the industry is still in its development stage, and the overall progress is set to be upward in the forecast period.

Increase in Need to Automate Customer Service

Customer care executives are now responsible for building stronger relationships with customers to provide long-term value for businesses. As per a report, over 60% of companies are making improvements in their data analysis, which are extremely imperative in order to deliver a better customer experience. With the help of AI and ML technologies, companies now have greater access to customers’ data to personalize their experience.

For instance, AI-based chatbots along with social media management tools can help customers find solutions to their problems on their own with great ease. Moreover, business process automation will improve the overall organizational performance, from providing actionable data for consumer insights to enhancing workforce agility.

Furthermore, organizations looking for robots to carry out miscellaneous tasks, allowing representatives to carry out analyses and make effective use of data gathered. Thus, robotic process automation will play an integral role in the growth of the contact center software market in the forecast period.

Rising Adoption of Cloud-Based Software

The rise in the acceptance of internet-based services has resulted in the increasing adoption of cloud-based software by several organizations. The cloud-based solution is so versatile that it allows representatives to communicate across channels and locations with customers and access their information in real-time. The software also eliminates the need for the 24*7 presence of representatives or agents in offices. Also, security and reliability are the two major selling points of this software, allowing companies to adopt it.

Additionally, reduced implementation, maintenance, and upgrade costs have made small and medium enterprises incorporate cloud technology. While large organizations continue to use cloud solutions because of their easy integration into old systems and high operational efficiency. As per a report, around 70% of companies, which are using cloud technology, plan to increase their cloud budgets.

Moreover, the incorporation of AI and ML and other omnichannel solutions along with multiple analytical tools used in businesses could be done easily through cloud-based software. This will create an opportunity for organizations to make investments for the long haul. Thus, all these factors are expected to generate huge demand for contact center software during the forecast period.

IT & Telecom Sector Holds the Largest Market Share

In 2021, the IT & telecom sector accounted for the largest revenue, of $6,384.8 million, in the contact center software market. The category is projected to grow at a CAGR of 17.6% during the forecast period, owing to the presence of various IT & telecom companies in the industry. Moreover, due to the extreme competition, firms provide superior services, which become a prerequisite to customers. Factors such as the rise in data traffic, rapid pace of technological advancements, and increase in the need for digital communication and content have been shaping the sector, which, in turn, drives the market in this category.

Additionally, the BFSI category holds the second-largest share in the market. Several banking institutions face challenges in delivering enhanced customer services and query resolutions. As a result, financial institutions are largely adopting contact center software to effectively manage calls and customers as well as to ensure the security of transactions.

Customer Collaboration Category To Witness Fastest Growth

The customer collaboration category is expected to record the fastest growth, advancing at a CAGR of 19.1%, during 2021–2030. Companies are increasingly adopting customer collaboration services to improve their business agility and deliver better outcomes. Moreover, their demand is rising, owing to the surging adoption rate of social media platforms for communicating across various industries for retaining customers. These services also ensure customer satisfaction and help build long-term relationships with customers.

Moreover, in order to ensure brand loyalty, companies are encouraging customers to provide feedback through social tools, feedback forms, and portals to gain insights into the areas of improvement. In addition, several enterprises have adopted interactive voice response (IVR) technology, as it helps in reducing costs pertaining to live call attending services. Also, it eliminates the need for customers to explain which department executive they wish to communicate with, thereby allowing the system/software to directly route a customer’s call to an appropriate professional through voice commands.

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North America Holds the Largest Share in the Market

North America leads the contact center software market, globally. The regional market is expected to generate a revenue of $38,015.7 million in 2030, registering a CAGR of 17.7% from 2021 to 2030. As per a report, companies in the U.S. lose over 100 billion dollars from consumer switching. This makes it extremely important for companies to optimize their customer services and provide solutions catering to their requirements, which, in turn, they are adopting contact center software in large numbers.

Additionally, organizations, such as the Association of Contact Center Professionals, National Association of Call Centers, and Association of Government Contact Center Professionals, offer professional support for software professionals and companies in the country, providing them with opportunities to work together, improving the quality of life at workplaces, and strengthen the standards of the industry.

Whereas, Europe is the second-largest market for contact center software. This is due to the European Cloud Initiative taken by the European Union in April 2016, which aimed at offering digital leads in data-driven sectors to several organizations, with the benefits of cloud services. This boosts the adoption of cloud-based software in the region.

Key Players in the Contact Center Software Market Are:

• Alcatel-Lucent Enterprise
• Avaya Inc.
• CISCO SYSTEMS INC.
• Five9 Inc.
• Genesys
• NEC Corporation
• SAP SE
• 3CLogic
• 8X8 Inc.

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with the revenue estimation for the period 2017–2030.

Based on Solution

• Automatic Call Distribution
• Call Recording
• Computer Telephony Integration
• Customer Collaboration
• Dialer
• Interactive Voice Response
• Reporting & Analytics
• Workforce Optimization

Based on Service

• Integration & Deployment
• Support & Maintenance
• Training & Consulting
• Managed Services

Based on Deployment

• Cloud
• On-premise

Based on Organization Size

• Large Enterprises
• Small & Medium Enterprises

Based on Industry

• BFSI
• Consumer Goods & Retail
• Government
• Healthcare
• IT & Telecom
• Travel & Hospitality

Geographical Analysis

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