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The Contact Center As A Service (CCaaS) Market size is estimated to grow at a CAGR of 16.36% between 2023 and 2028. The market size is forecast to increase by USD 5,232.6 million. The growth of the market depends on several factors, including the increasing adoption of cloud-based offerings, the benefits of CCaaS solutions among end-users, and the growing implementation of CCaaS in the media sector. Contact center as a service (CCaaS) is a software deployment model that allows businesses to purchase only the technology they need and is often vendor-operated to reduce IT, integration, and support costs.
This CCaaS market report extensively covers market segmentation by component (solutions and services), end-user (BFSI, IT and telecom, healthcare, consumer goods and retail, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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One of the key factors driving the CCaaS market growth is the growing implementation of CCaaS in the media sector. The increasing digital evolution of the media sector, such as the print, radio, and television media, is forcing media enterprises to focus more on the customers of social media channels. As a result, there is an increase in the number of customers preferring the use of digital content through alternatives such as smartphones, tablets, and computers. In addition, several media companies are utilizing customer information to create marketing strategies.
Moreover, companies are using CCaaS to streamline customer information. In addition, CCaaS is used for streamlining sales information and resolving customer issues. Furthermore, CCaaS, coupled with analytics, can analyze customer information and extract data insights about customer issues and requirements. Hence, such factors are positively impacting the contact center as a service market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the CCaaS market growth is the growing culture of work-from-home. The spread of the COVID-19 pandemic has forced employees to work from home, which led to organizations investing in IT solutions during the pandemic. However, the large vaccination drives implemented by the governments lifted the lockdown restrictions in 2021, and employees were asked to do work from the office or in hybrid mode.
Moreover, many IT and other firms are still doing work from home or in hybrid mode, which fuels the demand for automated responses by CCaaS solutions, driving the growth of the global CCaaS market. Furthermore, many firms have permanently switched to remote mode, and some are planning to go remote, which is positively impacting the contact center as a service market. Therefore, it is expected to drive the market growth during the forecast period.
Integration complexities of CCaaS solutions are one of the key challenges hindering the CCaaS market growth. The implementation of the contact center software is complex and comprises many different components, including automated call distribution, computer telephony integration, workforce management, and IVR. In addition, the complexity of CCaaS solutions requires efficient IT resources and technical expertise to manage and deploy CCaaS solutions.
Moreover, it is a significant challenge to integrate contact center software with existing systems, such as customer relationship management (CRM) and ticketing systems. Hence, such factors limit its adoption and can negatively impact the contact center as a service market. Therefore, it is expected to hinder the market growth during the forecast period.
The solutions segment is estimated to witness significant growth during the forecast period. Factors such as the rising adoption of the contact center as a service by enterprises across industries, such as BFSI and retail, to manage and monitor client inquiries with automated responses. is significantly contributing to the growth of the segment. In addition, the CCaaS solutions provide call distribution, customer collaboration, and interactive responses to handle a large number of inbound calls.
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The solutions segment was the largest segment and was valued at USD 2,586.72 million in 2018. Moreover, based on the pre-established distribution criteria, the CCaaS solutions direct incoming calls to particular agents or departments within an organization. Thus, when the call volume is too high, or the call center workers are busy, it also helps the callers, improving the customer experience. Therefore, the growing organization presence and improved solutions are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The heavy dependency on CCaaS is fuelling the BFSI segment which will increase the market growth. There is a significant dependence of the BFSI segment on CCaaS solutions to build and maintain customer satisfaction. In addition, CCaaS solutions provide the tools and features needed to handle a variety of customer requests, manage complex transactions, and provide real-time support, ensuring a seamless customer experience. Moreover, the banking finance services and insurance end-users are often required to sell their products and services through external communication. As a result, the frequent product and service launches in this sector require a tool to handle queries and requests of customers to prove a seamless service. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main factors that are contributing to the contact center as a service (CCaaS) market growth in North America include the use of public cloud services by enterprises and the increased need to analyze customers information.
In addition, the availability of technologically advanced infrastructure and the presence of many cloud service providers (CSPs), such as Microsoft, Salesforce, Oracle, and Adobe are positively impacting the market. Moreover, enterprises in the region are investing in cloud services to implement enterprise applications and streamline business processes. Furthermore, CCaaS solutions enable organizations to spend less on customer contact and pay only for potential leads. Hence, such factors are expected to drive market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global CCaaS market witnessed a significant slowdown due to the economic conditions which severely impacted the growth of different end-user industries, such as telecom and IT, BFSI, and retail in North America. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the restoration of operations in these end-user industries. Such factors are expected to drive the market during the forecast period.
The CCaaS market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global CCaaS Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3CLogic Inc: The company offers CCaaS solution namely 3CLogic Cloud Call Center.
8x8 Inc: The company offers CCaaS solution namely 8x8 X Series.
Atos SE: The company offers CCaaS solution namely Cxone through its subsidiary Unify.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The CCaaS market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
CCaaS Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.36% |
Market growth 2024-2028 |
USD 5,232.6 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.3 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, Australia, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3CLogic Inc., 8x8 Inc., Alvaria Inc., Atos SE, Avaya LLC, Capgemini Service SAS, China Huaxin Post and Telecom Technologies Co. Ltd., Cisco Systems Inc., Enghouse Systems Ltd., Evolve IP LLC, Five9 Inc., Genesys Telecommunications Laboratories Inc., Serenova LLC, Lumen Technologies Inc., Microsoft Corp., Mitel Networks Corp., NICE Ltd., Oracle Corp., RingCentral Inc., and SAP SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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