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The contact center market size is forecast to increase by USD 161.73 billion, at a CAGR of 9.33% between 2022 and 2027.
The market expansion hinges on multiple factors, notably the increasing uptake of cloud-based contact centers, the imperative to enhance CRM systems for efficient revenue generation, and the incorporation of interactive voice response (IVR) within contact center operations. The trend towards cloud solutions offers scalability and flexibility, driving efficiency in buyer service. Enhanced CRM functionalities enable businesses to better understand and serve their buyer, contributing to revenue growth. IVR integration streamlines call handling processes, reducing wait times and enhancing consumer satisfaction. These advancements in contact center technology underscore the market's trajectory towards improved consumer experiences and optimized operational performance.
Study Period | 2023-2027 |
Base Year For Estimation |
2022 |
CAGR | 9.33% |
Historic period |
2017 - 2021 |
Fastest Growing Region |
North America at 34% |
Largest Segment |
Type |
Our segment comprises two primary segments, each with its respective sub-segments for further detailed analysis within specific national markets. Furthermore, our market coverage extends across geographic regions including North America, Europe, APAC, South America, and the Middle East and Africa, with comprehensive breakdowns to provide in-depth insights.
The market is rapidly evolving, driven by the adoption of advanced technologies and strategies such as omnichannel customer engagement and solutions like Salesforce for seamless integration. The rise of AI-driven chatbots and platforms like Service Cloud are revolutionizing personalization and customer journey management. Traditional CRM platforms, telephony systems, and databases are now integrated with AI to handle customer inquiries across various channels like email and social media. This shift is enhancing Customer Experience and Customer Relationship Management capabilities in Call Centers and Cloud-based Contact Centers. Multichannel communication, powered by Artificial Intelligence and Customer Collaboration tools, enables Intelligent Call Routing and Intelligent Virtual Assistants for efficient omnichannel communication. Data analytics and AI-powered technologies drive cost optimization, operational efficiency, and ensure regulatory compliance.
The market share growth of the voice-based segment will be significant during the forecast period. The use of voice-based interaction is expected to maintain its dominance during the forecast period. Therefore, companies in this market are focusing on offering advanced solutions to handle the high volumes of voice calls. Thus, the growth of the segment can be attributed to the increasing use of customer care service offerings in end-user industries and the launch of new solutions. The voice-based segment was valued at USD 73.31 billion in 2017 and continue to grow by 2021. Voice-based interaction helps contact centers reduce the throughput time in resolving customer queries. However, owing to the rising popularity of text-based interaction and social media-based interaction, the market share of the voice-based interaction segment is expected to register moderate growth during the forecast period.
North America is estimated to contribute 34% 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.
The major factor that fuels the growth of the market in North America is the growing adoption of contact center analytics, including multichannel customer interaction analytics, speech analytics, and contact center performance analytics applications in North America. Analytics is given importance by enterprises in North America because it helps enterprises offer enhanced customer experiences as they move toward the concept of omnichannel customer care. Key companies in North America, such as 8x8 Inc., Amazon.com Inc., Avaya Holdings Corp., and Cisco Systems Inc., are constantly adding value to their services by using technology and digitalization. Additionally, growing industries such as hospitality, retail, and healthcare care are expected to boost the demand for contact center services during the forecast period.
The market is driven by the growing demand for omnichannel customer engagement solutions like Salesforce and AI-driven chatbots such as those integrated into Service Cloud. Trends include a focus on personalization, effective customer journey management, and the integration of CRM platforms with advanced telephony systems and databases. Challenges lie in managing customer inquiries across multiple channels like email and social media, ensuring regulatory compliance, and optimizing costs and operational efficiency while leveraging AI-powered technologies and data analytics for enhanced performance. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising adoption of cloud-based contact centers is notably driving the IT services market growth. A cloud-based contact center is a SaaS that is deployed, stored, and precisely designed for cloud solutions. Cloud-based contact centers are flexible as they are able to quickly adapt to the changing business needs and can be integrated with third-party applications through open application programming interface (API) frameworks.
Moreover, a reliable cloud-based solution can handle outbound, inbound, and blended interaction seamlessly, which will help in providing personalized services to consumers easily and in a cost-effective manner. With cloud-based contact centers, enterprises can aggregate customer data and the history of previous queries, which can help them understand customer preferences. This can help enterprises personalize services, effectively route inquiries, and solve problems within one interactive session. This will lead to an increase in the adoption of cloud-based contact centers during the forecast period.
The integration of chatbots for better turnaround times is the key market trend driving the global market growth. The contact centers are trying to implement chatbots in their processes because, in the future, they must look for options other than human agents to handle simple customer queries and provide better resolutions. Good consumers service can lead to the success of a business.
Moreover, chatbots will help enterprises in giving instant responses to customers, which will lead to better turnaround times. Since time is of utmost importance while attending to a consumers, chatbots will skip the dependency on the repair personnel and will give responses directly to the consumers. Chatbots will also help enterprises delight their customers without losing the human touch. Thus, the integration of chatbots into contact centers will help in improving the customer experience. Hence, it will lead to an increase in the adoption of contact center solutions.
The inability to achieve an ASA is the major challenge impeding the global business process outsourcing market growth. An ASA is the key performance indicator for contact centers, which helps managers in assessing their team s performance and the efficiency of their callers.
Moreover, an ASA includes the amount of time a customer waits in line and the time the agent s phone is ringing. However, it does not include the time taken for customers to navigate through IVR. Contact centers should use workforce management (WFM) solutions to manage their resources so that they can meet the desired ASA and service levels. Owing to the growing customer expectations for better services, this problem is a huge challenge for the companies of contact center solutions.
The market growth analysis 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.
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.
8x8 Inc. - The company offers contact center solutions with a flexible architecture, thus allowing integration of multiple locations such as headquarters, remote offices, and outsourced locations through a virtual call center.
The major contact market reserach report also includes detailed analyses of the competitive landscape of the market and information about 16 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 market is undergoing a transformative phase due to the convergence of several key technologies such as AI/ML, automation, and cloud services. This convergence is driven by the increasing demands of modern business operations and customer expectations. Social media plays a vital role in shaping customer interactions and brand perception, leading to a heightened emphasis on security and data protection.CFOs, CTOs, and CEOs are actively involved in IT spending decisions, particularly in adopting solutions that facilitate virtual work and self-service interactions. Training and skill requirements are evolving to accommodate AI and ML technologies, with a focus on enhancing customer engagement and management.
Moreover, the ecosystem supporting contact centers includes various stakeholders like technology providers, cloud service providers, solution providers, and system integrators. Cloud computing platforms like AWS are instrumental in supporting cloud spending and enabling scalability amidst economic fluctuations.As contact centers evolve, they face challenges such as implementation and integration, technical complexities, and legacy systems. Meeting dynamic customer demands while leveraging self-service bots and ML technologies requires strategic planning and alignment with customer relationship management (CRM) initiatives. In the telecommunications vertical, CCaaS solutions are gaining prominence, offering advanced capabilities like AI-powered chatbots, SMS marketing, and data security. With a focus on privacy, customization options, and adherence to data protection policies, contact center service providers aim to deliver seamless and secure customer experiences in an increasingly digital world.
Furthermore, the market is a dynamic landscape shaped by various factors such as CFOs overseeing financial strategies, IT solution manufacturers innovating technology, and contact center software companies providing essential tools. Amidst economic challenges like recession, businesses are leveraging social media capabilities to enhance brand value and manage brand impact effectively. Addressing issues like abandoned client queries and reducing customer turnovers requires proactive measures, including collaboration with social media influencers and leveraging positive word of mouth. Contact centers also deal with emotion and sentiments to maintain a positive brand image. However, challenges like implementation and integration, managing multiple companies, and the learning curve associated with new technologies like AI and automation are prevalent. Solutions like virtual assistants, cloud contact center solutions, and privacy policies are crucial in managing customer interactions effectively while ensuring data security.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.33% |
Market growth 2023-2027 |
USD 161.73 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.89 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, Australia, India, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
8x8 Inc., ALE International, Alphabet Inc., Alvaria Inc., Amazon.com Inc., Ameyo Pvt Ltd., Atos SE, Avaya Holdings Corp., Cisco Systems Inc., Enghouse Systems Ltd., Five9 Inc., Genesys Telecommunications Laboratories Inc., Mitel Networks Corp., NEC Corp., NICE Ltd., SAP SE, Vocalcom Group, Vonage Holdings Corp., Zendesk Inc., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market forecasting, 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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