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Contact Center Software Market Growth 2020-2027 | Industry Report

Contact Center Software Market Analysis Report By Solution, By Service, By Deployment, By Enterprise Size, By End Use, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17619917  |  Published: July 2020  |  No of Pages: 170
Format: Electronic (PDF)  |  Industry: Software  |  Publisher: Grand View Research

Industry Insights

The global contact center software market size was valued at USD 18.1 billion, in 2019, and projected to grow with a CAGR of 19.7% over the forecast period, from 2020 to 2027. Integration of several technologies such as artificial intelligence and machine learning into business operations and technological advancement in customer relationship management filed are projected to drive the market growth over the forecast period. This factor allowed businesses to enhance operational performance and customer loyalty.

The development of contact centers from convectional voice-centric services to unified communication social media along with integrated channels has allowed the businesses to hold their customers. The shift of the omnichannel customer experience towards this software is expected to drive market growth in the next few years. The omnichannel contact center enables the customer to approach every channel for help. It also allows shifting easily between several channels so they can easily resolve their query.

U.S. contact center software marketCurrently, buyers are preferring to adopt cloud-based systems due to its benefits such as reduce installation cost and time, eliminates maintenance charges, and high flexibility. Various customer relationship service providers have increased their offerings to the cloud platform, as it enables easy access to data from any system across the organization. Several businesses are using the communication-as-a-service (CaaS) model, as this model uses cloud functionality to offer flexible and efficient customer services. In addition, easy to upgrade ability of the cloud platform allows organizations to be flexible with changing environments.

Robotic process automation is expected to play an important role in this market, as it helps to minimalize errors, and improves work quality. Robotic process automation allows the integration of several systems that guide various agents to keep track of specific problems or inquiries. Organizations are looking for solutions that enable agents and managers in the CRM department to invest their time in decision making and organizational development.

Growing necessity of flexibility in banking services, whenever and wherever required by customers has enforced the banking sector to adopt customer service solutions. It is also adopted across healthcare, entertainment, government, and hospitality sectors for resolving customer queries. The above-mentioned factors are expected to drive market growth over the forecast period.

Service Insights

On the basis of service, the market is segmented into support & maintenance, integration & deployment, managed services, and training & consulting. In 2019, integration and deployment service segment dominated the global market. Replacement of existing systems with new systems and increasing demand for adoption of contact center software has majorly driven the market growth. This service look after regulatory compliances, specific requirements, and data privacy needs by several organizations, which is expected to create new growth opportunity in the next few years.

Over the past few years, continuous technological advancement resulted in constant up gradation in contact center software services. Therefore, rising demand for continuous up gradation in software along with varying technologies is expected to drive the market growth. The customers need vendor need to resolve and troubleshoot technical issues, thereby anticipated to witness a positive impact on market growth. Managed services are expected to have significant growth during the forecast period, as it helps the organization to concentrate on core operations while running IT-related tasks.

Deployment Type Insights

In the contact center software market, the deployment segment fragmented into on-premise and hosted. Customer care department noticed problems in switching from manual to automatic resolving issues and queries through IVRs, which has resulted in rising need for advancement in business process automation. Before the advent of cloud-based solutions, most of the organizations prefer to deploy on-premise, as it requires low initial investment and very easy to deploy. The hosted deployment also allows the organizations to handle the operational and technical needs of their contact centers.

The hosted segment is projected to have remarkable growth during the forecast period. Easy availability of internet connections is anticipated to increase the adoption of hosted deployment among organizations. Several organizations prefer this deployment, as it is deployed on vendors' servers and can be accessed by authorized users through a web browser. Hosted deployment is also needed software up gradation on a regular basis.

Enterprise Size

On the basis of enterprise size, the market is classified into small & medium enterprises (SMEs), and large enterprises. SME segment is estimated to grow with a higher growth rate during the forecast period. The integration of customer care solutions in order to reduce the load of mundane responsibilities and to enable employees to concentrate on the development of organization is projected to drive the market growth in SMEs. Growing awareness about improving reporting features, enhancing customer service management, productivity, and efficiency is expected to drive the market growth.

Large organizations generate a huge amount of customer data that needs to manage efficiently in overseas and local offices. Therefore, large enterprises adopt contact center systems to manage this data and allow them to focuses on customer’s queries. In addition, contact center software allows employees from several domains to share and communicate accurate insights about their clients.

End-use Insights

Increasing demand for contact center software across various verticals such as healthcare, IT & telecom, retail, hospitality, consumer goods, and BFSI is projected to surge the market growth in the next few years. Unified collaboration and contact centers software offers multimedia and flexibility to customers, thereby they help to enhance customer satisfaction and ensure brand loyalty. This software helps to enhance productivity and efficiency which allows reducing operational cost. This software is majorly used in the retail industry due to the rising need to ensure customer satisfaction and reduce the risk related to customer retention processes.

Europe contact center software marketAs a part of the e-government initiative, in developing countries such as India and China public organizations and offices are adopting contact center solutions to simplify online processes such as citizen’s inquiries, queries, feedback, and complaints. For example, Indian government has started Centre for e-Governance. This center focuses on development of the Information & Communication Technology (ICT) industry which is expected to open new growth opportunities for the market. In addition, the IT industry globalization has resulted in a large customer database. This database is transferred across the globe that needs to manage efficiently. These consequences are boosting the demand for contact center software globally.

Regional Insights

In 2019, North America contact center software market held the largest market share in terms of revenue. Due to the presence of a large number of market players in this region has resulted in increasing awareness about software among local organizations. Various market players in this region are concentrating on developing easy and effective self-service IVR options for customer’s inquiries to save time and effort which is expected to create new opportunities for software adoption. 

Asia Pacific is expected to emerge as the fastest-growing region for this market. This growth is attributed to favorable government strategies for developing automation of business processes and the implementation of cloud-enabled systems. For example, Contact Centers Asia 2017 offered a platform for industry experts from different organizations to share information by the latest technologies such as biometrics, virtual assistant, and speech analytics for contact center solutions. Increasing customer awareness about benefits associated with software and the existence of a large number of contact centers is expected to drive the market growth in this region.

Impact of COVID-19

Due to the sudden emergence of COVID-19, several countries are facing challenges to maintain customer’s relationships during lockdown across the globe. Therefore, governments across all regions have taken some initiatives for small businesses to sustain in the crises with the help of advanced technologies. Among these technologies, contact center software is playing a vital role to get in touch with customers and to resolve customer’s queries quickly. During this pandemic, people are rushing towards several social media platforms to gather information, thereby integration of contact center software with social media will help organizations to gather real-time data related to customers queries and reassure the customer loyalty.

During these crises, people prefer to visit websites for getting aware about product and services insights. In this situation, irrespective of inactive businesses, contact center software will help to be aware of their current operations to the customers anytime and anywhere. Therefore, the above-mentioned factors are expected to boost the demand for contact center software with a cost-effective solution.

Contact Center Software Market Share Insights

The major vendors include in this market are Avaya, Inc.; Cisco Systems, Inc.; Nice Systems Ltd.; Enghouse Interactive, Inc.; Five9, Inc.; Genesys; Microsoft Corporation; Mitel Corporation; SAP SE; Huawei Technologies Co., Ltd.; and Alcatel-Lucent Enterprise. These companies are engaged in developing contact center solutions for organizations that are looking for enhancing their customer experiences. In addition, market players are investing in research and development in order to introduce innovative products. For example, Avaya DevConnect program engaged in promoting innovative products in terms of development, compliance-testing, and co-marketing which are introduced by partner companies and compatible with Avaya’s products.

The market is highly competitive which has enforced market players for strategic business formation. This has also led to increase focus on customer feedback and fulfill their demands. Various companies are emphasizing on inorganic growth strategies. For example, in 2018, Avaya Holdings Corporation acquired a Contact Center as a Service (CCaaS) solutions provider, Spoken Communications. This acquisition will help customers to shift from premise services to cloud-based service. 

Report Scope

Attribute

Details

Base year for estimation

2019

Historical data

2016 - 2018

Forecast Period

2020 - 2027

Market representation

Revenue in USD Million and CAGR from 2020 to 2027

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S., Canada, Germany, U.K., Spain, India, Japan, China, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global contact center software market report based on solution, service, deployment, enterprise size, end use and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2027)
    • Automatic Call Distribution (ACD)
    • Call Recording
    • Computer Telephony Integration (CTI)
    • Customer Collaboration
    • Dialer
    • Interactive Voice Responses (IVR)
    • Reporting & Analytics
    • Workforce Optimization
    • Others

• Service Outlook (Revenue, USD Million, 2016 - 2027)
    • Integration & Deployment
    • Support & Maintenance
    • Training & Consulting
    • Managed Services

• Deployment Outlook (Revenue, USD Million, 2019 - 2027)
    • Hosted
    • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)
    • Large Enterprise
    • Small & Medium Enterprise (SME)

• End-Use Outlook (Revenue, USD Million, 2016 - 2027)
    • Banking, Financial Services, and Insurance (BFSI)
    • Consumer Goods & Retail
    • Government
    • Healthcare
    • IT & Telecom
    • Travel & Hospitality
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • Spain
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa

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