CONTACT CENTER SOFTWARE MARKET ANALYSIS

Global Contact Center Software Market size was valued at US$ 32.7 Bn in 2022, exhibiting a compound annual growth rate (CAGR) of 20.0% from 2023 to 2030.

The contact center software market is a dynamic and rapidly growing industry dedicated to providing enterprises with advanced tools and solutions to effectively manage customer interactions. Contact center software includes a wide range of applications and platforms designed to improve customer service and streamline contact center operations. It enables businesses to handle inbound and outbound communications across multiple channels such as voice, email, chat, social media and SMS. Key features of contact center software include automatic call distribution (ACD), interactive voice response (IVR), Omni channel support, call recording, analytics, CRM integration and workforce management. This market is focused on delivering a superior customer experience and aims to streamline processes, improve agent productivity, and improve customer satisfaction. As customer expectations continue to evolve, contact center software plays a key role in helping organizations build stronger customer relationships, improve operational efficiency, and drive business growth.

 Global Contact Center Software Market- Regional Analysis

North America held a dominant position in the global Contact Center Software market in 2022, followed by the North America and Europe region.

Figure 1. Global Contact Center Software Market Share (%), By Region, 2022

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North America held a dominant position in the global Contact Center Software market in 2022, owing to increasing demand enhanced customer experiences.

North America will dominate the contact center software market in 2022. The region has a highly developed and technologically advanced business environment with a large number of companies from different industries. These organizations have recognized the importance of delivering a superior customer experience and have invested heavily in contact center solutions. In addition, North America is home to some of the largest players in the contact center software industry with a strong presence and broad market reach. Asia Pacific is expected to be the fastest growing regional market during the forecast period. The growth of the contact center software market in the region is attributed to the presence of a large number of Information Technology Enabled Services (ITES) and IT companies in the region. Increasing adoption of contact center solutions by both large and small businesses is expected to drive the growth of the regional market. Aggressive efforts being pursued by governments in the region to promote the adoption of cloud-based systems and automation of business processes are also expected to play an important role in the growth of the regional market. The fact that several organizations around the world are still interested in investing in Asia Pacific bodes equally well for the growth of the regional market.

Global Contact Center Software Market- Segmentation

Solutions segment is expected to dominant the global Contact Center Software market during the forecast period.

The Solution segment includes Automatic Call Distribution, Call Recording, Computer Telephony Integration, Customer Collaboration, Dialer, interactive Voice Responses, Reporting & Analytics, Workforce optimization, Others. Automatic call distribution (ACD) software streamlines customer service by automating the process of routing calls to the best available agent.

Call recording software has gain in popularity in recent years because it provides high-quality monitoring of contact center agent performance, enables capture of information during calls, and helps estimate the time required to resolve a particular request.

Computer Telephony Integration (CTI) integrates information available in telephone systems into computer systems. This technology enables agents to perform a wide range of activities in less time and with greater productivity.

The increased use of the internet and social media has made it easier for customers to communicate with businesses. Businesses are increasingly using customer collaboration software to engage with their customers. To ensure brand loyalty, companies also encourage customer feedback through social tools, feedback forms and portals.

Many businesses employ dialer software to develop robust customer relationship management (CRM) systems. The software offers preview dialer, power dialer, and predictive dialer capabilities to increase the number of leads generated each day and improve the efficiency of your contact center software organization.

By Deployment type the market is segmented into Cloud-based and On-Premises. Organizations prefer the Cloud-based delivery mode because the software is hosted on the vendor's servers and can be accessed through a web browser. This feature eliminates the need for regular system updates and allows users to easily access data from anywhere.

On-premises delivery mode is preferred by organizations that do not require internet connectivity and can easily customize the software to suit their customers' business processes.

Figure 2. Global Contact Center Software Market Value (US$ Mn) Analysis and Forecast, By Solution, 2022

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Global Contact Center Software market was valued at US$ 32.7 Billion in 2022 and is expected to reach US$ 139.3 Billion by 2030, exhibiting a CAGR of 20.0% between 2023 and 2030.

Global Contact Center Software Market- Key Competitors

Major players operating in the global Contact Center Software market include 8X8, Inc., ALE International, Altivon, Amazon Web Services, Inc., Ameyo, Amtelco, Aspect Software, Avaya Inc., Avoxi, Cisco Systems, Inc., Salesforce Inc., Oracle

Global Contact Center Software Market- Recent Developments

1. In May 2020, ALE International partnered with contact center and customer service provider Akio to provide an integrated cloud-based solution for multi-channel customer relationship management. Through this partnership, the former company aims to offer a hybrid his-cloud his architecture that allows the OmniPCX Enterprise Communication Server to connect to his Akio's cloud-based services. The old company will be able to offer multi-channel services to its customers through cloud-based services.
2. In February 2020, 8X8, Inc. entered into a partnership with British and Irish skin care product supplier Dermalogica. Under this partnership, Dermalogica will replace traditional phone systems with his 8X8 cloud communications and contact center platform.
3. On March 09, 2023, Five9, a cloud contact center software service provider, collaborated with Qualtrics, an experience management company, to enhance the use of their contact center management and analytics services in synergy.

Global Contact Center Software Market- Driver

Growing demand for automated customer care services in the contact center market domain

One of the major market drivers underpinning the growth of the contact center software market is the increasing demand for automation of customer care services. Account managers are now responsible for building stronger relationships with their customers to create long-term value for their business. Therefore, you should also focus on retaining existing customers to ensure brand loyalty. As a result, businesses are turning to automation to spend less time responding to routine customer inquiries and more time solving complex problems and acquiring new customers.

To improve customer experience, businesses are focusing on deploying artificial intelligence (AI) and machine learning technologies. AI and machine learning technologies will enable businesses to provide personalized solutions to customer problems. For example, AI-based chatbots combined with social media management tools make it easy for customers to find solutions to their problems on their own.

Robotic process automation (RPA) is expected to become an inevitable part of the contact center software market during the forecast period. Companies are focusing on solutions that let robots perform routine tasks so that customer relationship managers and agents can invest time in analytical activities and decision-making for organizational development. 

Increasing focus on improving the customer experience through Omni channel solutions.

Contact center technologies have evolved rapidly over the past decade, and many companies have begun to integrate these technologies into their business processes. Businesses generate vast amounts of data, and when it is effectively integrated into a single channel, it leads to higher employee productivity, lower average talk time per customer, and better customer experience.

Omni channel contact centers are expected to improve the customer experience by switching between multiple channels and having access to the same contextual information across all channels. Integrating customer communications also helps businesses solve problems faster than before, helping sales reps find better opportunities for future marketing. Companies with Omni channel contact center solutions have higher customer retention rates than their peers. Additionally, customers value self-service facilities when evaluating their contact center experience because they save time and deliver desired solutions anytime, from any device.

Additionally, Omni channel contact center solutions can be easily integrated with cloud-based contact center technology to enable seamless communication across any device. Studies show that by 2020, 85% of contact center interactions will not involve human agents, but will instead use the results of machine learning and AI used to automate contact centers.

Global Contact Center Software Market- Restraint

High investment costs hindering market growth

Consumer organizations face challenges as the cost of contact centre solutions increases. On-premises contact centre solutions require dedicated hardware that requires regular maintenance and service. Service maintenance and the need for dedicated staff create enormous business costs. Even with cloud-based software, prolonged downtime can cost your business a lot. Due to the increase in cloud attacks, enterprises that enable cloud systems must deploy dedicated cyber security solutions. This is expected to restrain the market growth during the forecast period.

Global Contact Centre Software Market- Opportunity

High Demand of Contact Center services among SMEs due to increasing competition

Increasing competition among small and medium-sized enterprises (SMEs) in deploying contact center software presents a significant opportunity to expand the market. Small businesses are increasingly realizing the importance of providing excellent customer service in order to remain competitive in their respective industries. They are looking for cost-effective solutions that can streamline contact center operations, improve customer satisfaction, and drive business growth. SMB vendors have an opportunity to offer affordable and scalable contact center software options that meet the specific needs and budgets of small businesses. A user-friendly interface, flexible pricing model, and simple implementation enable the contact center software provider to attract a larger customer base from his SMB segment. The increasing adoption of contact center software by SMBs is contributing to the growth of the overall market, expanding the reach of these solutions to a wider range of businesses.

Global Contact Center Software Market- Impact of COVID-19:

The Covid-19 had impacted almost all industries such as automotive, manufacturing, semiconductor, electronics, and others. With the widespread adoption of remote work policies and social distancing measures, businesses faced unique challenges in maintaining customer service. This has led to a rapid increase in adoption of cloud-based contact center software that allows remote agents to seamlessly handle customer interactions. The pandemic has also accelerated the shift to digital channels as customers’ seeked contactless alternatives. Contact center software vendors responded by upgrading their solutions to support chat, messaging, and social media interactions alongside traditional voice calls. This diversification of communication channels enabled businesses to respond to changing customer preferences and deliver a consistent experience across multiple platforms.

*Definition: Contact center software is a collection of applications that automate key contact center processes. Contact center software helps companies control costs, develop agents, monitor and improve the customer experience, maintain legal and regulatory compliance, and more.