Contact Center Software Market | Impact of Recent Events and Competitive Landscape

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Contact Center Software Market Report

Contact Center Software Market Scope and Overview

The Contact Center Software Market was valued at USD 41.23 billion in 2023 and is expected to reach USD 240 billion by 2032, growing at a projected CAGR of 21.62% from 2024 to 2032.

Some of the major key players studied in the Contact Center Software Market report are:

  • Avaya
  • Cisco Systems
  • Genesys
  • Huawei Technologies
  • Microsoft Corporation
  • Mitel Corporation
  • NEC Corporation
  • Nice Systems
  • Oracle Corporation
  • SAP SE
  • Others

Contact Center Software Market Segmentation Analysis

On the Basis of Deployment Mode

The on-premises segment dominated the contact center software market in 2023, with more than 57.0% of global revenue. On-site commissioning involves the commissioning of all hardware and software necessary for the operation and maintenance of the contact center at the customer’s location. On-premise solutions offer integrability, adaptability, reliability, and some scalability. However, their implementation can sometimes be challenging and expensive. The customizable benefits of on-premises solutions are only realized when companies invest heavily in expert services.

The hosted segment is expected to register the fastest growth during the forecast period from 2024 to 2032. Cloud-based contact center solutions are preferred globally as they can scale services without requiring an on-site setup. Cloud solutions efficiently connect contact center agents to centralized applications and provide employees with a secure intranet for collaboration and communication. Additionally, cloud-based solutions can provide in-depth information about agents and customers that managers could not track with on-premise solutions. According to RingCentral, Inc., switching to cloud-based solutions can help improve customer call responses by approximately 5%, reducing Average Response Speed (ASA) by up to 50%.

On the Basis of Enterprise Size

Large enterprises dominated the Contact Center Software Market in 2023 due to their global reach and need for advanced solutions. However, the future lies with small and medium businesses (SMBs). As SMBs grow in number worldwide, they’re increasingly implementing customer care solutions to streamline operations and free up agents’ time for more strategic tasks. This shift towards automation and improved efficiency is expected to drive the fastest growth in the contact center software market for SMBs.

Market Segmentation and Sub-Segmentation

On the Basis of Component

  • Solution
    • Automatic Call Distribution
    • Call Recording
    • Computer Telephony Integration
    • Customer Collaboration
    • Interactive Voice Responses
    • Others
  • Service
    • Integration & Deployment
    • Support & Maintenance
    • Training & Consulting
    • Managed Services

On the Basis of Deployment

  • Hosted
  • On-premise

On the Basis of Enterprise Size

  • Large Enterprise
  • Small & Medium Enterprise

On the Basis of End Use

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

Contact Center Software Market Trends

  1. Focus on Customer Experience (CX): Businesses are prioritizing customer satisfaction, leading to increased adoption of advanced contact center features like real-time analytics and customer journey mapping.
  2. The Growth of Remote Work: The growing remote work trend necessitates cloud-based and flexible contact center solutions that can be accessed from anywhere.
  3. Integration with CRM and Business Intelligence (BI) Systems: Contact center software is increasingly integrated with CRM and BI systems for a holistic view of customer data and improved decision-making.

Regional Analysis

The Asia Pacific region is expected to expand at the fastest growing rate among regions during the forecast period of 2024–2032. This growth is driven by a large IT and IT-enabled services industry, along with an increase in businesses of all sizes adopting contact center solutions. Government initiatives promoting cloud technology and automation further accelerate this growth. Additionally, the attractiveness of the Asia Pacific region for global investment creates a positive feedback loop, attracting more businesses and driving the market forward. Governments are driving digitalization efforts across industries, which often includes initiatives to improve citizen engagement. This can involve funding or mandating the use of contact center software with features like omnichannel support (voice, chat, social media) for better constituent service. As data privacy regulations like GDPR (Europe) and CCPA (California) gain prominence, governments are pushing for stricter data security standards in contact center software, ensuring customer information is protected while interacting with businesses.

Recent Developments in the Contact Center Software Market

  • June 2023: Amazon Connect Chat introduced a new feature offering more customization options, including adding a logo and changing text fields such as system messages, bot messages, text input placeholders, and end chat messages.
  • May 2023: BT and Five9 announced an expanded partnership to provide organizations with global contact center services and solutions.

Key Takeaways

  • Integration of AI: Features like chatbots, sentiment analysis, and automated workflows are major growth factors, improving self-service options, reducing agent workload, and delivering faster issue resolution.
  • Agent Satisfaction: Features that improve agent training, gamify tasks, and provide real-time performance feedback are becoming increasingly important, creating an opportunity for vendors focused on employee experience within the software.
  • SMB Growth: Although large enterprises currently dominate, the fastest growth is expected in the small and medium business (SMB) segment. Growing SMB numbers globally and their increasing adoption of customer care solutions present a significant opportunity.

Table of Contents

  1. Introduction
  2. Industry Flowchart
  3. Research Methodology
  4. Market Dynamics
  5. Impact Analysis
    • Impact of Ukraine-Russia War
    • Impact of Economic Slowdown on Major Economies
  6. Value Chain Analysis
  7. Porter’s 5 Forces Model
  8. PEST Analysis
  9. Contact Center Software Market Segmentation, by Component
  10. Contact Center Software Market Segmentation, by Deployment
  11. Contact Center Software Market Segmentation, by Enterprise Size
  12. Contact Center Software Market Segmentation, by End Use
  13. Regional Analysis
  14. Company Profile
  15. Competitive Landscape
  16. Use Cases and Best Practices
  17. Conclusion

Contact Us

Akash Anand – Head of Business Development & Strategy
info@snsinsider.com
Phone: +1-415-230-0044 (US) | +91-7798602273 (IND)

About Us

SNS Insider is one of the leading market research and consulting agencies globally. Our company’s aim is to provide clients with the knowledge they need to function in changing circumstances. We use various techniques, including surveys, video talks, and focus groups around the world, to provide current, accurate market data, consumer insights, and opinions, enabling confident decision-making.

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