Contact Center Software Market Size, Share & Industry | 2031

Report Description

Contact Center Software Market Outlook 2031

The Global Contact Center Software Market size was valued at USD 28.09 Billion in 2022 and is likely reach to USD 193.28 Billion by 2031, expanding at a CAGR of 23.9% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing focus on client experience, responsiveness, and enhancing customer involvement using omni-channel globally.

Contact center software is a solution that allows customers and contact center personnel to communicate more effectively. It enables agents to keep a track and report on data related to interactions.

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Moreover, an effective call center software is required to sustain customers and meet the growing demand of consumers. Furthermore, physical contact centers with human operators have been replaced by technologically advanced automatic call distributor, which is a flexible robotic system capable of readily handling large quantities of calls.

Additionally, several businesses are implementing omni-channel contact center accessibility in order to create a smooth experience for customers, communicating call centers via SMS, online, email, or social media.

The COVID-19 outbreak has had a favorable impact on the contact center software market worldwide. Though contact center executives are focused on making quick decisions in order to serve their customers efficiently during the crisis, many organizations are also working to improve customer service and operations in the long run.

Additionally, organizations are constantly focusing on designing business procedures in order to comply with data laws & regulations.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing advanced technology in the area of customer relationship management along with rapid incorporation of machine learning and Artificial Intelligence (AI) into business processes are expected to propel the market expansion.
• Growing demand for more flexibility, scalability, and faster deployment of services in call centers is estimated to fuel the market growth in the coming years.
• Cost-effectiveness, easier set up & maintenance, and better visibility & control into business operations are some of the driving factors for market growth in the coming years.
• Rising security breach and privacy concerns by adoption of cloud-based software in industry verticals such as banking and financial institutes are anticipated to hamper the growth of the market.
• Low First Call Resolution (FCR) along with difficulty to achieve a greater average speed of answer is one of the major factors challenging the growth of the market during the forecast period.
• Rising advancements in Artificial Intelligence (AI) and its application in business analytics are projected to offer a great opportunity for the market during the forecast period.

Scope of Contact Center Software Market Report

The report on the global contact center software market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Contact Center Software Market Segment Insights

Large enterprise segment is expected to grow at a rapid pace

Based on enterprise sizes, the global contact center software market is bifurcated into small & medium enterprise and large enterprise. The Large enterprise segment is expected to grow at a rapid pace during the forecast period, owing to the growing investment in the advanced technology to operate businesses effectively & efficiently.

Moreover, large enterprises are seeking to deploy solutions & services that are expected to increase the profits in the business. As a result, large enterprises are likely to upsurge the use of contact center software solutions.

However, the small & medium enterprise segment is expected to expand at a considerable rate in the coming years due to the increasing adoption of customer care solutions by small & medium businesses all around the world.

Furthermore, small & medium enterprises are also using these solutions to relieve the load of doing routine duties and allow agents to concentrate on organizational development.

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Integration & deployment segment is projected to expand at a considerable CAGR

On the basis of services, the market is segmented into support & maintenance, training & consulting, managed services, and integration & deployment. The integration & deployment segment is projected to expand at a considerable CAGR during the forecast period, owing to the rising adoption of cloud-based contact center software solutions across businesses.

Moreover, several business organizations all around the world are investing significantly in integrating various software and tools into the business operations, such as Customer Relationship Management (CRM).

However, the managed services segment is projected to register substantial market share in the coming years. The managed services allow businesses to concentrate on the core services & products while IT-related activities are handled for them.

Additionally, with configuration management, standard change management, provisioning, and patch management solutions, managed service providers assist enterprises in keeping applications running for end users.

Furthermore, managed services provide a variety of value-added services to support businesses to get optimal outcomes from contact center software solutions in terms of performance and reliability along with low operational expenses.

On- premise segment is estimated to gain large revenue share

In terms of deployments, the global contact center software market is bifurcated into hosted and on- premise. The On- premise segment is estimated to gain large revenue share during the forecast period.

On-premise deployment is a model where all of the hardware and software is needed to run and manage a contact center in the customer’s property. These on- premise systems offer reliability, customizability, and integrality despite of being complex and costly to implement.

These on- premise solutions' customizability benefits can only be realized when firms invest extensively on professional services.

On the other hand, the hosted segment is expected to expand at a faster rate during the forecast period due to the increasing flexibility to scale services. Furthermore, businesses all over the world are relying on cloud-based contact center solutions over on- premise systems.

Agents are connected to centralized contact center applications via cloud solutions, which often provide a secure intranet for staff to collaborate and communicate. In addition, cloud-based solutions can provide executives with detailed information about agents & clients that on- premise solutions are unable to deliver.

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Interactive voice response segment is expected to register a significant market share

Based on solutions, the market is segregated as call recording, dialer, automatic call distribution, customer collaboration, computer telephony integration, interactive voice responses, workforce optimization, reporting & analytics, and others.

The interactive voice response (IVR) segment is expected to register a significant market share during the forecast period, owing to the more precise interpretation of tones & accents while communicating with the customers.

Moreover, businesses are using IVR systems to route calls to the appropriate departments or agents on a case by case basis. Furthermore, rather than relying on customer service representatives, an IVR system allows clients to handle product related problems on their own.

IT & telecom segment is projected to gain a high CAGR

On the basis of end- users, the global contact center software market is divided into government, banking, financial services & insurance (BFSI), traveling & hospitality, healthcare, consumer goods & retail, IT & telecom, and others. The IT & telecom segment is estimated to secure a high CAGR during the forecast period.

The information technology (IT) & telecommunications industries are now becoming more competitive. In addition, increasing number of new companies entering in the industry with their innovative methods and approaches to success, key companies are gradually turning to contact center software solutions to improve the efficiency of their operations.

However, the consumer goods & retail segment is anticipated to increase at a considerable rate in the coming years. Customers are shifting their shopping habits to digital media.

Furthermore, as consumers adopt new technology and channels, consumer goods & retail organizations have been compelled to adapt to contact center software solutions in order to provide excellent customer experience.

Contact Center Software Market Regional Outlook

North America is anticipated to constitute a key market share

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key market share during the forecast period, owing to the growing investment in technological advancement, such as big data, analytics, and cloud platforms.

In addition, there has been an increased need among large and small & medium businesses in the region to improve their efficiency by optimizing outgoing and inbound processes. Thus, all these factors are expected to boost the market in the region.

However, the market of Asia Pacific is anticipated to grow substantially in the coming years due to the increasing usage of contact center software solutions by both large and small & medium businesses along with rising number of favorable government initiatives boosting the adoption of cloud-based technology and the automation of business processes.

Furthermore, various companies from across the world are interested in investing in the region, which is projected to fuel market expansion in the region.

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