Contact Center Software Market - Forecasts from 2024 to 2029

Contact Center Software Market - Forecasts from 2024 to 2029

The contact center software market is projected to grow at a CAGR of 25.89%, reaching US$210.622 billion in 2029 from US$42.042 billion in 2022.

The aggregation of various processes that automate the integral processes associated with a contact center is called the contact center software. Automatic call distribution, call recording, computer telephony integration, customer collaboration, dialer, interactive voice responses, and reporting & analytics are the major solutions offered by contact center software to small, medium, and large-sized enterprises by on-premise and cloud deployment.

Further, it also provides services such as integration & deployment, support & maintenance, training & consulting, and managed services. The growing adoption of contact center software by large enterprises and the rise in the adoption of cloud-based contact center software are anticipated to grow the contact center software market.

Moreover, in February 2024, Call Center Studio announced a partnership with RGS, a prominent player in banking collections in the Philippines. It is for the service and results for maximum customer satisfaction.

Contact center software market drivers:

The growing demand for automating customer care services using AI technology.

The automation of company processes fueled by the enhancement of operational efficiency of businesses and the improvement in accuracy is generating a high demand for contact center software to handle communication processes in the customer care service department effectively.

According to IBM's Global AI Adoption Index research from 2022, 48% of the organizations automating their business processes benefited from enhanced customer experience as a result of AI technology, and approximately 23% of the organizations such as contact centers, are adopting AI for business, automation to address the issue of employee shortages.

Further, about 28% of contact center organizations are using AI technology to reduce the waiting time on calls, and 36% of these enterprises declared an enhancement in the productivity of customer service agents.

And, real-time behavior prediction, insight provision, and consumer behavior analysis are the additional benefits of employing AI technology in contact center software platforms. For instance, in July 2020, Israeli software company NICE Systems Ltd., a software company providing contact center solutions, unveiled a customer interaction tool, ENLIGHTEN Fraud Prevention, that employs speech biometrics and artificial intelligence to detect fraudsters automatically.
The rise in new product launches is due to the adoption of omnichannel solutions.

The growth in the number of companies offering contact center solutions is a significant factor expected to increase the consumption of contact center software. For instance, in July 2022, Microsoft Corporation introduced its contact center software platform, Microsoft Digital, due to its previous acquisition of Nuance Communications, Inc. in March 2022 and the integration of its existing services under its different brands, such as Azure and Teams.

Further, in February 2022, Zoom Video Communications, Inc., a leading company in the web conferencing and video call solution market, introduced its contact center software platform, Zoom Contact Center, to fortify its platform services. In addition, both these recent launches meet the requirement of an omnichannel network. The rising adoption of omnichannel solutions increases their profit margins in encouraging the development of omnichannel contact center software applications.

Contact center software market challenges:

The threat of cybersecurity vulnerabilities could slow down the expansion of the contact center software market.

The data issues and the threat of cybersecurity violations are restraining companies' extensive adoption of contact center software. Since contact centers majorly deploy webchats, self-service channels, and IVR systems as an integral part of their working operations to handle the rising calls received by agents, they become increasingly susceptible to the danger of fraud attacks and consequential losses.

The availability of vast amounts of sensitive client data with contact center platforms continuously exposes them to the risk of cyberattacks. Therefore, the increasing number of cyberattacks on contact center software platforms is anticipated to affect market expansion negatively.

By deployment, cloud-based contact center software solutions are experiencing substantial growth.

The growing adoption of cloud-based contact centers is creating a growth opportunity for the contact center software market due to its effective ability to handle communication processed on web servers. The rising deployment of cloud-based contact centers is due to their ability to provide flexibility compared to conventional contact centers.

For example, according to a poll conducted in 2020 by Cisco Systems Inc., a US-based company providing networking hardware, approximately 62% of decision-makers in contact centers have indicated an interest in developing cloud-based contact centers. Therefore, the cloud sector will hold a major share of the contact center software market over the forecast period.

North America has a significant share of the contact center software market

North America holds a significant share of the contact center software market fueled by the automation of business operations and other associated tasks encouraged by the gradual transition of top firms and brands towards digitalization, creating a huge demand for software applications in customer care and communication services.

The expansion of the retail sector of North American economies is resulting in increased consumption of contact center software by retail companies to improve customer retention and satisfaction rates. Further, the presence of major contact center software platforms in the region, such as Nice CXone, Genesys Cloud CX, and UJET, offer adoption opportunities for companies working in various industries, such as the BFSI and IT which are expected to increase the consumption of contact center software products in the region.

Contact Center Software Market Industry Updates:

April 2023- Teckinfo Solutions Pvt. Ltd., a software technology company in India offering cloud-based contact and call center services, introduced a new software platform, ID Cloud – Premium Contact Centre, to provide a uniform platform for engaging customers across all organizational sizes.
January 2023- Cognizant, an international IT company, entered into a strategic partnership deal with NICE Systems Ltd., a US-based company offering a leading contact center software platform sponsored by AI, CXone, to merge the CXone software with Cloud Native Customer Experience Platform offered by Cognizant to enhance customer experience further.
October 2022- DialDesk, a new contact center platform based on the cloud, was released by Duo World Inc., a US-based software technology company, to effectively conduct communication in omnichannel, integrate third-party applications, and autoscale communications on all mediums, including social media feeds, chats, and voice calls.

The contact center software market is segmented and analyzed as below:
:

By Component
Solutions
Automatic Call Distribution (ACD)
Call Recording
Computer Telephony Integration (CTI)
Customer Collaboration
Dialer
Interactive Voice Responses (IVR)
Reporting & Analytics
Others
Service
Integration & Deployment
Support & Maintenance
Training & Consulting
Managed Services
By Enterprise Size
Small Enterprises
Medium enterprises
Large Enterprises
By Deployment
Cloud
On-Premise
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
UK
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Taiwan
Others