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Contact Center Software Market

Contact Center Software Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, Deployment Type, Enterprise Size, Industry Vertical (BFSI, Healthcare, Retail and E-Commerce, Government and Education, IT and Telecom, Travel and Hospitality, and Others: Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : Software and Services

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Author's: Rachita Rake & Abhijith Nair | Onkar Sumant
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Contact Center Software Market Statistics - 2027

The global contact center software market size was valued at $18,700 million in 2019, and is projected to reach at $72,042 million by 2027, growing at a CAGR of 18.9% from 2020 to 2027. Contact center software helps both multi-channel and uni-channel call centers to efficiently manage high volumes of outbound and inbound communications with customers. Types of customer communication can include phone calls, VoIP calls, live chat, fax, email, SMS/text, chatbot conversations, and social media messaging. The main function of software is to route customer contacts to agents as well as to report and track critical metrics regarding customer interactions. This software allows businesses to carry out their customer communications over the internet, without the need for an on-premise PBX phone system. It is cost-efficient, easier to set up & maintain, and gives businesses with more visibility and control into their operations. It helps in increasing effectiveness and efficiency of a contact center, with a specific focus on interactions between contact center agents and customers. 

On the basis of component, the solution segment exhibited highest growth in the contact center software market in 2019, and is expected to maintain its dominance in the upcoming years, owing to growing popularity of interactive voice response (IVR) solutions to enable quick resolution of queries over calls. Solutions allow customers to resolve product-related matters by themselves rather than depending on customer care executives. However, the services segment is expected to witness the highest growth, owing to extensive adoption of services among end users, as it ensures effective functioning of contact center software throughout the process. In addition, growth in integration of new systems with existing ones at workplace and rapidly growing demand for implementation of new contact center software is expected to fuel growth of this segment.


By deployment type, the on-premise segment contribute significant share of global contact center software market share as large corporations are hesitant to move away from on-premise solutions. On-premise contact center software are solely responsible for maintenance and updates. However, the cloud segment is expected to dominate the market as the availability of affordable internet connections is anticipated to boost demand for cloud-based deployment of contact center solutions in organizations.

By enterprise size, the global contact center software market was dominated by the large enterprise segment in 2019, and is expected to maintain its dominance in the upcoming years, as large enterprises have extensive number of customers in numerous regions and account for technical expertise, high market shares, and effective business strategies. Therefore, companies across this segment are anticipated to capitalize on new technologies to effectively run their business.

North America dominates the contact center software market, as organizations across various industries in the region are rapidly adopting and investing in emerging technologies, such as big data, analytics, and cloud platforms. For instance, in October 2018, PHH Mortgage, leading sub-servicers of residential mortgages in the U.S. moved its contact center to cloud-based architecture in association with Serenova. In addition, there is a rise in demand for enterprises in the region to increase their productivity by optimizing outbound and inbound operations further, which fuels the contact center software market growth.  However, Asia-Pacific is expected to observe highest growth rate during the forecast period, owing to presence of a broad customer base and considerable number of SMEs in the region.

The report focuses on growth prospects, restraints, and contact center software market analysis. The study provides Porter’s five forces analysis of the contact center software industry to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the contact center software market trends.

Segment review

The contact center software market is segmented on the basis of component, deployment, enterprise size, solution type, industry vertical, and region. On the basis of component, it is categorized into solution and services. On the basis of deployment type, it is classified into on-premise and cloud. As per the enterprise size, it is classified into large enterprises and small and medium enterprises. Depending on solution type, it is divided into automatic call distribution and call recording. On the basis of industry vertical, it is categorized into IT and telecommunication, BFSI, healthcare, consumer goods & retail, media & entertainment, travel & hospitality, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

COVID Impact Analysis

The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on growth of the contact center software market, as its adoption has increased in the face of unprecedented circumstances. There is surge in need for enterprises to break out of legacy infrastructure to develop a more agile approach to customer engagement. However, success of customer engagement has always been determined by accuracy and speed of request addressal. In addition, ongoing trend of work from home (WFH) during the pandemic fuels contact center software adoption to ensure business continuity and improve productivity. For instance, in April 2020, VOO, a leading Belgium telco moved its 188 agents to remote work in one week and implemented an agile cloud contact center solution. This has led to absenteeism dropped from 62% to 5% as well as daily calls per team rose from 1300 to 1800, a 38% increase in productivity.

Contact Center Software Market
By Component
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Service segment is projected as one of the most lucrative segments.

Furthermore, companies with on-premises systems are expected to move contact centers to cloud-based software in the post-pandemic. For instance, as per the the NICE inContact survey, 66% contact center decision makers across three global regions whose companies are not using cloud-based contact center software have planned to accelerate their move toward cloud as a result of the pandemic. This factor provides lucrative opportunities for the market growth in post-pandemic.

Top impacting factors    

Growth of the global contact center software market is mainly driven by surge in use of contact center software among organizations to enhance customer experience through multiple channels including voice, video, mobile, web, and social media. In addition, rise in omnichannel communication approach, rapid advancements in field of customer relationship management, and surge in need for personalized services fuel the global contact center software market. However, difficulty while integrating with legacy systems and cost issues in case of on-premise call center software hamper the market growth to some extent. On the other hand, emergence of advanced technologies such as artificial intelligence, predictive analysis, cloud computing, and machine learning are expected to provide lucrative opportunities for the market growth during the forecast period. In addition, surge in use of social media by customers is anticipated to be opportunistic for the market growth during the contact center software market forecast period.

Contact Center Software Market
By Deployment Type
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Cloud deployment type is projected as one of the most lucrative segments.

Emergence of advanced technologies 

Contact centers across the globe have realized benefits and potential of adopting technologies such as artificial intelligence (AI), predictive analytics, cloud computing, and machine learning. Hence, they have started implementing them into their systems. Adoption of these technologies have provided lucrative opportunities for the vendor in market to provide seamless customer experience. With surge in popularity of these technologies, enterprises have access to insights and information that enable effective business decisions. AI is rapidly being adopted to develop automated messaging and bots; this has enabled a positive impact on the overall operational efficiency of contact centers. On the other hand, big data analytics has enabled enterprises to access both customer as well as employee insights and use this information to address issues related to employee performance or customer experience. 

Surge in usage of contact center software among organizations to enhance customer experience 

Contact centers are rapidly using contact center software to manage client contacts via various mediums such as fax, email, and telephone. Contact center software offer competitive advantages to organizations in different industries to increase productivity through automation of outbound and inbound operations of a contact center. A mounting number of organizations across the globe are shifting their focus toward providing an all-inclusive experience to customers. In addition, in highly competitive environment, customer needs are ever changing; hence, customer experience has become an imperative factor that affects customer retention. This factor significantly drives the market growth. 

Contact Center Software Market
By Region
North America 

Asia-Pacific is projected as one of the most significant region.

Key Benefits For Stakeholders

  • This study includes the contact center software market analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and contact center software market opportunity.
  • The Contact Center Software Market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in contact center software market.

Contact Center Software Market Report Highlights

Aspects Details
By Component
  • Software
  • Services
By Software Type
  • Intelligent Call Routing
  • IVR
  • Workforce Management
  • Reporting and Analytics
  • Security Functions
  • Intelligent Virtual Assistant
  • Others
By Deployment Mode
  • On-premise
  • Cloud
By Enterprise Size
  • Small and Medium Enterprises
  • Large Enterprises
By Industry Vertical
  • BFSI
  • Healthcare
  • Retail and E-Commerce
  • Government and Education
  • IT and Telecom
  • Travel and hospitality
  • Others
By Region
  • North America  (U.S., Canada)
  • Europe  (Germany, UK, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players


Analyst Review

According to CXOs of leading companies, the contact center software market is going through enormous transformation and growth. In addition, the market is undergoing a paradigm shift in adoption of innovative technologies. As competition across all business sectors has intensified over the years, it has become necessary for companies to maintain consistent and stable relationships with their customers as well as ensure customer loyalty. Contact center software is widely being adopted by numerous organizations across the globe to improve customer satisfaction levels along with their experience over inquiry calls. This software enables customer care executives to make it easier to build a deeper relationship with customers, which leads to long-term value for businesses.

In addition, ongoing trend of building or moving team to cloud is helping companies to solve issues of customer engagement, time-to-market, and turnaround time. For instance, as per recent studies, about 50% of call center firms are expected to move to cloud in 2020. On the other hand, proliferation of social media is the key opportunity for the contact center software market. Incorporation of social media with contact center software is helping to deliver improved efficiency, seamless customer experience, and consistent contact center metrics. 

Moreover, customers collaborate and communicate with organizations via various channels, including mobile, email, voice, text, or social media. Therefore, advent of omnichannel customer experience toward contact center software is anticipated to observe growth over the upcoming years. Omnichannel contact center solutions allow organizations to offer personalized customer interactions, while offering their services and support. Furthermore, emerging technologies and developments across the contact center industry further boosts the contact center software market. It includes proliferation of new and emerging technologies, such as artificial intelligence (AI), advanced self-assist tools, and analytics tools, which may provide lucrative opportunities for the market growth during forecast period.

The contact center software market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of products, and support services. The market is concentrated with major players consuming 40–50% of the share. The degree of concentration is expected to remain the same during the forecast period. Owing to the competition, vendors operating in the market offer advanced contact center solutions to improve marketing strategies of enterprises. On the other hand, growth on investment trend of companies across the contact center industry further boosts the market growth. For instance, in October 2020, Five9, a leading market player, acquired Inference Solutions, an intelligent virtual agent (IVA) company with the purchase price of $172 million. The acquisition strengthened the contact center software portfolio of the Five9. In addition, key players are heavily investing in R&D activities to develop effective contact center software and services offerings, which is opportunistic for the market.

Author Name(s) : Rachita Rake & Abhijith Nair | Onkar Sumant

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Contact Center Software Market

Global Opportunity Analysis and Industry Forecast, 2020-2027