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| Report Code: A13672 | Pages: 64 | ||
| Tables: 15 | Charts: 13 |
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The Korea call center AI market size was valued at $42.14 million in 2020, and is projected to reach $350.08 million by 2030, registering a CAGR of 23.7% from 2020 to 2030. The work environment required in call centers is emotionally, physically, and mentally challenging. It requires dealing with hectic schedules, low budgets, handling furious customers, adjusting to shift timings, and many more. In the middle of this, a call center agent is expected to meet the fundamental requirement of ensuring excellent customer satisfaction. Right from the opening phrase of the call till the call ends, the agent is expected to carefully listen to the customer’s problem, analyze it, and provide an effective solution.
AI call centers have recently risen in popularity as they can reduce tasks handled by traditional call center agents by using speech recognition and natural language processing technology to respond to simple and repetitive user queries. This has created a positive scenario for the AI call center market, thereby elevating the revenue margin.
On the basis of component, the solution segment dominated the Korea call center AI market share in 2020, and is expected to continue this trend during the forecast period. This is attributed to colossal adoption of chatbots/IVAs across various operations. Currently, BFSI has the highest adoption of call center platforms and solutions as compared to other verticals. Call center AI solutions help financial institutions in flawlessly connecting with customers, improving customer experience, and lowering the response time, thereby increasing the overall efficiency.
By deployment, the global call center AI market share was dominated by the cloud segment in 2020, 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. Software allows customers to resolve product-related matters by themselves rather than depending on customer care executives.
 In addition, increase in integration of new systems with existing ones at workplace and rapid surge in demand for implementation of new contact center software are expected to fuel the growth of this segment.
South Korea has witnessed huge investments in AI technology from service and manufacturing sector companies in the past few years. According to a study conducted by the Korea Herald, service and manufacturing sectors have been ramping up their AI deployments and consist of over 91% of the country’s total AI solution consumption.
Moreover, positive results from AI deployments in many sectors are influencing more organizations in the region to increase their investments in AI technology. Increasing AI capabilities and digital transformation in the region is expected to drive the growth of the Korea call center AI industry. Social media platforms have developed into a critical component of modern enterprises. Every company has been expanding its presence on social media platforms to reach its consumers with more ease. South Korea has the highest percentage (95%) of the population with internet accessibility along with one of the highest social media penetration rates with over 90% of the population availing social media services in some form. With high social media users, companies in South Korea are keen to provide superior customer support services through them. Therefore, this factor creates great opportunities for AI-powered call center and consumer support services in South Korea.
The report focuses on the growth prospects, restraints, and Korea call center AI market analysis. The study provides Porter’s five forces analysis of the call center AI 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 Call center AI market trends.
The Korea call center AI industry is segmented on the basis of component, deployment, and industry vertical. Based on component, the market is divided into compute platforms, solution, and service. Based on deployment, it is bifurcated into on-premise and cloud. Based on industry vertical, the market is fragmented into BFSI, retail and e-commerce, telecom, healthcare, media and entertainment, travel and hospitality, and others..
Post COVID-19, the size of the Korea Call Center AI Market is estimated to grow from $42.14 million in 2020 to reach $350.08 million by 2030, at a CAGR of 23.7%. AI call centers have recently risen in popularity as they can reduce tasks handled by traditional call center agents by using speech recognition and natural language processing technology to respond to simple and repetitive user queries. This has created a positive scenario for the AI call center market, thereby elevating the revenue margin. For instance, in June 2021, SK Telecom Co., South Korea's largest mobile carrier, teamed up with U.S. call center technology company Genesys to launch a contact center service powered by AI. This partnership provides call center software to over 10,000 companies across 100 countries to integrate their technologies for a cloud-based AI call center service.
Improved customer experience & customer response time and enhanced data analytical capabilities are the major factors is propelling the market growth during the forecast period. However, high installation and training cost coupled with privacy and security concern is mainly restraining the market growth. Further, rise in focus of Korean companies in AI technology and growth of social media platform have emerged to prove to be lucrative opportunities for the overall Korea call center AI market growth.
One of the major advantages of using artificial intelligence in call centers/customer service centers is that it helps to solve client problems. By analyzing client complaints from databases at a much faster rate than conventional processes (human executives), predictive and analytical AI software could provide faster answers and solutions to customers than humans. Moreover, AI systems can search data from subjects mentioned by the consumer during a phone call to address problems faster than traditional contact centers. This saves the time consumed by both client and organization, creating a higher efficiency.
Faster response times and better analytical capabilities are promising great opportunities for the future growth of the Korea call center AI market analysis.
In certain scenarios, dealing with customer inquiries in real-time tends out to be difficult for a customer care executive, as consumers might not have the exact context of inquiring. However, with the help of AI, previous consumer interactions and chat data can be analyzed in seconds and brief information can be provided to the executive regarding the customer. Amazon, in collaboration with its subsidiary Amazon Web Services, has created particular algorithms focused on analyzing consumer demands and providing correct replies based on those needs, owing to its huge in-house data scientists and analysts.
Furthermore, Korean tech giant LG Uplus Corp. is seeking opportunities in the call center AI market with a recent partnership with LG CNS Co. to develop specialized services for local financial companies.
Key Benefits For Stakeholders
KEY MARKET SEGMENTS
By Component
By Deployment
By Industry Verticals
Korea Call Center AI Market Report Highlights
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In accordance with several interviews conducted of top level CXOs in the industry, the presence of major players such as OMRON Corporation and Sony Semiconductor Solutions Corporation is expected to boost the market growth in the Asia-Pacific region. Further, the high share is attributable to the significantly increasing investments in Chinese companies for call center AI technology. For instance, the PRC (People’s Republic of China) owned approximately 66% of the total capital invested by companies in 2018, which was nearly three times the capital invested in U.S. companies.
Also, the capital investment by China in call center AI was pumped 20 times more than the venture capital in 2016. Also, the government’s strategic initiatives are boosting the growth of call center AI technology in the region. For instance, China has deployed nearly 176 million cameras domestically to fulfill the demand for upgraded surveillance. Furthermore, governments are providing tech companies access to large datasets to build training models for call center AI applications.
The key players are expected to focus on advancing their product line and undertake expansion by acquiring business and technologies to mark their footprint in the unreached market. For instance, in April 2020, Clobotics, a China-based call center AI company, acquired the AtSite A/S, a solution provider of visual inspection services. Clobotics executed this transaction to develop an AI-enabled offshore wind turbine inspection technology. In another instance, in January 2020, Snap Inc., a U.S.-based social media company, completed the acquisition of a Ukraine-based call center AI start-up called AI Factory. This acquisition was anticipated to help the social media application offered by Snap Inc. add a new feature called Cameos, which turns a person’s picture into a short animated video.
The Call center AI 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 45-50% of the share. The degree of concentration is expected to remain same during the forecast period. Moreover, AI systems can search data from subjects mentioned by the consumer during a phone call to address problems faster than traditional contact centers. This saves the time consumed by both client and organization, creating a higher efficiency.
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