Contact Center as a Service Market (Updated Version Available)
Contact Center as a Service Market Size, Share & Trends Analysis, By Offerings (Solutions and Services), Enterprise Size (Large and Small & Medium), Industry Vertical (BFSI, Retail & e-commerce, Government, Healthcare, IT & Telecom, Travel & Hospitality, and Others), By Region, Forecast Period 2023 - 2030
Report ID : RI_673808 | Date : March 2023 |
Format : 
Key Market Overview:
Contact Center as a Service is estimated to reach over USD 16.06 Billion by 2030 from a value of USD 4.27 Billion in 2022, growing at a CAGR of 18.01% from 2023 to 2030.
Contact center as a service (CCaaS) is a cloud-based delivery model that enables businesses to outsource the management and operation of the contact centers to a third-party service provider. CCaaS provides a comprehensive suite of tools and features for managing customer interactions across multiple communication channels, including phone, email, chat, social media, and SMS. CCaaS providers offer a pay-per-use pricing model, which allows businesses to pay only for the used services instead of spending in hardware and software. The use of such model enables businesses to scale the contact center operations up or down as needed, depending on the volume of customer interactions.
Advanced analytics systems are increasingly being used by omnichannel contact center market players to provide detailed insights into operations. The systems provide real-time and historical data on customer interactions, agent performance, and other key metrics, which are used to identify areas for improvement and make data-driven decisions. For instance, in October 2020 SugarCRM Inc. launched SugarLive a new integration with Amazon Connect voice, chat, and text messaging for omnichannel customer service and support. SugarLive provides enhanced contact center services to equip the team with improved customer care engagement. Overall, CCaaS provides businesses with a comprehensive and cost-effective solution for managing customer interactions across multiple channels and also improves the overall customer experience.
Contact Center as a Service Report Coverage:
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Market Dynamics:
Driver:
The increasing customer demand to provide personalized and seamless experiences across all channels, including phone, email, chat, and self-service is propelling businesses to adopt contact center solutions that drive the growth of the market. Also, the rising adoption of artificial intelligence (AI) and automation technologies enables businesses to automate routine tasks, reduce wait times, and improve overall efficiency. The technologies such as Chatbots and virtual assistants and Robotic Process Automation (RPA) help businesses to provide faster and more accurate responses to customers, resulting in increased customer satisfaction and loyalty. For instance, in September 2021, IQVIA launched a new A.I. Powered MI contact center for life sciences to share information about new products and related therapeutic areas as well as monitor product quality and safety. The combination of AI-powered agents and human agents creates faster response times and reporting of adverse events or quality concerns.
Restraint:
Contact centers handle customer-sensitive information subjected to cyberattacks, data breaches, fines, and reputational damage is hampering the growth of the market. There is a growing demand for security, compliance, and data protection with growing internet connectivity to prevent the loss and manipulation of sensitive data by cyber-attackers. For instance, according to NICE solution provider statistics, contact centers worldwide field more than 100 billion calls every month, and 1 in 1,700 calls is a fraud attempt. The data states, despite the large number of legal inquiries a contact centers receives, a significant number of fraudulent calls are still attempts by the attackers. Thus, such fraudulent attempts are hindering the growth prospects for both the contact center and organization.
Opportunities:
The increasing adoption of API-based contact centers is expected to create significant opportunities for market growth. API-based contact centers allow for seamless integration with other applications, including customer relationship management (CRM) systems, marketing automation platforms, and e-commerce websites. The integration is projected to create opportunities for businesses to streamline operations, improve efficiency, and enhance the customer experience. API-based contact centers also offer greater flexibility in terms of customization and configuration, enabling businesses to tailor contact center solutions to meet specific needs. The flexibility in customization is expected to create opportunities for contact center providers to differentiate themselves by offering more advanced and customizable solutions to the customers.
Contact Center as a Service Market Segmentation:
By Offering:
The offering segment is bifurcated into solutions and services. The solution segment dominates the market and includes the software and applications that enable businesses to set up and operate contact center operations in the cloud. CCaaS solutions include features such as automatic call distribution (ACD), interactive voice response (IVR), and computer telephony integration (CTI). The interactive voice response has gained great importance during the pandemic. Many organizations have used IVR technology to gain information about COVID-19 symptoms and monitor patient health. For instance, in April 2020, Tamil Nadu CM launched the IVRS facility for COVID-19 to guide people based on the symptoms of COVID-19, and for people suffering from conditions such as diabetes and hypertension.
The services segment is anticipated to register the fastest CAGR during the forecast period as businesses adopt CCaaS solutions to manage the contact center operations in the cloud which will increase the demand for services. Service providers offer services such as maintenance, troubleshooting, and upgrades to help businesses optimize the contact center operations and ensure that the operations remain up to date with the latest technology and best practices. Service providers also provide services such as customer journey mapping, sentiment analysis, and customer feedback analysis to help businesses better understand and serve the customers.
By Enterprise Size:
The enterprise size segment is bifurcated into large and small & medium enterprises. Large enterprise dominates as large enterprises have better budgets than SMEs, which enables large enterprises to invest in more robust and comprehensive CCaaS solutions and to pay for premium features and customization to meet specific business needs. Therefore, large enterprises dominate the CCaaS market due to the unique customer service requirements, larger budgets, sophisticated IT infrastructure, need for scalability, and compliance and security requirements. For instance, in April 2021, SoftwareReviews listed three vendors as gold-medalists namely, Five9 Virtual Contact Center, Genesys Cloud, and Twilio Flex as best contact center as a service (CCaaS) software revealed by users.
Small & medium enterprise is expected to register the fastest CAGR during the forecast period due to the growing number of start-ups that demands CCaaS solutions to deliver customer service and support across multiple communication channels, including phone, email, chat, social media, and SMS. Also, CCaaS solutions are highly scalable, which makes CCaaS ideal for growing SMEs. SMEs start with a small solution and expand the capacity as the business grows, without incurring significant costs or requiring extensive IT expertise.
By Industry Vertical:
The industry vertical segment is categorized into BFSI, retail & e-commerce, government, healthcare, IT & telecom, travel & hospitality, and others. The IT and telecom segment dominates the market as the industry relies heavily on technical support operations to help customers troubleshoot issues with the products and services. CCaaS solutions provide the technology and tools needed to manage technical support operations effectively, including features such as screen sharing, co-browsing, and remote desktop control. CCaaS solutions also provide powerful analytics tools to help businesses analyze and evaluate data, including tools for sentiment analysis, customer journey mapping, and predictive analytics. For instance, in December 2021, Alcatel-Lucent Enterprise expands its Digital Age Communications portfolio with ALE Connect, a state-of-the-art hybrid CCaaS solution powered by AKIO. ALE Connect is a tool that helps customer services improve the way of communication with people through different channels including voice and digital platforms.
The travel & hospitality segment is anticipated to register the fastest CAGR during the forecast period as travel and hospitality industries rely heavily on reservation operations to manage bookings for hotels, flights, and other travel services. CCaaS solutions provide the technology and tools needed to manage reservation operations effectively, including features such as real-time availability checks, booking confirmations, and itinerary management. Customers in the travel and hospitality industries reach customer service and reservation teams using a variety of channels, including phone, email, chat, and social media. CCaaS solutions provide a unified platform for managing multichannel support, allowing agents to handle inquiries from multiple channels in a single interface.
By Region
North America holds the largest share of the contact center as a service market due to the increased investment in cloud-based software. Also, the presence of key players such as 8x8, Inc., Amazon Web Services, Inc., Avaya Inc., and Cisco Systems, Inc. offer a range of CCaaS solutions propelling the growth of CCaaS market. The companies apply innovative strategies to strengthen the position in the market. For instance, in January 2021, Avaya announced an expansion of its artificial intelligence (AI)-powered customer experience capabilities for Avaya OneCloud CCaaS customers, through an extended relationship with Amazon Web Services.
Asia-Pacific will register the highest CAGR during the forecast period. Asia-Pacific region has seen rapid growth in the business process outsourcing (BPO) industry, with many companies outsourcing customer service and other business processes to the region. The growth of BPO has created a strong demand for CCaaS solutions to support such operations which in turn fuels the growth of the market. Several governments in the Asia-Pacific region are taking steps to support the growth of the CCaaS market, including providing incentives for businesses to adopt cloud-based technologies, investing in digital infrastructure, and supporting the development of the technology sector. For instance, in September 2022, the government invested USD 30 billion in 4G, 5G, and a robust digital infrastructure in rural India.
Contact Center as a Service Market Competitive Landscape:
The competitive landscape of the Contact Center as a Service (CCaaS) market is highly fragmented, with a large number of players operating in the market. The companies offer a range of CCaaS solutions and services, including cloud-based contact center platforms, analytics and reporting tools, omnichannel capabilities, and integrations with other business applications. Key companies are:-
• 8x8, Inc.
• Amazon Web Services, Inc.
• Avaya Inc.
• Cisco Systems, Inc.
• Five9, Inc.
• Genesys Telecommunications Laboratories, Inc.
• Mitel Networks Corporation
• NICE Ltd.
• RingCentral, Inc.
• Talkdesk, Inc.
Recent Developments
• In May 2022, Zoom announced that it has entered a definitive agreement to acquire conversational AI and automation platform provider Solvvy. The acquisition is expected to help Zoom enhance its customer support offerings by leveraging Solvvys AI and automation capabilities to provide more efficient and personalized customer service.
• In March 2022, net2phone Acquires Integra, an Omnichannel CCaaS Platform. The acquisition is part of net2phones strategy to expand its offerings and provide more comprehensive cloud communication solutions to its customers.
Contact Center as a Service is estimated to reach over USD 16.06 Billion by 2030 from a value of USD 4.27 Billion in 2022, growing at a CAGR of 18.01% from 2023 to 2030.
Contact center as a service (CCaaS) is a cloud-based delivery model that enables businesses to outsource the management and operation of the contact centers to a third-party service provider. CCaaS provides a comprehensive suite of tools and features for managing customer interactions across multiple communication channels, including phone, email, chat, social media, and SMS. CCaaS providers offer a pay-per-use pricing model, which allows businesses to pay only for the used services instead of spending in hardware and software. The use of such model enables businesses to scale the contact center operations up or down as needed, depending on the volume of customer interactions.
Advanced analytics systems are increasingly being used by omnichannel contact center market players to provide detailed insights into operations. The systems provide real-time and historical data on customer interactions, agent performance, and other key metrics, which are used to identify areas for improvement and make data-driven decisions. For instance, in October 2020 SugarCRM Inc. launched SugarLive a new integration with Amazon Connect voice, chat, and text messaging for omnichannel customer service and support. SugarLive provides enhanced contact center services to equip the team with improved customer care engagement. Overall, CCaaS provides businesses with a comprehensive and cost-effective solution for managing customer interactions across multiple channels and also improves the overall customer experience.
Contact Center as a Service Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 16.06 Billion |
| CAGR (2022-2030) | 18.01 % |
| Base Year | 2022 |
| By Offerings | Solution and Services |
| By Enterprise Size | Large and Small & Medium |
| By Industry Vertical | BFSI, Retail & e-commerce, Government, Healthcare, IT & Telecom, Travel & Hospitality, and Others |
| By Geography | |
| Key Players | 8x8, Inc., Amazon Web Services, Inc., Avaya Inc., Cisco Systems, Inc., Five9, Inc., Genesys Telecommunications Laboratories, Inc., Mitel Networks Corporation, NICE Ltd., RingCentral, Inc., Talkdesk, Inc. |
Market Dynamics:
Driver:
The increasing customer demand to provide personalized and seamless experiences across all channels, including phone, email, chat, and self-service is propelling businesses to adopt contact center solutions that drive the growth of the market. Also, the rising adoption of artificial intelligence (AI) and automation technologies enables businesses to automate routine tasks, reduce wait times, and improve overall efficiency. The technologies such as Chatbots and virtual assistants and Robotic Process Automation (RPA) help businesses to provide faster and more accurate responses to customers, resulting in increased customer satisfaction and loyalty. For instance, in September 2021, IQVIA launched a new A.I. Powered MI contact center for life sciences to share information about new products and related therapeutic areas as well as monitor product quality and safety. The combination of AI-powered agents and human agents creates faster response times and reporting of adverse events or quality concerns.
Restraint:
Contact centers handle customer-sensitive information subjected to cyberattacks, data breaches, fines, and reputational damage is hampering the growth of the market. There is a growing demand for security, compliance, and data protection with growing internet connectivity to prevent the loss and manipulation of sensitive data by cyber-attackers. For instance, according to NICE solution provider statistics, contact centers worldwide field more than 100 billion calls every month, and 1 in 1,700 calls is a fraud attempt. The data states, despite the large number of legal inquiries a contact centers receives, a significant number of fraudulent calls are still attempts by the attackers. Thus, such fraudulent attempts are hindering the growth prospects for both the contact center and organization.
Opportunities:
The increasing adoption of API-based contact centers is expected to create significant opportunities for market growth. API-based contact centers allow for seamless integration with other applications, including customer relationship management (CRM) systems, marketing automation platforms, and e-commerce websites. The integration is projected to create opportunities for businesses to streamline operations, improve efficiency, and enhance the customer experience. API-based contact centers also offer greater flexibility in terms of customization and configuration, enabling businesses to tailor contact center solutions to meet specific needs. The flexibility in customization is expected to create opportunities for contact center providers to differentiate themselves by offering more advanced and customizable solutions to the customers.
Contact Center as a Service Market Segmentation:
By Offering:
The offering segment is bifurcated into solutions and services. The solution segment dominates the market and includes the software and applications that enable businesses to set up and operate contact center operations in the cloud. CCaaS solutions include features such as automatic call distribution (ACD), interactive voice response (IVR), and computer telephony integration (CTI). The interactive voice response has gained great importance during the pandemic. Many organizations have used IVR technology to gain information about COVID-19 symptoms and monitor patient health. For instance, in April 2020, Tamil Nadu CM launched the IVRS facility for COVID-19 to guide people based on the symptoms of COVID-19, and for people suffering from conditions such as diabetes and hypertension.
The services segment is anticipated to register the fastest CAGR during the forecast period as businesses adopt CCaaS solutions to manage the contact center operations in the cloud which will increase the demand for services. Service providers offer services such as maintenance, troubleshooting, and upgrades to help businesses optimize the contact center operations and ensure that the operations remain up to date with the latest technology and best practices. Service providers also provide services such as customer journey mapping, sentiment analysis, and customer feedback analysis to help businesses better understand and serve the customers.
By Enterprise Size:
The enterprise size segment is bifurcated into large and small & medium enterprises. Large enterprise dominates as large enterprises have better budgets than SMEs, which enables large enterprises to invest in more robust and comprehensive CCaaS solutions and to pay for premium features and customization to meet specific business needs. Therefore, large enterprises dominate the CCaaS market due to the unique customer service requirements, larger budgets, sophisticated IT infrastructure, need for scalability, and compliance and security requirements. For instance, in April 2021, SoftwareReviews listed three vendors as gold-medalists namely, Five9 Virtual Contact Center, Genesys Cloud, and Twilio Flex as best contact center as a service (CCaaS) software revealed by users.
Small & medium enterprise is expected to register the fastest CAGR during the forecast period due to the growing number of start-ups that demands CCaaS solutions to deliver customer service and support across multiple communication channels, including phone, email, chat, social media, and SMS. Also, CCaaS solutions are highly scalable, which makes CCaaS ideal for growing SMEs. SMEs start with a small solution and expand the capacity as the business grows, without incurring significant costs or requiring extensive IT expertise.
By Industry Vertical:
The industry vertical segment is categorized into BFSI, retail & e-commerce, government, healthcare, IT & telecom, travel & hospitality, and others. The IT and telecom segment dominates the market as the industry relies heavily on technical support operations to help customers troubleshoot issues with the products and services. CCaaS solutions provide the technology and tools needed to manage technical support operations effectively, including features such as screen sharing, co-browsing, and remote desktop control. CCaaS solutions also provide powerful analytics tools to help businesses analyze and evaluate data, including tools for sentiment analysis, customer journey mapping, and predictive analytics. For instance, in December 2021, Alcatel-Lucent Enterprise expands its Digital Age Communications portfolio with ALE Connect, a state-of-the-art hybrid CCaaS solution powered by AKIO. ALE Connect is a tool that helps customer services improve the way of communication with people through different channels including voice and digital platforms.
The travel & hospitality segment is anticipated to register the fastest CAGR during the forecast period as travel and hospitality industries rely heavily on reservation operations to manage bookings for hotels, flights, and other travel services. CCaaS solutions provide the technology and tools needed to manage reservation operations effectively, including features such as real-time availability checks, booking confirmations, and itinerary management. Customers in the travel and hospitality industries reach customer service and reservation teams using a variety of channels, including phone, email, chat, and social media. CCaaS solutions provide a unified platform for managing multichannel support, allowing agents to handle inquiries from multiple channels in a single interface.
By Region
North America holds the largest share of the contact center as a service market due to the increased investment in cloud-based software. Also, the presence of key players such as 8x8, Inc., Amazon Web Services, Inc., Avaya Inc., and Cisco Systems, Inc. offer a range of CCaaS solutions propelling the growth of CCaaS market. The companies apply innovative strategies to strengthen the position in the market. For instance, in January 2021, Avaya announced an expansion of its artificial intelligence (AI)-powered customer experience capabilities for Avaya OneCloud CCaaS customers, through an extended relationship with Amazon Web Services.
Asia-Pacific will register the highest CAGR during the forecast period. Asia-Pacific region has seen rapid growth in the business process outsourcing (BPO) industry, with many companies outsourcing customer service and other business processes to the region. The growth of BPO has created a strong demand for CCaaS solutions to support such operations which in turn fuels the growth of the market. Several governments in the Asia-Pacific region are taking steps to support the growth of the CCaaS market, including providing incentives for businesses to adopt cloud-based technologies, investing in digital infrastructure, and supporting the development of the technology sector. For instance, in September 2022, the government invested USD 30 billion in 4G, 5G, and a robust digital infrastructure in rural India.
Contact Center as a Service Market Competitive Landscape:
The competitive landscape of the Contact Center as a Service (CCaaS) market is highly fragmented, with a large number of players operating in the market. The companies offer a range of CCaaS solutions and services, including cloud-based contact center platforms, analytics and reporting tools, omnichannel capabilities, and integrations with other business applications. Key companies are:-
• 8x8, Inc.
• Amazon Web Services, Inc.
• Avaya Inc.
• Cisco Systems, Inc.
• Five9, Inc.
• Genesys Telecommunications Laboratories, Inc.
• Mitel Networks Corporation
• NICE Ltd.
• RingCentral, Inc.
• Talkdesk, Inc.
Recent Developments
• In May 2022, Zoom announced that it has entered a definitive agreement to acquire conversational AI and automation platform provider Solvvy. The acquisition is expected to help Zoom enhance its customer support offerings by leveraging Solvvys AI and automation capabilities to provide more efficient and personalized customer service.
• In March 2022, net2phone Acquires Integra, an Omnichannel CCaaS Platform. The acquisition is part of net2phones strategy to expand its offerings and provide more comprehensive cloud communication solutions to its customers.
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| Multi user | : $5460 |
| Corporate user | : $7460 |
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