Contact Center Market to Grow by USD 161.73 Billion (2023-2027) as Cloud Adoption Soars, How AI is Driving Market Transformation - Technavio

NEW YORK, Sept. 4, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global contact center market size is estimated to grow by USD 161.73 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of over 9.33% during the forecast period. Rising adoption of cloud-based contact centers is driving market growth, with a trend towards integration of chatbots for better turnaround times. However, inability to achieve an asa poses a challenge. Key market players include 8x8 Inc., ALE International, Alphabet Inc., Alvaria Inc., Amazon.com Inc., Ameyo Pvt Ltd., Atos SE, Avaya Holdings Corp., Cisco Systems Inc., Enghouse Systems Ltd., Five9 Inc., Genesys Telecommunications Laboratories Inc., Mitel Networks Corp., NEC Corp., NICE Ltd., SAP SE, Vocalcom Group, Vonage Holdings Corp., Zendesk Inc., and ZTE Corp..

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Market Driver

In a contact center, agents may need to ask callers to wait while they retrieve necessary data to resolve issues. Delays in response time can lead to customers seeking alternatives or switching to competitors. To address this challenge, contact centers are integrating chatbots into their processes. These automated tools provide instant responses to customers, resulting in faster turnaround times. Chatbots eliminate the dependency on repair personnel and offer direct solutions to customers, enhancing the overall customer experience. This integration not only improves response times but also enables enterprises to delight their customers without sacrificing the human touch. By providing efficient and effective solutions, chatbots contribute to the success of businesses and increase the adoption of contact center solutions. 

Contact centers are evolving with trends like autonomy and learning curve, allowing end users to manage interactions independently. OEMs provide CCaaS solutions, including Contact center platforms for Phone calls, Emails, Chats, and SMS marketing. AI and automation technologies, such as Virtual assistants and AI-powered chatbots like Meera, enhance customer engagement. Service providers ensure data protection policies align with AI/ML advancements. CX focuses on customer satisfaction, experience, and self-service interactions. Training and skill requirements adapt to virtual work. Telecommunications vertical continues to drive innovation. 

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 Market Challenges

• Contact centers face a significant challenge in achieving a specified average speed of answer (ASA), a crucial performance indicator. The ASA measures the time a customer spends waiting in a queue and the time an agent's phone rings. However, it does not account for IVR navigation time. To meet the desired ASA and service levels, contact centers must effectively manage their resources using workforce management (WFM) solutions. The increasing customer demand for superior services intensifies this challenge for vendors of contact center solutions.
• Contact centers face numerous challenges in today's business landscape. AI and ML technologies require significant investment and integration with CRM systems. Social media's growing importance brings new capabilities, but also brand value and impact risks. Automation and cloud services offer convenience, but security concerns and technical complexities loom. CFOs and CTOs grapple with IT spending decisions, while virtual work and customer satisfaction demand new training and skill requirements. Cloud service providers, technology, and solution providers, system integrators, and IT solution manufacturers offer solutions. However, the ecosystem's complexity, multiple vendors, and dynamic customer demands pose challenges. Legacy systems and abandoned client queries lead to customer turnover. Social media influencers and word of mouth impact brand image. Emotions and sentiments must be addressed for optimal customer experience. Recession and technical complexities add to the pressure. Self-service bots and ML offer potential solutions, but require careful implementation.

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Segment Overview 

This contact center market report extensively covers market segmentation by

1. Type 
• 1.1 Voice-based
• 1.2 Text-based
• 1.3 Social media-based
2. Deployment 
• 2.1 On-premises
• 2.2 Cloud-based
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Voice-based- Contact centers are shifting from voice-based interaction to IVR technology, live chat, and social media for customer queries. Voice interaction helps reduce query resolution time, but IVRs, an application using touch-tone keypads and voice inputs, offer live information through text-to-speech and access to databases. BSFI and logistics industries are major users. However, text-based and social media interaction's popularity may decrease voice-based interaction's market share. Vendors focus on advanced voice solutions for high call volumes, driving growth in customer care services across industries.

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Research Analysis

The Contact Center market is experiencing a significant transformation, driven by advanced technologies such as AI/ML, CRM, and automation. Cloud services have become the norm, enabling remote work and reducing IT spending. Security is a top priority, with CTOs and CFOs focusing on data protection and compliance. Customer satisfaction and experience are key metrics, with self-service interactions and brand impact becoming increasingly important. Abandoned client queries and customer turnover are major concerns, leading to the adoption of CCaaS solutions and contact center platforms. Social media plays a crucial role, with influencers shaping public perception and word of mouth driving business. Emotion recognition and ML-powered interactions offer new opportunities for personalized experiences, while the convenience of autonomy and learning curve challenges technical knowledge. Overall, the Contact Center market is evolving to meet the demands of modern consumers and businesses.

Market Research Overview

The Contact Center market is experiencing significant growth, driven by the adoption of advanced technologies such as AI/ML, CRM, and automation. Cloud services, including data centers and cloud computing providers like AWS, are also playing a major role in the industry's expansion. Security and privacy are top priorities, with CFOs and CTOs increasing IT spending on data protection policies and customization options. Virtual work and self-service interactions are becoming the norm, with self-service bots and ML-powered chatbots providing convenience and autonomy for end users. Technical complexities and organizational factors can pose challenges, however, especially when dealing with legacy systems and multiple vendors. Dynamic customer demands require continuous training and skill development for contact center agents. Social media capabilities, including social media influencers and word of mouth, are increasingly important for brand value and impact. Emotion and sentiments are also key factors in customer satisfaction and experience. The ecosystem includes technology providers, cloud service providers, solution providers, system integrators, IT solution manufacturers, and OEMs. Telecommunications vertical and CCaaS solutions are also part of the Contact Center market landscape. However, economic downturns, such as recessions, can impact contact center spending, and technical knowledge and learning curve can be barriers for some end users. Despite these challenges, the Contact Center market continues to evolve, offering new opportunities for innovation and growth.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Voice-based
• Text-based
• Social Media-based
• Deployment
• On-premises
• Cloud-based
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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