Contact Center as a Service (CCaaS) Market Size, Share, and COVID-19 Impact Analysis, By Function (Interactive Voice Response (IVR), Multichannel, Automatic Call Distribution, Computer Telephony Integration (CTI), Reporting and Analytics, Workforce Optimization, Customer Collaboration, and Others), By Enterprise Type (SMEs and Large Enterprises), By Industry (BFSI, IT & Telecommunications, Government, Healthcare, Consumer Goods & Retail, Travel & Hospitality, Media & Entertainment, and Others), and Regional Forecast, 2023-2030

The Contact Center as a Service (CCaaS) market size was valued at USD 4.42 billion in 2022 and is projected to grow from USD 5.15 billion in 2023 to USD 16.43 billion by 2030, exhibiting a CAGR of 18% during the forecast period. North America dominated the global market with a share of 41.4% in 2022.

The market growth slowed significantly during the COVID-19 pandemic, owing to lack of demand for these solutions across all areas. However, the global market grew at a steady pace in 2021 due to a rise in the adoption of cloud-based services and software as well as CCaaS for the global remote working population.

This market study covers Contact Center as a Service (CCaaS) products and services offered by leading companies, such as Content Guru, Enghouse Interactive., 8x8, Inc., Computer Talk Technology Inc., Anywhere 365, and Luware AG., Genesys, and others operating across the world. These companies provide cloud-based contact center solutions, Interactive Voice Response (IVR) systems, voicebots, chatbots, contact center management services, and various additional services.

The market is likely to grow as major organizations are developing AI-powered contact center platform solutions to enhance customer experience. For instance,

In June 2021, IQVIA launched Medical Information (MI) contact center service driven by Artificial Intelligence (AI). The MI contact center service responds to inquiries from patients, customers, and Healthcare Professionals (HCPs) across the world through competent agents.

COVID-19 IMPACT

Spending on Digital Technologies Increased across End-user Industries amid COVID-19

Due to the shutdown of companies’ operations during the COVID-19 pandemic, the global economy saw a notable slump in GDP growth. However, customer service centers and contact centers saw significant growth in the overall volume of calls from customers across the globe in the healthcare industry.

A vast majority of the market's biggest Contact Center as a Service providers offer AI-powered chat solutions and cloud-based contact centers. During the COVID-19 outbreak, banks & financial service providers and government institutions increased their demand for contact center services. To retain their clients and workforce working in remote areas, several corporate firms have embraced and implemented CCaaS solutions that are equipped with advanced technologies. Also, numerous significant market players are increasing their spending on developing innovative technological tools.

In August 2021, Talkdesk, a cloud-based contact center software company, raised USD 230 million in a Series-D investment round from Whale Rock Capital Management. Talkdesk used new technologies, such as artificial intelligence and machine learning, to improve the customer service of large enterprises. Trivago N.V., IBM Corporation, Fujitsu Ltd, Acxiom, LLC, and others are among the company's 1,800+ clients.

LATEST TRENDS

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Growing Trend of Work from Home in Various Industries for Higher Client Retention

There is rising adoption of contact center as a service solution by companies across various industries to manage routine inquiries with automated responses. This helps to improve the performance of the employees who opted for work from home. As the Contact Center as a Service solution providers are implementing advanced analytics systems to provide dashboards with facts and figures that can affect their operations. The CCaaS trend of showing statistical dashboards on user interfaces to obtain real time updates on customer experiences is a significant market development. For instance,

• In August 2021, GWA Group Limited used NICE CXone for technological innovation and digital transformation, according to NICE Systems Ltd. This solution allowed the organization to transition to a digital contact center platform that managed remote operations and improved client experiences.

DRIVING FACTORS

Increasing Adoption of API-based Contact Centers to Aid Market Growth

The increased usage of cloud-based software services and AI-powered chatbots has fueled the expansion of the Contact Center as a Service industry. The growing number of prominent organizations launching Application Programming Interface (API)-based contact center solutions is expected to drive the market expansion throughout the forecast period.

An API-based contact center solution offers online customer care by managing messages, texts, live chats, emails, phone calls, SMS, and support requests for businesses. Several major firms are developing API-based customer experience contact centers, boosting the market growth.

• In March 2021, Twilio introduced a unified chat API for a contact center named Flex Conversation, combining chat, SMS, and WhatsApp on Flex with a single API. This Flex Conversation helped developers create a contact center for different chat channels under a single platform.

RESTRAINING FACTORS

Rising Threat of Frauds, Security Concerns, and Data Breaches May Hinder Market Growth

The growing use of digital technologies, such as artificial intelligence and cloud computing has raised the danger of data breaches and cyberattacks in contact centers. There is a greater need for compliance, security, and data protection with growing internet connectivity and usage. For instance, according to statistics offered by NICE, a software solutions provider, contact centers across the world handle more than 100 billion calls every month, with one out of every 1,700 calls being identified as a fraud. The contact center platform manages a massive volume of client data that is highly vulnerable to data security threats.

SEGMENTATION

By Function Analysis

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Rising Demand for Effective Interactions with Healthcare Professionals During COVID-19 Boosted Adoption of IVR Systems

Based on function, the market is segmented into multichannel, Interactive Voice Response (IVR), Computer Telephony Integration (CTI), automatic call distribution, reporting and analytics, customer collaboration, workforce optimization, and others (recording, dialer).

The Interactive Voice Response (IVR) segment is likely to hold a dominant market share. IVR is an automated computer system that connects with consumers and company staff. Several organizations used the IVR technology to get information about COVID-19 symptoms and the patient's health during the COVID-19 pandemic.

Workforce optimization, customer collaboration, Computer Telephony Integration (CTI), reporting & analytics, multichannel, automatic call distribution, and others (recording, dialer) are fueling the demand in digital services, thereby surging the adoption of CCaaS software. This factor is expected to boost the Contact Center as a Service market growth.

By Enterprise Type Analysis

Growing Number of SMEs in IT and Telecommunication Sector to Drive Market Growth

Based on enterprise type, the market is bifurcated into SMEs and large enterprises.

The SMEs segment is expected to dominate the market share due to the rising number of start-ups and increased investment in cloud-based software solutions among the leading companies.

By Industry Analysis

Increasing Investment in IT & Telecommunications Sector with Surge in Digitalization Globally to Aid Market Growth

Based on industry, the market is categorized into BFSI, IT & telecommunications, government, healthcare, consumer goods & retail, travel & hospitality, media & entertainment, and others.

The IT & telecommunications segment is expected to capture a large market share. A wide range of CCaaS solutions are used in this industry due to the growing emphasis on customer demands and taking a digital approach to customer interactions. This sector's expansion has surged the demand for CCaaS.

The government, healthcare, travel, hospitality, consumer goods, retail, BFSI, and media & entertainment industries are expected to showcase steady growth in this market. This is owing to the increased demand for monetizing wireless networks via new services, products, and business models.

REGIONAL INSIGHTS

North America Contact Center as a Service (CCaaS) Market Size, 2022 (USD Billion)

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The global market has been analyzed across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

The North America Contact Center as a Service Market size was valued at USD 1.83 Billion in 2022 and is growing at a CAGR of 15.5% from 2023 to 2030. North America is anticipated to lead the global Contact Center as a Service (CCaaS) market share. Increased investments in cloud-based software and numerous reputed firms in the U.S. are predicted to boost the market expansion during the analysis period. The presence of several reputed CCaaS providers in the U.S. including Talkdesk, Inc., Genesys Inc., 8x8, Inc., and many others are driving the market growth in the region.

Asia Pacific is anticipated to record the fastest CAGR during the forecast period. China and Japan are projected to dominate this region and are among the market's fastest-growing countries. One of the major factors contributing to the regional market’s growth is the increased investment by renowned organizations in automating business operations.

Europe is predicted to capture the second-largest market share due to a spike in the use of cloud technologies, government assistance, and high investments in the industrial and healthcare sectors to streamline corporate operations.

Key players are investing in and launching Contact Center as a Service solution in emerging nations across Latin America and the Middle East & Africa such as GCC, the Philippines, Columbia, Mexico, Chile, Brazil, South Africa, and others. For instance,

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• In July 2021, GoContact, a CCaaS solution provider, expanded its sales and support activities to Angola and Colombia.

KEY INDUSTRY PLAYERS:

Rising Introduction of AI-powered Tools by Key Market Players to Aid Market Growth

Companies offering Contact Center as a Service solutions including NICE, Cisco Systems, Evolve IP, LLC, Luware AG., 8x8, Inc., Talkdesk Inc., and others are focusing on releasing AI-powered unique cloud-based solutions. These companies are increasing their investments in cloud platforms to meet the robust demand for enhanced tools from clients. To expand their operations throughout the world, the market participants use various methods, such as acquisitions, partnerships, mergers, and collaborations. For instance,

• May 2021: Wavenet partnered with Content Guru Limited. The essential feature of this partnership was the company's goal to team up with high-value partners in the market and develop the Contact Center as a Service software globally.


• April 2021: Westcon Group, Inc. and 8x8, Inc. announced a distribution partnership. The agreement provided updated cloud communication and contact center solutions, retail CCaaS public cloud services, and Unified Communications (UCaaS) to Westcon's partners.

List of the Key Companies Profiled:

• Anywhere365 Enterprise Dialogue Management (Netherlands)


• Computer Talk Technology Inc. (Canada)


• 8x8, Inc. (U.S.)


• Content Guru Limited (U.K.)


• Enghouse Interactive (U.S.)


• Genesys Telecommunication Laboratories, Inc. (U.S.)


• NICE Systems Ltd. (Israel)


• Talkdesk Inc. (U.S.)


• Luware AG. (Switzerland)


• Evolve IP, LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Windstream Enterprise entered into a partnership with Talkdesk, Inc., a cloud-based contact center solution provider to deliver new AI-powered contact center as a service solution powered by Talkdesk and aims to expand its product portfolio to provide secure multichannel customer experience.


• June 2022: SuccessKPI, Inc. entered into a partnership with LiveVox Holdings, Inc., a cloud-based customer service provider, to deliver SuccessKPI's all-in-one insights and action platform to get a 360-degree view of contact centers for LiveVox’s customers.


• February 2022: Zoom Video Communications, Inc. launched Zoom Contact Center, the first omnichannel cloud contact center platform to deliver customer service experience through various channels such as video, SMS, voice, and web chat.


• July 2021: Genesys Telecommunication Laboratories, Inc. announced new capabilities that enabled rapid innovation of AI-driven consumer experiences. These new capabilities were said to make it easier for businesses to design and manage their own bot experiences, connect third-party messaging applications, and give technical training to their employees.


• June 2021 – Talkdesk, Inc. launched the "Talkdesk community" engagement platform for contact center specialists to share best practices and improve customer experience. This chat room community may let consumers, workers, and members engage in discussions and gain exclusive advice and ideas from users across the globe.


• February 2021: Anywhere365 formed a strategic alliance with ASC Technologies to incorporate compliance recording of calls into Microsoft Teams Contact Centers. Through this partnership, Anywhere365 would integrate ASC Recording Insights software into its Azure-based Dialogue Cloud Platform.

REPORT COVERAGE

An Infographic Representation of Contact Center as a Service (CCaaS) Market

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The research report highlights leading regions across the world to help the user understand the market better. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being rapidly deployed across the world. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Unit	Value (USD billion)
Growth Rate	CAGR of 18% from 2023 to 2030
Segmentation	By Function, Enterprise Type, Industry, and Region
By Function	Interactive Voice Response (IVR) Multichannel Automatic Call Distribution Computer Telephony Integration (CTI) Reporting and Analytics Workforce Optimization Customer Collaboration Others (Recording, Dialer)
By Enterprise Type	SMEs Large Enterprises
By Industry	BFSI IT and Telecommunications Government Healthcare Consumer Goods and Retail Travel and Hospitality Media and Entertainment Others
By Region	North America (By Function, By Enterprise Type, By Industry, and By Country) U.S. (By Function) Canada (By Function) Europe (By Function, By Enterprise Type, By Industry, and By Country) U.K. (By Function) Germany (By Function) France (By Function) Italy (By Function) Spain (By Function) Rest of Europe Asia Pacific (By Function, By Enterprise Type, By Industry, and By Country) China (By Function) India (By Function) Japan (By Function) Southeast Asia (By Function) Rest of Asia Pacific Middle East & Africa (By Function, By Enterprise Type, By industry, and By Country) GCC (By Function) South Africa (By Function) Rest of the Middle East & Africa Latin America (By Function, By Enterprise Type, By Industry, and By Country) Brazil (By Function) Mexico (By Function) Rest of Latin America