Research firm Azoth Analytics expects the worldwide contact center-as-a-service (CCaaS) market to generate $17.83 billion by the end of 2029, up from $4.73 billion in 2022. This equates to a 19.28 compound annual growth rate.
As businesses increasingly embrace digital technologies and channels, there's a growing need to modernize their contact center operations. CCaaS solutions provide the flexibility to adapt to these changes, enabling businesses to meet customer expectations in a digital-first world, the research firm said in its report.
CCaaS allows companies to scale their contact center operations up or down easily. This flexibility is crucial in industries with fluctuating call volume, such as retail during the holiday season or healthcare during a public health crisis, it said further.
Comparatively, on-premises contact center systems can be expensive to set up and maintain, while CCaaS solutions eliminate the need for significant upfront investments and reduce ongoing operational costs as organizations pay for the services they use on a subscription or pay-as-you-go basis, Azoth said.
Also fueling the rise in cloud deployments is the rise of remote work and hybrid work models that was accelerated by the COVID-19 pandemic, according to the firm, which noted that CCaaS platforms enable agents to work from anywhere with an internet connection, ensuring business continuity and flexibility.
CCaaS solutions, which Azoth said are increasingly incorporating AI and automation to enhance customer service, also easily integrate with CRM systems, enabling agents to access customer data and history, resulting in more personalized interactions, it said.
The report identified Twilio, Amazon Web Services, Genesys, NICE, RingCentral, Avaya, Zendesk, 8x8, and Cisco as leading providers in the cloud contact center market.