Cloud-based Contact Center Market to See Huge Growth

The cloud-based contact center market was valued at $13.17 billion in 2019 and is expected to reach $49.12 billion by 2025, growing at a compound annual rate of 24.57 percent, according to a new report by Mordor Intelligence.

The report found that legacy contact centers cannot support newer channels, such as social media, mobile app chats, or videos, prompting the push to the cloud. Furthermore, cloud-based infrastructure makes contact centers extremely scalable and can save companies millions of dollars in operating costs, while also monitoring revenue leakage, it said.

Intensifying competition in the retail marketplace is driving growth for the cloud-based contact centers market, the report said. With retailers and e-tailers operating globally, compliance management becomes even more challenging. In May 2018, the European Union's General Data Protection Regulation (GDPR) empowered European customers and prospects to request that businesses delete their personal information. From live call monitoring and call recordings, supervisors of cloud-based contact centers can monitor key aspects of customer engagement to ensure adherence to regulations and identify issues.

Most retailers, offline and online, consider cloud contact centers as revenue-generators, which is prompting several companies to enter the space, according to the report. It notes that last year Google launched its Contact Center AI.<.p>

The rising omnichannel approach to sales, coupled with the expanding e-commerce industry in North America, is driving the demand for contact centers. Companies are trying to expand their business portfolio in the region due to the huge potential it offers. For instance, the omnichannel, cloud-based contact center software provider, ZaiLab, announced plans to expand its product offerings in North America.

Cloud contact centers have become a necessary step for companies to adopt a systematic approach that enhances performance, channel support, reporting and analytics, according to the report. But, the challenge for companies is choosing the right cloud contact center solution and strategic partner to achieve these goals, it concluded.

Leading vendors identified in the report include 3CLogic, 8X8, Amazon Web Services, Avaya, Cisco Systems, Connect First, Oracle, Genesys,, Five9, Mitel Networks, Aspect Software, and NICE inContact.