Contact Center Software Market to Double in 5 Years

Research firm MarketsandMarkets currently valued the global contact center software market at $17.65 billion and projects it to double in five years, reaching $35.32 billion by 2023. The firm's estimates are based on a projected compound annual growth rate (CAGR) of 14.9 percent through 2023.

According to the firm, seamless customer experiences delivered through multiple channels, such as voice, video, web, and social media; the automation of inbound and outbound processes; and the growing adoption of cloud contact center solutions are driving the contact center software market.

However, the high initial investment incurred while integrating new solutions with legacy systems could restrain market growth for a while.

The report also includes professional services, including integration and implementation, consulting, training, and software support, as part of the contact center software market. Managed services, which are also included, are expected to record a higher adoption rate than professional services, it concluded.

While the report points out that the consumer goods and retail verticals are expected to grow at the highest CAGR during the forecast period, it says other industry verticals, such as banking, financial services, insurance, healthcare, IT and telecom; and travel and hospitality, are increasingly adopting contact center software and services as well.

Businesses all over the world are realizing that contact center software enables them to reach customers and manage their queries through multiple touch points, such as voice, chat, video, web, mobile, and social media. Furthermore, contact center software allows them to cross-sell and up-sell products and services to customers by facilitating effective communication through multiple channels.

North America is expected to hold the largest share of the market, mainly due to the high focus on innovation. The high adoption rate of cloud, mobile, analytics, and social media among enterprise across industry verticals is further expected to help the contact center market grow in North America.

At the same time, though, Asia-Pacific is expected to grow at the highest CAGR, with the region's high number of small and midsized firms increasing the adoption of relatively low-cost cloud-based and mobile contact center software. Additionally, companies in the region are increasingly looking to strengthen brand presence and loyalty by reaching customers through multiple channels, including voice, video, web, mobile and social media.

The report identifies 3CLogic, 8x8, Alcatel-Lucent, Ameyo, Aspect Software, Avaya, BT, Cisco, Enghouse Interactive, Fenero, Five9, Genesys, Huawei, IBM, Mitel, NEC, NICE, Oracle, RingCentral, SAP, Solgari, Unify, Verizon, Vocalcom, West, Zendesk, and ZTE as the major vendors in the contact center software market. These vendors, it asserts, have adopted different organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers and acquisitions, to expand their offerings.