Contact Center Software Market to Hit $75.5 Billion by 2026

Analyst firm MarketsandMarkets has predicted that the global contact center software market will grow from $24.1 billion in 2020 to $75.5 billion by 2026 at a compound annual growth rate (CAGR) of 20.9 percent.

Major factors that are expected to drive the growth of the contact center software market include the rising adoption of advanced contact center technologies, the need for handling contact center agent attrition and absenteeism, the emerging role of social media in contact center operations, increasing adoption of virtual and cloud-based contact center solutions to achieve better business continuity during the COVID-19 pandemic, the growing need for omnichannel solutions to minimize efforts in reaching customers, and rising demand for personalized and streamlined customer interactions, the research found.

MarketsandMarkets identified NICE, Genesys, Cisco, Avaya, Five9, Talkdesk, and Vonage as the key platers in the contact center software market, which it says includes omnichannel routing, workforce management, reporting and analytics, customer engagement management, computer-telephony integration, messaging, compliance, and data integration.

These solutions address critical contact center needs related to the management of agent performance and inbound and outbound operations, such as customer query resolution, selling and prospecting, information delivery, and customer communication management. The need for minimizing average handling time, turnaround time, call bounces, abandoned calls, and after-call work; increasing customer satisfaction, customer effort scores, and net promoter scores; and adding to customers' lifetime value are all expected to drive the demand for omnichannel routing, reporting and analytics, and customer engagement solutions. it said.

The research also suggests that small and midsized businesses (with fewer than 1,000 employees) will see the largest growth in terms of contact center software adoption during the forecast period. These firms have traditionally depended on manual processes to manage their contact center processes due to a lack of awareness and budget constraints. However, the intensely competitive market scenario has encouraged smaller firms to invest in automated solutions to achieve high business efficiency. Being constrained by limited budgets, small IT infrastructures, and limited staff, these firms are looking for flexible, scalable, and cost-effective solutions.

The research also found that the retail and consumer goods industry verticals will grow at the highest CAGR during the forecast period. These industries, MarketsandMarkets explained, are highly customer-centric, and companies are adopting different penetration strategies and leveraging various industry-ready technologies to enhance customer experiences, improve customer retention, maintain a certain brand image, capture a larger market share, increase sales, enhance customer experiences, and better manage customer profiles and agent interactions with customers.