Contact Center-as-a-Service Market to be Worth $17.12 Billion by 2030

Grand View Research projects the global contact center-as-a-service (CCaaS) market to reach $17.2 billion by 2030, growing at a compound annual rate of 18.4 percent.

The firm last year predicted that the market would reach $10.80 billion by 2028, at a compound annual growth rate of 15.7 percent. It valued the market at $554.5 million in 2017.

The current growth projections reflect businesses' growing need to provide better flexibility and customer convenience, according to the firm. They also want a holistic view of agent performance and how they are achieving organizational goals.

CCaaS solutions, Grand View said further, offer benefits such as reduced integration, support, and IT-related costs.

Technologies covered in the report include systems for automatic call distribution, call recording, computer-telephony integration, customer collaboration, dialers, interactive voice response, reporting and analytics, and workforce optimization. Of these, the customer collaboration segment is expected to witness the highest CAGR, due largely to the rising focus of businesses on offering enhanced customer satisfaction by solving their issues and promptly attending their calls.

In terms of service, Grand View expects the managed services segment to register the highest CAGR. The increasing need for monitoring IT operations, data backup and recovery, help desk support, and security is expected to drive the demand for managed services.

Grand View also expects small and mid-sized businesses to register the highest CAGR. Convenient service delivery and the low cost of investment related to CCaaS is boosting its adoption across small and mid-sized companies, it said.

Grand View also noted that the consumer goods and retail industries will provide the most promising growth opportunities to the market, particularly as consumers continue to turn to online channels for purchases during the ongoing COVID-19 pandemic.

But that's not the only affect COVID-19 is having on the CCaaS market. As the pandemic continues, cloud-hosted contact centers are gaining traction as they provide better levels of reliability, availability, and disaster recovery because agents can access the tools they need to perform their jobs from anywhere, the firm concluded.

Moreover, cloud-hosted contact centers provide better workforce elasticity for easily scalable solutions and faster deployment of new capabilities and technology solutions, it said further.

However, the increasing concerns about data security are expected to hamper market growth, it said, noting that CCaaS solutions handle a huge amount of consumers' personal and financial data, which could be at risk of malicious attacks.

The market growth comes as many of the key technology vendors are developing cloud contact centers to enhance operational functionality and flexibility for users. As an example, the Grand View report cited Infosys' January 2021 launch of the Infosys Cortex, a customer engagement platform that leverages technology from Genesys along with Contact Center AI and analytics services from Google Cloud.

The report also noted that many CCaaS providers are partnering with communication companies to deploy contact center software and expand their reach. For instance, in April 2021, Talkdesk announced a partnership with Welltel, a communication and IT company based in Ireland. Under the partnership, Welltel would offer Talkdesk cloud contact center solutions to Irish companies.

Other prominent CCaaS vendors mentioned in the report include Alcatel-Lucent, Avaya, Cisco Systems, Enghouse Interactive, Five9, Genesys, Microsoft, NICE-inContact, SAP, and Unify.

Grand View has also recently predicted that the global contact center analytics market would reach $5.75 billion by 2030, expanding at a CAGR of 19.3 percent, as companies look to track and measure business performance at each level while reducing overhead and operational expenses.

It also recently projected the entire global contact center software market—both in the cloud and on-premises—to reach $149.58 billion by 2030, growing at a CAGR of 23.2 percent.