Research firm MarketsandMarkets expects the global cloud-based contact center market to grow from $17.1 billion this year to $54.6 billion by 2027, at a compound annual growth rate (CAGR) of 26.1 percent. That is s significant upward shift from just a few months ago, when the firm projected the market to reach $36.1 billion in 2025.
Of the various solutions involved, MarketsandMarkets sees the largest growth potential for digital transformation, artificial intelligence, advanced analytics and reporting, and automation.
Based on deployment mode, MarketsandMarkets expects the private cloud segment to grow at a much faster rate.
"Private cloud mainly addresses the security and compliance concerns of enterprises. Therefore, enterprises that have customer-critical data opt for private cloud," it said in the report. "With the help of the private cloud deployment mode, enterprises can address security concerns within their corporate firewalls. This deployment mode enables companies to have better control over data, reduce the risks of data loss, and eliminate issues related to regulatory compliance."
MarketsandMarkets also expects small and midsized companies to see much higher adoption in the future.
"The cloud-based contact center market for SMEs is expected to expand traction as it provides flexibility and scalability along with reduced costs. The execution of cloud storage is expected to result in increased revenue, desired outcomes, and improved business efficiency for SMEs," it said. "However, SMEs face three critical challenges: capital, skills, and scalability. To overcome these issues, SMEs adopt the pay-as-you-go mode, which offers flexibility to manage their IT infrastructure according to their requirements."
Some of the prominent players identified in the report are NICE, Genesys, Five9, Vonage, Talkdesk, 8x8, and Cisco.