Cloud-Based Contact Center Market Analysis | 2023-2028

Market Insights

The cloud-based contact center market was estimated at USD 17.22 billion in 2022 and is likely to grow at a CAGR of 26.20% during 2023-2028 to reach USD 69.9 billion in 2028.

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Market Dynamics

Introduction

Cloud-based contact center solutions enable various companies to use contact center providers’ offerings on the cloud. These solutions help streamline the process of offering up-to-date and modernized services to customers. It also helps in personalizing these services to cater to their preferences and demands for offering the benefits of 24/7 technical support, minimal capital investment, and high levels of security, reliability, and scalability.

COVID-19 Impact

The COVID-19 pandemic has positively impacted the cloud-based contact center industry. Companies are opting for cloud-based contact center solutions to manage contact center operations during the pandemic and to execute day-to-day operations remotely. Also, the demand for cloud-based contact center solutions witnessed a surge in 2020 as it offer scalability, flexibility, and low setup cost, thus boosting the market growth, amid the pandemic.

Market Drivers

The cloud-based contact center market is driven by a host of factors, some of which are noted below:

• Cloud-based contact centers indeed offer limitless flexibility and scalability, making them a popular choice for businesses of all sizes.
• Increased utility of cloud-based contact center by BFSI, government & public sector, consumer goods & retail, and healthcare & life sciences.
• The increasing security and privacy concerns, as well as rising cyber-attacks, are important considerations for the market. While cloud-based contact centers offer numerous benefits, it's crucial to address these concerns to ensure the protection of sensitive customer data and maintain trust.

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Restraints:

• Data security and privacy concerns: Businesses must be sure that sensitive customer data stored in cloud-based contact centers is secure. In recent years, there have been several high-profile data breaches, raising worries about the security of cloud-based systems.
• Vendor lock-in: Once a company selects a cloud-based contact center provider, switching to another can be challenging. This is due to the fact that the company's data is housed in the provider's cloud, and migrating this data to a new provider can be costly and time-consuming.
• Lack of customization: Some cloud-based contact center solutions lack the customization capabilities of on-premises solutions. This might be a challenge for firms that require a contact center that is tailored to their specific requirements.
• Bandwidth constraints in emerging economies: The bandwidth accessible to businesses in some emerging economies is not as good as it is in wealthy countries. This can make using cloud-based contact center solutions problematic because these solutions require a specific level of bandwidth to function properly.

Segment Analysis

By Component Type

The cloud-based contact center market has been classified into Solutions & Services. Under these, the services segment held a significant market share in 2022. The services offered by cloud-based contact centers include consultancy, installation, integration, support, and maintenance.

By Organization Size Type

The market has been classified into small and medium-sized enterprises (SMEs) and large enterprises. Under these, the large enterprise segment held a significant market share in 2022. Large enterprises have a large corporate network with a huge customer base.

Improving customer experience with the benefits of better scalability, a pay-per-use subscription model, improved flexibility, and personalized customer interactions leading to improved customer experience, further boosts the segment growth.

By End-Use Type

The market has been classified into BFSI, telecommunications, IT and ITeS, government and public sector, retail and consumer goods, manufacturing, energy and utilities, media and entertainment, healthcare and life sciences, and others. Under this, the BFSI segment dominated the market in 2022 and is expected to remain dominant during the forecast period.

BFSI organizations may mine client data from websites, transactions, customer activities across banking and financial services, customer inquiries through numerous channels, and an in-depth understanding of prioritized consumer categories thanks to cloud-based contact center solutions. Contact center employees may improve client experiences by resolving calls more quickly and effectively with the use of cloud-based tools.

Regional Insights

North America held the highest market share in 2022 and is projected to grow at the fastest CAGR in the coming years. This is ascribed to the large presence of major players, increasing internet penetration, and a rising shift to cloud-based services from remote infrastructure, which bolsters the regional market growth during the review period.

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Key Players

The following are some of the key players operating in the market are-

• Avaya Contact Center (Ayaya Group) (US)
• RingCentral Inc. (US)
• Genesys Telecommunications Laboratories Inc. (US)
• 3CLogic Inc. (US)
• Connect First Inc. (US)
• Five9 Inc. (US)
• Mitel Networks Corporation (Canada)
• Aspect Software Parent Inc. (US)
• 8X8 Inc. (US)
• NICE inContact (US)

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s cloud-based contact center market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The cloud-based contact center market is segmented into the following categories.

By Component Type

• Solutions
• Services

By Organization Size Type

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

By End-Use Type

• BFSI
• Telecommunications
• IT and ITeS
• Government and Public Sector
• Retail and Consumer Goods
• Manufacturing
• Energy and Utilities
• Media and Entertainment
• Healthcare and Life Sciences

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, Norway, and the rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Japan, Australia, Indonesia, and the rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

Report Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Technology portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Development

April 19, 2023 - Revolutionizing Customer Care: Windstream Enterprise Teams Up with Talkdesk for AI-Driven CCaaS Powerhouse.

Windstream Enterprise, a leader in IT-managed network and communications, has joined forces with Talkdesk to introduce a game-changing AI-powered contact Centre as a Service (CCaaS) Solution. This partnership marries Talkdesk’s cloud-based contact center brilliance with Windstream Enterprise’s managed services, redefining customer experiences.

05 December 2022 - CBTS Unveils CXsync: Elevating SMB Customer Engagement with Next-Gen Cloud Contact Center Solutions.

Leading communications and cloud services provider, CBTS unveiled ‘CXsync Cloud Contact Centre’—a game-changing solution designed for small and midsize businesses.