Cloud-Based Contact Centers Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 27.22 Billion |
| Market Size (2029) | USD 87.10 Billion |
| CAGR (2024 - 2029) | 26.19 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Cloud-Based Contact Centers Market Analysis
The Cloud-based Contact Center Market size is estimated at USD 27.22 billion in 2024, and is expected to reach USD 87.10 billion by 2029, growing at a CAGR of 26.19% during the forecast period (2024-2029).
The cloud-based contact center market refers to the industry that provides cloud-based services for managing customer interactions and communications. It involves using cloud computing technologies to deliver contact center functionalities and capabilities over the Internet.
- Cloud-based contact centers are highly scalable, allowing businesses to easily adjust their capacity based on changing customer demands. Organizations can quickly add or remove agents and resources, ensuring optimal performance and cost efficiency.
- The increasing demand for cloud-based services has been a significant driver for the growth of the cloud-based contact center market. Several factors contribute to this growing demand. Cloud-based contact center services offer organizations the flexibility to scale their operations up or down based on their needs. Businesses can easily add or remove agents, open new contact center locations, or expand into new markets without physical infrastructure limitations. This scalability allows organizations to adapt quickly to changing business requirements and customer demands.
- The market's growth is driven by reduced capital expenses and faster deployment associated with cloud-based contact centers. Traditional on-premises contact centers require substantial upfront investments in hardware, software licenses, infrastructure setup, and maintenance. In contrast, cloud-based contact centers operate on a subscription or pay-as-you-go model, significantly reducing capital expenditures.
- Organizations can avoid the high initial costs of purchasing and maintaining hardware equipment, such as servers and networking infrastructure. Instead, they can leverage the infrastructure provided by the cloud service provider, paying only for the resources they need. This cost-effective model allows businesses of all sizes to access advanced contact center capabilities without a heavy financial burden.
- Organizations may be concerned about their customer data's privacy and protection when utilizing cloud-based services. Since the data is stored and processed in the cloud, there is a perceived risk of unauthorized access, data breaches, or data leakage. Compliance with data protection regulations, such as the General Data Protection Regulation (GDPR), is crucial to address these concerns. To protect sensitive information, cloud service providers often implement robust security measures, including encryption, access controls, and data segregation. Demonstrating compliance and ensuring strong data privacy practices can help alleviate these concerns.
Cloud-Based Contact Centers Market Trends
IT and Telecom End User Industry is Expected to Hold Significant Market Share
- The cloud-based contact center market was experiencing significant growth and adoption in the IT and Telecom industries. Cloud-based contact centers offer several advantages over traditional on-premise solutions, making them increasingly attractive to IT and telecom businesses.
- Cloud-based contact centers provide flexibility in terms of scaling up or down based on demand. IT and Telecom companies, which often experience fluctuations in customer inquiries and support requirements, find this scalability beneficial in optimizing their resources.
- Moving to the cloud allows companies to avoid upfront infrastructure costs and only pay for the resources they actually use. This cost-effective model particularly appeals to IT and Telecom companies aiming to improve their operational efficiency and reduce expenses.
- Public cloud platforms offer a rapid deployment process. IT and Telecom companies can quickly set up and configure cloud-based contact centers without the need for extensive hardware investments or complex infrastructure setups. These platforms provide seamless scalability, allowing businesses to adjust their contact center resource-based demand and business expansion.
- The increasing usage and adoption of public cloud platforms have significantly driven the growing demand for cloud-based solutions in the cloud-based contact center market. According to Flexera Software, in 2023, 47 percent of respondents are already running significant workloads on Amazon Web Services (AWS).
- As organizations prioritize agility, scalability, and cost-efficiency in their customer service operations, the demand for cloud-based contact center solutions is expected to increase. The cloud-based contact center market will likely witness significant growth as businesses recognize the advantages offered by cloud technology in delivering exceptional customer experiences.
Asia Pacific is Expected to be the Fastest Growing Market
- The Asia Pacific region is experiencing significant cloud-based contact center market growth. The Asia Pacific region is witnessing a rapid digital transformation across industries. Businesses increasingly adopt cloud-based services to enhance customer service capabilities and stay competitive in the digital era. This digital transformation drive is fueling the demand for cloud-based contact center services.
- The Asia Pacific region has a large and rapidly growing population of Internet users, coupled with increasing smartphone penetration. This widespread Internet and mobile connectivity provides fertile ground for cloud-based contact centers to thrive. It enables businesses to reach a larger customer base and provide seamless customer support across multiple digital channels.
- Customer expectations in the Asia Pacific region are evolving rapidly. Consumers now expect personalized and consistent customer experiences across various communication channels. With advanced features such as omnichannel communication, analytics, and artificial intelligence (AI)-driven automation, cloud-based contact center services enable businesses to meet these evolving customer demands.
- The Asia Pacific region has a vibrant small- and medium-sized enterprise (SME) sector, and many SMEs are recognizing the benefits of cloud-based contact center services. These services offer SMEs cost-effective and scalable options to establish customer support operations, enhance customer engagement, and compete with larger enterprises. The cloud-based model eliminates the need for upfront investments in hardware and software, making it more accessible for SMEs.
- Several countries in the region have been actively promoting digital adoption through supportive government policies and initiatives. These initiatives create a conducive environment for businesses to invest in cloud-based contact center solutions and other digital technology.
Cloud-Based Contact Centers Industry Overview
The cloud-based contact center market is highly fragmented, with the presence of major players like Avaya Contact Center (Ayaya Group), RingCentral Inc., Genesys Telecommunications Laboratories Inc., 3CLogic Inc., and Five9 Inc. Moreover, the cloud-based contact center is used in various industries to provide vendors with growth opportunities. Players in the market are adopting strategies such as partnerships, collaborations, and acquisitions to enhance their service offerings and gain sustainable competitive advantage.
In December 2022, Lumen Technologies launched Lumen Solutions for Contact Centre - Genesys Cloud. This launch signifies Lumen's expanded collaboration with Genesys, a prominent player in cloud-based experience orchestration and a leading global supplier of contact center technology. The collaboration between Lumen and Genesys has led to the development of this new offering aimed at providing enhanced contact center solutions to customers.
In August 2022, Kyndryl, one of the largest global providers of IT infrastructure services, announced a global partnership and expanded its relationship with Five9 to collaborate on cloud-based contact center solutions that provide personalized experiences to customers and employees while assisting businesses in navigating the rapidly changing needs and requirements of the digital business landscape.
Cloud-Based Contact Centers Market Leaders
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Avaya Contact Center (Ayaya Group)
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RingCentral Inc.
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Genesys Telecommunications Laboratories Inc.
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3CLogic Inc.
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Five9 Inc.
*Disclaimer: Major Players sorted in no particular order
Cloud-Based Contact Centers Market News
- March 2023: Lumen partnered with Talkdesk to enhance its cloud-based contact center solutions. Lumen clients now have access to the entire range of Talkdesk cloud contact center solutions.
- February 2023: RingCentral, Inc., one of the global providers of enterprise cloud communications, video meetings, collaboration, and contact center solutions, announced an expanded strategic partnership agreement with Avaya Inc. to enhance and simplify communications and collaboration. Avaya Cloud Office by RingCentral (ACO) continues to serve as Avaya's exclusive multi-tenanted unified communications-as-a-service (UCaaS) solution for its customers, including the extensive on-premises installed base that spans millions of users worldwide. This offering plays a vital role in Avaya's ongoing transformation and expedited recapitalization efforts.
Cloud-based Contact Center Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Cloud-based Solutions
5.1.2 Reduced Capital Expenses and Faster Deployment of Cloud Contact Center
5.2 Market Restraints
5.2.1 Security Concerns Regarding Cloud-based Solutions
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Automatic Call Distribution
6.1.2 Agent Performance Optimization
6.1.3 Dialers
6.1.4 Interactive Voice Response
6.1.5 Computer Telephony Integration
6.1.6 Analytics and Reporting
6.2 By Service
6.2.1 Professional Services
6.2.2 Managed Services
6.3 By End-User Industry
6.3.1 Banking, Financial Services and Insurance (BFSI)
6.3.2 IT and Telecom
6.3.3 Media and Entertainment
6.3.4 Retail
6.3.5 Logistics and Transport
6.3.6 Healthcare
6.3.7 Other End-User Industries
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Avaya Contact Center (Ayaya Group)
7.1.2 RingCentral Inc.
7.1.3 Genesys Telecommunications Laboratories Inc.
7.1.4 3CLogic Inc.
7.1.5 Five9 Inc.
7.1.6 Connect First Inc.
7.1.7 Mitel Networks Corporation
7.1.8 Aspect Software Parent Inc.
7.1.9 8X8 Inc.
7.1.10 NICE inContact
7.1.11 Teleforge Corporation
7.1.12 1Stream Inc.
7.1.13 AVOXI Inc.
7.1.14 Odigo SAS
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK
Cloud-Based Contact Centers Industry Segmentation
Cloud-based contact centers are basically defined as network-based services in which the cloud services provider owns and operates the technology pertaining to contact centers. The study characterizes cloud-based contact centers based on the type, by service that includes professional and managed services, and by the end-user industry.
The report covers the global cloud-based contact center solutions market growth. It is segmented by type (automatic call distribution, agent performance optimization, dialers, interactive voice response, computer telephony integration, and analytics and reporting), services (professional services and managed services), end-user industry (banking, financial services, and insurance(BFSI), it and telecom, media and entertainment, retail, logistics and transport, healthcare, and other end-user industries), geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market size and forecasts are provided in terms of value USD for all the above segments.
| By Type | |
| Automatic Call Distribution | |
| Agent Performance Optimization | |
| Dialers | |
| Interactive Voice Response | |
| Computer Telephony Integration | |
| Analytics and Reporting |
| By Service | |
| Professional Services | |
| Managed Services |
| By End-User Industry | |
| Banking, Financial Services and Insurance (BFSI) | |
| IT and Telecom | |
| Media and Entertainment | |
| Retail | |
| Logistics and Transport | |
| Healthcare | |
| Other End-User Industries |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Cloud-based Contact Center Market Research Faqs
How big is the Cloud-based Contact Center Market?
The Cloud-based Contact Center Market size is expected to reach USD 27.22 billion in 2024 and grow at a CAGR of 26.19% to reach USD 87.10 billion by 2029.
What is the current Cloud-based Contact Center Market size?
In 2024, the Cloud-based Contact Center Market size is expected to reach USD 27.22 billion.
Who are the key players in Cloud-based Contact Center Market?
Avaya Contact Center (Ayaya Group), RingCentral Inc., Genesys Telecommunications Laboratories Inc., 3CLogic Inc. and Five9 Inc. are the major companies operating in the Cloud-based Contact Center Market.
Which is the fastest growing region in Cloud-based Contact Center Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cloud-based Contact Center Market?
In 2024, the North America accounts for the largest market share in Cloud-based Contact Center Market.
What years does this Cloud-based Contact Center Market cover, and what was the market size in 2023?
In 2023, the Cloud-based Contact Center Market size was estimated at USD 20.09 billion. The report covers the Cloud-based Contact Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cloud-based Contact Center Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cloud-based Contact Center Industry Report
Statistics for the 2024 Cloud Contact Center Software market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Cloud Contact Center Software analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
