Global Contact Center Market to Exceed USD 9.7 Billion by 2019, According to Technavio
LONDON-According to Technavio’s latest report, the global contact center market is expected to reach USD 9.7 billion by 2019, growing at a CAGR of over 9% during the forecast period.
“The global contact center market has been registering a positive growth rate for the past five years, and this growth is expected to gain momentum in the coming years. Innovation and the proliferation of digital technologies has changed customers’ interaction with companies, and customers are now using different channels such as the web and self-service options. Many organizations prefer to include a contact center as a strategic part of their organization. Moreover, some organizations prefer to outsource their call center functions to a third party to improve the customer experience,” says Amit Sharma, lead analyst for ITO and BPO research at Technavio.
Overview of the global contact center market
Market research analysts at Technavio predict that the global contact center market will grow steadily during the next four years and post a CAGR of almost 11% by 2020. This market research analysis identifies the digital transformation of contact centers to enhance customer services and revenue generation as one of the primary factors that will have a positive impact on the growth of the call center market in the coming years. The increased adoption of mobile devices such as smartphones and tablets and the rise in usage of social media platforms, induces enterprises to adopt next-generation IT solutions. Focusing on reducing their ownership costs and enhancing customer services, customer contact centers will start preferring cloud computing solutions and will also concentrate on implementing advanced biometrics systems. Moreover, end-to-end digitization in several industries such as retail, banking, telecom, and healthcare will also compel contact center service providers to offer improved services using advanced technologies.
This market research and analysis predicts that in terms of geographical regions, the Americas will be the major revenue contributor to the contact center market throughout the forecast period. This mainly attributes to the increased adoption of advanced IT solutions such as speech analytics, voice biometrics, and robotics by the contact center companies in this region. Latin American countries such as Brazil, Costa Rica, Guatemala, and Argentina will be the key regions accounting for major market shares.
Competitive landscape and key vendors
This global market is characterized by the presence of several vendors spread across the globe. Major vendors such as Avaya, Cisco Systems, Genesys, and Huawei Technologies have a wide portfolio of products, services, and solutions and dominate the market. Market players are mainly focusing on providing advanced technologies that help in integrating customer engagements across all channels and devices. One of the major contact center service providers Avaya, is a leading provider of real-time business collaboration and communications solutions and provides contact centers, unified communications, networking, and other related services to several companies across the globe.
The leading vendors in the market are –
– Cisco Systems
– Huawei Technologies
The other prominent vendors in the market are 3CLogic, 8×8, Aastra, Altitude Software, Aspect Software, Connect First, Convergys, CRMXchange, Five9, Fujitsu, HP, IBM, inContact, Interactive Intelligence, Mitel Networks, NICE, Noble Systems, Oracle, Presence Technology, SAP, ShoreTel, Syntel, Teleopti, Unify, Verint Systems, Verizon Communications, and Vocalcom.
Segmentation by technology and analysis of the contact center market
1. Inbound systems
2. Interactive voice response (IVR)
3. Quality management (QM)
5. Workforce management (WFM)
6. Outbound systems
According to this market study, the inbound systems segment accounted for the major shares and dominated the call center services industry during 2015. The inbound systems contact center is one of the most flexible, scalable, and comprehensive contact centers and enables agents to easily communicate with customers through various channels such as emails, telephone calls, chats, and social media. Benefits such as resource utilization, optimal customer experience, and automatic call distribution routing, will drive the growth of the market segment during the next four years.
The market is segmented into the following three regions:
Americas: largest contact center market
The contact center market in the Americas is expected to exceed USD 5 billion by 2019, growing at a CAGR of over 7%.
The US, Canada, and Latin America are the key regions in this market. The US held a major market share of about 50% of the market in the Americas in 2014. Latin American countries such as Brazil, Costa Rica, Guatemala, and Argentina are key adopters of contact centers.
The close proximity to clients and proficiency in the English and Spanish languages are some of the advantages of the contact centers in Latin America. However, the strong currency in the region, language barriers in Brazil, and the unstable political environment in Mexico are some of the factors that impede the growth of the contact center market in this region.
EMEA: Europe is the major contributor in this region
The contact center market in EMEA is expected to exceed USD 3 billion by 2019, growing at a CAGR of over 11%.
Europe is the major contributor in this region. However, countries in Eastern Europe and Africa are seen as potential markets for contact center functions. EMEA’s close proximity to business service outsourcing clients in the US and Europe offers the benefits of time saving, high-quality service, and customer satisfaction, making the region a favorable location for contact center functions.
“Some countries in EMEA such as South Africa, Tunisia, Ghana, Kenya, Poland, Hungary, the Czech Republic, and Slovakia are expected to be key contributing countries over the next five years,” says Amit.
APAC: fastest growing market for contact centers during the forecast period
The contact center market in APAC is expected to exceed USD 1 billion by 2019, growing at a CAGR of almost 13%.
In 2014, APAC accounted for 11% of the global contact center market. Countries such as China, India, Australia, the Philippines, Vietnam, and Malaysia are expected to be the leading contributors to the market in this region and are expected to witness an increased growth rate during the forecast period.