Cloud-Based Contact Center Market Trends

Cloud-Based Contact Center Market Overview

Cloud-Based Contact Center Market Size was valued at USD 20.7 Billion in 2022. The Cloud-Based Contact Center market is projected to grow from USD 25.6 Billion in 2023 to USD 101.1 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 21.7% during the forecast period (2024 - 2032). Increasing offerings such as Chatbots integration with Artificial intelligence, focus on prompt response and customer satisfaction, better security, easy to implement, and cost effectiveness for the end user companies are the major factors driving the growth of the market.

Figure 1: Cloud-Based Contact Center Market Size, 2023-2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cloud-Based Contact Center Market Trends

The integration of chatbots with artificial intelligence (AI) proliferate the growth of cloud-based contact centers.

Chatbots are becoming increasingly popular as a tool for handling routine customer inquiries and providing self-service options to customers. When chatbots are integrated with AI, they can provide more personalized and intelligent responses to customers, making the customer experience more efficient and effective.

Cloud-based contact centers offer an ideal platform for integrating chatbots with AI, as they provide the scalability and flexibility needed to handle the increased demand for these services. Additionally, cloud-based contact centers can leverage the power of AI to analyze customer interactions and provide insights into customer behavior, preferences, and sentiment. This data can then be used to improve customer service and inform business decisions.

Overall, the integration of chatbots with AI is a major trend in the contact center industry, and is likely to continue to drive demand for cloud-based contact center solutions in the future.

Figure 2: Customer Satisfaction (Cloud vs Traditional), By Region, 2022

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

One of the key benefits of cloud-based contact centers is their ability to provide robust security measures to protect sensitive customer data. Cloud providers invest heavily in security measures such as encryption, firewalls, and intrusion detection systems, which can be more effective than those implemented by individual companies. This can provide greater peace of mind for companies that are concerned about the security of their customer data.

Cloud-based contact centers are also typically easier and faster to implement than traditional on-premises solutions. This is because they don't require significant upfront investment in hardware or software and can be easily integrated with existing systems. Additionally, cloud providers typically offer a range of implementation and support services to help companies get up and running quickly.

Finally, cloud-based contact centers can be more cost-effective than traditional on-premises solutions. This is because they eliminate the need for companies to invest in expensive hardware and software and can provide a predictable monthly or annual cost structure. Additionally, cloud providers can leverage economies of scale to provide services at a lower cost than individual companies would be able to achieve on their own.

Overall, integration of chatbots with AI, the better security, ease of implementation, and cost-effectiveness offered by cloud-based contact centers are significant drivers of market growth, and are likely to continue to be important factors in the future..

Cloud-Based Contact Center Market Segment Insight

Cloud-Based Contact Center by Vertical Type Insights

Based on vertical type, the Cloud-Based Contact Center market segmentation include BFSI, IT & Telecom, Media and Entertainment, Retail, Consumer, Logistics and Transport, Healthcare, and Others. BFSI holds the largest market revenue generation for Cloud-Based Contact Center industry. The market of Cloud-Based Contact Center for BFSI was valued at USD 6.3 Billion in 2022 and is expected to grow at a CAGR of 20.9% through the forecast period. The BFSI sector is likely to continue to drive demand for cloud-based contact centers, as companies in this sector seek to improve customer service, achieve regulatory compliance, and achieve greater flexibility and scalability in their operations.

One of the main reasons for this adoption is the need for banks, financial institutions, and insurance companies to provide reliable and efficient customer service. Cloud-based contact centers can help these companies to achieve this by providing a range of features and capabilities that enable them to handle large volumes of customer inquiries, provide personalized service, and improve the overall customer experience.

Additionally, the BFSI sector is heavily regulated, and cloud-based contact centers can help companies to achieve compliance with regulatory requirements. Cloud providers can offer advanced security features, such as encryption, firewalls, and intrusion detection systems, to protect sensitive customer data, which is a critical requirement for the BFSI sector.

Another important factor driving demand for cloud-based contact centers in the BFSI sector is the need for flexibility and scalability. Cloud-based contact centers can be easily scaled up or down depending on demand, which is important for companies that experience seasonal fluctuations in call volume. Additionally, cloud-based contact centers can be accessed from anywhere with an internet connection, which is important for companies that have multiple locations or remote workers.

Figure 3: Cloud-Based Contact Center Market, by Vertical Type, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Healthcare sector is expected to grow at the highest rate during the forecast period. Cloud-based contact centers can be easily scaled up or down depending on demand, which is important for healthcare providers that experience seasonal fluctuations in patient volume. Additionally, cloud-based contact centers can be accessed from anywhere with an internet connection, which is important for healthcare providers that have multiple locations or remote workers. Cloud-based contact centers can help healthcare providers to achieve high-quality patient care and support by providing a range of features and capabilities that enable them to handle patient inquiries, provide personalized service, and improve the overall patient experience.

Cloud-Based Contact Center by Application Type Insights

Based on application type, the Cloud-Based Contact Center market segmentation include Workforce Optimization, and Data Integration & Recording. Data integration and recording holds the largest market revenue generation point for Cloud-Based Contact Center industry with a share of more than 60% in 2023. Cloud-based contact centers provide a range of features and capabilities that enable companies to integrate data from various sources and record customer interactions, which is important for improving the overall customer experience and informing business decisions.

One of the key benefits of cloud-based contact centers is their ability to integrate with other cloud-based applications, such as customer relationship management (CRM) systems, marketing automation platforms, and business intelligence tools. This integration enables companies to access customer data and insights from multiple sources, and use that data to provide personalized service and improve the customer experience.

Additionally, cloud-based contact centers typically provide advanced recording capabilities, such as call recording, screen recording, and chat recording, which enable companies to capture and analyze customer interactions. This data can be used to identify trends, track customer sentiment, and inform business decisions. Cloud-based contact centers also provide the ability to store and manage customer data securely and centrally, which is important for compliance with regulations such as GDPR and CCPA. Cloud providers can offer advanced security features such as encryption and access controls to protect sensitive customer data.

Cloud-Based Contact Center Regional Insights

By region, this market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. The North American region dominates this market with a significant share of 40% in 2023 and is also estimated to witness commendable growth with a CAGR of 19.6% during the forecast period. U.S. holds the largest market share in cloud-based contact center market and is expected to dominate the market through the forecast period. The U.S. market is highly competitive, and cloud-based contact centers can provide a competitive advantage by enabling companies to differentiate themselves based on the quality of their customer service. Cloud-based contact centers can help companies to provide personalized, efficient, and effective service that sets them apart from their competitors. The adoption of cloud-based contact centers in the U.S. is due to increasing importance of customer experience. Companies in the U.S. are increasingly focusing on providing a seamless and personalized customer experience, and cloud-based contact centers can help them to achieve this by providing advanced features such as omnichannel support, real-time analytics, and personalized routing.

Figure 4: Cloud-Based Contact Center Market, by Region Type, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

On the other side, the Asia-Pacific is expected to be the largest market for Cloud-Based Contact Center by the end of forecast period. In Asia Pacific, China is the largest market for implementing cloud-based contact center with a share of more than 32% in 2022. The growth of the Chinese economy is also driving the adoption of cloud-based contact centers in China. As more Chinese companies expand ly, they are facing increasing competition from international companies that have well-established customer service operations. Cloud-based contact centers can help Chinese companies to compete by providing a range of features and capabilities that enable them to deliver high-quality customer service on a scale.

The adoption of digital technologies is driving the growth of the cloud-based contact center market in China. The rapid growth of e-commerce and social media platforms in China has created a need for companies to manage large volumes of customer interactions across multiple channels. Cloud-based contact centers can help companies to achieve this by providing advanced features such as omnichannel support, real-time analytics, and personalized routing.

Overall, the cloud-based contact center market in China is expected to continue to grow as companies seek to improve customer experience, adopt digital technologies, compete ly, and comply with government regulations.

Cloud-Based Contact Center Key Market Players & Competitive Insights

Major players in the Cloud-Based Contact Center market, include RingCentral Inc., Genesys Telecommunications Laboratories Inc., 3CLogic Inc., Connect First Inc., Five9 Inc., Mitel Networks Corporation, Aspect Software Parent Inc., 8X8 Inc., Avaya Holdings Corp., NICE inContact, Teleforge Corporation, 1Stream Inc., AVOXI Inc. and, Odigo SAS.

The market's growth is predicted to be accelerated by the customer satisfaction demand, as well as various strategic alliances and investments among regional businesses. Due to most of the contact center head offices are in U.S., the U.S. controls most of the market in the region and generates a sizeable portion of overall income.  

Key Companies in the Cloud-Based Contact Center market includes.

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  IBM Corporation,

  
  


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  Ericsson Inc

  
  


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  Cisco Systems Inc

  
  


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  DigitalGlobe Inc

  
  


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  Creativity Software Ltd

  
  


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  IndoorAtlas Ltd

  
  


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  Esri Technologies Ltd

  
  


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  GL Communications Inc

  
  


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  Google LLC

  
  


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  HERE BV

  
  


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  HPE Aruba Inc

  
  


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  Teldio Corporation

  
  


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  HID (Assa Abloy AB)

  
  


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  Sewio Networks

  
  


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  Ubiquicom

  
  


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  Zebra Technologies Corporation

  
  

Cloud-Based Contact Center Industry Developments

In February 2023, RingCentral, Inc., Avaya marks the global leaders of enterprise cloud communications, video conferencing, and collaboration. On this note, RingCentral Inc. and Avaya Inc. have entered into another deal, which is an expansion of their partnership. The two companies aim to enhance collaborations and communications through this agreement. As an ACO partner, RingCentral OVA continues to provide one of the most significant sources of unified communication solutions to Avaya's clients, who are part of a wide range of users worldwide. More importantly, this offering is among the participants of Avaya cloud office the rest being recapitalization. Moreover, the offering is part of Avaya's ongoing cloud transformation strategy.

In December 2022, Lumen Technologies agencies expanded their offer to include Lumen solutions for contact center components that run on the Genesys cloud. This implies that Lumen made Deep connections in collaboration with Genesys, which is a well-known cloud experience orchestration. Cloud services were bolstered by launching new technology and tools that inject innovation into contact solutions. The partnership between Lumen and Genesys has resulted in this new offering that aims to provide customers with a superior contact center solution.

In August 2022, Kyndryl signed a global agreement with five9 as well as deepen their relationship where five9 was partnering with the leading global IT infrastructure provider for contact center solutions hosted on the cloud that enable businesses to customize customer service while equipping employees to adapt to rapidly evolving digital ecosystem. Five9 has partnered with Kyndryl, which is one of the largest technology providers of cloud-based services in the world.

In April 2020, Vocalcom Group released an AI contact center solution called ‘Vocalcom Hermes360’. This omnichannel and easy-to-use solution enables Indeed contact centers to improve client satisfaction as well as the experience of agents regardless of geography or the channel they are communicating through. It is available in two versions: cloud and on-premise.  

Cloud-Based Contact Center Market Segmentation

Cloud-Based Contact Center Market by Solution Outlook

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  Automatic Call Distribution

  
  


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  Agent Performance Optimization

  
  

Cloud-Based Contact Center Market by Application Outlook

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  Workforce Optimization

  
  


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  Data Integration & Recording

  
  

Cloud-Based Contact Center Market by Vertical Outlook

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  BFSI

  
  


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  IT & Telecom

  
  


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  Media and Entertainment

  
  


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  Retail

  
  


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  Consumer

  
  


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  Logistics and Transport

  
  


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  Healthcare

  
  

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  Others

  
  

Cloud-Based Contact Center Regional Outlook