Contact Center Analytics Market Size, Share & Trends Analysis Report By Solution (Performance Analytics, Predictive Analytics), By Service, By Deployment (Hosted, On-premise), By Enterprise Size, By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Contact Center Analytics Market Trends

The global contact center analytics market size was valued at USD 1.40 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 19.7% from 2023 to 2030. The high demand for analytics among contact centers can be attributed to the benefits it offers, such as improved service quality and the ability to monitor service metrics from employee performance, call times, customer satisfaction, and efficiency. The growing use of social media platforms is also one of the major factors creating the demand for contact center analytics. Customer feedback posted on social media platforms through blogs, posts, and forums is analyzed using contact center analytics solutions, allowing companies to analyze social media content on a real-time basis.

This helps improve business processes and generate a competitive edge. At the same time, it helps companies understand the opinions expressed by the users, including the jargon, abbreviations, slang, and acronyms on social media. These factors are expected to drive the demand for contact center analytics among organizations. The growing demand for Artificial Intelligence (AI)-enabled contact center solutions is expected to create new opportunities for market growth. The ability of these solutions to reduce operational costs, provide actionable analytics, personalize the customer experience, and increase customer agent efficiency is expected to drive their importance and adoption in contact centers.

AI is used in various contact center solutions, such as predictive call routing, interactive voice response, conversational AI, and emotional intelligence. AI is used in predictive call routing for matching contact center customers to specific customer service agents capable of handling an issue. Contact centers are expected to comply with the requirements framed by the agencies, such as the Payment Card Industry Data Security Standard (PCI-DSS). According to the PCI-DSS, contact centers are prohibited from recording the CVV2 numbers of cards along with other sensitive data of customers during a call. At the same time, contact centers are expected to provide the right training to their employees regarding the regulations issued by organizations, such as Telephone Consumer Protection Act (TCPA), Health Insurance Portability and Accountability Act (HIPAA), and PCI-DSS.

The rising focus of telecommunication companies worldwide on improving their first call resolution rates and increasing call deflection is also driving the demand for contact center analytics. The use of contact center analytics solutions to analyze customer backgrounds helps reduce the total interaction volume. At the same time, predictive analytics solutions are used to understand customer queries, which helps companies improve first call resolution rates. In addition, it is also used for understanding customer behavior and preferences to better serve their requirements.

The COVID-19 pandemic had a positive impact on the market in 2021. The increased use of contact centers by individuals seeking help for protecting their wealth by delaying payments on loans, opting for lower interest rates by refinancing mortgages, and increasing credit card limits, among other purposes, increased the call volume recorded by the contact centers. This increase in call volume created the need for contact center analytics solutions for effectively analyzing customer data. Furthermore, the pandemic encouraged contact centers to upgrade their technology with virtual capabilities, which created an opportunity for market growth.

End-use Insights

The IT & telecom segment held the largest revenue share of 24.8% in 2022. Contact center analytics solutions are widely adopted in the IT & telecom industry owing to their extensive business process automation capabilities. In addition, these solutions allow IT & telecom agents to manage all inbound customer interactions and drive end-to-end service request management. Furthermore, these solutions offer a range of benefits, such as better customer satisfaction, operations cost savings, and business intelligence. These solutions are also used by IT & telecom companies to identify factors impacting their customer experience.

The consumer goods & retail segment is expected to expand at the fastest CAGR of 24.9% over the forecast period. Contact center analytics solutions are widely adopted in the consumer goods & retail industry as they help quickly review customer requirements and resolve queries by offering relevant information. These solutions allow agents to deliver fast and consistent support that effectively guides customer interactions. In the consumer goods & retail industry, these solutions allow agents to track key deal participants, historical activities, competitive information, and complete order management. Consumer goods & retail companies also adopt contact center analytics for providing a personalized experience to their customers.

Regional Insights

North America dominated the contact center analytics market and accounted for the largest revenue share of 31.6% in 2022. The market growth in North America can be attributed to the presence of prominent players, such as SAP SE, Oracle Corp., and Cisco Systems, Inc. in the region. The presence of a large number of enterprises in North America, which has a larger operation base and several customer contact centers, is expected to drive its growth. Furthermore, the region is witnessing the rising adoption of automated services among businesses, which is driving market growth.

Asia Pacific is expected to expand at the fastest CAGR of 22.0% during the forecast period. Increasing digitalization, coupled with the growing disposable income levels in the region, has resulted in the high adoption of smartphones and other mobile devices. The high volume of data generated from these devices is driving the demand for advanced analytics solutions as organizations across various industries seek ways of improving customer experience at their contact centers. The increasing demand for contact center analytics solutions among many SMEs in Asia Pacific to enhance their customer experience is expected to drive the regional market growth.

Solution Insights

The speech analytics segment accounted for the largest revenue share of 24.8% in 2022 and is expected to expand at the fastest CAGR of 19.8% over the forecast period. The capability of speech analytics solutions to improve agent performance and goal attainment, and reduce agent churn, among other benefits, is expected to drive the segment growth. These solutions collect insights into the performance of contact centers and other functioning areas within a business. These solutions analyze recorded conversations and help agents identify the solution to resolve customer issues. Moreover, increasing focus on customer satisfaction, coupled with the growing significance of real-time speech analytics solutions is further expected to fuel the segment growth.

The performance analytics segment is anticipated to register a significant CAGR over the forecast period. Contact centers are increasingly adopting these solutions for capabilities, such as allowing agents to handle multiple communication channels like messaging, emails, and phone calls at the same time. The integration of multiple communication channels into a single system allows agents to maintain a consistent record of their communications regardless of the channel format. Moreover, these solutions allow agents to automatically draw data from any number of sources and help reduce response time with their customers.

Service Insights

The integration & deployment segment accounted for the largest revenue share of around 40.8% in 2022. Integration & deployment services are required to ensure that the new systems are in-line with the existing systems of various departments. The high demand for contact center analytics integration & deployment services can be attributed to the fact that they allow businesses to gain unique access to analytics and customer data by integrating advanced technologies in their operations. Moreover, integration & deployment services focus on regulatory compliance and data privacy needs, thereby generating growth opportunities for the segment.

The managed services segment is estimated to register the fastest CAGR of 25.5% over the forecast period. Managed services allow businesses to focus on improving operational efficiency, technology effectiveness, and creating a cohesive customer experience. These services offer contact centers with risk mitigation, secured integrity of customer data, and intellectual property-based tools. In addition, managed services offer a comprehensive set of automated support solutions, which include monitoring of networks, customer databases, servers, and applications.

Deployment Insights

The on-premise segment held the largest revenue share of 56.6% in 2022. Organizations demand on-premises deployment as it offers easy customization of software as per their need. Contact center solutions deployed on-premise are managed and owned by the organization’s telephony group or the internal IT department. On-premise solutions are widely preferred by businesses with specific business continuity requirements and data privacy needs.

The hosted segment is expected to expand at the fastest CAGR of 23.4% over the forecast period due to the growing adoption of work-from-home models among contact centers across the globe. A number of organizations prefer the hosted deployment method as it is completely hosted on a vendor’s server and can only be accessed by authorized individuals. The vendor is responsible for software upgrades and maintenance. Hosted deployment enables businesses to manage the technical and operational needs of their contact centers but restricts them from managing the infrastructure.

Enterprise Size Insights

The large enterprises segment held the largest revenue share of 56.7% in 2022. The high call volume experienced by large enterprises is one of the major factors driving the demand for contact center analytics. In large enterprises, customer data is distributed across all the channels. Analytics solutions allow agents to filter the data as per the customer’s requirement and deliver the required information on time.

The small & medium enterprises segment is expected to expand at the fastest CAGR of 22.0% over the forecast period. With the increased adoption of new communication technologies and devices, customer expectations are rapidly growing and evolving. To overcome these challenges, several SMEs are focusing on adopting contact center analytics solutions to provide enhanced customer service. This factor is expected to drive the segment growth over the forecast period. At the same time, benefits offered by these solutions, such as the ease of tracking customer data, are also driving the growth of this segment.

Application Insights

The customer experience management segment held the largest revenue share of 18.4% in 2022. The segment growth can be attributed to the benefits offered by the contact center analytics to customer experience management processes, such as reduced customer churn rate, improved crisis management, and lower marketing costs. Customer experience management processes aggregate customer feedback, transactions, interactions, and agent data, which enable businesses to analyze the report for customer experience and agent performance. Customer experience management solutions also help enterprises analyze customer data from multiple channels and generate insights to improve contact center operations.

The workforce optimization segment is expected to expand at the fastest CAGR of 20.5% over the forecast period. The workforce optimization process enhances the efficiency and quality of contact center agents by ensuring that they are monitored, trained, and motivated. These solutions help agents effectively monitor & evaluate customer calls and help improve employee performance across all communication channels by efficiently scheduling responses.

Key Companies & Market Share Insights

Market players are regularly focusing on innovations to personalize and differentiate their solution offerings for potential customers. Vendors are also aiming at integrating various technologies, such as Natural Language Processing (NLP), AI, and machine learning, into their solutions to offer effective solutions to their customers. Furthermore, numerous market players are focusing on effectively delivering training & consulting and support & maintenance services to retain their customer base. New product development and partnerships are some of the key strategies adopted by companies to gain a competitive edge in the market.

For instance, in September 2021, Service Management Group, a global patient, customer, and employee experience management company, announced the expansion of its partnership with CallMiner, a conversational analytics provider. Through this collaboration, the former company is delivering new insights to customer experience programs by pairing customer interaction and speech analytics with real-time customer feedback in the smg360 platform.

Recent Developments

• In March 2022, Avaya partnered with Alcatel-Lucent Enterprise (ALE), to expand the reach of Avaya's OneCloud CCaas (Contact Center as a Service) composable solutions to ALE's worldwide customer base. Additionally, as part of the collaboration, ALE's digital networking solutions were made accessible to Avaya customers on a global scale.

• In February 2022, NICE partnered with Etisalat Digital to enhance the availability of the CXone platform within the United Arab Emirates (UAE). This collaboration aimed to offer Etisalat customers a smooth transition to the cloud through CXone, enabling effortless digital self-service and agent-assisted customer experiences.

• In February 2022, NICE unveiled the extension of its collaboration with Google, focusing on the enhancement of CXone, the first-ever cloud-native customer experience platform, for Chrome OS. By meeting Google's stringent technical standards, NICE's secure and scalable platform, CXone, is now recognized as an optimized solution for devices within the Chrome OS ecosystem, specifically designed for contact centers. It ensures rapid deployment and provides a seamless experience for customers utilizing Chrome OS devices.

• In May 2021, Mitel Network Corporation partnered with Five, Inc., a leading provider of intelligent cloud contact center solutions. This strategic alliance aimed to offer customers and partners worldwide access to a cutting-edge contact center system that seamlessly integrates with Mitel's unified communications solutions.

Contact Center Analytics Market Report Scope

Global Contact Center Analytics Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global contact center analytics market report based on solution, service, deployment, enterprise size, application, end-use, and region:

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Cross-channel Analytics

  • Performance Analytics

  • Predictive Analytics

  • Speech Analytics

  • Text Analytics

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Integration & Deployment

  • Support & Maintenance

  • Training & Consulting

  • Managed Services

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Hosted

  • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Automatic Call Distributor

  • Customer Experience Management

  • Log Management

  • Real-time Monitoring & Reporting

  • Risk & Compliance Management

  • Workforce Optimization

  • Others

• End Use Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Consumer Goods & Retail

  • Government

  • Healthcare

  • IT & Telecom

  • Travel & Hospitality

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE