Call Center AI Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[213+ Pages Report] According to Facts & Factors, the global call center AI market size was valued at USD 1.70 billion in 2023 and is predicted to surpass USD 11.19 billion by the end of 2032. The call center AI industry is expected to grow by a CAGR of 23.28% between 2024 and 2032.

Market Overview

Call center AI refers to the use of artificial intelligence technologies to automate the operations in call centers. It helps in improving efficiency and streamlining processes, thereby enhancing customer service. It involves the usage of chatbots and virtual assistance to interact with customers. It can easily handle bulk customer queries 24×7 without any human intervention. It is also a cost-effective method as it eliminates the need for a large workforce to handle a bulk volume of queries.

Key Insights

• As per the analysis shared by our research analyst, the global call center AI market size is estimated to grow annually at a CAGR of around 23.28% over the forecast period (2024-2032).
• In terms of revenue, the global call center AI market size was valued at around USD 1.70 billion in 2023 and is projected to reach USD 11.19 billion by 2032.
• Growing demand for improved experience is driving the growth of the global call center AI market.
• Based on the industry, the BFSI segment is growing at a high rate and is projected to dominate the global market.
• Based on channel, the phone segment is anticipated to grow with the highest CAGR in the global market.
• Based on the deployment mode, the cloud segment is projected to swipe the largest market share.
• Based on application, the predictive call routing segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing demand for improved experience is driving the growth of the global market.

Customers nowadays expect an immediate and personalized response to their queries. Therefore, companies are adopting AI technologies like virtual chat assistance, chatbots, and many others to support customers and respond to them at faster rates.

Such a landscape is expected to enhance the customer experience and become a major differentiator for the business in the market. AI tools automate repetitive tasks and help businesses reduce their cost and workload on human agents. Moreover, advancements in NLP and machine learning technologies are further expected to revolutionize the market.

Additionally, the rising adoption of cloud-based solutions is further expected to fuel the growth of the industry. This significant shift towards cloud-based solutions is due to the high-scale flexibility and cost efficiency of these solutions.

Therefore, all these factors are likely to accentuate the growth of the global call center AI market. For instance, Etisalat Digital partnered with NICE to offer a more comprehensive review of CCaaS vendors to initiate digital transformation. It helps companies to provide capabilities like cloud migration convenience.

Restraints

• High initial cost is expected to hamper the growth of the global market.

Implementing AI solutions in call centers poses a huge requirement of initial investment in software, technology, infrastructure, and skilled personnel, which is likely to hamper the growth of the call center AI industry. Therefore, small businesses cannot easily afford these services because of the high price. Moreover, integrating AI into their existing operations is disruptive and complex, which is further expected to slow down the growth of the industry.

Opportunities

• Growing demand for multilingual support is expected to foster growth opportunities in the global market.

Globalization has significantly led to the rising demand for multilingual customer support, which is a major factor for the expanding scope of the global call center AI market. AI-based virtual assistance and chatbots can easily communicate in different languages, thereby helping businesses overcome language barriers and extend seamless support to customers.

Additionally, the increasing adoption of omnichannel customer services like live chats, emails, social media, and many others is further expected to widen the scope of the industry. AI can easily handle inquiries on different channels, thereby offering consistent and unified services.

A rising focus on data-driven insights to analyze vast amounts of customer data in real-time is further expected to fuel the growth of the industry. However, the rise in the trend of adopting predictive call routing is also likely to strengthen demand for AI solutions in call centers.

For instance, Sprinkler partnered with Google Cloud in 2022 to assist enterprises in enhancing customer experience. This partnership aims to accelerate go-to-market strategy and boost awareness among joint customers. For instance, Avaya collaborated with Alcatel-Lucent in 2022 to make OneCloud CCaaS more available to customers globally. It will also make digital networking solutions available on a global basis.

Challenges

• Lack of understanding of AI capability is a big challenge in the global market.

Many businesses don’t have a deep understanding of AI technologies and their potential applications, which is a big challenge in the call center AI industry. However, this knowledge gap leads to resistance which is also expected to negatively impact the growth of the industry.

Segmentation Analysis

The global call center AI market can be segmented into industry, channel, deployment mode, application, and region.

On the basis of industry, the market can be segmented into travel & hospitality, energy & utilities, healthcare, retail & e-commerce, IT & telecommunication, BFSI, and others. The BFSI segment accounts for the largest share of the call center AI industry during the forecast period.

The BFSI segment deals with a number of customer inquiries on a regular basis, which include complex financial transactions. Therefore, an AI-driven system is needed to improve the efficiency of these interactions.

Additionally, there is a requirement for improved customer services that can extend 24×7 support. AI solutions can facilitate automated agents, virtual assistants, and chatbots for personalizing banking services, which is further expected to fuel the growth of the segment. Additionally, AI tools are needed for fraud detection and risk management by preventing suspicious transactions and enhancing security.

On the basis of channel, the market can be segmented into email, website, phone, chat, social media, and others. Phones are the fastest-growing segment in the global call center AI market. Advancements in speech recognition are the major factor for the growing applications of voice-based interactions. Al technology is helping systems process customer queries over the phone easily.

Also, it improves the ability of the virtual agent's conversation. There is a rising trend of using conversational AI to manage complex inquiries through phone calls. It helps resolve many of the customer issues without requiring any human intervention. The growing use of voice biometrics and security is also fostering wide-scale integration of voice biometrics, which improves the security of customers by identifying unique voice prints.

On the basis of deployment, the market can be segmented on-premises and cloud-based. The cloud-based segment is likely to witness significant growth in the coming years. Cloud-based AI solutions are highly scalable and flexible, thereby helping businesses scale up or down their resources according to their requirements without any high upfront investments.

Also, cloud-based solutions are cost-effective because they do not pose any requirement for hardware, infrastructure maintenance, or IT staffing. It is a kind of pay-as-you-go model. Cloud-based AI solutions can be deployed more quickly than traditional assistants. However, it is also beneficial for the vendors because it does not take much time to market and also improves customer satisfaction.

On the basis of application, the market can be segmented into workforce management, sentiment analysis, quality management, journey orchestration, predictive call routing, and others. The predictive call routing segment is likely to dominate the call center AI industry. Predictive call routing improves the customer experience by aligning with the customer's needs.

AI systems can easily check for different aspects like customer behaviors, patterns, customer history, and many others by reducing the time required in the process. It also reduces handling time by shortening the time spent on call transfers and escalations.

An increase in demand for first-call resolutions is further anticipated to boost the growth of the segment as AI can direct customers to appropriate sources on the basis of customer inquiry and historical data.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America will account for the largest share of the global call center AI market during the forecast period. The region is home to leading technology companies, which is a major reason for the high growth rate of the regional market. Countries like Canada and the US are leading the market because of the ongoing innovations and rising demand for efficient customer service solutions.

Companies in the US are shifting their attention towards automation, which is expected to widen the scope of the regional market. However, the demand for automation and customer services is increasing with the applications of virtual assistants, powered chatbots, predictive call routing, and many others to handle customer inquiries in real time.

Growing BFSI and healthcare sectors in North America are posing huge demand for AI-based tools because of the rising volume of customer interactions. Companies are using various AI tools like voice biometrics, predictive analytics, and chatbots in their banking and financial institutions to handle incoming inquiries. These factors are expected to foster growth opportunities in the regional market in the coming years.

Asia Pacific is another major region in the call center AI industry likely to see significant growth in the coming years because of the ongoing digital transformation initiatives. Countries like Japan, China, India, and South Korea are leading the market because companies in these regions are widely integrating AI call centers and customer service operations.

Businesses in the region are adopting technologies like NLP, ML, voice recognition, etc. to improve the efficiency of these centers. The rising trend of using cloud-based solutions in APAC is also a major factor for the high rate of the regional market.

Both SMEs and large enterprises are adopting cloud-based AI services to leverage AI-based automated customer interactions. AI can easily handle a large volume of customer inquiries and, therefore, improve the overall customer experience.

Therefore, all these factors are expected to fuel the growth of the regional market during the period. For instance, NICE partnered with Google Cloud in 2021 to resolve the rising demand for automated customer self-service systems to integrate with traditional contact centers.

Competitive Analysis

The key players in the global call center AI market includes:

• Jio Haptik Technologies Limited
• Avaya Inc.
• Oracle
• SAP
• Artificial Solutions
• SmartAction LLC
• Bright Pattern
• Zendesk
• NICE
• IBM

The global call center AI market is segmented as follows:

By Industry Segment Analysis

• Travel & Hospitality
• Energy & Utilities
• Healthcare
• Retail & ECommerce
• IT & Telecommunication
• BFSI
• Others

By Channel Segment Analysis

• Email
• Website
• Phone
• Chat
• Social Media
• Others

By Deployment Mode Segment Analysis

• On-Premises
• Cloud-Based

By Application Segment Analysis

• Workforce Management
• Sentiment Analysis
• Quality Management
• Journey Orchestration
• Predictive Call Routing
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America