Customer Experience MetriCast 2024: Contact Center Platforms Market Share & Forecast 3Q24

Metrigy’s Customer Experience MetriCast 2024 market study for contact center platforms shows the continued movement from premises-based contact center infrastructure to multitenant, cloud-based services that provide contact center operations with more flexibility and access to the latest features and capabilities.The study shows 79.3% of organizations are using a contact center platform of some type, including informal contact center platforms, and another 14.5% having planned to do so by the end of 2024. Of those companies utilizing a contact center platform, 35.9% use CCaaS, 46.7% use a dedicated hosted platform owned and managed by a third party, and 43.6% use on-premises platforms—either those fully on-premises or those physically located in a third-party data center but hosted/managed by the enterprise organization. While not covered in this report, informal contact center platforms are in use by 48.3% of companies.This report provides details on contact center platform adoption and in-depth spending, market size, forecast, and vendor selection across CCaaS and on-prem/dedicated contact center platforms, along with segmentation by size and global region. Highlights of the study include the following:

• The global market for on-premises contact center platforms (license and system revenue) was $2.2 billion in 2023, a 28% year over year (YoY) decline as contact centers operations continue to migrate to CCaaS. Metrigy forecasts the market to continue decreasing over the forecast period with a negative 8% five-year revenue CAGR (2023-2028). Metrigy forecasts for on-premises contact center platforms do not include maintenance and support revenue.
• On-premises contact center global revenue for 1Q24 through 3Q24 is $1.7 billion, pacing well with our $2 billion forecast for the 2024 calendar year.
• The number of dedicated contact center platform vendors is small, with the 2023 market share leader being Avaya (28.9% of global revenue), followed by Genesys (11.9%), Cisco (11.2%), and others.
• On-premises contact center platforms are most widely used by midsize and large enterprises, or those with between 251 and 2,500 employees: 44.7% to 44.9% of companies in this size range use on-premises contact center platforms today as part of their CX strategy.
• Regionally, contact center platforms are most widely adopted in North America followed by APAC and Europe, though CCaaS platforms alone are most widely adopted in APAC (40.1%), followed by Europe (38.9%) and North America (32.9%).
• Among companies that use dedicated contact center platforms, 49.1% have no plans to replace their primary vendor. The rest are either replacing, have plans to replace, are evaluating whether to replace their provider, or they are unsure. High cost is the top reason businesses are changing or evaluating a vendor, followed by desire for a single, integrated platform for contact center and unified communications (UC).