Australia’s cloud contact center market to hit $4.8Bn by 2034
NEW YORK, UNITED STATES — Australia’s cloud-based contact center market is poised for explosive growth, projected to surge from $653 million in 2024 to $4.8 billion by 2034 at a 22.7% compound annual growth rate (CAGR) as revealed in a Polaris Market Research.
Explosive market growth fueled by digital transformation
The increase is a result of customer engagement strategies being pursued by businesses in the banking, financial services, and insurance (BFSI), retail, and healthcare industries as digital-first approaches.
Market forces, including the need for real-time analytics, support of omnichannel operations, and cost-effective solutions, are the key drivers.
Cloud services can help a business scale its services instantly without compromising the quality of service, something that is especially important in Australia, where 90% of residents are based in towns and cities that are expected to have smooth digital experiences.
The software segment currently dominates with a 67.92% market share, driven by demand for customer relationship management (CRM)-integrated platforms and AI tools, including chatbots and speech analytics.
Remote work reshaping customer service operations
The increase in the presence of distributed workforces is driving cloud contact center as platforms facilitate and support the agents to work anywhere through the Voice over Internet Protocol (VoIP). Such flexibility is critical because companies are aiming to cut operational expenses and tap more talents.
Centralized dashboards to manage call routes, specific performance tracking as well as efficiency of a workforce are the fundamental characteristics that cloud systems provide to businesses ensuring a consistent service with remote teams.
Australian businesses are particularly drawn to cloud solutions’ scalability during periods of high demand and disruptions. The services part is expected to grow to $1.4 billion by 2034 because companies will be inquiring about how to apply automation and analytics.
This trend is due to the increasing complexity of combining sophisticated technologies with the need to meet compliance and data security requirements in centralized workplaces.
Channel shift: Voice holds strong but digital gains ground
While voice channels maintain a 48.15% market share in 2024, particularly for complex BFSI and healthcare queries, digital channels are rapidly catching up. In 2034, the proportion related to the digital part is anticipated to reach 41.69%, as younger audiences attach importance to messaging, social media, and live chats.
This change is being catalyzed by the use of AI-enabled chatbots and natural language processing systems as the tools to provide support on a 24/7 basis and with quicker response times.
The BFSI sector leads vertical adoption with a 19.82% share, driven by the possibility of secure transactions and compliance with regulations, which is built on the availability of cloud platforms.
In the meantime, CRM applications win first place in terms of use cases with 19.37% share, taking into account the increased focus of companies on personalized customer journeys.
Marketing automation is expected to grow significantly, with the predicted value in 2034 reaching $1.1 billion, driven by the demand caused by the rise of e-commerce and the ability to manage campaigns using data.
Impact on Australia’s contact center sector
Advancing technology also provides contact centers with the opportunity to offer services of greater value, such as customer experience and data analytics.
With global names such as Cisco, Genesys, and NICE competing against various companies, there is pressure on Australian contact centers to continuously modernize.
The market’s growth will likely accelerate consolidation as providers seek to scale up and invest in next-generation technologies.
