The global speech analytics market size was valued at USD 1.68 billion in 2021 and is projected to reach USD 9.42 billion by 2030, registering a CAGR of 21.11% from 2022 to 2030. Speech analytics aims to improve communication and potential future interactions by carefully going over the crucial recorded calls to gather valuable customer information. Several contact centres use the speech analytics market to extract or derive meaningful information from numerous interactions between clients and the company. It is simple to identify the advanced technology, such as cost drivers, strengths and significant weaknesses with new processes and products, upcoming trend analysis, and assistance to comprehend how the fundamental marketplace recognizes the various types of offerings.
The advanced need for customer relationship management, the rise in various levels of competition among the numerous existing players in the speech analytics market, upcoming product development, and several stringent management are the fundamental factors causing the speech analytics market to spread. The speech analytics industry is all about risk management, and the increasing demands for advance compliance are also a significant factor in the advance rate. With significant expertise and in-depth knowledge of third-party resources for the initial implementation of such contemporary solutions, the demand for Speech Analytics grows. The growing customer interaction through various channels, including voice, social media, and surveys, is critical in developing the speech analytics market size.
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Growing demand for voice authentication in mobile banking applications
By integrating speech technology with phone banking, banks can enable natural, human-like conversations and satisfying customer interactions. Banking companies aim to improve their mobile banking services through innovation. They previously relied on cumbersome and unintuitive procedures like password verification, One-Time Passwords (OTPs), and security questions. But the situation is now shifting. Banks now recognize how crucial it is to incorporate voice recognition technology in mobile applications to boost security and improve user experience. Financial service providers have already begun offering voice authentication services to their users to improve the customer experience, and they are getting favourable feedback. Examples include United Services Automobile Association (USAA), Barclays Bank, and ING Bank.
Use of AI- and ML-based technologies
New technologies like artificial intelligence (AI) and machine learning (ML) provide automated real-time insights. AI-powered speech analytics tools can automatically record the entire customer-agent interaction and reveal hidden opportunities and insights, resulting in improved results. Speech analytics provides high-level views and drill-down to details, enabling the identification of actionable insights through high-volume discovery. After customer interactions are recorded and analyzed, real-time speech analytics gives agents the next-best actionable guidance message, improving operational effectiveness. Accurate performance metrics, the identification of call patterns and trends, and the emergence of fresh revenue streams are additional advantages of speech analytics. Real-time speech analytics is finding more applications in various fields, including finance, hospitality, healthcare, and retail. Utilizing technologies like AI and ML will be beneficial for players in the speech analytics market. For instance, VoiceBase, a well-known provider of speech analytics, provides call centre supervisors and agents with AI-driven speech analytics solutions.
Complex data ecosystem leading to data security issues
Consolidating data makes it easier for businesses to make decisions by converting the gathered data into a single format. Data exchanges and data ecosystems provide the instruments to analyze the gathered data at a central location and assist in extracting and cross-checking the essential elements for business operations. Depending on the presumptions made regarding the value of the data for each customer segment, different data exchanges and data ecosystems have developed over time. Data exchange, however, is a significant concern for data-sensitive organizations in industry verticals like BFSI and healthcare, which deal with personal data, because centralized data is more vulnerable to cyberattacks. Such businesses must exercise extreme caution to protect the privacy of their customers. The identity and security of an organization are at risk from data breaches, so having impenetrable security measures is a top priority. In some nations, the organizations in question share some blame for the harm that confidential data loss causes. Businesses must also guarantee the security of the data they have contracted a third-party BI vendor to analyze. However, consumer data security is not anticipated to be a significant issue for very long, as businesses adopt data security solutions at an increasing rate.
The global speech analytics market is segmented by Solution, deployment, enterprise size, end-use, and region. Based on the Solution, the market is bifurcated into solutions and services. Over the forecast period, the solutions segment is anticipated to dominate the market after capturing a sizeable share. The higher adoption, which will lead to the services segment gaining traction in the following nine years, is expected to cause the segment to mature. The market offers a wide range of solutions, so services are required to manage them and assist organizations in improving their business operations to survive in this cutthroat environment. Over the forecast period, the service segment is anticipated to expand at a significant CAGR.
By deployment, the market is classified into On-premise and Cloud. The largest segment was on-site employment. Install on-site solutions give you more control over the data and system. However, this deployment method is expensive and needs a dedicated IT staff for the maintenance & support and high-end IT infrastructure, so it is predicted that the segment will grow more slowly than the cloud deployment. The segment for cloud-based deployments had a sizeable share and is anticipated to experience high demand during the forecast period.
Based on enterprise size, the market is divided into Small &Medium Enterprises (SMEs) and Large Enterprises. The segment is anticipated to grow at a significant CAGR over the forecast period. SMEs accounted for the most significant portion of the total share. This is attributed to the widespread use of speech analytics applications for security systems and enhancing customer experience. Small and medium-sized businesses (SMBs) increasingly depend on web-enabled services and applications to run their operations. In addition, SMEs are driving product demand due to the rising popularity of cloud analytics.
By end-user, the market I segmented into BFSI, Telecommunication, IT, Retail, Healthcare, Government, Hospitality and Others. Over the forecast period, the telecom sector is anticipated to experience rapid growth. The telecom sector quickly fixes the problems by using speech analytics to take control of the infrastructure, which boosts productivity, lowers stress levels, and saves time and money. Due to the growing use of speech analytics tools in the Business Process Outsourcing sector, the speech analytics market is anticipated to experience significant growth in IT (BPO). Developing cutting-edge technological tools to improve customer experiences is also anticipated to drive demand for speech analytics.
According to the region, the market is segmented into North America, Europe; Asia Pacific; Latin America and MEA.
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Due to many local vendors, particularly in the United States, North America accounted for the most considerable portion of the overall share. However, the region is predicted to experience slow growth over the forecast period due to the higher adoption of technology and subsequent maturation. Over the forecast period, Asia Pacific is anticipated to experience the fastest growth. Additionally, the Asia Pacific contact centre outsourcing market has recently experienced faster growth, prompting industry players to present businesses with cutting-edge solutions.
NICE (US), Micro Focus (UK), Verint (US), Avaya (US), OpenText (Canada), Google (US), Vonage (US), Genesys (US), Calabrio (US), CallMiner (US), AWS (US), Clarabridge (US), Almawave (Italy), Talkdesk (US), Alvaria (US), Castel (US), VoiceBase (US), Intelligent Voice (US), CallTrackingMetrics (US), Five9 (US), 3CLogic (US), CloudTalk (US), Deepgram (US), Gnani.ai (India), Observe.AI (US), SpeechTech (US), Speech-i Ltd (England), Batvoice (France), Kwantics (India), Speech Village (UK), and Salesken (US).