Speech Analytics Market Dynamics and Analysis by 2031
The speech analytics market size is projected to reach US$ 6.86 billion by 2031 from US$ 2.33 billion in 2023. The market is expected to register a CAGR of 14.5 % in 2023–2031. AI-powered conversation analysis is likely to become more prevalent, enabling deeper insights into complex customer interactions and acting as the trend for the market.
Speech Analytics Market Analysis
The speech analytics market has witnessed significant growth in recent years, driven by technological advancements, increased demand for speech authentication solutions for mobile financial applications, and increased utilization in the retail and e-commerce industry. Furthermore, the increasing number of contact centers is also driving the market growth. The growing technological developments such as artificial intelligence (AI) and machine learning (ML) are emerging as lucrative growth opportunities for market growth.
Speech Analytics Market Overview
Speech analytics refers to the process of analyzing voice recordings or live customer calls to contact centers with the help of speech recognition software to find useful information and provide quality assurance. Solutions help to identify words and analyze audio patterns to detect emotions and stress in a speaker's voice. These technologies are widely used during customer interactions in call centers to identify information such as the reason for the call, the products mentioned, and the caller's mood. It enables businesses to take action on less usable information from customer service calls and gain insights about customers. The majority of the contact centers adopt these solutions primarily for cost-saving purposes. While cost reduction is the initial factor for higher adoption, it offers many more benefits, adding significant value in business process optimization, quality improvement, customer satisfaction improvement, litigation avoidance, and revenue augmentation. In today’s data-driven world, speech analytics solutions are extremely important across a range of businesses.
Strategic Insights
Speech Analytics Market Drivers and Opportunities
Increased Demand from the BPO Sector to Favor Market
The BPO sector is witnessing increased adoption of technology solutions, including BPO speech analytics, to help contact center agents understand their customers better. Speech analytics in the BPO sector helps users understand human speech and is ideal for use in AI-based chatbots. For queries that are too complicated and complex for chatbots to understand and handle, it can transfer the customer to live agent assistance using Robotic Process Automation (RPA). It helps to identify the customer’s real intent in real-time and offer appropriate alerts to the agent. Real-time speech analytics solutions in BPO can monitor 100% of customer calls, derive actionable insights, raise red flags in areas of concern, assist during the agent QA process, and more. It helps to alleviate longstanding BPO pain points, streamline manual burdensome processes and help BPOs adhere to the business and customer metrics. Speech analytics software in BPO also assists in training BPO agents with domain knowledge, analyzing call disposition across multiple tags, and increasing first-call resolution. BPO speech analytics tools also continuously monitor agents’ performance and send the correct feedback to supervisors in real-time while adhering to regulatory compliance in the BPO industry.
- Understand the customers and their problems better
- Improves the quality of support provided using customer data
- Learn about customer's real intent and anticipate their needs
- Streamline BPO processes and reduce the cost of running a call center
- Provide better onboarding and training for call center agents
- Uncover insights and discover new business opportunities
- Get a better sense of the issues with the products offered.
It helps to determine customer sentiments, emotions, and implied needs. With speech analytics, brands can improve customer service and customer satisfaction, plug customer service loopholes, and course-correct detrimental actions. Thus, increased demand from the BPO sector drives the growth of the market.
Integration of Speech Analytics with Generative AI – An Opportunity in the Speech Analytics Market
Integration of speech analytics with generative AI used in customer support or contact centers to enhance the client experience that provides quality service, identify areas of improvement, and improve CSAT and NPS scores. It is also used in a various other industries, such as finance, healthcare, banking, and retail. Speech analyzer software uses natural language processing and machine learning (ML) algorithms to analyze spoken language data. Generative AI, powered by large language models (LLMs), thrives on well-designed voice analytics data and voice recognition models. By feeding LLMs with high-quality voice data insights, contact center management can harness AI's full potential to deliver customized and effective customer service at scale. Thus, the integration of generative AI with speech analytics creates opportunities for the company.
Speech Analytics Market Report Segmentation Analysis
Key segments that contributed to the derivation of the speech analytics market analysis are component, deployment type, and industry vertical.
- Based on components, the speech analytics market is segmented into solutions and services.
- Based on deployment type, the market is segmented into on-premise and cloud.
- Based on industry vertical, the market is segmented into BFSI, media and entertainment, IT and telecommunication, healthcare and life science, retail and e-commerce, and others.
Speech Analytics Market Share Analysis by Geography
The geographic scope of the speech analytics market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. North America holds one of the largest global speech analytics market shares. Aspects such as increased adoption of digital marketing and high technological spending by government agencies are expected to drive the North American speech analytics market growth. In addition, the US has a large number of speech analytics market players who have been increasingly focusing on developing innovative solutions. Some of the key players in the speech analytics market are NICE, Verint System Inc., Avaya Inc., and Genesys Telecommunications, among others. All these factors contribute to the region’s growth of the market.
Speech Analytics Market Report Scope
Speech Analytics Market News and Recent Developments
The speech analytics market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion, and strategies:
- In February 2023,. Airtel and Nvidia announced a partnership to deploy AI-powered speech analytics solutions for customer services. Under this partnership, Airtel leveraged the NVIDIANeMo conversational AI toolkit and Nvidia Triton Inference Server, a multi-framework inference serving software supported in the Nvidia AI Enterprise software suite, in order to develop the technology that enables automated speech recognition. (Source: Airtel, Press Release)
- In July 2023, Pegasystems announced the acquisition of Qurious.io, a cloud-based real-time speech analytics. This acquisition helped Pegasystems to add capabilities to its software portfolio. (Source: Pegasystems, Newsletter)
Speech Analytics Market Report Coverage and Deliverables
The “Speech Analytics Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering the following areas:
- Speech analytics market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Speech analytics market trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Speech analytics market analysis covering key market trends, Global and regional framework, major players, regulations, and recent market developments.
- Speech analytics Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments.
- Detailed company profiles
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Deployment Type, Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
North America dominated the speech analytics market in 2023.
Increased demand from the BPO sector is the major factors that propel the global speech analytics market.
The growing use of AI and ML to play a significant role in the global cryocoolers market in the coming years.
The leading player operating in the global speech analytics market are Almawave, Avaya Inc., Calabrio, CallMiner, Genesys, Marchex, Inc., NICE Systems, Verint Systems Inc., VoiceBase, Inc., ZOOM International, Kwantic, Convin.ai, Salesken AI Inc., Tethr, Gong.io Inc., Clari, Observe.ai, Batvoice, Deepgram, and Castel Communications.
The global speech analytics market is expected to reach US$ 6.86 billion by 2031.
The market is expected to register a CAGR of 14.5% during 2023–2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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