Speech Analytics Market Size, Share and Trends 2024 to 2034

The global speech analytics market size was USD 3.82 billion in 2023, calculated at USD 4.42 billion in 2024 and is expected to be worth around USD 18.85 billion by 2034. The market is slated to expand at 15.62% CAGR from 2024 to 2034.

  • Last Updated : September 2024
  • Report Code : 5018
  • Category : ICT

Speech Analytics Market Size and Forecast 2024 to 2034

The global andalusite market size is worth around USD 4.42 billion in 2024 and is anticipated to reach around USD 18.85 billion by 2034, growing at a CAGR of 15.62% over the forecast period 2024 to 2034. The rise in the banking and telecom sectors, increased demand to meet customer requirements, and technological advancements drive the speech analytics market.

Speech Analytics Market Size 2024 to 2034

Speech Analytics Market Key Takeaways

  • North America held the largest share of the speech analytics market in 2023.
  • Asia-Pacific is anticipated to grow at the fastest rate in the market during the forecast period.
  • By component, the solutions segment contributed the highest market share of 64% in 2023.
  • By components, the services segment is expected to grow at a solid CAGR of 14.42% during the forecast period.
  • By deployment, the on-premises segment recorded the highest market share of 62% in 2023.
  • By deployment, the cloud segment is projected to expand at a double digit CAGR of 18.03% during the forecast period.
  • By enterprise size, the large enterprise segment generated the biggest market share of 61% in 2023.
  • By enterprise size, the SME segment is poised to grow at a notable CAGR of 16.72% during the forecast period.
  • By vertical, the BFSI segment registered its dominance over the global speech analytics market in 2023.
  • By vertical, the retail segment is predicted to witness significant CAGR of  17.83% over the forecast period.

Market Overview

Speech analytics analyze voice recordings, or live customer calls to gather customer information to improve communication. Speech analytics tools analyze customer conversations to derive insightful information that helps companies prepare for call center automation and comprehend client emotions. They present numerous benefits, including enhanced customer satisfaction, improved agent performance, increased operational efficiency, reduced compliance risk, and higher revenue. Speech analytics techniques can help businesses increase sales by improving sales strategies, giving agents real-time alerts to take advantage of sales opportunities, and using factual evidence to disprove client concerns. This technology is widely accepted by industries like financial services and healthcare to meet regulatory compliance requirements to store and search for customer data. Additionally, they are used in the telecom and BPO sectors.

Speech Analytics Market Growth factors

  • The rising investment in various sectors like banking, telecom, retail, and healthcare increases demand for speech analytics. 
  • The increased demand to meet customer requirements also drives the market.
  • The market is also driven by technological advancements like artificial intelligence.

What is the Role of AI in the Speech Analytics Market?

Speech analytics tools leverage advanced technologies like natural language processing (NLP), automatic speech recognition (ASR), machine learning (ML), and artificial intelligence (AI). These technologies convert spoken words into structured data points to capture customer sentiment and extract meaningful insights. They make it easier and faster to understand the requirements and preferences of consumers by eliciting a customer’s voice in their own words. This can provide deeper insight into what customers are saying about the brand and help to make improvements. They can analyze customer emotions using tone, speech patterns, and keywords.

Additionally, AI enables companies to reduce the likelihood of legal problems by automatically identifying language that is risky or non-compliant. Overall, by understanding the client’s preferences, businesses can better customize their offerings for an enhanced customer experience.

Market Scope

Report Coverage Details
Market Size by 2034 USD 18.85 Billion
Market Size by 2024 USD 4.42 Billion
Market Growth Rate from 2024 to 2034 CAGR of 15.62%
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2034
Segments Covered  Component, Deployment, Enterprise Size, Vertical, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Market Dynamics

Drivers

Growing Telecommunication Sector

The telecommunication sector is a rapidly growing sector due to the increased use of smartphones and other devices and emerging technologies like 5G. Speech analytics in the telecom sector engages customers with seamless connectivity and networks. It protects the data from fraudulent activities and provides consumer protection. Telecom companies can provide customized services using customer purchase history, preferences, and feedback. This leads to targeted marketing and providing personalized services. Additionally, speech analytics drives the company's sales by obtaining accurate customer information and executing the most effective marketing strategies. Furthermore, the generated data can also aid in enhancing call center agents’ performance by rewarding the employees.

  • In 2022, the U.S. government invested $102 billion in broadband infrastructure, whereas the Indian government invested around $1.65 billion in 2022.

Restraints

Consumer Resistance and Lack of Accuracy

The major challenge faced by speech analytics is resistance by consumers. Consumers find it difficult to adapt to a rapidly changing ecosystem. They are unhappy with the AI-generated answers in certain cases and find human help. Hence, speech analytics is not considered for businesses unrelated to the call center sector. Another major challenge is the lack of accuracy and reliability. The speech analysis is difficult due to the diverse languages spoken around the world and different accents. This limits transcribing and interpreting speech. The accuracy is also lacking in the case of speakers with constant background noise. Additionally, the technique should comply with regulations of particular nations to securely govern the collection, storage, and usage of personal voice data.

Opportunity

Booming Healthcare Infrastructure

The healthcare sector is rising due to advanced infrastructure, growing research & development, and increasing investments and collaborations. Speech analytics in the healthcare sector bridges the gap between healthcare professionals and patients. It revolutionizes patient’s quality of life by providing personalized services and treatment. It assists in determining relative compliance risks and permits real-time compliance monitoring. It also increases patient medication adherence by providing answers to routine questions, clinically approved advice, and recommendations in the comfort of their home.

Additionally, speech analytics provide guidance to healthcare professionals on how to resolve complex issues. These speech analytics tools can be further modified in the future to identify patient conditions and provide preventative care by analyzing the speech patterns of the patients. It can also support doctors with diagnosis and early detection of disease. According to the National Health Expenditure Account (NHEA), the US healthcare expenditure grew 4.1% in 2022, reaching $4.5 trillion, accounting for a high demand for healthcare facilities.

Component Insights

The solutions segment held a dominant presence in the speech analytics market in 2023. The speech analytics solutions involve providing software to business organizations. The software uses natural language processing and machine learning algorithms to record live conversations and analyze the data by recognizing specific keywords and patterns based on tone and sentiment. This can facilitate organizations for real-time and post-call analytics and make decisions based on these data. Also, the advancements in technology boost market growth.

Speech Analytics Market Share, By Component, 2023 (%)

The services segment is expected to grow at the fastest rate in the speech analytics market during the forecast period of 2024 to 2034. Speech analytics companies offer several services such as dispensing and installing speech analytics software, training employees, and resolving issues for business organizations. Organizations require speech analytics services to fulfill consumer specifications and remain competitive in the market with the latest technology.

Deployment Insights

The on-premises segment dominated the speech analytics market in 2023. With the on-premises solution, the companies can comply with data residency and compliance regulations while maintaining control over their infrastructure and protected speech data. On-premises systems are comparatively safe and secure as they are physically located within the company. These systems can be protected from cyber-attacks and other security threats. Organizations can customize the system according to their requirements and can also integrate it with other software and systems.

Speech Analytics Market Share, By Deployment, 2023 (%)

The cloud segment is anticipated to grow with the highest CAGR in the speech analytics market during the studied years. The major advantage of using the cloud-based system is that it does not require any capital investment for maintaining a physical infrastructure. Additionally, it is completely operated by a third-party provider. Hence, a team of IT professionals is not required in the organization. Furthermore, the cloud service is highly scalable and accessible at any time and anywhere using the internet. They are the most preferable choice for small and medium enterprises with limited investment and infrastructure. Hence, cloud-based contact centers provide numerous benefits over on-premises systems in terms of end-to-end customer service management.

Enterprise Size Insights

The large enterprise segment led the global speech analytics market in 2023. Large enterprises can better understand their customers and their requirements by installing a speech analytics platform in their organization. The speech analytics platform is highly affordable by large enterprises due to high capital gains. Large enterprises also have the desired facilities and infrastructure to install speech analytics in their organization. It also helps them to stay in the market with other competitors with advanced services and enhanced customer experience.

Speech Analytics Market Share, By Enterprise Size, 2023 (%)

The SME segment is projected to expand rapidly in the speech analytics market in the coming years. Speech analytics help small and medium enterprises (SMEs) to improve their services and products after obtaining feedback from customers. It aids SMEs to make informed and data-driven decisions by implementing speech analytics. According to the Office of the United States Trade Representative, the US currently has more than 30 million SMEs.

Vertical Insights

The BFSI segment registered its dominance over the global speech analytics market in 2023. Banking, financial services, and institutions (BFSI) aim to provide basic customer service, better clarity, and transparency to prevent problems. These aspects can be fulfilled by installing speech analytics tools. Banks can gain a deeper understanding of customer sentiments and identify potential compliance issues in real time. These speech analytics tools have the ability to detect and warn of potentially fraudulent activity in real-time by analyzing strange patterns and abnormalities in client conversations. Such proactive detection serves the dual purposes of averting financial losses and preserving consumers’ trust and confidence. There are approximately 988,019 finance and insurance businesses in the US as of 2023. 

  • In June 2024, GreyLabs AI, a speech analytics platform, raised over $1.5 million in a seed round led by Matrix Partners India. They aim to revolutionize how banks, financial institutions, and fintechs extract insights from unstructured data, particularly from speech data generated in call centers and email communications. 

The retail segment is predicted to witness significant growth in the speech analytics market over the forecast period. Retailers can improve their services by consistent coordination with their customers. This also reduces the workload on supervisors, identifies improvement opportunities, and personalizes the customer experience in real-time. Additionally, it aids in trend detection and improved operational efficiency. Speech analytics can analyze the buying process during a conversation and find the most potent selling junctures.

Regional Insights

North America held the largest share of the speech analytics market in 2023. The technological advancements, presence of key players, high-speed internet connectivity, and developed infrastructure drive the market. Countries like the US and Canada are at the forefront of the speech analytics market in North America. The National Institute of Standards and Technology, the U.S. government supports and promotes the use and development of speech analytics in the region. Additionally, the rise in banking, healthcare, and telecom sectors boost the market. Canada has the most accessible banking system in the world, with more than 99% of Canadian adults having an account in a financial institution. Also, there are approximately 2.8 million healthcare and social assistance businesses in the US as of 2023.

  • In May 2023, Canary Speech, Inc. announced the use of Microsoft Azure, an AI-powered voice analysis cloud solution to address mental health challenges and enable early intervention and reduce healthcare costs. 

Asia-Pacific is anticipated to grow at the fastest rate in the speech analytics market during the forecast period. The growing retail and services sector, developing infrastructure, and rising consumer needs drive the market. Due to the increasing population, especially in India and China, the organizations adapt speech analytics to cater to the diverse needs of consumers. Additionally, government policies and initiatives promote the use of speech analytics in the region. Furthermore, the booming use of artificial intelligence also augments the market. China has around 4,561 banks as of 2023.

  • In February 2023, Bharti Airtel announced a partnership with Nvidia to deploy AI-based speech analytics to improve the overall customer experience for all inbound calls to its contact center. Airtel leveraged the NVIDIANeMo conversational AI toolkit and NVIDIA Triton Inference Server to develop the technology that enables automated speech recognition.

Speech Analytics Market Companies

  • Avaya LLC
  • Calabrio, Inc.
  • CallCabinet
  • CallMiner
  • Cogito
  • Convin
  • Five9
  • Genesys
  • GreyLabs AI
  • Invoca
  • JustCall
  • OnPage Infotech LLP
  • Sprinklr
  • Talkdesk
  • Verint Speech Analytics

Recent Developments 

  • In June 2024, Talkdesk announced new generative AI capabilities, Talkdesk Navigator and Mood Insights, to provide agents with the tools to adjust content, offers, and recommendations based on each specific customer profile. 
  • In April 2024, Kore.ai launched the XO Platform, a lighter, less expensive large language model (LLM). The model is highly customized, fine-tuned, and hosted in the vendor’s own data center for customer experience conversational use cases.
  • In March 2024, Salesforce announced the launch of Service Cloud innovations to enhance customer experience and drive revenue growth. These data can be used to automate contact centers and agent coaching. 
  • In March 2024, Linus Health, a digital health company, announced the acquisition of Aural Analytics, a clinical-grade speech analytics company. The collaboration was made to enhance Linus Health’s capabilities in the life sciences sector.

Segments Covered in the Report

By Component

  • Solution
  • Service

By Deployment

  • On-premises
  • Cloud

By Enterprise Size

  • SMEs
  • Large Enterprises

By Vertical

  • BFSI
  • Telecommunications
  • Healthcare
  • Retail
  • Government
  • Travel & Hospitality
  • Others

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

Frequently Asked Questions

The global speech analytics market size is expected to increase USD 18.85 billion by 2034 from USD 3.82 billion in 2023.

The speech analytics market is anticipated to grow at a CAGR of over 15.62% between 2024 and 2034.

The major players operating in the speech analytics market are

The driving factors of the speech analytics market are the growing telecommunication sector.

North America region will lead the global speech analytics market during the forecast period 2024 to 2034.

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