Access TOC
Get a SampleJuly 2024
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.
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 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.
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.
| 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 |
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Segments Covered in the Report
By Component
By Deployment
By Enterprise Size
By Vertical
By Geography
For questions or customization requests, please reach out to us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
July 2024
August 2024
August 2023
August 2023