“Global Speech Analytics Market to reach a market value of USD 8.1 Billion by 2031 growing at a CAGR of 15.5%”
The Global Speech Analytics Market size is expected to reach $8.1 billion by 2031, rising at a market growth of 15.5% CAGR during the forecast period.
Speech analytics tools help financial institutions analyze customer interactions to identify pain points, streamline service delivery, and improve satisfaction. Additionally, these tools are invaluable for monitoring compliance with strict regulatory requirements and detecting suspicious or fraudulent activities in real-time. Therefore, the BFSI segment garnered nearly 1/4th revenue share in the market in 2023. The Banking, Financial Services, and Insurance (BFSI) sector is propelled by the imperative to augment consumer engagement, guarantee adherence to regulatory standards, and mitigate the risk of fraudulent activities. The rising adoption of digital banking and financial services has further amplified the demand for speech analytics in this segment.
Speech analytics plays a crucial role in identifying moments of frustration or dissatisfaction during customer interactions. For instance, a hotel chain might use speech analytics to analyze feedback from guests who call to report service issues in the hospitality industry. By identifying the root causes of these complaints, the hotel can implement targeted improvements, such as better staff training or enhanced room amenities, ultimately elevating the guest experience. Hence, these factors will drive the expansion of the market. Additionally, Speech analytics also helps contact centers identify recurring customer issues and ensure compliance with regulations. For example, a telecommunications provider might analyze calls to uncover frequent complaints about connectivity in a specific region, enabling proactive infrastructure upgrades. Similarly, in industries like healthcare or banking, speech analytics ensures agents handle sensitive information in compliance with data privacy laws. Thus, these applications make speech analytics a critical tool for improving customer satisfaction, reducing operational challenges, and ensuring regulatory adherence.
However, the high cost of training employees to effectively use these solutions adds another layer of complexity. Speech analytics systems are highly specialized and require skilled personnel to interpret data and generate actionable insights. The expenses associated with training may serve as an additional impediment for SMEs, as they frequently lack the necessary resources to either recruit or enhance the skills of employees for these positions. Consequently, the market penetration of speech analytics remains limited, with its adoption predominantly confined to large enterprises that can afford upfront and ongoing investments.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on deployment type, the market is bifurcated into on-premise and cloud. The on-premise segment garnered 58% revenue share in the market in 2023. The on-premise segment is primarily driven by organizations’ need for enhanced data security and compliance control. Industries such as banking, healthcare, and government, which operate under strict regulatory frameworks, rely on on-premise solutions to ensure sensitive data is securely managed within their infrastructure. These solutions also appeal to businesses with existing IT resources, as they can leverage in-house capabilities to reduce reliance on external service providers.
On the basis of component, the market is classified into solution and services. The services segment recorded 38% revenue share in the market in 2023. The growth is reflecting the growing need for support and expertise in deploying, maintaining, and optimizing speech analytics systems. Services such as consulting, training, and managed support are critical for ensuring that organizations maximize the value of their investment in analytics technology. As speech analytics solutions become more sophisticated, the demand for implementation services and ongoing support continues to rise.
By services type, the market is divided into professional services and managed services. The professional services segment witnessed 67% revenue share in the market in 2023. The professional services segment is driven by the increasing complexity of speech analytics systems and the need for specialized expertise in their deployment and customization. Organizations require professional services to ensure seamless implementation, integration with existing infrastructure, and alignment with business goals.
Based on application, the market is segmented into customer experience management, agent performance monitoring, sales performance management, call monitoring & competitive intelligence, and others. The customer experience management segment procured 42% revenue share in the market in 2023. The customer experience management segment is driven by the increasing emphasis on understanding and enhancing customer satisfaction in highly competitive markets. Organizations across industries leverage speech analytics to analyze customer interactions, gain insights into pain points, and predict customer needs. These tools enable businesses to personalize services, improve response times, and build stronger customer relationships.
On the basis of enterprises size, the market is bifurcated into large enterprises and small & medium enterprises. The small & medium enterprises segment witnessed 41% revenue share in the market in 2023. These tools enable SMEs to improve customer engagement, monitor agent performance, and gain actionable insights without significant upfront investments. The growing awareness of the benefits of speech analytics, coupled with the need to compete with larger counterparts, has encouraged more SMEs to adopt these technologies.
By vertical, the market is divided into BFSI, telecom & IT, media & entertainment, healthcare, retail, government, travel & hospitality, and others. The media & entertainment segment acquired 15% revenue share in the market in 2023. Speech analytics tools enable organizations to analyze customer preferences, feedback, and engagement levels across multiple channels, such as call centers and streaming platforms. This data helps media companies tailor their offerings, optimize advertising strategies, and enhance customer experiences. The escalating consumption of digital media, coupled with the intensifying competition for audience retention, has rendered speech analytics an indispensable instrument for comprehending and fulfilling audience expectations, thereby fostering growth within this sector.
Free Valuable Insights: Global Speech Analytics Market size to reach USD 8.1 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment witnessed 37% revenue share in the market in 2023. Organizations within various regional industries utilize speech analytics to augment customer engagement, enhance operational efficiency, and maintain adherence to rigorous regulatory standards. The widespread adoption of cloud-based solutions and growing investments in AI and machine learning have further accelerated the demand for speech analytics in North America.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 2.60 Billion |
| Market size forecast in 2031 | USD 8.1 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 15.5% from 2024 to 2031 |
| Number of Pages | 368 |
| Number of Tables | 650 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Deployment Type, Component, Application, Enterprises Size, Vertical, Region |
| Country scope |
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| Companies Included | Speechmatics Ltd., Almawave S.p.A. (Almaviva S.p.A), CallMiner, Inc., Qualtrics, LLC (Silver Lake Technology Management, L.L.C.), Genesys Cloud Services, Inc., Hewlett Packard Enterprise Company, NICE Ltd., Microsoft Corporation, Verint Systems Inc., Amazon Web Services, Inc. (Amazon.com, Inc.) |
By Deployment Type
By Component
By Application
By Enterprises Size
By Vertical
By Geography
This Market size is expected to reach $8.1 billion by 2031.
Increasing Demand for Customer Experience Management are driving the Market in coming years, however, Substantially High Implementation Costs restraints the growth of the Market.
Speechmatics Ltd., Almawave S.p.A. (Almaviva S.p.A), CallMiner, Inc., Qualtrics, LLC (Silver Lake Technology Management, L.L.C.), Genesys Cloud Services, Inc., Hewlett Packard Enterprise Company, NICE Ltd., Microsoft Corporation, Verint Systems Inc., Amazon Web Services, Inc. (Amazon.com, Inc.)
The expected CAGR of this Market is 15.5% from 2024 to 2031.
The Solution segment is leading the Market by Component in 2023; thereby, achieving a market value of $4.83 billion by 2031
The North America region dominated the Market by Region in 2023; thereby, achieving a market value of $2.87 billion by 2031.
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