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The global speech analytics market was valued at $1,010.4 million in 2018, which is expected to reach $2,910.1 million by 2024, progressing at a CAGR of 19.9% during the forecast period (2019–2024). Rising number of contact centers, increasing focus on customer satisfaction, growing significance of real-time speech analytics, and adherence to compliance regulations are some of the key factors driving the market growth, globally. Among all regions, the APAC market is expected to witness the fastest growth during the forecast period, owing to the accelerated IT infrastructure spending by organizations in developing countries, primarily in China and India.
Factors Governing Speech Analytics Market
Growing preferences toward phonetic indexing is one of the key trends observed in the speech analytics market. The phonetic indexing technique is easy to manage and implement, and it is also faster than the transcription technique as it does not require to scan a large volume of dictionary words. Phonetic-based speech analytics solution converts audio conversation into a string of phonemes and then looks for only a predefined list of words. Hence, it can easily achieve quicker business insights and analyze higher volumes of calls using the same number of servers.
Increasing focus on customer satisfaction is one of the key factors driving the speech analytics market across the globe. Presently, customers are no longer brand loyal as they have many choices of where to shop. It has been witnessed that the customers are more likely to purchase from competitors if they face service-related problems rather than price or product-related. As a result, companies are increasingly focusing on offering good customer experience in order to improve customer retention rates, new customer acquisition, and sales. Hence, they are deploying speech analytics solution to gain better visibility of customers and deliver better customer experience every time.
Increasing demand for speech analytics solutions from SMEs holds huge growth potential for players operating in the speech analytics market to expand their product portfolios and shares. The SMEs are adopting speech analytics software in order to offer enhanced customer service and retain their customer base. In addition, cloud-based deployment has made speech analytics solutions easily accessible to SMEs, as it does not require any hardware investment.
Speech Analytics Market Segmentation Analysis
Based on offering, the solution category held larger share in 2018 in the speech analytics market, owing to the increasing adoption of speech analytics solutions across all verticals to offer enhanced customer service and monitor agents’ performance. Whereas, due to the increasing demand for integration and implementation, and consulting, the service category is expected to witness faster growth during the forecast period.
On the basis of deployment type, the cloud category is expected to witness faster growth during the forecast period, owing to its enhanced scalability, 24/7 service, high speed, and less upfront cost.
In terms of enterprise size, the large enterprise category held larger share in the speech analytics market in 2018, as large enterprises are strongly focusing on customer experience management to encourage repeat business and retain their large customer base.
Based on application, the customer experience management category held the largest share in the speech analytics market in 2018, and it is further expected to witness the fastest growth during the forecast period. This can be attributed to the increasing need to evaluate overall customer experience, and then predict customer satisfaction score, which helps companies to improve their sales effectiveness.
On the basis of industry, BFSI held the largest share in the speech analytics market in 2018. This is due to the fact that financial institutions are increasingly using speech analytics solutions to enhance customer satisfaction, reduce customer churn rate, and ensure regulatory compliances.
Geographical Analysis of Speech Analytics Market
Globally, North America held the largest share in the speech analytics market in 2018. This is owing to the growing service industry in the region and increasing number of contact centers, which are outsourced and can be managed by speech analytics solution. Presence of a large number of big industries, large IT spending, and technological advancement are some of the other factors that are supporting the growth of the market in the region.
On the contrary, the APAC speech analytics market is expected to witness fastest growth during the forecast period. This is attributed to the accelerated IT investments in developing countries, such as China and India, and increasing number of contact centers in the region are some of the major factor driving the growth of the market.
Competitive Landscape of Speech Analytics Market
The speech analytics market is competitive in nature, characterized by the presence of established companies, such as NICE Ltd., Verint Systems Inc., Hewlett Packard Enterprise Company, CallMiner Inc., Genesys Telecommunications Laboratories Inc., Avaya Holdings Corporation, Aspect Software Inc., Zoom International, Castel Communications, Clarabridge Inc., and Calabrio Inc.
Recent Strategic Developments of Major Speech Analytics Market Players
In recent years, major players in the global speech analytics market have taken several strategic measures, such as mergers & acquisitions, product launches, and geographical expansions, to gain competitive edge in the industry. For instance, in August 2019, NICE Ltd. acquired Mattersight Corporation, a cloud-based speech analytics software provider, for an undisclosed amount. Integration of MatterSight public behavioral routing (PBR) would help the company to offer end users the ability to understand the entire customer journey together with a holistic view of the customer persona.
Further, in June 2019, Amazon Web Services Inc. launched artificial intelligence (AI)-powered speech analytics for Amazon Connect that provides customer insights in real time and helps agents to respond as per the need of customers and improve the overall customer experience. The solution includes pre-trained AWS AI services that enable customers to transcribe, translate, and analyze each customer interaction in Amazon Connect, and presents this information to assist contact center agents during their conversations with customers.
Moreover, in June 2017, CallMiner Inc. launched Eureka Starter, a full speech transcription tool designed for small and large organizations looking to gain insight into their customer interactions without the need to dedicate an analyst.
Key Questions Addressed/Answered in the Report