The speech analytics market was valued at USD 1649.34 million in 2020 and is expected to reach USD 5460.66 million by 2026 and grow at a CAGR of 22.14% over the forecast period (2021-2026). Speech analytics solutions can convert call recordings to actionable data, and then translate the data into valuable insights that are effective across the enterprise. These solutions are used to handle a broad range of interactions with customers. Enterprises across the globe have incorporated speech analytics through a combination of internally recorded data, social media as well as external syndicated data primarily to create a cutting -edge solution, to gain a better understanding of their customer requirements and reduce churn.
- Speech analytics also plays a crucial role in understanding the root cause of customer dissatisfaction. It helps keep the organization informed, which helps them mitigate risk and train their staff accordingly, to avoid such circumstances. Businesses can leverage this type of analytical solution in improving their prediction of customer engagement outcomes. They can also prescribe customized and successful customer engagement processes (CRM). Moreover, the increased adoption of these analytical solutions have been driven by an increased number of call centers, increasing advancement in voice analytical technologies, rising demand for more precise risk management solutions, and a massive volume of voice data already existing with the majority of large enterprises worldwide.
- Speech analytics technology primarily analyzes any business-to-consumer interactions in real-time using advanced NLP technology coupled with artificial intelligence and machine learning. These solutions can generate multiple signals from customer interaction to determine the user's intent, sentiment, success, and various other outcomes that can help enterprises improve their marketing, sales, and service departments' results. For instance, the Sberbank of Russia is using a solution to make itself future-ready. Sberbank's AI is acting as a passive third party in call center transactions, listening to the interactions, and applying NLP techniques to what they hear. The program is expected to learn enough in the next few years to expand its role and suggest responses to the call center operator, allowing for fully human interactions to be supported by the accuracy and speed of AI.
- Furthermore, in May 2020, Silicon Valley customer experience management specialist Medallia launched a speech analytics tool called Medallia Speech, providing clients a single view of customer experience insights in one platform. Leslie Stretch Medallia Experience Cloud is used to manage the experience for customers, employees, and citizens by capturing signals created on daily journeys in person, digital and IoT interactions, and applying AI technology to uncover personalized and predictive insights. As part of the Experience Cloud, the new Medallia Speech solution adds real-time voice transcription at a large scale, and speech analytics to analyze the millions of call hours - including the sentiment. Further combination with text analytics, as well as insights from digital, video, and other channels, provides a 'comprehensive' understanding of the entire customer journey.
- Further, with the pandemic of COVID -19, the Coronavirus Customer Thinktank yielded a few other interesting insights into the state of the contact center business, which has been upended as a result of COVID -19. While some companies had already moved to a work -from -home (WFH) model before the pandemic, an estimated 90 % of the workforce still worked in a traditional contact center environments, according to CallMiner. Also, according to CallMiner, call volumes in contact centers have dropped by about 25 % during COVID - 19, which reflects the overall slowdown in the economy as a result of the coronavirus pandemic. Text interactions are staying pretty steady. In May 2020, the folks at CallMiner had theories about what their speech analytics software would turn up when they launched an informal coronavirus customer research program in March.
Key Market Trends
Telecommunications Sector is Expected to Occupy Significant Market Share
- Speech Analytics has become increasingly popular in the telecom industry due to the massive amount of data being generated through the advent of the connected world concept. Initially, the recorded calls were evaluated manually, but the rise of call volume is demanding the need for adequate and accurate evaluation, thereby leading to the adoption of speech analytics. Telecom service provider organizations are significant end-users of speech analytics solutions worldwide. Various benefits such as increased margins, fraud reduction, risk minimization, service improvement, and customer satisfaction are leading to the acquisition of more customers and retention of customers, which are aiding the growth of the market in the industry.
- Mainly, cloud-based communication analytics are being adopted by organizations, which helps identify potential risks with real-time insights into customers; it can identify high-value customers and manage them accordingly across the customer life cycles to improve revenues. Despite disruptive technologies and the extensive use of web and mobile tools, customer service over the telephone is the dominant channel of communication between customers and companies. Call centers of telecommunication companies aim to facilitate these calls and gain whatever insight is detectable from them into customer trends and behavior. Contact centers use technology based on a more significant amount of data, as data processing is now becoming key to detecting opportunities.
- There are already many telecommunication companies using Speech Analytics solutions such as Telefonica Brazil, the most significant telecommunication player in South America, which is now taking advantage of Comdata's solution. The company manages an average of 40 million calls every month with IVR (interactive voice response) and answer by human 9 million calls every month. Those numbers are expected to grow in the future, but at the same time, the numbers of human operators will decrease in the next few years. Hence, the challenge is how to increase the quality of the customer experience while reducing the costs. A key solution for the company was to implement a Speech Analytics solution.
North America is Expected to Hold Major Share
- The North America speech analytics market is driven by various factors, such as an increase in digital marketing spending, increased technological expenditures by government agencies, and an increasing focus towards the treatment of people with mental illness in the region, among others. Moreover, agencies like the CIA are actively funding ideas that might help track terrorists and foreign spy activity. This also opens a lot of opportunities for Silicon Valley startups, who are actively innovating the existing speech analytics solutions to develop innovative and attractive solutions. Furthermore, the U.S. defense sector has been investing billions of dollars over the recent decade on research and development projects like the Defense Advanced Research Projects Agency, primarily to provide the nation's intelligence agencies and the defense forces with advanced surveillance technologies.
- The region is also witnessing increased usage of voice controls by users across multiple platforms like PCs, tablets, connected TVs, automotive, and wearables. Moreover, the total number of voice assistant devices is expected to reach 870 million in the U.S. by 2022, which is a 95% increase from a total of 450 million estimated in 2017. Moreover, enterprises in the region are adopting these solutions primarily to increase their customer service. For instance, one of the largest insurance companies in the United States, MetLife, took an AI system mainly to improve responses to its customers' emotional needs. The system was specifically developed to help the company's staff members to track and monitor the emotions expressed by customers during conversations, thereby enhancing the quality of customer service interactions.
- Further, in April 2019, CallCabinet, a leading global provider of affordable Cloud-native call recording and AI solutions in Florida, announced Atmos@Home, a new, innovative offering providing advanced UCaaS call recording, quality management, and AI-powered speech analytics empowering global organizations to maintain productivity, compliance, and service levels in a work-from-home environment. CallCabinet's Atmos@Home platform automatically or manually records remote users from any location with unlimited throughput between their UCaaS/Contact Center platforms and the Atmos network. Further, CallCabine prioritized the release of two targeted speech applications within the Atmos voice analytics platform to precisely deliver business-critical intelligence surrounding the COVID -19 pandemic and its impact on customer interactions.
- Atmos' newly developed COVID -19 -focused applications provide businesses with real-time insight into topics such as job loss, social distancing, work from home, and home education. Further, a player such as CallMiner, a provider of artificial intelligence-enabled speech and customer interaction analytics, has raised USD 75 million in a "late -stage, growth equity" round from Goldman Sachs CallMiner aims to translate the interactions that its customers have with their customers whether they occur over voice, chat, email or text into "insights" and "actions so they can change and improve their business across many different use cases. Thus, the above innovation and deal will create an enhanced customer experience with various added benefits, thereby attracting more consumers, which in turn is projected to have a positive impact on the region's market growth.
The Speech Analytics Market is quite consolidated as only a few players occupy the majority of the market share. It is observed that the established players are trying to gain dominance in the speech analytics market. These companies are leveraging strategic collaborative initiatives to increase their market share and profitability.
- November 2019 - CallMiner announced its emotion detection and analysis solution for the customer's enhanced voice (VoC) insights. The new Emotion Solution Suite enables organizations using CallMiner Eureka speech analytics to understand, measure, and trend human emotion in interactions between contact center agents and customers. This applies to both after-call interaction analysis and real-time, next-best-action agent guidance.
- November 2019 - To enable customers to optimize the time to market for speech and text analytics, VoiceBase introduced VoiceBase Online. VoiceBase Online is a fully hosted SaaS application that hosts the analytics databases with optimized query schemas, data transformations, and front-end visual analytics, powered by Tableau.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support