Speech Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Speech Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The speech analytics market is poised to grow at a CAGR of 22.14% over the forecast period. 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 primarily utilized to handle a broad range of customer interactions. Enterprises globally have incorporated speech analytics through a combination of internally recorded data and externally syndicated data to generate a cutting-edge solution to understand customer requirements and comprehensively reduce churn.

Key Highlights

• One of the critical components of speech analytics solutions is transforming audio data into text. Text is much easier to share and search than audio to prove regulatory compliance, conduct an audit, or enable the discovery process in the event of litigation. The data is available for anyone who needs it in an easily found format within the organization. In January 2022, Meta AI released data2vec, a high-performance self-supervised algorithm that applies to multiple modalities, including separate applications onto speech, text, and images. It was identified to have outperformed industry-standard single-purpose algorithms for computer vision and speech. Moreover, data2vec does not rely on contrastive learning or reconstruction of input examples since it is trained by forecasting the model representations of the complete input data given a partial view of the input, thus, making it highly versatile and easily applicable.
• Moreover, the market is witnessing efforts from vendors toward product innovation and various partnerships to provide businesses with better solutions. For example, Cogito has developed a real-time conversation-analysis tool based on behavioral science and deep learning. The company’s AI listens to conversations for both content and tone. Cogito claims that it may detect mimicking, change in volume, pitch, etc., to gain real-time insight into how customers are exactly feeling and how all company calls are going. It also provides real-time suggestions to customer service representatives to improve the call and evaluate performance. One of the first extensive tests of Cogito’s system was done at the insurance company Humana during a six-month trial which involved a total of 200 agents’ calls, thereby making use of the system resulted in a 28% improvement in net promoter scores, a 6% improvement in resolution of the issues, and fewer callers asking to speak to a manager. Cogito claims that its system reduces callbacks by 10% and increases customer satisfaction by 28%.
• The rapid explosion of demand for speech-to-analysis software and platforms has heralded the growth of several startups in the field, including a few companies that recorded nearly 10x growth. For instance, SuccessKPI, a quality monitoring and speech analytics tools provider, recorded a 200% increase in demand for their platform due to the growing digitization of operations in North America and their expansion into Latin America, Europe, and Asia-Pacific. SuccessKPI is well integrated with popular CCaaS solutions, including Genesys Cloud, Amazon Connect, UJet, and Talkdesk, and features speech and text analytics, monitoring capabilities, and a business intelligence framework within a data lakehouse architecture. The growth invited a USD 33 Million investment from Banneker Partners in January 2022 to enable the rapid expansion of customer success, product, partner, marketing, and sales teams globally.
• However, the market studied is witnessing challenges in deploying voice-based communications. It is more challenging for a computer system to deal with voice interactions than chat on a purely technical level. Background noise, unusual speech patterns, different accents, and poor pronunciation make it hard for an AI to translate voices into text.
• During the COVID-19 outbreak, the potential end-user industries were adopting cutting-edge technology-enabled speech analytics solutions, further boosting market growth. While call centers have long been a great frontier of workplace automation, the pandemic accelerated the overall process. This is further anticipated to modify the product offerings and combine them with virtual agents to boost and enhance the speech analytics results during the forecast period. Also, AI and machine learning have massively upscaled the speed at which companies may segment conversations into relevant categories through speech analytics to understand what’s happening in a conversation.

Key Market TrendsTelecommunications Sector is Expected to Occupy Significant Market Share

• Due to the advent of the huge volume of data being generated by the introduction of the connected world idea, speech analytics has become increasingly popular in the telecom business. Initially, the recorded calls were assessed manually; however, as the number of calls has increased, so has the necessity for adequate and accurate assessment, resulting in the implementation of speech analytics. Telecom service provider businesses widely use speech analytics technologies. As the business market expands, many advantages, including higher margins, decreased fraud, reduced risk, improved service, and enhanced customer happiness, are helping attract and keep more clients.
• Organizations primarily use cloud-based communication analytics, which may identify high-value consumers and manage them appropriately throughout the customer life cycle to increase profits. This technology also assists in identifying potential dangers with real-time insights into customers. Most customer care interactions between customers and businesses are conducted over the phone, despite disruptive technology and the widespread usage of web and mobile tools.
• The goal of telecommunication firms' call centers is to enable these calls and gather information about consumer trends and behavior that can be gleaned from them. As data processing has become increasingly crucial for spotting opportunities, contact centers use technology based on more significant amounts of data.
• Various telecommunication companies are already using Speech Analytics solutions like Telefonica Brazil, the most vital telecommunication player in South America, which is taking complete advantage of Comdata's solution. The corporation uses IVR (interactive voice response) to manage an average of 40 million calls daily, with 9 million calls handled by humans. While those numbers are predicted to increase in the future, fewer human operators are anticipated to be employed in the following few years. Consequently, the problem is how to lower expenses while improving the quality of the client experience. Implementing a Speech Analytics solution is thus a crucial business solution.
• As per ITU, the total number of mobile subscriptions is estimated to have exceeded eight billion for the first time in 2019, reaching 8.3 billion subscriptions. In 2021, this figure had increased to 8.6 billion. This rise in the total number of mobile (cellular) subscriptions worldwide will boost market growth and create ample opportunities in the future.

North America is Expected to Hold Major Share

• The United States' speech analytics market is driven by various factors, such as increased digital marketing spending, increased technological spending by government agencies, and an increasing focus on treating people with mental illness in the region. Moreover, agencies like the CIA actively fund ideas that might help track terrorists and foreign spy activity. This also opens many opportunities for Silicon Valley startups, actively designing and innovating existing speech analytics solutions to build innovative and attractive solutions. Furthermore, the US defense sector invested billions of dollars over the last decade in research and development projects like the DARPA (Defense Advanced Research Projects Agency) to provide the nation's intelligence agencies and defense forces with significantly advanced surveillance technologies.
• The region is also seeing increased usage of voice controls by users across multiple platforms like connected TVs, PCs, tablets, automobiles, and wearables. Moreover, enterprises in the region adopt these solutions usually to increase their customer service. One of the largest insurance organizations in the United States, MetLife, adopted an AI system primarily to improvise responses to its customers' emotional needs and requirements. The system was specifically built to help the company's staff members track and monitor customers' emotions during conversations, thereby fostering the quality of customer service interactions.
• Acquisitions have allowed for the consolidation of operations in the marketplace. In October 2021, LivePerson Inc. acquired VoiceBase and Tenfold to enhance their scaled voice AI platforms by integrating voice and conversational AI systems. Combining VoiceBase's capabilities with live persons' conversational AI enables insights into regular patterns across messages and voiced mediums, along with third-party voice, telephone, or contact center systems, making it easier to improve customer experiences and understand agent productivity and utilization to build their bottom line.
• Furthermore, players such as CallMiner, a provider of artificial intelligence-enabled speech and customer interaction analytics, have raised a sum of around 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, email, chat, or text into "insights" and "actions so they may improvise and change their business across many different use cases.
• Furthermore, companies such as CallCabine prioritized the release of two targeted speech applications within their atmos voice analytics platform to 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 job loss, social distancing, isolation, government response, resource shortages, stockpiles, work from home, closures, symptoms, and home education. These innovations and deals are expected to create an enhanced customer experience with various added benefits and advantages, attracting more consumers, which is anticipated to impact the country's market growth positively.

Competitive Landscape

The Speech Analytics Market is consolidated as only a few significant market players occupy most of the market share. It is seen that well-established players are trying to obtain dominance in the speech analytics market. These companies leverage various strategic collaborative initiatives to increase their market share and profitability.

• June 2022 - Aural Analytics, Inc., a leader in clinical-grade speech analytics, announced a partnership with Koneksa, a leader in digital biomarker development, to further strengthen its platform and research capabilities using Aural Analytics' technology, Speech Vitals.
• December 2021 - Customer experience management company Genesys Telecommunications announced that it had successfully acquired Exceed.ai and Pointillist. With the help of award-winning experience management platform Pointillist and recognized intelligence lead activation and discussion processor Exceed.ai, businesses will be able to engage with customers more quickly throughout the sales, marketing, and service lifecycles.
• September 2021 - Google Cloud declared the strategic partnership with Scotiabank to deepen the bank's cloud-first commitment and boost the global data and analytics strategy. Google Cloud will help create a more personal and predictive banking experience for Scotiabank customers in the Americas and globally.

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