According to the Market Statsville Group (MSG), the global interactive voice response market is expected to grow from USD 5,019.4 million in 2022 to USD 10,034.6 million by 2033, at a CAGR of 6.5% from 2023 to 2033.
Global interactive voice response market growth is driven by the rise in disposable income. And with the continuous evolution in technology, IVR solutions have changed a lot in recent years. The adoption of conversational IVR design in various business sectors has been tremendously driving the growth of the interactive voice response market for the upcoming period. And on the other hand, insufficient data encryption and security concerns will resist the market growth of this market for the forecast period. Moreover, innovative marketing strategies by the key market players will create huge market opportunities in this market for the forecasting period.
IVR (interactive voice response) is a telephone system feature interacts with callers and gathers information by providing them with a menu of alternatives. Then it takes action based on the caller's keypad or voice response. IVRs are commonly used by businesses or contact centres to route calls depending on the choices made by the caller. Based on these alternatives, it may determine if the caller wants to speak with the billing department, the technical support team, or a human operator. Furthermore, a well-designed IVR software system may help to improve contact center operations and KPIs while also enhancing customer satisfaction. An effective interactive voice response system can help consumers to find answers and do simple tasks by their own, especially during the peak call volumes.
The COVID-19 virus is sweeping through the world, tapping countries, societies, and communities under enormous pressure. Globally, several governments enforced stringent lockdowns and social distancing norms to control the spread of virus, which are widely acknowledged as the most effective way to combat the pandemic. These crises also put many impediments and affect various industrial sectors across the world. However, the interactive voice response market has a positive impact due to the outbreak of COVID-19, as there has been lockdown which results in the employees and laborers staying at home. The healthcare sector, BFSI, government and other sectors use Interactive voice response for ongoing operations. Thus, IVR is acts as a saving tool for various organizations to sustain and continue business growth during this pandemic. Thus, positive measures and innovative marketing strategies need to practice by government authorities and public & private companies, to build up their business subsequently the post-COVID-19 pandemic. Moreover, the social distancing and stringent lockdown rules affected day-to-day businesses, while the availability of the internet and mobile applications can take on a larger share of routine duties and tasks. This digital solution makes a robust connection between various businesses and customers, even in this harsh time of the pandemic. As of now, after the vaccine, businesses are still relying on these platforms, as different strains of coronavirus have come into existence. The total new cases recorded on 01st May 2021 were 1,907 new cases and 7 deaths in the United Kingdom. The number of increasing cases led to disruption in the economy of the country. However, the gradual opening of the economy and a post-COVID situation will further expected to peak the demand for the interactive voice response market over the forecasting period.
With the continuous evolution in technology, IVR solutions have changed a lot in recent years. The adoption of conversational IVR design in various business sectors has been tremendously driving the growth of the Interactive Voice Response Market. AS consumer expectations changed while interacting with digital assistants like Google assistant, Alexa, and Siri. Consumers have fully adapted to speaking naturally to automated systems, which deliberately increase the adoption of conversational IVR designs. Additionally, organizations are creating their own persona, when a consumer interacts with them; they instinctively assign some personality traits to it anyway, further seems like talking to a new person for the first time. It becomes the part of the company, a voice of brand just like a phone number or URL. Thus, creating a good relationship between the company and the customer as well as advertising its own brand. The modern IVR includes telephone surveys, information retrieval, order status and emergency notifications. Enables customers to get answers and resolve problems on their own (self-service), also decrease the customer care costs. Moreover, the use of AI in IVR, not only makes the same decisions that a person can, but it can also teach itself better decision-making. For instance: an insurance company has AI working IVR. When a customer calls for the fourth time to check the claim status, the smart AI will recognize that request, infer for the updating as per the customer’s request, and can escalate the call as necessary. Thus, AI with IVR system delivers faster and more efficient customer interactions, while at the same time it reduces the cost and time, thereby augmenting the growth of the Interactive Voice Response market.
Organizations or business entities have always faced numerous financial processes security risks from external as well as internal threats. These include data breach, fraud, hacking, skimming, check tampering, and incorrect expense reimbursement, mainly caused due to outdated, old, or unpatched computer systems, malware & ransomware, device theft, and others. This will further negatively impact the organization’s finances and reputation. Applications such as BFSI (Banking, Financial Services, and Insurance), healthcare and others need extra security and advanced IVR solution for making it a reliable service for the customers. For instance: as per IT Governance in the UK, in 2020 around 1,120 breaches and cyber-attacks were recorded in the United Kingdom. Thus, the integration of advanced technology and end-to-end security checks will reduce the security concern and thereby drive the growth of the market.
The market players operating in the market have steadily adopted ground-breaking marketing strategies to gain a competitive advantage. Companies often regularly involved themselves taking initiative for the cloud based IVR. These help market players to enhance the business operations and support services to create a better brand image.
Moreover, companies are taking innovative marketing & positioning strategies that are likely to increase in the future to create diversity. Some of the strategies undertaken by the key players are listed below. For instance In October 2020, the United Kingdom-based HSBC launched new voice-driven menu technology to assist its telephone banking customers. By removing the touch-tone menu and decreasing the requirement for internal transfers, this new smart IVR service recognises the purpose for the call and guides consumers to self-service. With the introduction of the new voice-driven menu, customers will be able to access their account quickly and easily.
The study categorizes the interactive voice response market based on technology, application and solution area at the regional and global levels.
By Application Outlook (Sales, USD Billion, 2019-2033)
Based on the technology, the market is devided into speech based, touch tone based and text to speech. The touch-tone based segment will dominate the market in 2022 for the global interactive voice response market. Incoming callers can acquire information without speaking to an agent by using a voice response system with pre-recorded instructions, or they can use menu selections through touch-tone keypad selection to have their call routed to certain departments or specialists. And on the other hand, text to speech will account the highest CAGR in the market for the forecasting period.
Based on the regions, the global interactive voice response market has been segmented across Asia-Pacific, North America, South America, Europe, and the Middle East & Africa. North America is expected to witness the highest market share in 2022. However, the IVR market in Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period due to increasing number of new small and medium enterprises (SMEs) and major organizations in this area. The existence of a large end-user base in advanced economies like as South Korea and Japan, as well as the rising desire for improved customer service and a higher degree of customer contact, are projected to drive the growth of the IVR market in this area.
The interactive voice response market is extremely cutthroat, and significant competitors in the sector are using strategies including collaboration, product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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