Interactive Voice Response System Market Size, Share, Growth, and Industry Analysis, By Type (Cloud Based, On-Premise), By Application (BFSI, Travel and Hospitality, Pharma and Healthcare, Telecommunications, Government and Public Sector, Transportation and Logistics, , ITES, Media, Retail, and E-commerce, Education) and Regional Insights and Forecast to 2031

Updated On: 29 April 2024

INTERACTIVE VOICE RESPONSE SYSTEM MARKET REPORT OVERVIEW

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The global interactive voice response system market size was USD 4355.8 million in 2021 and will touch USD 6124.6 million by 2028, exhibiting a CAGR of 4.9% during the forecast period.

Interactive voice response refers to technology that allows people to interact with an automated telephone system. It apparently receives a combination of phone input and keyboard dial tone to deliver essentially relevant responses to inquiries in the form of voice, email, fax, call back and other contact methods. The market for interactive voice response (IVR) system is growing significantly due to technological advances and increasing demand. improved customer experience. IVR systems are automated telephone systems that interact with callers, collect information and route calls to the correct recipient.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The global economy has been directly or indirectly affected by the COVID-19 pandemic and uncertain partial or complete closure restrictions. If call centers, PR or customer support centers, as well as other business sectors are facing the adverse effects of the COVID-19 pandemic.  That's why interactive voice response (IVR) became popular during the coronavirus epidemic to solve customer questions and problems in real time.

LATEST TRENDS

"Interactive Call Answering Market Trends Increased Call Volume Drives Market Growth"

Interactive voice response Market CAGR is driven by increase in call volume. The number of calls increased, making it difficult for brokers to detect sufficient call traffic. As a result, businesses are using IVR systems to handle the growing number of calls and improve customer connections. Thanks to talking technology and two-tone technology, the time spent hanging up and waiting is reduced. As a result, there are now more outbound calls, leading to the automation of boring jobs, increasing agent productivity and driving the interactive voice response system market growth for IP systems.

INTERACTIVE VOICE RESPONSE SYSTEM MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Cloud Based, On-Premise.

• Cloud-based: Cloud-based IVR systems offer several advantages such as scalability, cost-effectiveness and flexibility that encourage their adoption across industries. As the demand for cloud solutions increases, the cloud category is expected to grow at the highest CAGR. During the forecast period, the adoption of cloud services is expected to be driven by the increasing adoption of cloud technologies by enterprises.

• Due to the increasing acceptance of cloud solutions among small and medium-sized enterprises, demand in the on-premises services category is sluggish during the forecast period.

By Application

Based on application the global market can be categorized into BFSI, Travel and Hospitality, Pharma and Healthcare, Telecommunications, Government and Public Sector, Transportation and Logistics, ITES, Media, Retail, and E-commerce, Education.

• The BFSI segment is expected to account for a significant share of the global market during the forecast period. Customers do not have to callcustomer service numbers and wait in vain to reach an agent if their card is lost, damaged or stolen.

• Pharma and Healthcare: Interactive Voice Response System (IVRS) is one of the technologies developed and adapted to improve the quality of health services.

• Telecommunications:  Customized computer programs (information technology) can be used by the user over the phone (telecommunications) around the clock.

• Interactive voice response systems offer a number of advantages in the travel and hospitality industry. A robust cloud-based IVR system can save team time, reduce overall operating costs and increase customer satisfaction. The main purpose of IVR is to answer calls from clients or customers and provide answers to their questions. Interactive voice response is available 24 hours a day, seven days a week because it is automated and there are no people assigned to the call.

• E-commerce: IVR transactions are transactions that you complete over the phone and enter your credit card number into an automated system to pay a merchant for the purchase of goods, services, etc.

• BFSI: The banking, financial services and insurance (BFSI) sector in India is expected to grow exponentially due to rising per capita income, new product launches, technological innovations, increasing penetration, networking and increasing customer awareness of financial products.

• Retail: The sale of goods to the public in relatively small quantities for use or consumption, not for resale.

• Media:  major media (broadcasting, publishing and Internet) together.

• Transportation and Logistics: Carriers provide tracking information and pickup and delivery schedules. An IVR can look up this information and provide you with an updated status without involving an agent.

• Government and Public Sector: With IVRS-based services, status inquiries for multiple services can be automated and the necessary information delivered to service seekers without fail. necessary costs to e-government infrastructure.

• Education:IVR is an integrated speech recognition that allows parents and students to receive different information about the educational institution by calling the IVR number.

DRIVING FACTORS

"Changing Consumer Preferences Boost Market Growth"

Consumers increasingly prefer convenient and secure payment methods. The transition from traditional cash and card payments to digital wallets and contactless payment methods is due to the desire to make faster and more efficient transactions. This is especially evident in younger generations who are more tech savvy and familiar with mobile payments.

"Cloud-Based IVR Systems Are Becoming More Popular Fueling Market Growth"

IVR Cloud hosted systems are growing and becoming more common due to their scalability, affordability and reliability. Using this technology, companies can store customer data and recordings of customer interactions in the cloud, simplifying and improving customer service. In addition, it allows companies o access analytics and customer data in real time, which enables them to provide individual customer support and quickly respond toquestions.2025. 200 ZB of data is storedin the cloud per year. The cloud holds 60% of all data around the world.

RESTRAINING FACTORS

"High Costs Potentially Impede Market Growth"

Costly GIS will further derail the overall interactive voice response system market growth. Interactive voice responses are expensive because, in addition to technology and software, a properly trained workforce is also required. Understanding and interpreting data collected in the international interactive voice response market requires specialized skills that are expensive to hire and train. Therefore, this factor hinders the growth of the market during the forecast period.

INTERACTIVE VOICE RESPONSE SYSTEM MARKET REGIONAL INSIGHTS

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"North America Dominating the Market due to Region's High Adoption Of Interactive Voice Response Technology"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America dominates the global interactive voice response system market share due to the region's high adoption of interactive voice response technology during the forecast period of 2022-2029. In addition, it is anticipated that the increase in research and development knowledge aimed at improving the technology will continue. expansion during the forecast period.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The interactive voice response system market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• InContact (U.S.)
• Nuance Communications (U.S.)
• Genesys Telecommunication Laboratories
• 8x8 (U.S.)
• AT&T (U.S.)
• Avaya (U.S.)
• Aspect Software Parent (U.S.)
• 24/7 Customer (U.S.)
• Verizon Communications (U.S.)
• Five9 (U.S.)
• Cisco Systems (U.S.)
• Convergys Corporation (U.S.)
• West Corporation (U.S.)
• IVR Lab (U.S.)
• NewVoiceMedia (U.K.)

INDUSTRIAL DEVELOPMENT

March 2021: Avaya Inc. announced the addition of new specifications to Avaya Spaces. This is one of the newest WSC platforms. Avaya OneCloudTM Communications Platform as a Service (CPaaS) enables AI-enhanced conferencing and simpler connected voice and video calls can now be enhanced with Avaya Spaces.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.