Interactive Voice Response (IVR) Market Size & Share, by Organization Size (Large Enterprises, Small & Medium Organizations); Deployment Model (Cloud-Based, On-Premises); Technology (Touch-Tone Based, Speed Based); Verticals (BFSI, Travel & Hospitality, Telecommunications, Transportation & Logistics, Media, Retail & E-Commerce, Education, ITES, Healthcare, Government & Public Sector) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5245
  • Published Date: Sep 19, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024 - 2036

Interactive Voice Response Market size is expected to surpass USD 9.6 Billion by the end of 2036, growing at a CAGR of 6.5% during the forecast period, i.e., 2024 – 2036. In the year 2023, the industry size of interactive voice response was over USD 4.5 Billion. The market for interactive voice response will also be propelled by the expansion of sales and customer service departments within organizations. Consumers claim that 68% of them are willing to pay more for goods and services from companies with a reputation for providing excellent customer support. Good customer service converts one-time customers into ardent brand defenders for 86% of businesses.

The steady market growth revenue can be attributed to the increasing integration of advanced technologies such as Natural Language Understanding. The artificial intelligence-powered capacity is a critical subset of Natural Language Processing, which filters through misspelled words, poor syntax, and mispronunciations to determine an individual’s true purpose. 57% of Americans anticipate that AI will eventually replace housework. The fastest-growing app in history, ChatGPT had 100 million active users by January 2023.


Interactive Voice Response Market  size
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Interactive Voice Response Sector: Growth Drivers and Challenges

Growth Drivers

  • Usage of Internet Services and Cell phones is Rising- The introduction of the 5G technology and the fast-expanding digitization are expected to increase the number of mobile phone users globally. In 2019, more than 5.5 billion people in the world used smartphones, which increased up to approximately 6 billion by the end of 2020. By 2025, about 7.2 billion people globally are calculated to be smartphone users.  
  • IVR Systems in the Cloud are Becoming More Popular- IVR systems that are hosted in the cloud are becoming more and more common because of their scalability, affordability, and dependability. With the use of this technology, businesses may store customer information and recordings of customer interactions on the cloud, simplifying and streamlining customer service. Additionally, it enables businesses to access analytics and client data in real-time, enabling them to offer individualized customer support and promptly reply to inquiries. By 2025, 200 ZB of data will be kept in the cloud. The cloud houses 60% of all corporate data worldwide.
  • Growing Demand for Customer Self-Service Options- Because of the ease and cost savings that come with it, the popularity of customer self-service options has been rising over time. IVR software is one of the technologies that businesses are investing in more frequently to enable self-service options for customers. Customers can rapidly get their questions answered, and businesses can cut back on customer support expenses, which benefits both customers and businesses.

Challenges

  • High Implementation and Maintenance Costs: Interactive Voice Response (IVR) software is a complicated technology that comes at a high cost for both installation and upkeep. IVR software typically costs more than other software alternatives. Additionally, the cost of system maintenance can be fairly significant because it calls for technical expertise to handle and resolve any potential problems.
  • Having Trouble Connecting with Current Systems
  • Security and Privacy Problems.

Interactive Voice Response (IVR) Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 6.5%

Base Year Market Size (2023)

 ~ USD 4.5 Billion

Forecast Year Market Size (2036)

 ~ USD 9.6 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Interactive Voice Response Segmentation

Organization Size (Large Enterprises, Small & Medium Organizations);

The large enterprises segment is expected to hold 63% share of the global interactive voice response market. This is mostly because large businesses engage in more transactions and client acquisitions. IVR services come in two fundamental flavors: inbound and outbound. IVR system users demand personalized experiences, according to 63% of customers.  Customers prefer natural language IVR systems by a margin of 66%.

Technology (Touch-Tone Based, Speed Based);

The touch-tone based segment is expected to hold 58% of revenue share. Without speaking to an agent, incoming callers can get information from a voice response system with pre-recorded instructions. They can also use menu selections via touch-tone keypad selection to direct their call to particular departments or specialists. When they are unable to speak with a live agent, 75% of clients become angry. If they have to deal with complicated customer service, 30% of customers will hang up. Up to 30% less can be spent on customer support thanks to IVR technology.

Our in-depth analysis of the global interactive voice response market includes the following segments:

Organization Size

  • Large Enterprises
  • Small & Medium Organizations

Deployment Model

  • Cloud-Based
  • On-Premises

Technology

  • Touch-Tone Based
  • Speed Based

Verticals

  • BFSI
  • Travel & Hospitality
  • Telecommunications
  • Transportation & Logistics
  • Media
  • Retail & E-Commerce
  • Education
  • ITES
  • Healthcare
  • Government & Public Sector

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Interactive Voice Response Industry - Regional Synopsis

North American Market Forecast

The North America interactive voice response market is expected to witness the highest CAGR with about 33% revenue share during the forecast period. The increase in disposable income and urbanization in these nations are the main causes of this. A little over 82.66 percent of Americans lived in cities and other metropolitan regions in 2020.  Increased activity by top market players, including new product releases and product expansions, among other things, is propelling the market's revenue growth in this area.

APAC Market Statistics

Asia-Pacific interactive voice response market is expected to have significant growth over the projection period with about 25% revenue share. Due to the great potential for IVR systems growth across a variety of industry verticals, including BFSI, healthcare, telecommunication, government, and the public sector. Although some Asia-Pacific nations have smartphone ownership rates of over 90%, the area as a whole has an average mobile subscription rate of about 60%. The rate of mobile internet penetration varies greatly as well, for instance, from over 90% in Japan to less than 20% in Pakistan.

Research Nester
Interactive Voice Response Market
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Companies Dominating the Interactive Voice Response Landscape

top-features-companies
    • 8X8, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Nuance Communications, Inc.
    • Convergys Corporation
    • Avaya Inc.
    • Cisco Systems, Inc.
    • AT&T Inc.
    • Verizon Communications Inc.
    • Genesys Telecommunication Laboratories, Inc.
    • Aspect Software Parent Inc.
    • Five9, Inc.

In-the-news

In The News

  • March 2021: Avaya Inc announced that they add new capabilities for Avaya Spaces, the modern workstream collaboration (WSC) platform that offers evolved Unified Communications capabilities via a user’s preferred device.
  • December 2020: Genesys Telecommunication Laboratories announced to launch of the Future of Digital Customer Engagement. The New Genesys Digital business unit led by Barry O’Sullivan builds on the company’s leadership in customer experience and AI.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5245
  • Published Date: Sep 19, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising usage of internet services and cell phones and growing demand for customer self-service options are the major factors driving the growth of the interactive voice response market.

The market size of interactive voice response is anticipated to attain a CAGR of 6.5% over the forecast period, i.e., 2024 – 2036.

The major players in the market are Nuance Communications, Inc., Convergys Corporation, Avaya Inc., Cisco Systems, Inc., AT&T Inc., Verizon Communications Inc., Genesys Telecommunication Laboratories, Inc., Aspect Software Parent Inc., Five9, Inc., and others.

The large enterprises segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Interactive Voice Response Market Report Scope
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