IVR System Market - Forecast(2024 - 2030)

Overview

Interactive Voice Response (IVR) System market is forecast to reach $8.30 billion by 2030, after growing at a CAGR of 6.31% during 2024-2030. The IVR (Interactive Voice Response) System Market is witnessing a significant surge in adoption, propelled by the widespread integration of advanced technologies and the growing prevalence of cloud-based services. This technology finds extensive application across various industries, including BFSI, healthcare, travel, and hospitality, where it serves as a crucial tool for interacting with callers and efficiently routing calls based on voice commands or touch-tone key selections. This dynamic functionality has been a key driver in expanding the IVR system market size. One prominent trend shaping the IVR System Market is the increasing demand for enhanced customer relationship management. Businesses across sectors are recognizing the pivotal role IVR systems play in improving customer interactions, streamlining communication processes, and optimizing overall service delivery. The implementation of IVR units facilitates seamless navigation for callers and ensures that calls are directed to the most relevant recipients, contributing to a more efficient and customer-centric operation. Additionally, the market is witnessing a shift towards personalized and context-aware IVR solutions. As businesses strive to provide a more tailored and user-friendly experience, IVR systems are evolving to incorporate advanced capabilities such as natural language processing and machine learning. This trend is driven by the need for systems that can understand and respond to customer inquiries more intelligently, ultimately contributing to a higher level of customer satisfaction, these are the factors collectively underscore the significant growth potential of the IVR market during the forecast period 2024-2030.

Market Snapshot:

IVR System Market Report Coverage

The report: “IVR System Market Report– Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the IVR System Market

By Deployment Type: On-Premises, Cloud 

By Component: Outbound Service, Inbound Service

By Industry Vertical: Banking Financial services and Insurance, Healthcare, Hospitality, IT Telecommunication

By Geography: North America, South America, APAC, Europe, Rest of the world

Key Takeaways

• North America dominates the IVR System market owing to early adoption of advanced technologies such as artificial intelligence (AI), natural language processing (NLP) and others.
• Integration of IVR system with AI and NLP is the major driving factor for the growth of IVR system market.
• The increasing number of calls in BFSI and high adoption of IVR system in the BFSI sector set to drive market growth.
• Deployment of IVR system in cloud-based mode has been increasing the demand of the market growth as it offers rapid elasticity that allow cloud tools to adjust resources quickly in order to meet the customer demands and expansion of application service providers.

Technology - Segment Analysis

The speech-based IVR segment held the largest share in the IVR System market in 2023. The speech-based IVR system has been gaining momentum as it integrates the natural language processing (NLP) technology that helps in reducing the amount of time spent by an individual to get a particular query resolved and reducing the call duration which in turn helps the organizations to achieve a higher cost optimization. The speech-based technology also assists in eradication of the usage of complex dual-tone multi-frequency (DTMF) commands. This technology allows a caller to communicate with a computer using simple voice commands and has become sophisticated enough to understand names and long strings of numbers such as credit card numbers, flight number, and others. This set to drive the demand for the IVR system market.

Application - Segment Analysis

Banking, Financial Services and Insurance (BFSI) sector has been the primary market for IVR system market. IVR plays a crucial role in BFSI sector as it receives many calls every day. For instance, bank issues can easily be dealt with by using IVR system technology and leaving the complicated problem calls to be diverted to the operator. According to Deetyasoft Pvt Ltd, an IVR system company, around 75% of the 2 million calls the bank gets every month get terminated over the IVRS system which in turn drives the market growth in BFSI sector. In banks, IVR system is implemented to simplify the work processes such as for account information, investment portfolio updates, loan applications, and their status, emergency and complaints, request for customer care and among others, thereby driving the market growth.

Geography - Segment Analysis

Drivers – IVR System Market

• Growing integration of advanced technologies drive the growth of IVR System market

Artificial Intelligence (AI) is one of the leading technologies that has been gaining increased adoption in the progression of IVR industry. Natural Language Processing (NLP) technology is one of the AI methods which is used to analyze spoken natural language. This also assists in developing conversational systems and getting IVR systems to be smarter. Additionally, IVR analytics plays an essential role in fueling the market growth, as it helps the companies to achieve customer satisfaction by capturing, tracking, and evaluating the entire call experience. AI offers incremental and significant value to companies that use IVR by delivering smoother, faster, and more efficient customer interactions, while at the same time reducing the time and costs, thereby driving IVR system market.

• Growing Number of Calls

Increase in the number of calls by customers has been driving the IVR system market. There has been an increase in the number of calls due to which agents are not able to witness proper call turnover. Thus, organizations manage the increased number of calls and provide increased customer interaction with the help of IVR solutions. The application of speech technology and dual-tone technology reduces the drop-off time and hold time for each call. This has increased the number of outbound calls, which results in the automation of repetitive tasks and helps in improving the efficiency of the agent, thereby driving the IVR system market.

Challenges – IVR System Market

• Security Concerns in Data Encryption and Enhancing Customer Experience is the major challenge for IVR System

Data security and privacy concern is expected to be the major challenge for IVR system and this restrict the IVR system market growth. Applications such as BFSI (Banking, Financial Services and Insurance) need extra security for making it a reliable service for the customers. However, integrating IVR system with advanced technologies may reduce fraud risks thereby driving the market growth in the future. 

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the IVR System market. In 2023, the market of IVR System top 10 companies are - Nuance Communication Inc, Cisco System Inc, Dialogic Corporation, True Image Interactive Inc, Verizon Communication Inc, Voicent Communication Inc, 8x8, Inc, Intrado, Genesys, Five9, Inc. and among others.

Acquisitions/Technology Launches

• In December 2023, 8x8, Inc., received notable accolades in 2023, including recognition from CRN, TrustRadius, and Software Advice. Awards include CRN's Product of the Year for their Experience Communications platform, TrustRadius' Best Feature Set, Best Value for the Price, and Best Relationship in VoIP, and Software Advice's designation as Best IVR Software.