Interactive Voice Response (IVR) Market Size, Share, and Industry Analysis, By Deployment (Cloud and On-premise); By Technology (Speech-based and Touch-Tone Based); By Enterprise Type (Small and Medium Enterprise (SME) and Large Enterprise), and Regional Forecast, 2024-2032

Interactive voice response (IVR) is a technology that allows a computer to interact with humans through the use of voice and DTMF (Dual-Tone Multi Frequency) tones input via keypad. IVR systems can respond with pre-recorded or dynamically generated audio to direct users on how to proceed with their inquiries or transactions.

• According to industry experts, improving IVR containment rates by 5% to 20% can reduce call center costs from 10% to 30% with solid returns.

The integration of IVR with natural language processing (NLP) technology increases the number of ways in which callers can communicate with computers on the telephone. It helps to recognise the speech and allows the IVR system to comprehend and answer callers’ queries. Hence, instead of using telephones growing usage of IVR software allows callers to voice their requests on the phone. The IVR system helps to improve the voice recognition, call routing and queuing which significantly helps to make business call center operations more efficient and effective. IVR systems are mainly used in customer service call centers, automated telephone banking systems, and for various other applications where automated interaction with callers is required.

The COVID-19 pandemic impacted the interactive voice response (IVR) market growth, due to increased call disruptions due to frequently changing COVID policies. The transition of business work operations along with massive shift toward remote work culture further impacted industry expansion. These two factors enhanced the surge in customer enquiries by following social distancing guidelines. The IVR systems were used in managing the increased call volumes by effectively routing the calls and delivering automated responses to common customer enquiries.

• According to Emplifi, with 35% of consumers and increased usage of IVR systems provide a self-service client care options to resolve their issues.

Similarly, increased integration of remote communication channels with IVR systems such as websites, mobile apps, and chatbots helped deliver seamless omni channel customer experience to customers present across the globe. This integration allowed customers to access information and services through their preferred communication channels by reducing reliance on phone-based IVR systems.

Hence, over the COVID-19 pandemic, the usage of IVR systems works as a critical tool for managing customer’s inquiries and providing support during the times of crisis.

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of COVID-19 on the Global Interactive Voice Response (IVR) Market


• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis By Deployment

The interaction of cloud with IVR system significantly influences the capabilities of businesses. The cloud-based IVR systems offers scalability, allowing businesses to enhance their IVR systems with fluctuating call volumes as per business needs. The flexible nature of cloud-based IVR enables the integration of other cloud-based services with various applications to provide deeper insights into customer behavior and boost the customer experience. These comprise customer relationship management systems (CRM), analytics tools, and various contact center platforms.

Regional Analysis

The global interactive voice response (IVR) market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. The increased research and development proficiencies in countries such as U.S. and Canada to improve the technology is further estimated to accelerate the expansion over the forecast period in North America. According to researcher’s survey, 40% of market growth comes from North America to deliver personalized IVR experience to customers present across the globe.

The rapid urbanization and the construction of smart cities within the Asia Pacific boost the adoption of IVR systems in the market during the forecast period. Similarly, the increasing awareness about interactive voice response technology in the Middle East & Africa and South America is considered as a significant contributor to the regional market expansion.

Global Distribution of the Interactive Voice Response (IVR) Market, By Region

• North America – 42%


• South America – 6%


• Europe – 24%


• Middle East and Africa – 12%


• Asia Pacific – 16%

Key Players Covered

The report provides the profiles of key players such as 8x8, Inc. Nuance Communications, Inc. Avaya Inc. Cisco Systems, Nortex Communications, Nuance Communications, Inc., Verizon Communications, IVR Lab, and IBM Corporation.

Key Industry Developments

• November 2023: TELUS International in partnership with Five9 launched end-to-end cloud-based contact center as a service application integrated with AI-driven insights to deliver full customer experience with next-level personalization.


• October 2021: Skit entered a partnership with SoftwareONE in India to streamline the cloud infrastructure for its suite of speech and language solutions. The SoftwareONE’s sales and services capabilities would bring Skit’s solutions to leading enterprises to automate their contact centers using AI based voice solutions.