Interactive Voice Response (IVR) Market to Hit USD 8.99 Billion by 2032, growing at a CAGR of 6.20% | SNS Insider

GlobeNewswire On May 2, 2025 18:30 IST

The Interactive Voice Response (IVR) System Market is growing due to increased adoption of automation in customer service and advancements in AI-driven voice technologies.

Austin, May 02, 2025 (GLOBE NEWSWIRE) — Interactive Voice Response (IVR) Market Size & Growth Insights:

According to the SNS Insider,“The Interactive Voice Response (IVR) Market was valued at USD 5.23 billion in 2023 and is projected to reach USD 8.99 billion by 2032, growing at a CAGR of 6.20% from 2024 to 2032.”

Cloud-based IVR Adoption is Revolutionizing Customer Service

Cloud-based Interactive Voice Response (IVR) systems are gaining attractions in different sectors due to their scalable, cost-effective, and integration-friendly nature with AI-powered tech. This means they are not too costly hardware like traditional on premise IVR systems and scale effortlessly with the needs of the business. These systems have faster installations and can be accessed remotely, which a good choice for companies is wanting to be efficient. U.S. Market was valued at USD 0.88 Billion in 2023 and is projected to reach a size of USD 1.43 billion by 2032 With CAGR 5.56%.

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Leading Market Players with their Product Listed in this Report are:

Nuance Communications Inc. (U.S.) – AI-powered IVR, speech recognition solutions, and voice biometrics
Avaya Inc. (U.S.) – Cloud-based IVR, omnichannel customer engagement solutions
Cisco Systems Inc. (U.S.) – Unified Contact Center IVR, cloud-based telephony solutions
Convergys Corporation (U.S.) – Customer service IVR, automated self-service solutions
AT&T Inc. (U.S.) – Network-based IVR, enterprise call center solutions
West Corporation (U.S.) – Cloud IVR, hosted contact center solutions
Genesys Telecommunication Laboratories Inc. (U.S.) – AI-driven IVR, omnichannel customer engagement platforms
Verizon Communications Inc. (U.S.) – Hosted IVR, automated call routing solutions
IVR Lab (U.S.) – Custom IVR applications, speech analytics
Aspect Software Parent Inc. (U.S.) – AI-driven IVR, workforce optimization solutions
24/7 Customer, Inc. (U.S.) – Conversational AI IVR, chatbot integration
inContact Inc. (U.S.) – Cloud IVR, automated call handling solutions
NewVoiceMedia (UK) – Intelligent IVR, cloud contact center platforms
Five9, Inc. (U.S.) – AI-driven IVR, virtual call center software.

Interactive Voice Response (IVR) Market Report Scope:

Report Attributes	Details
Market Size in 2023	USD 5.23 Billion
Market Size by 2032	USD 8.99 Billion
CAGR	CAGR of 6.20% From 2024 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	• By Deployment Model (Cloud, On-premise) • By Enterprise Type (Small and Medium Enterprise (SME), Large Enterprise) • By Technology(Speech –based, Touch-Tone Based)
Key Drivers	• Growing Adoption of Cloud-Based IVR for Scalable and Cost-Effective Customer Service. • Boosting IVR Adoption Globally Through Multilingual and Regional Language Support.

Unlike Legacy IVR technology, the cloud-based solution can be integrated with analytics, CRM platforms and AI chatbots that enables the automation in the interaction highly customized according to the customer behavior. Cloud IVR is being embraced by various sector including but not limited to banking, healthcare, retail, telecommunications companies, etc., allowing the organizations to enhance customer engagement, safeguard voice biometrics as well as to improve operational efficiency. The economic stagnation in the past years had also led many economic players to realise the fundamentals of AI and Omni channel communication, leading to a surge in cloud based IVR solutions demand all around the world.

IVR Market Dynamics Cloud-Based & Speech-Based Solutions Dominate Driving Growth in SMEs

By Deployment

The cloud-based IVR segment dominated the global market in 2023, accounting for 76% of worldwide revenue, attributable to the scalability, cost-effectiveness, and seamless integration of cloud IVR with AI and CRM applications. It enables companies operating in verticals including BFSI, healthcare, e-commerce, and telecom to enhance customer service, enable call automation, and reduce cost of operations. Cloud IVR is much lower on hardware requirements than the traditional systems that are local or on-premise, thus, making it a quicker setup, while the systems help in digital transformation, remote work and enhancing customer experience with advanced features such as, NLP, AI, etc.

On-Premise IVR is the fastest-growing Over the forecast period 2024-2032, desired by industries such as banking and healthcare, that need strict data security and compliance despite the higher upfront costs.

By Enterprise Type

Large enterprises accounted for 59% of the IVR market revenue share in 2023 due to high call volumes, advanced automation need, and capital budgets available for AI-powered solutions. All of these roles require the knowledge and skills that you can certainly get out of scalable multichannel Interactive Voice Response (IVR) systems used across industries — telecom, banking, healthcare, and retail (the list goes on) which utilize the AI-powered capabilities like speech analytics and natural language processing (NLP) in their art of optimization with costs.

Small and Medium Enterprise (SME) segment is fastest-growing segment over the forecast period 2024-2032, which are widely adopted at the SME segment. SMEs across the globe are implementing AI for areas like customer support and advanced process optimization, especially in industries like e-commerce, FinTech and healthcare, creating a higher demand for AI solutions in the market.

By Technology

The speech-based IVR segment conferred the highest revenue share of 71% in 2023, owing to improved user experience along with implementation of AI and natural language processing (NLP) functionalities. Industries including banking, healthcare, telecom, and retail favor it for its capability to manage complex queries, tailor interactions, and increase customer satisfaction. As people use their phones for many things, including calling and texting, speech proposes ease of use hands free which is one of the advantage with IVR based IVR protocol.

Touch-Tone IVR segment is the fastest-growing in the Interactive Voice Response (IVR) market from 2024 to 2032, due to low cost and ease of deployment, particularly with existing systems, for the growing markets of the world, small businesses, and businesses with a high volume of calls such as banking and utilities.

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IVR Market by Region: Europe is the Leading Market and is Immensely Popular in Asia-Pacific

The development and high usage of the artificial intelligence-based solutions, a high telecom infrastructure, and independent data security regulations such as General Data Protection Regulation (GDPR) across several countries enables Europe to hold a 38% share in the interactive voice response (IVR) market in 2023. Traditional banking, healthcare, retail, and government industries are already using these advanced cloud IVR systems to enhance customer service and automate interactions. IVR systems using this feature and other security measures such as voice biometrics and encryption have also been in demand due to the regulations brought on by (GDPR) compliance. Indeed, with AI and NLP-based technologies making IVR more efficient, Germany, the UK, and France have welcomed their respective digital transformation.

The Asia-Pacific region is anticipated to witness the highest development during the forecast period 2024-2032 due to rapid digitization, smartphone penetration, as well as increased adoption of AI-powered customer support systems by banking, telecommunications, healthcare, and e-commerce sectors. In addition, a surge in the number of government efforts and an increasing talent for multilingual product are also fueling the growth of the market and enabling it to grow significantly in the upcoming period.

Recent Development

Oct 2023, Cisco offers phone infrastructure for larger companies, starting from around USD 600 per user for basic services, with additional charges for messaging and meetings. The price also varies based on the model, installation, training, and IP phone which ranges from USD150 to USD 600.
10 July, 2024, Samsung is introducing AI-driven tools and collaborations to advance customer support and care, aiming for faster response time and better assistance. Samsung’s next-generation care solutions are geared toward this growing interest, as 73% of consumers express a preference to interact with a human, despite rising interest in AI.

Table of Contents – Major Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

5.1 Technology Trends

5.2 AI & Automation Reshaping IVR

5.3 Deployment & Business Model Disruptions

5.4 Customer Experience & Call Center Evolution

6. Competitive Landscape

7. Interactive Voice Response (IVR) Market Segmentation, by Deployment Model

8. Interactive Voice Response (IVR) Market Segmentation, by Enterprise Type

9. Interactive Voice Response (IVR) Market Segmentation, by Technology

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practices

13. Conclusion

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