Global Speech and Voice Recognition Market By Technology (Speech Recognition, Voice Recognition, and Other Technologies), By Deployment Mode (On-premise and Cloud), By End-User (IT and Telecommunications, Healthcare, BFSI, Automotive, Legal, Government, Travel and Hospitality, Retail, and Other End-User), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global speech and voice recognition market size is expected to be worth around USD 83 billion by 2032 from USD 17 billion in 2023, growing at a CAGR of 20% during the forecast period from 2023 to 2032.

Speech and voice recognition are deliberated as a small part of biometric systems. Speech recognition is used to recognize words in spoken language, while voice recognition is a biometric technology for identifying an individual’s voice. The increase in acceptance of advanced technology around the globe is one of the factors which boost the growth of the market.

Other factors such as the enhancement of end-use industries, the increase in demand for speech-based biometric systems, the increase in digitalization, the huge demand for voice authentication in mobile banking applications, the upsurge in penetration of speech and voice recognition technology in a smart appliance as well as the use of AI to increase the accuracy of speech and voice recognition systems boost the growth of the market.

Note: Actual Numbers Might Vary In The Final Report

Key Takeaways

• The global Speech and Voice Recognition Market is expected to reach around USD 83 billion by 2032, exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 20% during the forecast period from 2023 to 2032.
• The technology segment is dominated by Speech Recognition, accounting for a significant market share of 65%. Voice Recognition is anticipated to experience the highest growth rate due to its increasing adoption in various sectors like contact centers, healthcare institutes, and banking & finance institutes, primarily to reduce fraudulent activities.
• Cloud deployment currently holds 59% of the market and is projected to experience rapid growth due to widespread adoption of cloud-based solutions across industries. Conversely, on-premise segment is anticipated to experience slower expansion due to cloud deployment dominating.
• North America leads the global Speech and Voice Recognition Market, contributing the highest revenue share of 32%. The market is also expected to witness stable growth in this region due to the increasing use of voice-enabled smartphone applications and the integration of speech and voice recognition in consumer electronics, IoT devices, and mobile banking.
• Apple Inc., Google Inc., Nortek Holdings Inc, Sensory, Inc. Raytheon Company Meta Platforms Inc Microsoft Corp and Nuance Communications, Inc are some of the key players in this market.
• Emerging trends in the market include AI-powered devices, which are expected to contribute significantly to its expansion. AI technologies are being leveraged to enhance speech and voice recognition systems and therefore enhance user experiences, leading to further market expansion.
• Increasing adoption of developing technologies such as AL, machine learning, and IoT is identified as a major driver for the market’s growth. However, challenges related to breakthroughs in accuracy for languages other than American English are acting as key restraints for the market.
• With the increasing popularity of online shopping, customers are showing a preference for voice assistants over traditional websites or applications while shopping online, indicating the potential opportunities for voice recognition technology in the e-commerce sector.

Technology Analysis

The technology segment is classified into speech recognition, voice recognition, and other technologies. The speech recognition segment accounted for the largest market share of 65%, and the dominance of the segment will likely continue over the forecast period. The frequent developments in AI and the advancements in smart appliances with the accessibility of faster internet connectivity will likely boost the market’s growth.

Moreover, voice recognition is estimated to have the highest CAGR during the forecast period. This is due to increasing its adoption in contact centers, healthcare institutes, and banking & finance institutes to decrease illegal activities. The speech patterns of users’ and speakers’ voices can be identified with the help of AI-based speech and voice recognition software.

Deployment Mode Analysis

The deployment segment is classified into On-premise and cloud. The cloud segment holds 59% of the market’s largest share. The segment is estimated to enhance with the fastest CAGR as the demand for cloud solutions increases. During the forecast period, the rise in implementing the cloud among organizations is estimated to boost cloud deployments. Whereas, during the forecast period, the on-premise segment is estimated to have a slow demand due to the rising implementation of cloud-based solutions in the market.

Note: Actual Numbers Might Vary In The Final Report

End-User Analysis

The Healthcare Segment Dominated the Market

The end-user segment is classified into IT & telecommunications, healthcare, BFSI, automotive, legal, government, travel & hospitality, and retail. The healthcare segment accounted for the largest revenue share of the market. Due to the outbreak of COVID-19, the demand for speech and voice recognition software has risen significantly in healthcare and BFSI.

Key Market Segments

Based on Technology

• Speech Recognition
  • Automatic Speech Recognition
  • Speech-to-Text
• Voice Recognition
  • Speaker Identification
  • Speaker Verification
• Other Technologies

Based on the Deployment Mode

• On-premise
• Cloud

Based on End-User

• IT and Telecommunications
• Healthcare
• BFSI
• Automotive
• Legal
• Government
• Travel and Hospitality
• Retail

Drivers

Adoption of Emerging Technologies

Huge implementation of developing technologies such as AL, machine learning, and IoT boost the global speech and voice recognition market. The demand for voice and speech biometric systems was increased due to voice-based authentications. Additionally, using neural networks and deep learning in applications, such as speaker adaptation, audio-video speech recognition, digital speaker recognition, and isolated word recognition, will likely increase the demand for voice technologies. Major players are concentrating on such developing advancements to enhance their businesses for the long term.

Restraints

Breakthrough in Accuracy for Languages

Engineers and developers are trying to beat challenges related to speech systems as voice technology continues to grow. The factors frequently hindering speech recognition solutions are punctuation, background noise, fluency, accent technical problems, and speaker identification. Furthermore, another challenge is the breakthrough in accuracy for languages excluding American English.

Opportunities

Increasing Popularity of Online Shopping

In the emerged and emerging countries, customers buying behavior is shifting, and individuals are having their attention to online shopping. Customers may do the shopping and enquire about features & the prices of their homes. Also, based on their previous purchases, they can even receive personalized recommendations. With voice assistants, this experience can be more participatory and frictionless. As per the Survey called Conversational Commerce Survey, undertaken by Capgemini, in 2017, 41% of consumers prefer a voice assistant to an app or website while shopping online. Online shopping allows customers to automate their usual shopping operations.

Trends

The dominance of AI-Powered Devices in the market

The development of artificial intelligence is generating the potential for digitalization in the market. The systems and search algorithms were developed to develop machine learning and its everyday applications. This indicated the dominance of AI-powered devices. The progress in artificial intelligence technology is projected to increase the growth of the market at a faster rate during the forecast period.

There is an increased demand for artificial intelligence technology, as the system accurately recognizes speech patterns. This will likely enhance the growth of the global speech and voice recognition market. For instance, Google’s RankBrain was designed to identify phrases and words to understand, learn, and predict outcomes. It uses natural learning processing technologies and machine learning to transcript voice searches. Furthermore, web conferencing tools have acquired appreciation in the market. By providing post-call transcripts with the help of real-time captioning from calls, speed, and voice recognition technology can develop more.

Regional Analysis

North America dominated the market with the highest revenue share of 32%. The region is estimated to grow further at a stable CAGR and will continue its dominance throughout the forecast period. The increasing implementation of voice-enabled smartphone applications and the enhanced use of speech & voice recognition in consumer electronics, IoT devices, and mobile banking are estimated to boost the market growth in NA.

In Europe, it is estimated that speech & voice recognition technologies will likely witness growth in the retail sectors as well as consumer electronics due to the increasing trend of connected devices in home automation. In Asia Pacific, there will be an increase in demand for speech & voice recognition in Singapore, Japan, and China, which will fuel the market growth. The market in this region will likely register a faster CAGR during the forecast period 2023-2032. The increasing penetration of voice-enables devices in healthcare and automotive segments is estimated to enhance the growth of the market in APAC.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Cantab Research Entered into Partnership with Nuix

Vendors in the market are concentrating on enhancing the customer base to obtain a competitive edge. Thus, prominent players are undertaking various strategies such as partnerships and, mergers & acquisitions. For instance, in September 2020, Cantab Research and Nuix entered into a partnership. Nuix is the creator of advanced software that converts data into actionable intelligence. Also, through an end-to-end software solution, Nuix and Speechmatics bring highly secure and accurate speech recognition technology to businesses. A few key players in the market are Alphabet Inc., Sensory Inc., Baidu Inc., SemVox GmbH, Fluent.ai Inc., and others.

Below are some of the most prominent speech and voice recognition market players.

• Apple Inc.
• Google, Inc.
• Nortek Holdings Inc
• Sensory, Inc.
• Raytheon Company
• Meta Platforms, Inc.
• Microsoft Corporation
• Nuance Communications, Inc.
• Other Key Players

Recent Developments

• In April 2022- Imagine Learning declared a collaboration with SoapBox Labs. Imagine learning is an education solution utilized by millions of children in the US. This Dublin-based voice recognition startup drives playing experiences and delightful learning for children.
• In April 2022- A Yorkshire hospital’s trust launched a speech recognition technology. An NHS healthcare technology professional is developing this technology. The Calderdale and Huddersfield NHS Foundation Trust (CHFT) is the technology implemented by The Health Informatics Services (THIS) to aid its hosting trust. This technology supervises the Calderdale Royal Hospital, Huddersfield Royal Infirmary in Halifax, and community engagement programs.

Report Scope