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The global speech and voice recognition market size was valued at USD 9.56 billion in 2021. The market is projected to grow from USD 11.21 billion in 2022 to USD 49.79 billion by 2029, exhibiting a CAGR of 23.7% during the forecast period. Based on our analysis, the global speech and voice recognition market exhibited an average growth of 12.1% in 2020 as compared to 2019.
In the market study, we have considered speech and voice recognition solutions offered by market players such as Amazon.com Inc., IBM Corporation, Google LLC, Microsoft Corporation, Apple Inc., Baidu Inc., and others.
Speech and voice recognition technology involves the application of pattern recognition to convert speech into a sequence of words. With the help of speech and voice software, users will be able to receive fast responses by verbally addressing the systems instead of typing or scrolling through the screen. Moreover, ongoing advances in Automated Speech Recognition (ASR), Natural Language Processing (NLP), and Machine Learning (ML), along with the massive amount of data and availability of AI platforms have led to an exponential increase in the capabilities to process voice at a larger scale. For instance,
Growing Adoption of Voice Assistants in the Healthcare Sector to Fuel Demand for Voice Recognition Solutions
The shift toward working remotely owing to the shutdown of offices and lockdown restrictions propelled the demand for smart appliances and devices, which created a significant opportunity for speech and voice recognition software providers. The COVID-19 pandemic augmented the development of various technologies that stimulate safety and social distancing, from telemedicine to contactless payments. Speech and voice recognition software played a vital role during the COVID-19 pandemic. For instance, Apple's Siri aided patients by recommending telehealth apps through the CDC COVID-19 assessment.
Moreover, conversational AI and voice technology made healthcare services accessible to people quarantined at home during the pandemic. Also, prominent market players are investing significantly in voice interfaces such as Cisco WebEx Assistant, Alexa for Business, Microsoft Cortana, and Google Assistant. For instance,
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AI and Machine Learning to be Nexus Point of Innovation and a Key Trendsetter for Speech and Voice Recognition
The evolution of artificial intelligence is creating the potential for digitalization across industry verticals. The dominance of AI-powered devices indicates that search algorithms and systems have evolved to improve machine learning and its applications in daily life. Google's RankBrain is a crucial example, designed to recognize phrases and words to learn, understand, and better predict outcomes. It uses machine learning and natural language processing technologies to transcript voice searches.
Moreover, web conferencing tools have gained popularity in the industry. Speech and voice recognition technology can further improve web conferencing by providing post-call transcripts through real-time captioning from calls.
As per the Speechmatics Voice report, in 2021, web conference transcription accounts for around 44% of the voice technology market share and is one of the top applications that will have the most significant commercial impact.
Rising Use of Deep Neural Engines and Networks to Boost Speech and Voice System
Superior adoption of emerging technologies, such as IoT, AI, and machine learning, fuels the speech and voice recognition market growth. Voice-based authentications in smartphone applications have increased the demand for voice and speech biometric systems. Moreover, the usage of deep learning and neural networks in applications, such as audio-visual speech recognition, isolated word recognition, speaker adaptation, and digital speaker recognition, surges the demand for voice technologies. Key players are focusing on such emerging technological advancements to grow their businesses in the long run. For instance,
Speaker Diarization & Accuracy in Multilinguistic Approach to Hinder Demand for Speech Recognition Technology
As voice technology continues to excel, developers and engineers are trying to surpass challenges related to speech systems. Factors frequently seen hindering the seamless performance of speech recognition solutions include background noise, punctuation, accent, fluency, speaker identification, and technical words/jargon. One of the biggest challenges in voice is the breakthrough in accuracy for languages other than American English. As per the Speechmatics Voice report, in 2021, around 30.4% and 21.2% account for concerns relating to accent and dialect, respectively.
Voice-based technologies will sustain to deliver more customized experiences as they better differentiate and identify users' voices. However, the threat to voice data privacy remains, which hinders the growth of speech and voice recognition market share.
Behavioral Shift of Consumers and Increasing Usage of Smart Appliances to Augment Segmental Demand
Based on technology, the market is segmented into voice recognition and speech recognition.
Speech recognition holds the largest market share and is expected to continue its dominance during the forecast period. The continuous advancements in Artificial Intelligence (AI) and the development of smart appliances with the availability of high-speed internet connectivity have increased the growth of the market.
Further, voice recognition is anticipated to witness the highest growth rate during the projection period, owing to increased adoption across banking and finance institutions, contact centers, and healthcare institutions to reduce fraudulent activities. AI-based speech and voice recognition software identifies the speech pattern of users and speaker voice, which is expected to boost market growth.
Increasing Adoption of Cloud-based Solutions among SMEs to Dominate Market
By deployment, the market is classified into on-premise and cloud. Cloud segment is expected to rise with the highest CAGR, owing to increasing demand for cloud solutions. The increased adoption of cloud technology among organizations is expected to drive cloud deployments during the forecast period.
However, the on-premise segment is expected to show a slow demand during the projection period owing to the increasing adoption of cloud-based solutions among Small and Medium-sized Enterprises (SMEs).
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Increasing Demand for Speech and Voice Recognition Software in Healthcare to Boost Market
Based on end-user, the global market is classified into healthcare, BFSI, IT & telecommunications, automotive, government, legal, retail, travel and hospitality, and others. The demand for speech and voice recognition software has increased drastically among healthcare and BFSI, owing to the COVID-19 outbreak.
North America Speech and Voice Recognition Market Size, 2021 (USD Billion)
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Geographically, the market is divided into five key regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America is expected to be the dominant market during the forecast period. The presence of prominent market players such as Amazon.com Inc., IBM, Google LLC, and Microsoft Corporation, among others contributes to the market growth. The growing adoption of smart home appliances with voice assistants is expected to spur market growth. For instance, as per the Voicebot.AI 2021 report, 45.2 million U.S. adults leveraged voice search for shopping a product at least once.
Asia Pacific is projected to grow with the fastest growth rate during the projection period. The surge in adoption of AI technology across BFSI, healthcare, automotive and government is anticipated to boost the implementation of voice technology across the region.
Similarly, Europe is expected to showcase remarkable growth in the coming years owing to increased innovations and advancements in voice assistants to support French, Spanish, Russian, and other European languages.
Further, recent developments in Latin American countries will foster the market growth in this region. For instance,
Strategic Collaborations and Partnerships to Boost Market Expansion of Key Players
The key players adopt this strategy to support their product portfolio and expand the scale of their operations. Major global corporations are forming partnerships and alliances with other players to streamline and grow their business operations. For instance,
October 2021: Sensory Inc. released speech recognition for children. The solution understands the linguistic patterns associated with children’s speech. With this advancement, developers of children’s toys, apps, kid’s wearables, and education technology can implement voice control technology accuracy and privacy.
August 2021: LumenVox launched Automatic Speech Recognition (ASR) engine with transcription. The next-generation technology is built on deep Machine Learning (ML) and Artificial Intelligence (AI), delivering accurate speech-enabled customer experiences.
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The research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD billion)
By Technology, Deployment, End-user, and Region
The market is projected to reach USD 49.79 billion by 2029.
In 2021, the market stood at USD 9.56 billion.
The market is projected to grow at a CAGR of 23.7% in the forecast period (2022-2029).
The IT and telecommunications segment is expected to hold the highest revenue share over the forecast period.
Rising popularity of speech recognition technology among voice-based IVRs for better customer experience is the key factor driving the market growth.
Alphabet Inc., Amazon.com, Inc., Microsoft Corporation, IBM Corporation, Apple Inc., Baidu, Inc., iFLYTEK Co., Ltd., SESTEK, LumenVox, and Sensory Inc. are the top players in the market.
North America is expected to hold the highest market share.
Asia Pacific is expected to grow with the highest CAGR.
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