Voice and Speech Recognition Market

Voice and Speech Recognition Market Outlook 2031

The global voice and speech recognition market size was valued at USD 14.63 Billion in 2022 and is likely to reach USD 60.57 Billion by 2031, expanding at a CAGR of 17.1% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing adoption of advanced technology along with advanced electronic devices.
 
Voice recognition makes communication easy for users of different languages. Users find it convenient to process the language by speech recognition software and then translate it visually or audibly. This is expected to open up new opportunities for future industries and involve more meaningful conversations without any translator. 

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Organizations use various voice recognition technologies through smart devices to receive or send orders. The rapid use of voice recognition over traditional methods is increasing the demand for voice and speech recognition in organizations. 

Speech recognition functions by using AI to understand and analyze the voice of the user. It identifies the user's voice and the words said by them, thereafter putting those words on a screen. Various voice assistants including Alexa and Siri use speech recognition systems by allowing users to interact with computers using natural transcription language data.

Artificial intelligence translates speech into well-structured algorithms by going through several stages, such as formulation, creation of recognition algorithms as well as a display of accurate inputs. Increasing development in natural language and machine learning processing is contributing to the expansion of the voice recognition industry.

• For instance, In April 2023, Sensory, a leader in voice AI for consumer products,  integrated ChatGPT or other Large Language Models to drive conversational voice responses (VoiceChat) on consumer products and other devices lacking keyboards and big screens. Targeting in-ear voice assistants, smartphones, and more. The technology offers a fast and seamless conversational experience and unlocks exciting VoiceChat-type capabilities on consumer products.

The demand for voice and speech recognition technology during the COVID-19 pandemic has been boosted owing to the lockdowns imposed and restrictions on the daily lifestyle of individuals.

Artificial intelligence played a vital role during the peak of the outbreak, applications such as Wysa are providing an advantage to voice AI to help users in identifying and reducing stress. Moreover, China accounted for around 58.9 million shipments of all smart speakers in 2020 globally while the US accounted for 38 million shipments. Thus, the pandemic resulted in growth in the global market.

Voice and Speech Recognition Market Dynamics

Major Driver

Voice-activated biometrics, which are employed for security purposes, assist in granting authenticated individuals access to complete a transaction, this drives the market. Voice-activated biometrics helps in fraud detection, as it enables multi-factor authentication which is used to prevent the risk of unauthorized access to client data.

• For instance, In January 2022, Sensory Inc., an innovator of machine learning solutions for speech recognition and biometric identification, released the beta version of SensoryCloud.ai, a complete AI as a Service platform designed to process voice and vision AI workloads in the cloud. The Sensory Cloud platform is launched with AI services such as Speech Text, Wake Word Verification, Face Verification, and Speaker Identification.

Existing Restraints

High Cost of deployment of the speech recognition software is expected to restrain the market. Voice activation devices including speakers, smart appliances, and other devices are expensive compared to conventional ones. Moreover, system errors are another factor restraining the market.

Emerging Opportunities

Voice and speech recognition comes with advanced features which is expected to create lucrative opportunities for the market players. Voice and Speech recognition is used to acquire relevant information or request any data for a specific project.

Voice recognition has the capability to translate different languages which helps people to remove the barrier of communication and is also helpful in business operations. Moreover, growing development in automatic speech recognition is further expected to create opportunities for the market players. Various smartphone interfaces such as Alexa, Siri, and other programs are some examples of automatic speech recognition.

• For instance, in March 2023, Google AI revealed a new update for Universal Speech Model (USM), to support the 1,000 Languages Initiative. The new model functions better than OpenAI Whisper for all segments of automation speech recognition. According to Google, a universal speech model (USM) is expected to conduct automatic speech recognition (ASR) on under-resourced languages like Amharic, Assamese, and Azerbaijani to frequently spoken languages like English and Mandarin.

Scope of Voice and Speech Recognition Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Voice and Speech Recognition Market Segment Insights

Technology Segment Analysis 

Based on technology, the global voice and speech recognition market is bifurcated into speech recognition and voice recognition. The speech recognition segment held a significant market share in 2019. Radiologists and doctors have been using this technology to keep track of their patient's records.

Advancements in cloud-hosted AI have boosted speech recognition technology as cloud computing helps in understanding deep learning techniques. With the rising number of users speech recognition technology is enhancing and becoming brighter. Various hospitals and medical institutes are deploying speech recognition by collaborating with AI tech companies.

• For instance, In April 2023, UF Health launched an AI research initiative with Nuance Communications Inc. to generate that are more structured and efficient radiology reports. This technology is expected to help physicians save time and ensure patient safety.

The voice recognition segment is expected to expand at a significant growth rate. The combination of voice recognition along virtual reality (VR) is expected to propel the market. For instance, in June 2023, Apple Inc.'s WWDC 2023 conference announced the Vision Pro VR/AR headset which is set to launch by 2024. The device has various features including video streaming capabilities, the voice command “Siri”, a virtual keyboard, and others.

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Deployment Mode Segment Analysis

Based on deployment mode the market is bifurcated into cloud-based and on-premise. The cloud-based segment is projected to expand at a significant growth rate during the forecast period.

Cloud-based speech recognition systems have the ability to provide the latest information and advancements in technology make them more accurate and faster. Nowadays, various organizations are deploying cloud-based speech recognition systems for faster integration of speech recognition systems.

• For instance, In Oct 2022, Toyota and Google Cloud announced an expanded partnership that brings together Toyota and Lexus’s next-generation audio multimedia systems and Google Cloud's AI-based speech services. The strength of the partnership brings Toyota's next-generation system without an internet connection for natural-speech functions.

Vertical Segment Analysis 

On the basis of vertical, the market is fragmented into automotive, retail, BFSI, military, consumer, legal, education, healthcare, enterprise, government, and others.

The healthcare segment is projected to hold a major market share during the forecast period. The voice and speech recognition market provides advantages such as rapid report turnaround and helps doctors in record keeping. As a result, it is expected that the demand for the segment would stay strong during the forecast period.

The automotive segment held a substantial market share in 2019 as in-car infotainment systems are increasingly including voice-enabled technologies. Advanced car technologies, such as connected gadgets, keep drivers informed about traffic conditions along their routes and recommend alternate routes.

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Regional Analysis 

In terms of region, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the global market during the forecast period. Factors such as the rising integration of voice-enabled applications in smartphones and the growing use of voice and speech recognition in banking, IoT devices, and consumer electronics are estimated to drive the market in the region.

Increasing trends of connected devices in the home and automotive automation are expected to create growth opportunities for European market players. Demand for the speech and voice recognition market is increasing in Singapore, Japan, and China which is anticipated to propel the market in the Asia Pacific.

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Segments

The global voice and speech recognition market has been segmented on the basis of

Function

• Voice Recognition
  • Speaker Verification
  • Speaker Identification
• Speech Recognition
  • Text to Speech
  • Automatic Speech Recognition

Technology

• Non-AI Based
• AI-Based

Deployment Mode

• Cloud-Based 
• On-Premise

Vertical

• Automotive
• Retail
• BFSI
• Military
• Consumer
• Legal
• Education
• Healthcare
• Enterprise
• Government
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Microsoft
• VoiceBox Technologies Corporation
• Agnitio S.L.
• ValidSoft® Group.
• Amazon.com, Inc.
• Sensory Inc.
• paragon GmbH & Co. KGaA.
• Apple Inc.
• Raytheon Technologies Corporation
• iFLYTEK Corporation
• Nuance Communications, Inc.
• Baidu, Inc.
• Nortek Air Management.
• BioTrust ID B.V.
• CastleOS Software, LLC
• Brainasoft
• M2SYS Technology
• Meta Platforms, Inc.
• LumenVox.
• Google, Inc.
• Josh.ai Inc.
• International Business Machines Corporation. (IBM)

Competitive Landscape

Key players competing in the global voice and speech recognition market include Microsoft; VoiceBox Technologies Corporation; Agnitio S.L.; ValidSoft® Group.; Amazon.com, Inc.; Sensory Inc.; paragon GmbH & Co. KGaA.; Apple Inc.; Raytheon Technologies Corporation; iFLYTEK Corporation; Nuance Communications, Inc.; Baidu, Inc.; Nortek Air Management.; BioTrust ID B.V.; CastleOS Software, LLC; Brainasoft; M2SYS Technology; Meta Platforms, Inc.; LumenVox.; Google, Inc.; Josh.ai Inc.; International Business Machines Corporation (IBM).

Some of these players are using several market strategies such as acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares, generate revenue, and raise their business production line in the coming years.

• In June 2023, Sensory, a leading provider of AI-based speech recognition technologies, launched VoiceHub 2.0. The new and improved version of Sensory’s popular web portal deploys generative AI-powered tools, making it an even more powerful, flexible, and time-saving platform for developers. With the help of these tools, developers use custom voice UIs capable of understanding spoken commands and natural language.

• In March 2022, Microsoft Corp completed the acquisition of Nuance Communications Inc. a leader in conversational AI and ambient intelligence across industries including healthcare, financial services, retail, and others. With the help of this acquisition, customers will benefit from enhanced consumer, patient, clinician, and employee experiences, and improved productivity.

• In January 2021, Yellow Messenger, the world’s leading conversational AI platform, started a collaboration with Microsoft to transform its voice automation solution using Azure AI Speech Services and Natural Language Processing (NLP) tools. Under this collaboration, Microsoft and Yellow Messenger’s R&D team will work on restructuring a more human-like voice assistant platform that is capable of understanding and responding on the basis of sentiment, dialect, and workflow.