Voice and Speech Recognition Software Market

Market Definition

The Voice and Speech Recognition Software Market size was valued at USD 12.32 billion in 2022 and is predicted to reach USD 55.07 billion by 2030 with a CAGR of 20.5% from 2023-2030. Voice and speech recognition software is a biometric technology used for recognizing an individual's voice for security purpose and it has the ability to process human speech and convert verbal format to a readable text format. 

Natural language processing (NLP) technology allows speech recognition software to simulate a real human interaction by analyzing, understanding and deriving meaning from human language. Modern devices such as mobile phones, tablets, smart speakers have voice and speech recognition functions to facilitate the user with a convenient hands-free use. It can perform day-to-day tasks such as setting an alarm or a calendar reminder. 

Market Dynamics and Trends

Increasing adaption of voice and speech recognition software owing to its growing uses for enhancing identity and security in banking and finance sector due to growing cyber security concerns is driving the growth of the market. For instance, in July 2021, Wings Financial Credit Union (USA) announced that it had integrate Nuance communications (at present acquired by Microsoft) voice recognition systems. It will enable Wing's customers to use a virtual assistant to address their financial quarries with high security by using voice commands.

Also, growing uses of voice and speech recognition software among health care providers is further driving the market growth. Voice and speech recognition software enables a doctor or physician to use hands-free features such as speech-to-text that provides aid in documenting clinical data using voice while performing medical procedures. 

For instance, in May 2021- Nuance Communications and Athenahealth had collaborated to integrate Nuance's voice and virtual assistant technology into Athenahealth's electronic health records (EHR) and mobile application called athenaOne. The athenaOne mobile app helped doctors to capture patients’ narration more thoroughly and to provide better diagnoses as it can record a patient history with minimum errors.   

However, limitations of voice and speech recognition software such as understanding contextual relation of words in different languages, accuracy and misinterpretation are expected to restrain the growth of market during the forecast period. On the contrary, growing use of speech recognition software in vehicles that enables the user to control certain components inside a car such as air conditioner, infotainment system and communication system is expected to create ample growth opportunities for the market in the coming years.  

Market Segmentations and Scope of the Study

The voice and speech recognition software market report are segmented on the basis of delivery method, technology, deployment mode, end user and geography. On the basis of delivery method, the market is divided into artificial intelligence based and non-artificial intelligence based. On the basis of technology, the market is classified into speech recognition, text-to-speech, voice recognition, speaker identification and verification. 

On the basis of deployment mode, the market is categorized into on cloud and on-premises/embedded. On the basis of end user, the market is bifurcated into automotive, enterprise, consumer, banking, BFSI government, retail, healthcare, military, education and others. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the lion's share of voice and speech recognition software market and is expected to continue its dominance during the forecast period. This is attributed to factors such as high adaption of smart home products in the region such as Amazon Echo, Apple homepod and Google next hub that uses voice and speech recognition software to recognize a user’s command. 

Also, the presence of key market players such as Google (Alphabet), Amazon, Apple Inc and Microsoft Corporation further boosts the voice and speech recognition software market growth in this region. For instance, in September 2021, Apple launched an update for its voice and speech recognition software called Siri. This update allowed Siri to work offline with the help of Apple Neural Engine. In addition, support for additional languages such as Swedish, Danish, Norwegian and Finnish were enabled through this update drives the market growth in the region.

However, Asia pacific is expected to show a steady rise in the voice and speech market due to rapidly increasing smartphone users in the region as these smartphones are equipped with voice and speech recognition software’s such as Google Assistant and Siri. For instance, as of 2022, China and India have the highest number of smartphone users across the globe. Also, growing popularity of mobile payments using voice recognition software is further driving the growth of the market in this region. Voice recognition software for mobile payments enables a secure transaction as it can be only operated using owner’s voice. 

Competitive Landscape

The voice and speech recognition software industry compromises of various market players such as Google (Alphabet), Amazon, Apple Inc, IBM Corporation, Microsoft Corporation, Baidu, iFlytek, Voicebox Technologies Corporation, Brainasoft and LumenVox LLC. 

These market players have undertaken acquisitions and product updates in order to stay competitive and maintain their market positions. For instance, in November 2022, Google released a new and updated to its voice and speech recognition software, Cloud Speech-to-Text engine to support a selection of pre-built models for better transcription. Google claims that, the new engine is more accurate than the previous version, specifically in noisy environments. This is due to the use of new machine learning models that are better at understanding speech in challenging conditions and supports over 120 languages and accents. This makes it more versatile for businesses and developers who need to transcribe speech in a variety of languages.

Moreover, in May 2022 Amazon released a dataset called MASSIVE containing one million annotated samples from 51 languages for training AI models that can understand natural language. This is important for virtual assistants such as Alexa, which need to be able to understand users in different languages. The MASSIVE dataset also makes Amazon's products more accessible to people around the world. Researchers can also use the dataset to improve their own language understanding models.

In addition, in March 2022, Microsoft Corporation acquired Nuance Communication for 16 billion US dollar. Microsoft acquired Nuance Communications to strengthen its healthcare portfolio. Nuance's expertise in AI-powered healthcare solutions complements Microsoft's strengths in cloud computing, data analytics, and AI. This combination allows Microsoft to offer more comprehensive and cutting-edge solutions to healthcare providers, helping them improve patient outcomes and operational efficiency.  

Key Benefits

• The report provides quantitative analysis and estimations of the voice and speech recognition software market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the voice and speech recognition software market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the global market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Voice and Speech Recognition Software Market Key Segments

By Delivery Method

• Artificial Intelligence AI-Based

• Non-Artificial Intelligence Based

By Technology

• Speech Recognition

• Text-To-Speech

• Voice Recognition

• Speaker Identification and Verification

By Deployment Mode

• On Cloud

• On-Premises/Embedded

By End User

• Automotive

• Enterprise

• Consumer

• BFSI (Banking, Finance Service & Insurance)

• Government

• Retail

• Healthcare

• Military

• Education

• Others

By Region

• North America    

  • US

  • Canada

  • Mexico

• Europe    

  • UK

  • Germany

  • France

  • Spain

  • Italy

  • Netherlands

  • Denmark

  • Finland

  • Norway

  • Sweden

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Thailand

  • Singapore

  • Rest of Asia-Pacific

• RoW    

  • Latin America

  • Middle East

  • Africa

Key Players

• Google (Alphabet) 

• Amazon 

• Apple Inc

• IBM Corporation

• Microsoft Corporation

• Baidu

• iFlytek

• Voicebox Technologies Corporation

• Brainasoft

• LumenVox LLC

Report Scope and Segmentation

Parameters	Details
Market Size in 2022	USD 12.32 Billion
Revenue Forecast in 2030	USD 55.07 Billion
Revenue Growth Rate	CAGR of 20.5% from 2023 to 2030
Analysis Period	2023–2030
Base Year Considered	2022
Forecast Period	2023–2030
Market Size Estimation	Billion (USD)
Growth Factors	Increasing adaption of voice and speech recognition software in BFSI industry drives market growth. Growing uses of voice and speech recognition software among health care providers fuels market growth.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.