Speech and Voice Recognition Market by Function (Speech, Voice Recognition), Technology (AI and Non-AI), Deployment Mode (Cloud, On-premise), End User (Consumer Electronics, Automotive, BFSI, Other End Users), and Geography - Global Forecast to 2030

Speech and Voice Recognition Market Size & Forecast

The Speech and Voice Recognition Market is projected to reach $56.07 billion by 2030, at a CAGR of 19.1% during the forecast period 2023–2030. The growth of the speech and voice recognition market is driven by the surging use of voice biometrics, the integration of voice-enabled devices in car infotainment systems, and the proliferation of voice-enabled devices. However, speech and voice recognition devices' lack of accuracy in recognizing regional accents and dialects and low awareness about speech and voice recognition technologies restrain the growth of this market.

The high potential of AI-enabled voice assistants in the healthcare industry and technological advancements, coupled with the rising acceptance of connected devices, are expected to create growth opportunities for the players operating in the speech and voice recognition market. However, performance issues with speech and voice recognition-enabled devices due to ambient noise is a major challenge for market growth.

Additionally, the growing demand for voice authentication in mobile banking applications, the increasing integration of AI & ML into speech recognition technology, the growing use of speech recognition technology for translating rare & local languages, and the rising demand for speech-based biometric systems are prominent trends in the speech and voice recognition market.

Growing Adoption of Voice Biometrics for User Authentication in the BFSI Sector

Consistently increasing instances of fraud and identity theft, predominantly among the BFSI, legal, and retail & e-commerce sectors, are increasing the demand for high-level security technologies to deliver effective risk management. This has increased the adoption of several different security measures, including voice biometric technologies, among industry players. Voice biometrics enables simple and secure user authentication in various banking and legal applications, including mobile banking authentication, e-banking, and app-based transaction security, and provides transparent, conversational authentication to offer an improved, personalized customer experience. Furthermore, growing concerns about personal data security have encouraged the use of voice-driven transactions, driving the growth of the speech and voice recognition market.

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Integration of Voice Assistants into Car Infotainment Systems Slowly Becoming a Market Standard

Speech and voice recognition technology has already become an essential part of the automotive industry to enable the hands‐free operation of car infotainment systems while driving. Leading technology companies, including Apple, Google Inc., and Nuance Communications, Inc., are continuously working towards improving the driver experience by providing voice assistants. The reformation of the driver experience includes the integration of voice-driven navigation systems that help drivers navigate to their destinations and play music through voice commands. Thus, the increasing availability of voice assistants for car infotainment systems and the growing acceptance of such solutions among consumers drive the speech and voice recognition market.

Key Findings in the Speech and Voice Recognition Market Study:

The Speech Recognition Segment to Dominate the Speech and Voice Recognition Market in 2023

Based on function, the speech and voice recognition market is segmented into speech recognition and voice recognition. In 2023, the speech recognition segment is expected to account for the larger share of the speech and voice recognition market. The segment’s large market share is attributed to the consistent proliferation of advanced technologies such as artificial intelligence and machine learning across various sectors and the rapid growth of the smart devices market.

With technological advancements, organizations are focused on providing speech recognition technology for various sectors, such as healthcare, education, and consumer electronics. For instance, in November 2022, 3M Company (U.S.) launched 3M M*Modal Fluency Direct, a speech and AI-powered technology for the healthcare sector. The technology allows clinicians to feed patient interactions accurately and quickly into medical record systems for patient care. Such developments are expected to support the growth of the speech recognition segment during the forecast period.

The Artificial Intelligence Segment to Account for the Larger Market Share in 2023

Based on technology, the speech and voice recognition market is segmented into artificial intelligence and non-artificial intelligence. In 2023, the artificial intelligence segment is expected to account for the larger share of the speech and voice recognition market. The segment’s large market share is attributed to the increasing use of voice assistants for applications, including smart home systems, smart speakers, autonomous and connected cars, voice biometric authentication, smart wearable gadgets, and smartphones.

Furthermore, several organizations are partnering to provide AI-enabled speech and voice analysis solutions for the healthcare sector. For instance, in March 2023, Canary Speech, Inc. (U.S.) partnered with Microsoft Corporation (U.S.) to integrate Microsoft’s AI technology in its machine-learning speech models for healthcare applications. Thus, organizations’ focus on partnerships to provide AI-enabled speech and voice analysis solutions is expected to drive the growth of this segment.

The Consumer Electronics Segment to Register the Highest Growth Rate During the Forecast Period

Based on end user, the speech and voice recognition market is segmented into IT & telecommunications, media & entertainment, consumer electronics, automotive, healthcare, BFSI, education, government and public services, manufacturing/enterprises, retail and e-commerce, and other end users. In 2023, the IT & telecommunications segment is expected to account for the largest share of the speech and voice recognition market.

However, the consumer electronics segment is projected to record the highest CAGR during the forecast period. Market players are focused on launching smart electronics for consumer use. For instance, in October 2022, Haier (India) launched an AI-enabled washing machine series, Haier 979, with built-in voice control, Wi-Fi and a touchscreen control panel to allow consumers to operate the machine using voice commands. The growth of this segment is driven by the increasing adoption of smart technologies such as smart speakers, smart home appliances, smartphones, and smart wearable gadgets.

North America to be the Largest Regional Market

Based on geography, the speech and voice recognition market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, North America is expected to account for the largest share of the speech and voice recognition market. North America’s large share is attributed to the presence of a large number of speech and voice recognition technology providers across the region and regional telecommunications companies’ increasing focus on improving their first-call resolution rates.

Furthermore, the growth of the speech and voice recognition market in North America is driven by the region’s increased digitalization, the growing adoption of advanced technologies such as IoT and big data across various industries, and the surging demand for speech analytics solutions among contact centers.

However, Asia-Pacific is projected to record the highest CAGR during the forecast period. The growth of this market is driven by China, India, and Japan’s increased focus on speech and voice recognition technology, the growing demand for speech and voice recognition solutions embedded with the latest technologies and increasing government initiatives supporting digital transformation.

Speech and Voice Recognition Market: Competitive Analysis

The key players operating in the speech and voice recognition market include Microsoft Corporation (U.S.), Amazon Web Services, Inc. (U.S.), Google LLC (U.S.), IBM Corporation (U.S.), Verint Systems Inc. (U.S.), Baidu, Inc. (China), Apple Inc. (U.S.), Speechmatics (U.K.), Sensory, Inc. (U.S.), AssemblyAI, Inc. (U.S.), iFLYTEK Co., Ltd. (China), LumenVox (U.S.), SESTEK (Turkey), and Dolbey Systems, Inc. (U.S.).

Scope of the Report:

Speech and Voice Recognition Market, by Function

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

Speech and Voice Recognition Market, by Technology

• Artificial Intelligence
• Non-artificial Intelligence

Speech and Voice Recognition Market, by Deployment Mode

• Cloud-based Deployments
• On-premise Deployments

Speech and Voice Recognition Market, by End User

• IT & Telecommunications
• Media & Entertainment
• BFSI
• Healthcare
• Manufacturing/Enterprises
• Education
• Government and Public Services
• Retail and E-commerce
• Automotive
• Consumer Electronics
• Other End Users

Speech and Voice Recognition Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Switzerland
  • Netherlands
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia & New Zealand
  • Singapore
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Israel
  • Rest of the Middle East & Africa

Key Questions Answered in the Report: