Speech-to-text API Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Application (Transcription, Customer Experience & Analytics, Subtitle & Caption Generation), End User (B2B, B2C, B2G, G2C), Geography - Global Forecast to 2030

The Speech-to-text API Market is projected to reach $10 billion by 2030, at a CAGR of 17.3% during the forecast period of 2023–2030. Some of the major factors driving the growth of this market include the proliferation of voice-enabled devices, the increasing use of voice & speech technologies for transcription, and technological advancements, coupled with the rising adoption of connected devices. However, speech-to-text API solutions’ lack of accuracy in regional accent & dialect recognition restrains the growth of this market. Innovations in speech-to-text solutions for specially-abled people and the development of speech-to-text API solutions for rare & local languages are expected to create growth opportunities for the players operating in this market.

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Innovations in Speech-To-Text Solutions for Specially-abled People is Offering Market Growth Opportunities

Browsing the internet or navigating devices without the use of a mouse and keyboard, or in the absence of touchscreen capabilities, poses significant challenges. For individuals facing difficulties with hands-on interaction or those unable to utilize touchscreens, tasks like changing TV channels or answering phone calls become daunting. Automatic speech recognition, or voice recognition, addresses this issue by translating spoken words into a machine-readable language, facilitating seamless interaction with computers. As technology advances, more robust capabilities are being introduced to transform voice-enabled devices into true digital assistants, enhancing efficiency and productivity. Especially for those with hearing impairments, speech disabilities, or conditions hindering traditional communication, speech-to-text solutions play a pivotal role in improving accessibility. These solutions convert spoken language into written text, empowering specially-abled individuals to engage with technology effectively.

While voice-enabled devices are helpful to non-disabled persons, they can be a true life-changer for disabled people. Since speech recognition technology uses spoken words as its motive power, it can benefit individuals with issues related to upper limb mobility or eyesight. Moreover, speech recognition technology can also help individuals with speech and hearing impairments as well as the elderly. According to the WHO, as of 2022, an estimated 1.3 billion people—or 1 in 6 people worldwide experienced some kind of disability. The potential benefit of speech recognition technology for these people is massive.

In June 2021, Voiceitt (Israel) launched a speech recognition app to help people with speech impairments, allowing them to speak to and be understood through their smart devices with their voice commands. Furthermore, prominent technology companies are collaborating with universities to advance voice recognition technology, specifically focusing on improving accuracy for individuals with speech patterns associated with disabilities. Amazon, Apple, Google, Meta, and Microsoft have joined forces with the University of Illinois Urbana-Champaign (UIUC) for the Speech Accessibility Project. This collaborative effort aims to enhance the inclusivity of voice recognition, reflecting a collective commitment to making technological advancements more accessible. The industry's emphasis on innovating speech-to-text technologies, with the goal of simplifying tasks for specially-abled individuals, is anticipated to generate opportunities for market growth.

In 2023, the Transcription Segment is Expected to Dominate the Speech-to-text API Market

Based on application, the global speech-to-text API market is segmented into transcription, customer experience & analytics, media & communications monitoring, subtitle & caption generation, consumer electronics command & control, automotive command & control, and other applications. In 2023, the transcription segment is expected to account for the largest share of 46.9% of the global speech-to-text API market. This segment is projected to reach USD 4,648.3 million by 2030, at a CAGR of 17.2% during the forecast period.

Speech transcription is the conversion of spoken audio into written words to be stored as plain text. Video and audio content is increasingly being created and distributed across various channels. Transcription companies provide services to transform these video and audio files into text for users to benefit from better SEO, captioning capabilities, and improved accessibility of their content. Companies provide transcription services to generate searchable, editable transcripts for their customers more quickly and accurately. Features such as speaker identification, highlight and comment functionality, adjustable timestamps, and a custom dictionary make this process streamlined and efficient. The technology enhances the speed and accuracy at which transcripts are created, reducing the workload for manual transcribers.

Additionally, transcription solutions with voice technology reduce the workload of manual transcribers, improve efficiency, and enable cost savings for transcription companies. Thus, the large market share of this segment is attributed to technological advancements, increasing speech and voice technology usability for transcription, and the rising adoption of advanced electronic devices.

FIGURE 1 Global Speech-to-text API Market, by Application (USD Million)

Source: Meticulous Research ® Analysis

North America: The Largest Regional Market

Based on geography, the speech-to-text API market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2023, North America accounted for the largest share of 35.4% of the speech-to-text API market market. The large market share of North America is attributed to supportive government initiatives, high adoption of connected devices, and implementation of voice biometric authentication in the banking sector.

North America, known for its technological advancements and emphasis on infrastructure development, is witnessing significant utilization of AI technology by market players. The banking sector, in particular, is rapidly adopting connected devices to enhance functionalities such as fraud detection, prevention, and marketing. Within this region, several industry participants are actively engaged in the development of cutting-edge speech-to-text technologies, showcasing a commitment to technological innovation and advancement.

In April 2021, Verint System (U.S.), a New York-based analytics company, launched Verint IVA, a conversational AI that turns existing conversation data into automated self-service experiences. Furthermore, in September 2021, IntelePeer (U.S.), a leading Communications Platform-as-a-Service (CPaaS) provider, collaborated with IBM (U.S.) to add voice capabilities to its intelligent virtual agent and offer higher personalization and customization. Such developments boost the adoption of the speech-to-text API market in North America.

Competitive Analysis

A few major players dominate the speech-to-text API market due to their strong brand recognition, diverse product portfolios, strong distribution and sales networks, and robust growth strategies. The major companies in the speech-to-text API market have implemented various strategies, such as product launches & enhancements, approvals, mergers & acquisitions, expansions, agreements, collaborations, and partnerships to expand their product offerings and global footprints, augment their market shares, strengthen their product portfolios, and enhance their geographic reach in the speech-to-text API market. According to the ranking, the top five companies are Google LLC (U.S.), Microsoft Corporation (U.S.), Amazon Web Services, Inc. (U.S.), IBM Corporation (U.S.), and Verint Systems Inc. (U.S.).

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