Speech-to-text API Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment, By Organization Size, By Application, By Vertical, By Region, And Segment Forecasts, 2022 - 2030

Report Summary

The global speech-to-text API market size was valued at USD 2.32 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) exceeding 15.2% from 2022 to 2030. The growth can be attributed to the increasing demand for handheld devices, the growing elderly population's dependence on technology, greater government funding for education for differently-abled students, and the growing number of persons with various learning difficulties or learning styles. The growth can also be attributed to the rapid adoption of digitization trends in all sectors and the development of new advanced technologies in the field of education.

Speech-to-text technologies work on various devices, including smartphones, tablets, and computers. The government is encouraging speech-to-text technologies in the field of education. For example, the Individuals with Disabilities Education Act (IDEA) provides interactive software in the classroom for students who cannot hear well. Moreover, in May 2022, Northern Illinois University professors developed an interactive software lecture that uses speech-to-text API technology to help students learn the Nemeth code (a Braille code for mathematics).

COVID-19 resulted in the rapid adoption of speech-to-text technologies, with universities and schools working online. In online learning and classes, speech-to-text technology has been gaining attention and is being increasingly adopted by various academic institutes worldwide. Speech-to-text technology helps in communicating with the users when the text on the screen is not clear or reading the text becomes inconvenient. Technological advancements result in the development of enhanced features in speech-to-text technologies.

For example, developers of data analytics applications are searching for medical speech recognition abilities that will allow them to accurately and efficiently transcribe audio and video containing the COVID-19 terminology into text for downstream analytics. For instance, in 2021, Amazon Web Services Inc. developed Amazon Transcribe Medical, a centrally managed speech recognition (ASR) server that helps add medical speech-to-text abilities to any application.

Component Insights

The software component segment led the market with a revenue share of over 71% in 2021. High penetration of the software segment can be attributed to advancements in increased computing power, information storage capacity, and parallel processing capabilities to supply high-end services. For instance, in January 2021, Amazon Web Services Inc. and Talkdesk, a cloud call center software company, collaborated to provide customers with the freedom, agility, and insight to manage contact center operations and improve customer experience by combining Talkdesk CX Cloud's unique cloud-native capabilities with AWA's extensive AI and machine learning offerings. Moreover, this speech recognition software is used to make audio information available to users and has automatic subtitles for deaf people.

Leading firms in various industries are implementing speech-to-text technologies to deal with the constantly rising video-based material. This aids firms in developing new ways to tap into the massive volumes of data accessible to create new processes, services, and products, giving them a competitive advantage. For instance, in August 2020, Speechmatics, a provider of Autonomous Speech Recognition technology, collaborated with Prosodica Inc., a software development company and provider of audio analysis and innovative voice technology, to offer superior call experiences to improve customer care and enhance customer experiences.

Deployment Insights

The on-premises segment dominates the market with a revenue share of over 59% in 2021. The on-premises deployment model is preferred by sectors related to communication, marketing, HR, legal departments, studios, researchers, and broadcasters, among others, due to security concerns. Furthermore, due to its security and licensing, on-premises deployment is preferred by large corporations and banking institutions. Such security concerns are anticipated to supplement the growth of the on-premises model segment during the forecasting period.

The cloud segment is expected to expand at a significant CAGR of 16.2% from 2022 to 2030. The cloud-based technology provides benefits such as minimum capital requirement and easy deployment, facilitating the adoption of the cloud deployment model. The adoption of a cloud-based model is projected to be encouraged by the COVID-19 pandemic, as social distancing and lockdown practices encourage companies to move to a cloud-based speech-to-text API model that can be operated remotely. Cloud-based speech-to-text software has development potential due to businesses' increasing demand for SaaS services (Software as a Service). Furthermore, the cloud segment of the market is predicted to advance faster, as the demand for cost-effective, scalable, and easy-to-use speech-to-text API solutions further grows.

Organization Size Insights

The large enterprise segment held the largest revenue share of more than 65% in 2021. The major factor propelling the growth of the segment is the high capital stability which allows large enterprises to afford such API integrations. However, during the projection period, the SME segment is expected to advance at a faster rate. Large firms are facing extending competition from developing SMEs, which is driving the segment's expansion.

Speech-to-text API solutions and services demand is predicted to increase at a rapid rate among SMEs throughout the projection period due to the availability of cost-effective cloud solutions. Due to the COVID-19 pandemic, both small and large enterprises are expected to restrict their R&D investments in speech-to-text software and solutions, which may hamper the advancement in speech-to-text technology.

Application Insights

The fraud detection & prevention segment dominates the speech-to-test API technology market with a revenue share of 28% in 2021. This is due to the growing need for speech-to-text APIs in the entertainment and media industry, which convert video and audio content into shareable and searchable text.

The industry is divided into contact center and customer management, content transcription, fraud detection and prevention, risk and compliance management, subtitle generation, and other applications. The content translation that uses technology to improve speech to text, such as machine learning and artificial intelligence, is anticipated to accelerate the expansion of the industry.

The contact center & customer management segment is expected to witness significant growth during the forecast period; this growth can be attributed to the increasing use of contact center technologies to help companies create phone menus through APIs such as community forums, omnichannel self-service capabilities, and interactive speech recognition (IVR). Furthermore, content transcription using developing technologies like artificial intelligence and machine learning improves speech-to-text conversion, which is projected to drive market expansion.

Verticals Insights

The BFSI segment dominates the market, with a revenue share of 29% in 2021. The major factor propelling segment growth is the use of speech-to-text converters to analyze the customer’s feedback. Banks and financial institutions file complaints, address inquiries, and collect feedback from clients daily. Most consumers prefer speaking with an operator rather than typing their questions or browsing through several menus and screens. The speech-to-text converter technology plays an essential role in addressing the customer’s feedback and makes the working of BFSI smooth.

Speech-to-text technologies are used in e-learning applications, online documents, converting website content, and for individuals with vision and learning disabilities. These solutions are also helpful for the elderly who have a problem with poor eyesight and reading. One of the factors driving the growth of the market is the adoption of speech-to-text technologies by companies to increase their sales and provide better customer services. For instance, in September 2021, IBM launched IBM Watson Assistant with new automation and artificial intelligence (AI) capabilities, designed to make it easier for businesses to provide better customer service across any channel, including web, phone, SMS, and any messaging platform.

Regional Insights

North America held the dominant revenue share of more than 34% in 2021, due to the significant technology spending and the widespread accessibility of solutions with a strong supplier presence. Moreover, the region would expand further as the need to obtain relevant insights from voice data grows. In the region, developed nations like the U.S. and Canada have led the way in adopting advanced technologies such as intelligent virtual assistants, which can rapidly turn the existing conversation data into automated self-service experiences and enhance customer services.

For instance, in April 2021, Verint System, a software analytics company based in New York, U.S, launched Verint IVA (intelligent Virtual Assistant). This Speech-to-text API offering can quickly transform existing conversation information into automated self-service experiences. It enables business experts to promptly implement a production-ready chatbot to handle calls and provide customer support. With limitless intelligence for both voice and digital, Verint IVA empowers businesses to increase capabilities across the enterprise.

The Asia Pacific region is expected to witness significant growth during the forecast period, with a CAGR of more than 17.2% from 2022 to 2030. The region's expansion can be attributed to technological advances in countries such as Japan, China, and India. The rapid adoption of smart devices, and the widespread use of voice-controlled connected devices, are the primary factors driving the growth of the Asia Pacific market.

Moreover, the region is constructing massive manufacturing industries and infrastructure for the healthcare and education sectors. Voice-based applications are being used in these industries for teaching, trading, and diagnostics that demand speech-to-text converters, which in turn promotes market growth during the forecast period.

Key Companies & Market Share Insights

The market is characterized by intense competition, with a few major global players holding a significant market share. Key players prioritize new product development, acquisition, and collaboration to provide avenues for higher profitability through improved customer relationships. For instance, in December 2021, Microsoft Corporation agreed to acquire Nuance Communication Inc., a U.S.-based AI speech recognition company, for USD 19.7 billion. With this acquisition, Microsoft Corporation planned to expand its position in healthcare by combining expertise and solutions to deliver new AI and cloud capabilities to the healthcare sector and other industries. Some prominent players in the global speech-to-text API market include:

• Amazon Web Service, Inc.

• Amberscript Global B.V.

• AssemblyAI, Inc.

• Deepgram

• Google Inc.

• IBM Corporation

• Microsoft Corporation

• Nuance Communication, Inc.

• Rev.com, Inc.

• Speechmatics Ltd.

• Verint System, Inc.

• Vocapia Research SAS

• VoiceBase, Inc.

Speech-to-Text API Market Report Scope

Global Speech-to-text API Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global speech-to-text API market report based on component, deployment, organization size, vertical, application, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

  • Service

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-premises

  • Cloud

• Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small & Medium-sized Enterprises (SMEs)

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Contact Center And Customer Management

  • Content Transcription

  • Fraud Detection And Prevention

  • Risk And Compliance Management

  • Subtitle Generation

  • Others (conference call analysis, business process monitoring, and quality management)

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • IT & Telecom

  • Healthcare

  • Retail & eCommerce

  • Government & Defense

  • Media & Entertainment

  • Travel & Hospitality

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa