Voice And Speech Recognition Market Size, Share & Trends Analysis Report By Function (Speech Recognition, Voice Recognition), By Technology, By Vertical, By Region, And Segment Forecasts, 2024 - 2030

Voice And Speech Recognition Market Summary

Voice-activated biometrics used for security purposes help in providing access to authenticated users for performing a transaction. The growing use of voice biometrics is among the major factors driving the market growth. The increasing demand for voice-driven navigation systems and workstations is impelling growth in the hardware and software segments. The integration of voice-enabled in-car infotainment systems is gaining popularity across the globe as several countries initiate “hands-free” regulations that govern the use of mobile phones while driving.

The developers of voice and speech products are focusing on innovations, which are expected to accelerate market growth. The use of voice recognition technology in smartphones enables doctors and clinicians to translate their voice into a rich, detailed clinical description, which is recorded in the Electronic Health Record (EHR) system. The increasing penetration of voice-enabled IoT devices in smart home automation is expected to drive market growth. IoT-enabled devices would benefit several traditionally offline devices with innovative means of user interactions in addition to traditional means, such as touch screens and buttons.

Market Concentration & Characteristics

The voice and speech recognition industry is considered to have a high degree of innovation with the increasing adoption of technological advancements driven by factors, such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and increasing use of voice-based authentication in smartphones. Subsequently, innovative technologies and applications are constantly emerging, disrupting existing ones and creating new ones.

Key competitors in the industry are actively engaged in merger and acquisition (M&A) transactions to strengthen their industry position. Major companies aim to enhance their portfolios by integrating complementary technologies, increasing the demand in healthcare for improving efficiency.

Regulations play a crucial role in shaping the industry. The integration of voice recognition with vehicles is gaining attraction worldwide as several countries initiate hands-free driving regulations that govern the use of mobile phones while driving cars. Key companies are reshaping the voice-activation used in cars. For instance, Google LLC’s Android Auto enables the pairing of users’ phone screens on their car’s dashboard and supports all the functions while driving.

The service substitutes are high owing to the presence of a larger number of vendors and the availability of open-source software. However, accuracy is the major concern, and open-source software providers do not provide high accuracy. It ultimately drives the demand for premium software from leading players among users demanding high accuracy in voice and speech recognition.

End-user concentration is a significant factor in the industry. Many end-user industries are fueling the demand for smart appliances and devices. The concentration of demand in a small number of end-user industries creates opportunities for companies that focus on developing smart appliances and devices for these industries.

Function Insights

The speech recognition segment accounted for a dominant share of 64.6% of the global market in 2023. Automobiles and mobile phones are suitable for speech recognition implementations. The increasing mobility of society requires accessibility to data and services anytime and anywhere. Cloud and client-based speech recognition employments can significantly augment the customer experience and provide optimization in cost-saving savings for companies.

Furthermore, this technology has been assisting doctors and radiologists in maintaining records of patients owing to benefits, such as reducing the report turnaround time and assisting doctors in record keeping. The integration of speech recognition with Virtual Reality (VR) is expected to lead to enhanced market demand. For instance, in February 2017, Facebook enhanced its VR platform, Oculus Rift, by adding speech recognition to the VR gear of the Oculus Rift. On the other hand, the voice recognition segment is projected to record the fastest CAGR during the forecast period.

Technology Insights

The non-AI-based technology segment accounted for a dominant share of the global revenue in 2023. The segment is estimated to retain the leading position growing at a steady CAGR from 2024 to 2030. However, the AI-based technology segment is expected to register the fastest growth rate during the forecast period. The demand for AI-based technology is on the rise as the system recognizes the patterns of speech accurately.

AI exceptionally converts speech into well-structured algorithms by undergoing certain stages, including the representation of speech units, formulation, and development of recognition algorithms along with the demonstration of correct inputs. The rising developments in ML and Natural Language Processing (NLP) are expected to boost the growth of the AI-based technology segment. A rising number of AI-based digital assistants, such as Alexa and Cortana, are expected to drive the demand for speech & voice recognition solutions in the future.

Vertical Insights

The healthcare segment accounted for the highest share in 2023. Speech recognition boosts the process of data capturing in EHR systems. This process empowers physicians to interact with the system by speaking a few words. Speech recognition is still in the developing stage and deployed in individual segments of healthcare, which include radiology, pathology, emergency medicine, and others.

The automotive vertical accounted for a significant revenue share. The enhancement of automotive technologies, such as connected devices, would update the driver with traffic conditions on the route and alternative routes. Voice & speech recognition technologies are expected to have a wide scope of application in consumer and retail verticals over the forecast period on account of the rising adoption of connected devices and growing penetration of personal assistants, such as Google Home and Amazon Alexa, in Europe and Asia Pacific.

Regional Insights

The North America voice and speech recognition market accounted for the largest share of the global revenue in 2023. The regional market is expected to grow further at a steady CAGR retaining its dominant position in the industry throughout the forecast period. The growing adoption of voice-enabled applications in smartphones and increasing use of voice & speech recognition in mobile banking, consumer electronics, and IoT devices are expected to drive regional market growth.

U.S. Voice And Speech Recognition Market Trends

The voice and speech recognition market in the U.S. accounted for the dominant revenue share of 67.4% in 2023. The market growth can be attributed to the advancements in AI and NLP technologies. Voice recognition technologies have applications in healthcare, education, and even the IoT, further propelling market growth.

Europe Voice And Speech Recognition Market Trends

The Europe voice and speech recognition market has witnessed substantial growth propelled by advancements in technology, increasing adoption of smart devices, and rising demand for efficient human-machine interaction. As businesses and consumers prioritize convenience and efficiency, the market in Europe is expected to continue its upward trajectory, with innovations in voice-enabled solutions for tasks ranging from navigation to customer service.

The voice and speech recognition market in the UK is projected to grow at a prominent CAGR from 2024 to 2030 owing to the proliferation of smart devices and growing preference for hands-free interaction. With ongoing R&D efforts focusing on improving accuracy, security, and multi-language support, the market is poised for continued expansion in the coming years.

Asia Pacific Voice And Speech Recognition Market Trends

The Asia Pacific voice and speech recognition market is leading the global industry. The regional market growth is driven by factors like increasing technological advancements and rising awareness of the benefits & cost-effective devices. This trend is fueled by diverse applications across various sectors, including smart home appliances and voice assistants in banking, healthcare, and the automotive industry.

The voice and speech recognition market in China accounted for a substantial share of the APAC regional market revenue in 2023. Prominent trends in the market include the development of multilingual and dialect recognition capabilities, expansion into verticals like healthcare and finance, and the increasing adoption of voice biometrics for enhanced security. Moreover, the Chinese government's initiatives to promote technological innovation and the rapid digitalization of industries are propelling market growth in the country.

Key Voice And Speech Recognition Company Insights

Market vendors focus on increasing the customer base to gain a competitive edge. Therefore, key players are undertaking several strategic initiatives, such as mergers & acquisitions and partnerships. For instance, in January 2021, Yellow Messenger made a strategic alliance with Microsoft to revolutionize its voice automation offering by leveraging Azure AI Speech Services and NLP tools. This collaboration focused on developing a sophisticated voice assistant platform with advanced capabilities, including sentiment analysis, dialect comprehension, and workflow-based responses, ultimately leading to improved voice bot solutions for enterprises across industries and elevated consumer experience automation.

Industry players are heavily investing in R&D for the development of voice & speech recognition-integrated AI technology. For instance, in September 2023, Alexa Al, an intelligent voice assistant developed by Amazon, introduced generative AI in Alexa to significantly engage with technology by utilizing the capabilities of AI and speech recognition. Its advanced technology enables it to voice commands, making it an ideal companion for activities, such as scheduling reminders, managing smart home devices, and playing music. This advanced Al assistant has been incorporated into various devices, such as the Echo Dot and Amazon Echo.

Recent Developments

• In March 2023, Google AI introduced a new update to its Universal Speech Model (USM) in support of the 1,000 Languages Initiative. A universal speech model is a machine learning algorithm designed to comprehend and interpret spoken language across diverse languages and accents. The USM, a family of advanced speech models with 2 billion parameters, has been trained on an extensive dataset of 12 million hours of speech and 28 billion sentences in over 300 languages. Google claims that the USM excels in automatic speech recognition (ASR) for languages with limited resources, such as Assamese, Cebuano, Amharic, and Azerbaijani, as well as widely spoken languages like Mandarin and English

• In May 2023, Apple unveiled a suite of cutting-edge cognitive accessibility features, including Live Speech, Personal Voice, and Point and Speak in Magnifier, designed to elevate usability and accessibility for individuals with disabilities. By collaborating closely with disability community groups, Apple reinforces its dedication to ensuring technology remains inclusive, making a tangible difference in the lives of its users

• In October 2022, iFLYTEK Corp. introduced the Speech Translation Technology Platform for Southeast Asian Languages at the ASEAN Summit in October 2022. To access online administrative and public services, Guangxi residents can use the mobile app "Zhiguitong," which features the iFLYTEK speech translation technology for ASEAN languages. Chinese Mandarin to Lao, English, Vietnamese, Indonesian, Thai, Tamil, Malay, and Burmese instant speech translation is available.

Voice And Speech Recognition Market Report Scope

Global Voice And Speech Recognition Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the voice and speech recognition market report based on function, technology, vertical, and region:

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

  • Voice Recognition

    • Speaker Identification

    • Speaker Verification

  • Speech Recognition

    • Automatic Speech Recognition

    • Text-to-Speech

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

  • AI-based

  • Non-AI-based

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

  • Automotive

  • Enterprise

  • Consumer

  • BFSI

  • Government

  • Retail

  • Healthcare

  • Military

  • Legal

  • Education

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Switzerland

    • Poland

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Singapore

    • Pakistan

    • Malaysia

    • Australia

    • Hong Kong

    • Vietnam

  • South America

    • Brazil

    • Argentina

    • Chile

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • Israel

    • South Africa

    • Nigeria