Global Voice and Speech Recognition Technology Market to Reach US$20.9 Billion by the Year 2026

Voice and speech recognition technology is emerging as the basis of advanced voice services in various applications including voice-based commerce, customer service applications, clinical documentation for healthcare industry, and virtual digital assistants for automobiles. Growth in the global market is being driven by the expanding applications of voice and speech recognition technologies, with customer care, healthcare, and financial institutions emerging as major end-use markets for the technology. Rising demand for speech-based biometric systems for carrying out multifactor authentication is another major factor driving growth in the market. Increasing focus on combating fraud in major end-use verticals including enterprise, banking and healthcare sectors and the growing adoption of mobile banking services by banking institutions and e-commerce retailers are enhancing the need for more secure verification process, thereby driving implementations of voice recognition/authentication technologies. Sustained innovations in computing power and the growing adoption of cloud-based services are also boosting market prospects. Automatic speech recognition (ASR), text-to-speech (TTS) and speaker verification (SV) are few applications driving growth in the speech technology marketplace.

Amid the COVID-19 crisis, the global market for Voice and Speech Recognition Technology estimated at US$7.7 Billion in the year 2020, is projected to reach a revised size of US$20.9 Billion by 2026, growing at a CAGR of 18.1% over the analysis period. Speech, one of the segments analyzed in the report, is projected to grow at a 16.1% CAGR to reach US$15.9 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Voice segment is readjusted to a revised 22.6% CAGR for the next 7-year period. This segment currently accounts for a 27.8% share of the global Voice and Speech Recognition Technology market. Speech recognition technology has been developed as an approach to allow individuals to interact easily with smartphones and its applications. Growth of the speech recognition market is being driven by the extensive adoption of mobile computing technology and increasing proliferation of smartphones. Voice recognition technology is capable of analyzing speaker`s identity, by studying behavioral patterns of people, such as accent, voice pitch, speaking style, among others. Advancements in machine learning and speech technology, constantly reducing costs, and growth in processing power are all driving growth in the voice recognition market.

The U.S. Market is Estimated at $2.9 Billion in 2021, While China is Forecast to Reach $2.3 Billion by 2026

The Voice and Speech Recognition Technology market in the U.S. is estimated at US$2.9 Billion in the year 2021. The country currently accounts for a 33.2% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$2.3 Billion in the year 2026 trailing a CAGR of 21.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 16% and 16.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 17% CAGR while Rest of European market (as defined in the study) will reach US$2.8 Billion by the end of the analysis period. In developed markets, speech technology has become the mainstay in enterprise call centers and telecommunication devices. Further, there is a growing adoption of speech technology in automobiles and in-car systems with both the US-based and European automobile manufacturers exhibiting high level of interest in the technology. Also driving market growth is the increasing adoption of speech recognition solutions in BFSI and healthcare sectors for purposes such as time and attendance monitoring. The increasing awareness about speech and voice recognition technology and the reducing cost of biometric devices are fueling market growth in Asia-Pacific region, especially in countries such as China and India.