Speech Recognition Market

AI and Machine Learning to be Nexus Points of Innovation to boost the market growth

Global adoption of voice-activated in-car infotainment systems is rising as more nations introduce "hands-free" laws prohibiting using mobile devices while driving. The advancements that speech product developers are concentrating on are predicted to boost market expansion during the forecast. Using smartphone speech recognition technology, doctors and physicians can convert their voices into a rich, in-depth clinical description stored in the Electronic Health Record (EHR) system. Shortly, the market is anticipated to be driven by the growing adoption of voice-enabled IoT devices in smart home automation.

Many conventionally offline gadgets might benefit from IoT-enabled devices because they offer cutting-edge user experiences in addition to more conventional ones like touch displays and buttons.

Pattern recognition is used in speech and voice recognition technology to turn speech into a series of words. Users could get quick answers with speech and voice technologies by speaking to the systems instead of typing or scrolling the screen. As a result of continued advancements in Automated Speech Recognition (ASR), Natural Language Processing (NLP), and Machine Learning (ML), as well as the massive volume of data and accessibility of AI platforms, the ability to handle voice on a larger scale has also rapidly risen. For instance, in August 2021, LumenVox introduced an Automatic Speech Recognition (ASR) engine with transcription.

The basis of the next-generation speech recognition technology, which provides precise speech-enabled customer experiences, is deep machine learning (ML) and artificial intelligence (AI).

The development of artificial intelligence is creating the potential for digitalization across industry verticals. The prevalence of AI-powered devices suggests that systems and search algorithms have advanced to enhance machine learning and its practical uses. A key illustration is Google's RankBrain, which uses the phrase and word recognition to learn, comprehend, and improve outcome prediction. Machine learning and natural language processing methods are utilized to transcript voice searches. Web conferencing tools have also become more commonplace in the sector.

Web conferencing can be made even better using speech recognition technology by offering post-call transcripts through real-time call captioning, which has enhanced the speech recognition market CAGR across the globe in recent years.

Increased use of cutting-edge technologies like IoT, AI, and machine learning is what drives the growth of the speech recognition industry. As a result of voice-based authentications in smartphone applications, the need for voice and speech biometric systems has increased. Additionally, the demand for voice technologies is increasing due to the use of deep learning and neural networks in applications, including audio-visual speech recognition, isolated word identification, speaker adaption, and digital speaker recognition. Major players are concentrating on these newly developing technological developments to expand their operations in the long run.

For instance, in April 2022, Speech recognition technology was introduced by Google LLC to improve the voice user interface. Google's Speech-to-Text API uses a neural sequence-to-sequence model to increase accuracy in 23 languages and 61 supported locales, another factor driving the speech recognition market revenue growth.

The Global Speech Recognition Market Industry is projected to experience substantial growth over the next decade. With a market value of 17.7 USD Billion in 2024, it is anticipated to reach 147.7 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 21.25% from 2025 to 2035. The increasing adoption of speech recognition technologies across various sectors, including healthcare, automotive, and customer service, contributes to this optimistic outlook. As organizations continue to recognize the value of integrating speech recognition into their operations, the market is likely to expand significantly, reflecting the evolving landscape of technology and communication.

Advancements in artificial intelligence (AI) significantly influence the Global Speech Recognition Market Industry. The integration of machine learning algorithms enhances the accuracy and efficiency of speech recognition systems, making them more appealing to businesses and consumers alike. As AI technology evolves, it enables more natural language processing capabilities, allowing for better understanding of diverse accents and dialects. This technological evolution is expected to contribute to the market's growth, with projections indicating a rise to 147.7 USD Billion by 2035. The continuous improvement in AI-driven speech recognition solutions positions the industry for substantial advancements and increased adoption across various applications.

The Global Speech Recognition Market Industry experiences a notable surge in demand for voice-activated technology across various sectors. This trend is driven by the increasing adoption of smart devices, such as smartphones and smart speakers, which integrate speech recognition capabilities. As consumers seek more intuitive and hands-free interactions, the market is projected to reach 17.7 USD Billion in 2024. Companies are investing in enhancing their voice recognition systems to improve user experience, which further propels market growth. The proliferation of voice-activated applications in sectors like healthcare, automotive, and customer service underscores the potential for continued expansion in the Global Speech Recognition Market Industry.

The Global Speech Recognition Market Industry sees increased investment in healthcare technologies, which significantly drives demand for speech recognition solutions. Healthcare providers are adopting these technologies to improve patient documentation, enhance clinical workflows, and reduce administrative burdens. For example, speech recognition software allows physicians to dictate notes directly into electronic health records, streamlining the documentation process. This trend is expected to contribute to the market's growth, as healthcare organizations recognize the efficiency and accuracy benefits of speech recognition. The ongoing investment in healthcare technology positions the industry for sustained growth and innovation in the coming years.

The Global Speech Recognition Market Industry is significantly impacted by the growing need for automation in business processes. Organizations are increasingly adopting speech recognition technologies to streamline operations, enhance productivity, and reduce operational costs. For instance, customer service centers utilize speech recognition to automate call handling and improve response times. This trend is likely to drive market growth, as businesses recognize the value of integrating speech recognition into their workflows. The anticipated compound annual growth rate of 21.25% from 2025 to 2035 further illustrates the potential for expansion in this sector, as more companies seek to leverage automation for competitive advantage.

The Global Speech Recognition Market Industry is witnessing an expansion of multilingual speech recognition solutions, catering to a diverse global audience. As businesses operate in increasingly globalized markets, the demand for systems that can accurately recognize and process multiple languages is growing. This trend is particularly relevant in customer service and support sectors, where companies seek to provide seamless communication across different languages. The development of advanced multilingual capabilities is likely to enhance user experience and broaden market reach. As a result, the Global Speech Recognition Market Industry is poised for growth, driven by the need for inclusive and accessible technology.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America Speech Recognition market accounted for USD 4.52 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The market in North America is predicted to be driven by the rising acceptance of voice-enabled smartphone applications and the rising use of speech recognition in mobile banking, consumer electronics, and IoT devices.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Speech Recognition Market SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe speech recognition market accounts for the second-largest market share. Due to the growing trend of linked devices in automotive and home automation, speech and voice recognition technologies are anticipated to have significant usage in the consumer electronics and retail industries. Further, the Germany speech recognition market held the largest market share, and the UK speech recognition market was the fastest-growing market in the European region.

The Asia-Pacific Speech Recognition Market is expected to grow at the fastest CAGR from 2022 to 2030. The expansion of the APAC regional market is also anticipated to be aided by the increasing adoption of voice-enabled devices in the automotive and healthcare sectors. Moreover, China speech recognition market held the largest market share, and the India speech recognition market was the fastest-growing market in the Asia-Pacific region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the speech recognition market grow even more. Market participants are also taking various strategic initiatives to grow their global footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the speech recognition industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the global speech recognition industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the speech recognition industry has provided some of the most significant benefits. The speech recognition market major player such as Nuance Communications Inc. (U.S.), VoiceBox Technologies Corp. (U.S.), Raytheon BBN Technologies (U.S.), ReadSpeaker Holding B.V. (Netherlands), and others are working on expanding the market demand by investing in research and development activities.

The American multinational technology company Microsoft Corporation creates computer software, home appliances, laptops, and related services. Microsoft's most well-known software products are the Windows family of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Microsoft is headquartered on the Microsoft campus in Redmond, Washington. In April 2021, Microsoft stated that it would pay roughly $16 billion to acquire Nuance Communications. In March 2022, the acquisition of Nuance was finished.

Also, Search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics are the main areas of interest for Google Inc., an American multinational technology firm. It has been referred to be "the most powerful corporation in the world" and one of the most valuable brands globally due to its market dominance, data collection, and technological advantages in artificial intelligence. In May 2022, Google revealed that it had bought the California-based startup Raxium, which developed and produced MicroLED display technology.

Raxium will work with Google's Devices and Services team to further monolithic integration, system integration, and micro-optics.