Home Technology Speech Recognition Market Size, Sale & Revenue Statistics by 2031

Speech Recognition Market

Speech Recognition Market Size, Share & Trends Analysis Report By Deployment Mode (On Cloud, On-Premises), By End-User (Automotive, Consumer Electronics, Healthcare, Enterprise, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE54707DR
Study Period 2019-2031 CAGR 19.7%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 13,120.12 Million
Forecast Year 2031 Forecast Year Market Size USD 66200.48 Million
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global speech recognition market size was valued at USD 13,120.12 million in 2022 and is projected to reach USD 66,200.48 million by 2031, registering a CAGR of 19.7% during the forecast period (2023–2031). The increasing acceptance of speech recognition technology is notable across consumer verticals and the field of robotics. This rising trend is indicative of a broader integration of speech recognition capabilities into various consumer-oriented sectors and the robotics industry.

Speech recognition technology picks up and recognizes the language-based audio signals, then transforms them into machine-readable form. The need for speech recognition technology is anticipated to be driven by the increasing adoption of artificial intelligence and the development of next-generation home automation devices. Speech recognition technology fundamentally alters how people use their phones, homes, cars, and other technology. Speech recognition powered by AI responds to commands and inquiries from people using machine learning. Speech recognition uses microphones and phones to turn spoken words into digitally modified and stored words. The software's processing speed and ability to mimic human speech affect speech recognition quality.

Market Dynamics

Market Drivers

Increasing Demand for Speech Recognition in Automotive Sector

Technological advancements in speech and voice solutions, such as voice dialing or voice biometrics, enhance connected devices' performances in the car. Speech recognition is used in the car for remote control and navigation system. In this system, a microphone built into the car's remote will be used to receive commands from the user. The market for hardware and software for speech recognition technology is anticipated to develop due to the rise in demand for voice-activated navigation systems. Global adoption of voice-enabled in-car infotainment systems is rising as more nations introduce "hands-free" laws prohibiting using mobile devices while driving. Therefore, the development of the global market is driven by technological innovation.

Rising Demand for Voice Biometric Systems for User Authentication and Healthcare Applications

Speech recognition technologies have become an intrinsic part of the institution, banks, healthcare, automotive, and others as they help increase efficiency and precision through automation. Voice biometric systems are used to keep track of various parameters such as pitch, duration, intensity, voice quality, signal-to-noise ratio, voice activity detection, unique biological characteristic, and other parameters to avoid sensitive and risky personal information and authenticate their clients' identities. The advancements in smart technologies are expected to increase the demand for voice-based authentication systems leading to considerable growth in the speech recognition technology market. Therefore, the increase in the adoption of smartphones and the rise in competition among vendors are driving the demand for voice biometric systems. This has helped curb fraud and phone crimes by using voice biometrics.

In the current IT-dominant world, people are moving toward automation-based solutions and services. This has led to an increased focus on speech recognition-based devices due to their innovative and advanced applications. Healthcare is among the few industries that rely heavily on voice recognition because documenting important patient data is crucial for any medical organization. The rise in demand for quality assurance, medical reviews, and billing contributes to the market growth. This technology is expected to increase significantly in the healthcare industry, as it is being promoted to institutions and physicians to increase productivity and lower costs. One of the best instances is using a reception robot, Pepper, developed by SoftBank Robotics, using AI-based speech recognition technology in a hospital in Belgium to accompany visitors to the correct department.

Market Restraint

Lack of Accuracy in Harsh Environments

Speech recognition occupies a prominent place in communication between humans and machines. Several factors affect the accuracy of the speech recognition system, such as environmental conditions, recording devices, prosodic variations, speaker variations, and others. Accurate recognition can be significantly impacted by background noise. Hence, recording speech in a good environment with proper recording devices is crucial to reduce the error rate.

Market Opportunities:

Rising Adoption of Speech Recognition in the Consumer Verticals and Robotics

An increase in demand for intelligent virtual assistant (IVA) smart speakers with voice capabilities is expected to be the prominent driver for the speech and voice recognition market regarding consumer verticals during the forecast period. IVA smart speakers such as Amazon Eco, Google Home, and Apple HomePod have witnessed high growth in North America and Europe during the last two years. Moreover, speech and voice recognition is expected to grow significantly in the personal robotics market, such as robotic pets, cleaning robots, and robot companions.

Additionally, technological developments in AI are making hyper-modified customer experiences that dominate the growth of voice-activated devices in the coming years. Introducing speech recognition in robotics is one of humans' most common forms of communication. Speech recognition with a mobile robot depends not only on the quality of the components but also on the environment, which can be noisy or cause an echo, or modify the perception of the sound due to its shape. Such factors are expected to provide lucrative growth potential for robotics in the global market.

Regional Analysis

Region-wise, the global speech recognition market is segmented as North America, Europe, Asia-Pacific, and LAMEA.

North America speech recognition market share is estimated to exhibit a CAGR of 20.1% over the years 2023 to 2031. North America is studied across the U.S., Canada, and Mexico. The regional speech recognition market is expected to grow significantly due to technological advancements and ongoing R&D activities in this region's autonomous vehicles, healthcare, and consumer electronics. In addition, the increase in the sale of luxury cars, and smart wearables, have propelled the adoption of speech recognition in this region. The global market in this region is dominated by market players that provide cutting-edge services. These players have contributed significantly toward the development of voice recognition. Stringent government regulations regarding safety in healthcare and consumer industries are also expected to propel market growth over the next few years.

Europe industry for speech recognition is expected to grow at a CAGR of 8.02% over the forecast period. The regional market is analyzed across Germany, France, UK, Russia, and the rest of Europe. The region witnessed a consistent growth rate for the global market due to a rise in demand for advanced technology in consumer electronics, infrastructure, automation systems, and others across the region. Growth in the standard of living, rise in per capita income, and penetration of technological advancements in smart technologies are also expected to assist regional market expansion. In addition, Europe is anticipated to exhibit a high growth rate for the global market over the forecast period due to a rise in consumer electronics and automotive demand across the region. Technological advancements and early adoption of this technology in several developed regions, such as Germany, the UK, France, and the Nordic region, may lead to further penetration in other EU countries.

Asia-Pacific is expected to grow steadily till 2031. The region occupies a major share of the global market in developing countries such as India, China, and Indonesia. Various product launches and technological advancements in consumer electronics, consumer goods, and the automotive industry instigates manufacturers to integrate sophisticated technologies with their offerings. This anticipates considerable growth in the Asia-Pacific speech recognition market. In addition, many larger and mid-size markets in the region have extensively adopted speech recognition technologies, specifically in the finance and healthcare sectors. Japan and China are technologically advanced countries with high demand for smart technologies.

LAMEA includes Latin America and the Middle East and Africa. Rapid developments in the Middle East in terms of infrastructure, technology, and medical facilities fuel the growth of the LAMEA market. UAE is among the leading countries in the Middle East region that contributes majorly to the revenue generation of the global market. Many countries in LAMEA are emerging economies. In addition, the region holds a relatively smaller global speech recognition technology market share. The growth of the speech recognition technologies market in LAMEA is attributed to infrastructural developments and technological innovations. The need for speech recognition-based solutions is also anticipated to expand in the near future as the adoption of voice-enabled Internet of Things (IoT) devices increases in smart home automation.

Report Scope

Report Metric Details
By Deployment Mode
  1. On Cloud
  2. On-Premises
By End-User
  1. Automotive
  2. Consumer Electronics
  3. Healthcare
  4. Enterprise
  5. Others
Company Profiles Baidu Microsoft Corporation Sensory Inc Iflytek Inc Google Inc. Nuance Communications Inc. Amazon.com Inc. AMD Xilinx Infineon Technologies Intel Corporation
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global speech recognition market is segmented based on offering, monitoring process, end-use, and region.

Based on deployment mode, the global market is classified into on-premise and on-cloud.

The on-premise segment dominates the global market and is estimated to exhibit a CAGR of 15.8% during the forecast period. On-premise speech recognition solution provides complete infrastructure control, including the networking layer, viewing application, and user experience. The customer also gets more predictable workflow costs as on-premise deployment needs a one-time investment and regular maintenance. However, the on-premise solutions may be a costlier choice primarily due to initial and recurring capex for hardware. In addition, full workflow control is available with an on-premise media speech recognition deployment. The customer can be privileged and responsible for managing each level of their technology stack. Moreover, companies with IT personnel dedicated to building live-streaming infrastructure or architecting cloud environments are expected to adopt on-premise-based solutions, as outsourcing is unnecessary.

The stored audio content on-cloud can be streamed through live streaming and on-demand and is delivered to different clients through tablets, mobile devices, TV, and PC. Cloud-based solutions help organizations reduce CAPEX, allowing them to gain a considerably high level of efficiency at a minimal cost. Therefore, the high market share of the cloud is attributed to the ability of the cloud infrastructure to provide self-service applications at a minimal cost.

Based on the end-users, the global market includes automotive, consumer electronics, healthcare, and enterprise.

The healthcare segment owns the largest market share and is estimated to exhibit a CAGR of 21.7% during the forecast period. The emergence of sophisticated technologies in medical devices, such as wireless communication, sensors, artificial intelligence, and AR/VR, assists in the growth of speech recognition in the healthcare industry. Several medical equipment and devices are integrated with speech recognition to increase the efficiency of the equipment and reduce the doctor's effort level. For instance, devices integrated with speech recognition are used to identify and document important patient data, which is crucial for any medical organization.

The automotive industry contains a broad range of motor vehicles, which demand advanced and enhanced vehicle infotainment systems such as parking assistance, navigation, audio/video interfaces, touchscreen displays, adaptive cruise control, and anti-locking systems. These systems have voice recognition software processors because they provide reliable, safer functions and real-time system solutions. In addition, global adoption of voice-enabled in-car infotainment systems is rising as more nations introduce "hands-free" laws prohibiting using mobile devices while driving. The increase in demand for voice-driven navigation systems and workstations makes way for other developments in the hardware and software segments in the automotive vertical.

Market Size By Deployment Mode

Recent Developments

  • May 2022 - Intel and SAP SE announced a strategic collaboration to deliver more powerful and sustainable SAP® software landscapes in the cloud. Designed to help customers derive greater scalability, agility, and consolidation of existing SAP software landscapes, the collaboration deepens Intel's focus on delivering extremely powerful and secure instances for SAP, powered by 4th Gen Intel® Xeon® Scalable processors.
  • November 2022 - Smartz Solutions, a global CCaaS and Employee Engagement software development company, announced its partnership with LumenVox, a leading global speech and voice technology provider.
  • March 2023 - Cisco announced 800G innovations that continue to transform the economics and sustainability of the Internet for the Future to help its customers connect the nearly 40% of the world’s population that remains unconnected or underserved.

Top Key Players

Baidu Microsoft Corporation Sensory Inc Iflytek Inc Google Inc. Nuance Communications Inc. Amazon.com Inc. AMD Xilinx Infineon Technologies Intel Corporation Others

Frequently Asked Questions (FAQs)

How big is the speech recognition industry?
The global speech recognition industry size was valued at USD 13,120.12 million in 2022 and is projected to reach USD 66,200.48 million by 2031, registering a CAGR of 19.7% during the forecast period (2023–2031).
North America region has the largest share of the speech recognition market.
Rising adoption of speech recognition in the consumer verticals and robotics is one of the key trends in global market.
Increasing demand for speech recognition in automotive sector,rising demand for voice biometric systems for user authentication and healthcare applications are the key drivers for the growth of the speech recognition market.
Baidu, Microsoft Corporation, Sensory Inc, Iflytek Inc, Google Inc., Nuance Communications, Inc., Amazon.com, Inc., AMD, Xilinx are the prominent players in the global market.

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