Voice Biometrics Market Size, Share & Trends Analysis Report By Type (Active Biometrics, Passive Biometrics), By Deployment Model (On-premise, Cloud), By Enterprise Size (Small and Medium Enterprises, Large Enterprises), By Industry Verticals (Banking, Financial Services, and Insurance, Retail and E-commerce, Telecommunications and IT, Government and Defense, Other Industry Verticals) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Voice Biometrics Market Size

The global voice biometrics market size was valued at USD 2,451.5 million in 2023. It is projected to reach from USD 2,931.0 million in 2024 to USD 14,320.5 million by 2032, growing at a CAGR of 21.9% during the forecast period (2024–2032). The shift towards remote work environments and virtual collaboration accelerates the adoption of voice biometrics for secure remote access and authentication. Voice authentication enables remote employees to securely access corporate networks, systems, and sensitive data.

Voice Biometrics Market Growth Factor

Increasingly Complex Security Threat

Voice biometrics' security barriers have been raised by the addition of deep learning and artificial intelligence, although this technology is favored for its user-friendly convenience and high accuracy. Passwords have evolved into a simple technique to get around security as cybersecurity risks grow exponentially. This has cleared the way for sophisticated voice biometrics, which can be used to counteract complex security threats because each person's speech is unique and cannot be imitated.

As speech biometrics are based on voiceprints, they are governed by the Biometric Information Privacy Act (BIPA), which oversees the secure handling of biometric data, in this case, an individual's voice. Businesses that violate BIPA policies are subject to intense examination and fines, which increases user confidence. For instance, a main fast food restaurant is being sued under the BIPA for allegedly using speech recognition technology from artificial intelligence at their drive-throughs. Claims in state and federal courts allege failures to implement informed consent standards, profit and disclosure restrictions, and data retention practices that comply with BIPA.

Voice Biometrics Market Restraining Factors

Concerns About Third-Party (Cloud) Data Storage Security

The main issue with voice biometrics is still privacy and data security breaches. Gathering and storing data with third parties has become a significant risk, preventing the sector under study from expanding quickly. The market has been observed to change and traverse the numerous difficulties caused by security worries. 95% of respondents indicated in the Speechmatics Report 2021 that data privacy would be an issue in the future. The respondents expressed concern about the procedure and the location of data storage. On-premises implementation was cited as a fantastic solution to address data privacy concerns now and in the future by 47% of respondents, up from 39% last year. The risk associated with private cloud installations and data breaches can be significantly reduced by on-premises deployment.

Additionally, the BFSI industry has several compliance and regulatory problems since customer data and voice data must remain on the premises of third-party suppliers. Financial institutions have hesitated to implement voice biometrics mainly because of the problematic data localization and constraints, which can be resolved by on-premise systems that adhere to laws like the GDPR. Users have benefited from a more regulated environment thanks to on-premises implementation, which also allayed worries about cloud storage.

Restraining Factors Opportunities

Governments Adopting Technology on a Large Scale to Secure Citizens

Speech biometric service providers and governments worldwide are now aware of how crucial voice biometric systems are in various industries where security, fraud prevention, and identity are still top priorities. Significant factors are anticipated to significantly fuel the market's growth during the projected period, including expansion of the e-passport program, government assistance, and extensive use in criminal identification.

Global investments in speech biometric systems have grown as a result of an increase in identifying activities and other attempts to lower crime rates. In industrialized nations that use voice biometrics, several government programs are being adopted, including e-passports, e-driving licenses, border control, national I.D.s, and authentic access to government services. Governments can utilize voiceprints taken from users as electronic signatures, thanks to businesses like ArmorVox. By cross-matching more than a million voiceprints each minute, it also aids in the detection and tracking of fraud using fraudster lists in real time.

Voice Biometrics Market Regional Analysis

North America: Dominant Region with 19.20% Growth Rate (CAGR)

North America is the major revenue contributor and is expected to exhibit a CAGR of 19.20% during the forecast period. Due to the tremendous development in the use of mobile and cloud technology, as well as unparalleled technological improvements in computer power, voice recognition is used in a variety of applications. Due to its application in creating health-related data records, the healthcare sector is anticipated to play a primary role in developing speech recognition technology in the United States. Voice recognition technology may replace some more conventional methods still in use. Health systems are also looking for voice-enabled transcriptions to pinpoint reimbursable problems identified during the diagnostic while ensuring that critical health indicators are not overlooked.

Europe: Rapid Growth in France and Germany

Europe is expected to exhibit a CAGR of 19.70% during the forecast period. HSBC is integrating voice recognition technology into its banking system in the United Kingdom. The goal is to increase security. Although the company already includes fingerprint scanners in its mobile application, there are other banks to provide this technology. The bank employs voice recognition technology in two ways: fingerprint scanners on its mobile devices. This also applies to the iPhone line of mobile devices. The speech recognition service matches a customer's voice to various identifiers when they call the phone service. It verifies over 100 indicators, such as vocal intonation, accent, word pronunciation style, and vocal cord structure.

The Chinese government has recently escalated its use of biometric technologies, including developing sizable biometric databases, to enhance its current mass surveillance and social control operations. Due to the smaller sample size, the speech pattern database is less established than other police-run biometric databases. The Chinese startup iFlytek plans to make its voice recognition software widely available within the next two to three years. The business employs big data and artificial intelligence to identify users based on their distinctive vocal traits. It now asserts that it has made a scientific advancement that will enable a broader deployment in China. However, due to its involvement in China's surveillance operation in the Xinjiang region, iFlytek is one of 28 Chinese companies included on a U.S. blocklist.

OneVault and the South African Fraud Prevention Service (SAFPS) will strive to equip call centers with biometric fraud detection technology and a national fraud database. As fraud attacks get more sophisticated, speed of response and accurate data becomes more crucial. As a result, SAFPS will use OneVault's LumenVox passive speech biometrics and fraud scanner authentication software. The most frequent crimes in digital banking, according to the South African Banking Risk Information Centre, include email hacking, phishing, vishing (voice phishing), SMishing (SMS phishing), and vishing (voice phishing), according to IT Web.

Voice Biometrics Market Segmental Analysis

By Type

The passive biometrics segment is the major contributor to the market and is estimated to exhibit a CAGR of 20.25% during the forecast period. Another method of authentication that needs a user to go through the enrollment procedure and provide a unique voiceprint is passive voice biometrics. With passive voice biometrics, registration can occur during a normal conversation without requiring the caller to recite any particular line or repeatedly say the exact words. The passive speech biometric technique needs a single recording of the user's voice that typically lasts at least 20 seconds to function correctly. Passwordless voice biometric verification, Language-independent voice biometric verification, Free speech voice biometric verification, and Text-independent voice biometric verification are other names for this sort of voice biometric verification.

For the system to recognize a user's specific voiceprint, active voice biometrics refers to a voice biometric authentication technique that requires users to repeatedly repeat a phrase or a set of words. Every time a user goes through the verification procedure, they must say a specific term, phone number, or account number. The system will then compare that speech to the user's previously gathered voiceprint to determine whether the user has passed the verification. The "Speech is my password" project from HSBC is a prime illustration of active voice biometrics. A person must actively participate and consciously pronounce a specific phrase that will subsequently be used to verify the active voice biometric to work.

By Deployment Model

The cloud segment is the major contributor to the market and is estimated to exhibit a CAGR of 20.40% during the forecast period. Biometric information is not kept on the device but rather on a private server in an entirely cloud-based model. Additionally, the cloud enables the creation of a uniform user interface and makes it simple to incorporate machine learning into biometric systems. Biometrics can therefore be far more adaptable and user-friendly using the cloud. Cloud-based voice Biometric systems are easy to adopt thanks to the diverse integration possibilities. Developers may quickly add the increased security and user convenience of biometric voice authentication to their customer contact apps with Aculab VoiSentry thanks to its SaaS, cloud-based, and subscription-based model. 

The on-site biometric systems require a network of computers and other IT equipment. As this infrastructure is costly and needs upkeep, biometric services are gaining popularity because they don't require any specialist IT infrastructure or maintenance for implementing biometric projects. A situation like this prevents the market from expanding. Due to the widespread use of technology in the BFSI and defense industries, on-premise deployment is now required for security reasons and as a requirement of rules if the buyer is a government organization. 

By Enterprise Size 

The large enterprise segment is the highest contributor to the market and is estimated to exhibit a CAGR of 19.40% during the forecast period. Large businesses are using A.I. and machine learning techniques to get better information out of their data, increase production, cut expenses, and improve value. One of the key factors influencing the growth of the biometric voice market is enormous enterprises. The usage of this service is more likely to increase as these firms adopt deep learning and supervise unsupervised machine learning technologies for various applications. Additionally, banks have begun to roll out speech A.I. assistance due to the proliferation of A.I. assistants in homes and mobile devices. Customers increasingly prefer to speak out loud when requesting services, such as checking their balance or barring their credit cards.

SMEs' growing embrace of ML technology drives the demand for NLP. AI-based chatbots are reducing the current pressures placed on the customer service sector. A.I. bots that use voice technologies are now getting better. Algorithms for natural language processing (NLP) are taught to handle many intents and entities in a single speech. Direct the appropriate speech recognition model for decoding, and this requires the capacity to manage audio across multiple channels, ambient noise control, and automatic language detection.

By Industry Verticals

The banking, financial services, and insurance segment is the major contributor to the market and is estimated to exhibit a CAGR of 18.90% during the forecast period. PINs, passwords, and one-time passwords are examples of the knowledge-based authentication techniques that banks have traditionally utilized. A promising online banking option that goes beyond retinal and fingerprint scanners, which demand human presence, is voice biometrics in banking. User attention is crucial to knowledge-based authentication. Users must choose secure login information, preferably unique for each account, and update it regularly. Many people who use online banking find it frustrating, especially when they are frequently required to provide passwords that adhere to security requirements.

In these unpredictable economic times, the corporate holy grail is opportunities for cost reductions and efficiency improvements. Customers from all walks of life are becoming more accustomed to convenience, and if they experience anything less than flawless interactions, they will swiftly switch their business elsewhere. However, as rules become more stringent, companies must reconsider how they handle recordkeeping, data security, and transparency. If these issues are not appropriately addressed, this could impact customer service. Businesses in the retail and e-commerce sectors must deal with a complex set of requirements. Therefore, rapidly developing voice recognition technology would be beneficial to them. It would enhance customer service, cut costs across industries, and give customers a more individualized, frictionless buying experience.

The telecom and IT industries have a wealth of options, and as a result, the market is seeing several innovations that address a range of demands. For instance, Gnani.ai, a leader in Conversational A.I. and voice security, announced the release of its in-house Voice Biometrics software in September 2021. The biometric system, known as Armour365, has cutting-edge features to address new and growing dangers in fraud prevention and data protection. Armour365 Voice Biometrics utilizes over 300 unique, patented audio segments and offers advanced contact center and messaging app connections.

Recent Developments

• January 2024 -Voice biometrics company Phonexia has a new product for forensic voice comparison. The Phonexia Voice Inspector 5.1 was announced and is intended exclusively for use by forensic professionals. According to the Czech company, the program provides accurate voice comparison regardless of spoken language and can recognize persons from just three seconds of conversational speech.
• April 2024 - Pindrop and three other smaller organizations emerged victorious in the Federal Trade Commission's (FTC) Voice Cloning Challenge. The announcement of the challenge results coincided with investors in India seeing suggestions for stock purchases that seemed to come from Ashishkumar Chauhan, MD and CEO of the National Stock Exchange (NSE). The bogus film, which was circulated on social media, mimicked the NSE logo and Chauhan's voice and face.