According to a recent report published by Allied Market Research, titled, "Speech Recognition Market by Deployment and End User: Global Opportunity Analysis and Industry Forecast, 2018–2026," the global speech recognition market size was valued at $6.39 billion in 2018, and is projected to reach $29.28 billion by 2026, registering a CAGR of 19.9% from 2019 to 2026.
Speech recognition technology catches and identifies the audio signals in the form of language and converts these signals into the machine-readable form. The increase in penetration of artificial intelligence along with development of next generation home automation products is expected to drive the demand for speech recognition market. Several IT technology giants such as Google, and Amazon have developed voice-based virtual assistant based on this technology. AI-based speech recognition was one of the trending technologies in CES, 2018, worldwide recognized trade show by Consumer Technology Association. This has increased the traction of speech recognition technology worldwide. Speech recognition technology is completely changing interaction style of people and their devices, phones, home, and cars. The AI-based speech recognition uses machine learning to respond to user’s question or command.
Several companies such as Google and Baidu offering search engine use this technology to provide speech to text-based search. The use cases of speech recognition technology are significantly increasing with upcoming, humanoids using speech recognition to provide actionable output. One of the best use cases of humanoid is reception robot, Pepper designed and programmed by Softbank Robotics used at the reception of banks and medical facilities. Thus, the speech recognition market is currently experiencing an increase in number of use cases significantly, which is expected to drive its demand over the next few years.
The increase in penetration of speech recognition industry in consumer electronic products is fueled by a highly competitive consumer electronics market, where players focus on upgrading their products such as smartphones, laptops, and digital recorders. The major companies such as Nvidia, Samsung, TSMC, and AMD, follow this trend by incorporating advanced integrated circuits and related services in their products. This consecutively increases the demand for speech recognition technologies, and the market is anticipated to grow with high growth rate during the forecast period.
The increase in demand for speech recognition in automotive industry, and the rise in demand for voice-based biometric systems for user authentication along with considerably high growth potential in healthcare application are expected to contribute to the growth of the global speech recognition market. Furthermore, increase in adoption of speech recognition in the consumer electronics and consumer goods verticals are also expected to offer lucrative opportunities for the speech recognition market growth globally. However, lack of accuracy, act as a major restraint hampering the market growth.
The on-premise segment was the highest contributor to the global speech recognition market, with more than 50% share. However, the on-cloud deployment segment is anticipated to witness highest CAGR during forecast period, owing to ability of could-based devices to help organization reduce CAPEX and OPEX and allow them to gain a considerably high level of efficiency at minimal cost. By end use, the healthcare segment is anticipated to dominate the market during forecast period, owing to emergence of enhanced technologies in medical devices such as wireless communication, sensors, ECG electrocardiogram, body area network (BAN) used for heart rate monitoring, and devices to monitor pulse rate, temperature, oxygen, and blood pressure.
Key Findings of the Study:
- By deployment type, the on-premise segment generated the highest revenue in the market in 2018.
- By end use, the healthcare segment generated the highest revenue in the market in 2018.
- By region, North America generated the highest revenue in the market in 2018.
The key companies operating in speech recognition market size ecosystem include Google Inc., Naunce Communication, IBM, Baidu, Amazon, Microsoft, Raytheon BBN Technologies, Sensory, Iflytek, and Speak2web. These key players adopted several strategies such as new product launch and development, acquisition, partnership & collaboration, and business expansion to increase their speech recognition market share.