A new report from Allied Market Research focusing on the speech recognition industry predicts it will reach a valuation of $29.28 billion by the year 2026, up from a $6.39 billion valuation today for a compounded annual growth rate (CAGR) of 19.9 percent.
The report, titled “Speech Recognition Market by Deployment Mode (On Cloud and On Premise) and End Use (Consumer Electronics, Healthcare, Enterprise, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026”, identifies the rise in demand for speech recognition in the automotive sector, an increase in the popularity of voice biometric systems for authentication, and the high growth potential of healthcare applications as the major drivers of the projected growth.
Factors that are believed to negatively affect the market are a lack of accuracy for speech recognition in noisy environments, and the COVID-19 outbreak, which the report notes will likely cause a decrease in spending on new business models.
In 2018, on-premises speech recognition solutions accounted for more than half of the market; however, Allied’s report expects the on-cloud segment to grow at a CAGR of 24.0 percent during the forecast period, with that growth being credited to cloud infrastructure’s ability to provide low cost self-service applications.
In terms of end users of speech recognition, the highest CAGR is predicted to go to the healthcare segment at 21.9 percent, which also held the largest share in 2018, accounting for more than a quarter of the global market.
The region with the largest share of the market in 2018 was North America, accounting for almost half, and owing to the presence of tech giants like Google, Nuance, and Amazon. The forecast, however, expects the Asia Pacific market to grow at the highest CAGR during the period in question, at 21.4 percent, due to advancements in consumer electronics and the automotive industry.
June 24, 2020 – by Tony Bitzionis