Global Markets and Technologies for Voice Recognition

Countries covered: Global This report provides: An overview of the software and hardware for voice recognition technologies and their markets Analyses of global market trends, with data from 2011, estimates for 2012, and projections of compound annual growth rates (CAGRs) through 2017 Discussion of top supplier market shares, new technologies, and the unique challenges faced by each category in the future Examination of the importance of traditional and emerging voice-enabled devices, as these media will promote and extend voice recognition’s reach Reviews of enabling technologies, corporate and national research and development funding, the organizational and economic makeup of the voice recognition industry, and the legislative, political, and environmental issues facing the industry Listings of recent patent grants, as well as related mergers and acquisitions, licensing arrangements, and partnerships Comprehensive company profiles of major players in the industry.

Additional Information

INTRODUCTION

REASONS FOR THE STUDY AND ITS IMPORTANCE

In the coming decade, observers of the evolution in voice recognition technologies will no doubt look back to 2012 as the tipping point year – the time when speech adoption finally broke away from the enterprise niche market of interactive voice response (IVR) solutions into broader uses that include consumer and health care sectors. Advances in machine learning and statistical data-mining techniques, coupled with the ubiquitous adoption of mobile devices, are helping voice recognition solutions get a new lease on life. With global software revenues expected to reach $16.7 billion by 2017, this maturing industry continues to owe much of its growth to advances in the critical triad of automatic speech recognition (ASR), text-to-speech (TTS), and speaker verification (SV) technologies.

Companies, across all sectors and from every part of the voice recognition supply chain, seek a competitive edge that will differentiate them in an increasingly crowded business environment. They want to create and use products that can help them to be nimble and efficient and that will help them grow their customer base. Converging technologies make partnerships a compelling way to introduce new products; however, an uncertain global economy is offering fewer incentives to give rise to the number of mergers and acquisitions that characterized the voice recognition (VR) space earlier in the new millennium.

The second decade of the millennium has ushered in new uses for voice recognition products as collaborative consumption, fueled by the proliferation of social networks, empowers everyone to be potentially not only media consumers, but also producers of new applications. VR technologies help users identify (biometrics), codify (health care), search (voice search), navigate (voice-enabled navigation), and control (connected home). These technologies also help customers comply with privacy, safety and security requirements dictated by law and by user expectations.

In the next five years companies will pair VR technologies with the latest research in artificial intelligence and augmented reality, creating a new generation of compelling products. Consumers, primed by the success of the Siri personal assistant, will expect products that not only predict their preferences but also offer new, interactive ways to enhance their emotional experiences.

To address the rapidly growing mobile traffic demand of the emerging middle class in Africa and Asia as well as in the highly developed geographic regions of North America and Europe, voice recognition providers are partnering with manufacturers that are loading their products with voice-activated multimodal options. With the help of these applications, drivers can navigate to their destinations; workers can voice-pick warehouse inventory; doctors can automate medical transcription processes; lawyers can build their cases with e-discovery products; homeowners control their environmental and security systems; and users of smart devices can access applications by voice commands.

Geographic regions that have built out their broadband networks offer the best potential for growth, especially in those areas where mobile devices are the primary mode for such frequently used functions as entertainment, navigation and banking.



Products and applications that are smart, cost-effective and intuitive will hold the keys to the VR kingdom in the next five years. Battle lines, drawn in the 2012 turf wars between Google, Samsung and Apple, where each has fought for direct integration into mobile operating systems, indicate just how valuable these companies perceive the stakes to be not only in the mobile market but also in capturing the imagination and dollars of an ever-expanding global user base.

OBJECTIVES OF THE STUDY AND ITS CONTRIBUTION

Companies in the voice recognition space are facing challenges similar to those present in other technology markets. Converging technologies offer the promise of new products and markets, especially in the fast-growing mobile markets. They also invite disruptive activities as witnessed by the patent battles of such major smartphone and application providers as Apple, Samsung and Google; each of these companies has aggressive strategies for making major inroads into the lucrative voice recognition market, which is still largely dominated by one provider, Nuance Communications.

Customers are applying the same measuring stick to voice-aided products and services as they do to other products – they value accuracy, speed and efficiency. Whether obtaining stock quotes from their smartphones, getting wake up calls from voice-enabled alarm clocks, or accessing voice-translated e-mail, consumers have increasingly greater expectations about not only the quality of content, but also about the quality of their experiences.

Traditional habits persist, especially when it comes to customer service. No matter how compelling the content or how efficient the voice-enabled transaction, many consumers still prefer to talk to a live operator, or to type when talking would suffice. They also remember unsuccessful experiences with speech recognition applications that were implemented by early adopters. Virtual personal assistants, like Apple’s iPhone Siri product, are helping to change users’ experience of voice-enabled technology – from frustrating to fulfilling.

Choosing voice recognition solutions remains a significant information technology (IT) investment – a fact not lost on companies that, in better economic times, focus primarily on strategic growth. Compelled to keep discretionary spending to a minimum, companies are more inclined to purchase products and services that show a quantitative return on investment.

Being offered monetary incentives to streamline their operations as well as facing mandates to comply with new federal regulations, health care professionals are balancing the requirements to contain costs with the potential of voice-aided automated solutions that promise to increase documentation accuracy and enhance customer satisfaction. Given the continued adoption of wireless devices and the seemingly insatiable consumer and business demand for unlimited access to information, it is likely that many enterprising companies will choose voice recognition solutions, either hosted at their site or shared in a cloud-computing environment, for competitive advantage even when the short-term economic landscape is dotted with question marks.

This report will analyze in depth voice recognition technologies and the market and applications they serve. It addresses such questions as:

Who is using these technologies?

What benefits do they accrue from using them?

At what price points do they buy them?

Which markets will reap the most benefits from their adoption?

Which issues must be addressed to generate a successful return on investment?

AUDIENCE FOR THE REPORT

This report focuses on market potential for voice recognition technologies as well as current and future forces shaping the voice-enabled market. It is targeted at manufacturers, supply chain personnel, marketing managers, and futurists.

SCOPE AND CONTENT OF THE REPORT

This report analyzes voice recognition technologies and their markets. It recognizes the fact that integrated software and hardware technologies together, coupled with enhanced devices, are the building blocks for successful deployments. Additionally, tracking the growth of traditional and emerging voice-enabled applications is important for extending voice recognition’s reach.

An overview of the voice recognition industry precedes later chapters that review the main voice recognition markets and that discuss top supplier market share, current technologies, and the unique challenges faced by each market in the future. Five-year forecasts follow, segmented by voice recognition categories and end markets.

Succeeding chapters discuss emerging technologies, corporate and national research and development funding, the organizational and economic makeup of the voice recognition industry, and the legislative, political and environmental issues facing the industry. The changing dynamics of international market share also are addressed.

The appendices contain information about upcoming voice recognition industry-related conferences and recent patent grants, as well as a list of related mergers and acquisitions, licensing arrangements, and partnerships.

METHODOLOGY AND INFORMATION SOURCES

Both primary and secondary research methodologies were used in preparing this report. The material presented is based on information gathered from personal contacts within the voice recognition industry, as well as on an analysis of the technologies, issues and concerns gathered from technical papers and industry conferences. The report’s final analysis and projections combine the consensus of primary contacts and BCC’s assumptions regarding the impact of both historical and emerging trends.

Additional data was obtained from analysis of secondary sources. These sources include trade publications, trade associations, company literature, and online databases. This research was done to supplement BCC’s understanding of applications, markets and trends in the voice recognition industry. All dollar estimates in this report are based on 2012 constant dollars.