Most businesses require accurate transcripts of audio and video recordings of interviews, meetings, conferences, phone calls, etc. for diverse purposes. Professional transcription services are available to turn the recordings into written records or transcripts, making it easier for businesses to sort, read and scan content for further reference. Many companies are also relying on speech-to-text software to get automated transcripts. Speech-to-text API (Application Programming Interface) technology uses speech-based assistants to transform audio input into written text. It combines speech-based technology, NLP, and ML on a single platform to quickly transcribe audio input. It helps convert both short and lengthy audio files.
According to the report from Markets and Markets, the global speech-to-text API market size is predicted to grow from USD 2.2 billion in 2021 to USD 5.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19.2% during the forecast period.
The major factors that are driving the market growth are –
- the rising need for voice-based devices coupled with the proliferation of smartphones, and
- the growing demand for voice authentication in mobile banking applications during COVID-19
With the introduction of advanced devices with voice-controlled features such as content transcription, and conference call analysis, the demand for speech-to-text applications have also increased, which will help meet the increasing need for understanding customer preferences. More and more people are being forced to work from home due to the COVID-19 pandemic, and this is also increasing the demand for speech-to-text API in the market.
However, factors such as transcribing audio from multi-channels, and concerns regarding data privacy and security due to the pandemic are expected to restrain the market growth. The multilingual support for captioning and subtitling and building custom vocabulary across various verticals is the major challenge in the speech-to-text API market. Using software for defining multiple entities can cause inaccurate transcriptions or captions. Moreover, background noise, low-quality microphones, reverb and echo, and accent variations may hamper the transcription accuracy. This is where professional business transcription services can help.
The market is segmented on the basis of Component, Application, Deployment Mode, Organization Size, Vertical, and Region. By component, the market is divided into Software and Services. The software segment currently holds a higher market share and is expected to account for the largest market size during the forecast period. The Services sector is further divided into professional transcription services (Training and Consulting, Deployment and Integrations, Support and Maintenance), and Managed Services.
The software segment consists of APIs and Software Development Kits (SDKs) that enable existing software or applications to translate video-based content to text format. The vendors also offer associated services to streamline the operations and achieve results smoothly. Companies in various industries are also adopting speech-to-text API to deal with the rapidly increasing video-based content.
By deployment mode, the market is divided into Cloud and On-premises. Cloud adoption is said to have increased in recent times because vendors are making use of Software-as-a-Service (SaaS) to deliver cloud-based solutions.
By organization size, the market includes large enterprises, and small and medium-sized enterprises (SMEs). By applications, the market includes Risk and Compliance Management, Fraud Detection & Prevention, Content Transcription, Subtitle Generation, and Other Applications (conference call analysis, business process monitoring, and quality management).
By vertical, the market covers industries such as – Banking Finance Services and Insurance (BFSI), IT and Telecom, Media and Entertainment, Healthcare and Life Sciences, Retail and eCommerce, Travel and Hospitality, Government and Defence, Education, and Other Verticals (manufacturing, automotive, and transportation and logistics).
Region wise, the market is divided into North America (U.S., Canada), Europe (U.K, Germany, France, and Rest of Europe), APAC (India, Japan, China, Australia and New Zealand (ANZ), Rest of APAC), Latin America (Brazil, Mexico, Rest of Latin America), and MEA (Kingdom of Saudi Arabia (KSA), UAE, South Africa, Rest of the Middle East & Africa). Among these regions, North America is predicted to account for the largest market size during the forecast period and Canada is to hold a higher CAGR during the period. The U.S. has dominated the North American speech-to-text API industry due to its large technology spending and easy availability of solutions with a significant presence of vendors.
Key market players mentioned in the report include Google (US), Microsoft (US), AWS (US), IBM (US), Verint (US), Baidu (China), Twilio (US), Speechmatics (UK), VoiceCloud (US), VoiceBase (US), Voci (US), Kasisto (US), Nexmo (US), Contus (India), GoVivace (US), GL Communications (US), Wit.ai (US), VoxSciences (US), Rev (US), Vocapia Research (France), Deepgram (US), Otter.ai (US), assemblyAI (US), Verbit (US), Behavioral Signals (US), Chorus.ai (US), Gnani.ai (India), Sayint.ai (India), and Amberscript (Netherlands).