Speech Recognition Market To Exceed $5 Billion by 2008

Speech recognition has slowly been building its reputation, as accuracy rates are much improved and applications to meet users' needs are being developed.

Allied Business Intelligence (ABI) projects this market to increase to $897.8 million in 2003, up from $677 million in 2002. Over the longer term, the speech recognition market is forecasted to grow to $5.3 billion by 2008. Interactive Voice Response (IVR) systems based on touchtone input represent a large opportunity for call center operations. Speech enabled solutions are making their way as replacement systems for call center applications.

Telecommunications carriers are looking at speech applications as a hook to keep customers from switching services. As the technology for speech becomes available in a smaller footprint, embedded solutions will power handheld computers and wireless phones.

"At the present time, IT budgets are strained and the commitment to develop speech solutions is a large one," explains Edward A. Rerisi, director of research at ABI. "Demonstration of a positive ROI will entice companies to at least get a toe in the water. As users become more aware of the technology and recognize the benefits, demand will help drive applications in carrier and embedded markets."

The ABI report, "Speech Recognition Systems: Market Opportunities and Major Player Assessment," examines current speech technologies, including automated speech recognition, text-to-speech, and voice authentication. Vendors supplying the tools and applications, as well as the industry's platforms and services, are also profiled and discussed. Industry penetration will vary by market.

This report looks at market drivers and the challenges that companies face in deploying successful solutions. Technology standards are currently being developed to ensure open computing platforms. Leading vendors have divided into two camps: those behind VoiceXML, and those who back SALT standards. Many developers are watching this area closely, and, in some cases, building their applications and platforms to support both. Questions still remain as to whether they can co-exist peacefully -- or whether one will dominate.