June 18, 2012 -
IBISWorld, an independent publisher of U.S. industry research, has released a market research report on the voice recognition software developers industry. The industry report includes a comprehensive guide to market size and a strategic industry analysis of the factors influencing companies, including: new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.
According to the report, the voice recognition software developers industry is expected to reach $1.1 billion revenue in 2012 with an annual growth rate of 2.3 percent from 2007-2012. Although the industry experienced a decline in revenue during the recession, there is now renewed interest in voice recognition technology brought about by individuals and companies that experience improvements in per capita disposal income and corporate profit.
These individuals and companies are now willing to spend more on products with voice recognition technology, such as cellphones and global positioning systems. Thus, in 2012, the industry revenue is expected to grow by 5 percent. This can be attributed to the 7.9 percent increase in private investment in computers and software. And, with the increasing number of connected devices, it will also gain from the 28.8 percent increase in the number of mobile Internet connections.
The report notes that currently there are 34 firms engaged in voice recognition technology but in terms of market size, it is dominated by two major players that include Nuance Communications and MModal. Nuance and MModal have outpaced its competition by expanding fast through aggressive acquisitions. They are in the best position to capture any increase in market share.
Industry revenue will also be spurred by the demand coming from the health sector. Now, there are a growing number of healthcare providers that use electronic health records so as to take advantage of U.S. tax incentives provided under the Health Information Technology for Economic and Clinical Health Act enacted in 2009. Healthcare providers are streamlining their record keeping and similar tasks, and will increasingly do so leveraging software systems with integrated voice recognition technology.