Voice Biometrics Market

Voice Biometrics Market Size (2023–2028)

The global voice biometrics market size is projected to grow from US$ 1.84 billion in 2022 to US$ 4.41 billion in 2028, at a CAGR of 23.7% over the forecast period 2023 - 2028.

Voice biometrics is used for identity recognition through the analysis of an individual's tone, speech, and sound. In terms of security, it has a great advantage over passwords, since a password can be easily tracked or hacked. An individual's voice is as distinctive and unique as a fingerprint. In vocal biometrics, a sound is recognized according to two models, namely dependent text and independent text. The growing popularity in various sectors, such as the entertainment industry, cloud computing, social networking and building security, is one of the main factors responsible for the growth of the global voice biometrics market.

Speech recognition is widely used in banks and call centers to prevent fraud. Several players like Verint have developed solutions that use voice biometrics to passively check callers in real-time, without using a password, which makes the authentication process faster, more comfortable and relatively more secure than conventional methods.

Market Growth and Trends

Banking, financial services and insurance have become the main areas of application for voice biometrics. Solutions from banking and financial contact centers are currently ineffective in verifying customers and deterring fraudsters. The financial industry has limited interaction with devices due to inadequate security features. Pindrop Labs, a pioneer in providing voice biometrics solutions, said there had been a 269% increase in fraud attacks against financial institutions in the past four years, which is higher than most other sectors studied. Acquisition of accounts and defaults affect brand reputation and customer confidence.

FinTech analysts predict that the PIN code will become obsolete in the coming years. The financial sector remains at the forefront of adopting new forms of digital security such as voice biometrics, as the demand for security is higher than ever. This is mainly due to the synchronous increase in fraud as well as the use of technologies such as mobile banking. In 2018, HSBC announced the introduction of mobile voice recognition apps and ATMs to allow customers to transact without using passwords or magnetic cards.

Financial institutions should use voice recognition in the future to integrate voice recognition into their voice recognition applications.

Market Drivers and Restraints

The high demand for high-level security in the financial sector and increased public awareness should also stimulate the market. With the increasing transition towards digitalization in almost all industry verticals, there is an utmost need for proper access control and authentication. Voice biometrics offers one such solution in terms of security as it varies for every individual. The increasing investments by several organizations to improve the overall protection of data has been supporting the growth of the global voice biometrics market. Also, the ongoing advances in technology are foreseen to strengthen further the process involved in the usage of these voice biometrics.

On the flip side, the issues related to hacking, privacy and high cost are acting as a few deterrents to the global voice biometrics business.

VOICE BIOMETRICS MARKET REPORT COVERAGE:

Voice Biometrics Market segmentation:

Voice Biometrics Market - By Components:

• Software
• Service 

Of these, the software segment accounts for a leading portion in the global voice biometrics market and is likely to continue its reign in the forecast period. The features like easy installation and faster authentication, are mainly driving the segment growth. Nonetheless, the services segment is also forecasted to register a considerable growth rate in future.

Voice Biometrics Market - By Application:

• Access control and authentication
• Fraud detection and prevention
• Forensic analysis and criminal investigation
• Others (speech therapy and personalized user experience)

The access control and authentication segment accounts for an outstanding share in the international marketplace and is predicted to continue the same in the foreseen years.

Voice Biometrics Market - By Type:

• Active voice biometrics
• Passive vocal biometrics

Active voice biometrics is the leading segment in the global voice biometrics market due to applications like easy registration, authentication and others in companies.

Voice Biometrics Market - By Deployment:

• On-Premises
• Cloud

Cloud deployment is likely to register the highest growth rate and market value in the coming years, owing to the fewer costs involved in its setup and maintenance.

Voice Biometrics Market - By Organization Size:

• SME
• Large Companies

Small and Medium Enterprises are anticipated to register a healthy growth rate in the forecast period due to the increasing adoption of cloud computing and the need for secured infrastructure.

Voice Biometrics Market - By Vertical:

• BFSI
• Government and Defense
• Telecommunications and IT
• Healthcare
• Retail and Electronic Commerce.
• Others 

BFSI is the largest end-user segment for voice biometrics that is foreseen to expand with the highest growth rate in the next few years. The increased online transactions and purchases support the development in this sector.

Regional Analysis:

Geographically, the global voice biometrics market is divided into the regions of 

• North America
• Europe
• Asia Pacific (APAC)
• Middle East and Africa (MEA)
• Latin America

Among these, North America voice biometrics market occupied the lion's share in the global business because of the presence of key players, early adoption of technology, and increasing investments to ensure security at the organizational level. The Asia Pacific voice biometrics market is predicted to expand with a remarkable growth rate in the estimated period.

Key Market Players:

The global voice biometrics market is dominated by companies such as Agnito SL, Voice Pass Technology, VoiceTrust Ag, MASYS Technology, SpeechPro, ValidSoft, National Security Resources, SayPay Technologies INC., American Safety Council Inc., Nuance Communications, VoiceTrust Holding BV, VoiceVault, OneVault, Uniphore, Voice Security Sysrems, Voice Biometrics and Boid Ag. Some of the main trends observed in the supplier landscape include mergers and acquisitions and innovations.

Recent Developments

• INTELid. announced a development partnership with ValidSoft in June 2019. ValidSoft's biometric voice DNA will be added to the INTELid private digital identity blockchain, thereby adding a layer of security and identification to the INTELid digital identity blockchain.
• Pindrop launched its voice identity platform which extends its technology to the enterprise level beyond the space of the Internet of Things (IoT) call center, voice assistants, smart homes and smart offices and connected cars in January 2019. The company aims to penetrate several new and crucial sectors of the market with its patented biometric technology Deep Voice.
• Nuance Communications acquired Voicebox Technologies, one of the first leaders in speech recognition and natural language technologies in May 2018. Voicebox previously provided voice technology for a variety of applications and devices from several key players.