Voice Biometrics Market is Segmented By Type (Active Voice Biometrics, Passive Voice Biometrics), By Authentication Process (Automated IVR, Agent-Assisted, Mobile Applications, Employee Authentication), By Application (Authentication and Customer Verification, Forensic Voice Analysis and Criminal Investigation, Fraud Detection and Prevention, Risk and Emergency Management, Transaction Processing, Access Control, Workforce Management, Others), By End-User (BFSI, Retail, and E-commerce, Manufacturing, IT and Telecom, Healthcare, Transportation and Logistics, Government and Defense, Energy and Utilities, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030.
Voice Biometrics Market Share, Size
Voice Biometrics Market size is estimated to reach USD million by 2029, growing at a CAGR of 20.6% during the forecast period (2023-2030).
Voice Biometrics Market Scope
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Metrics |
Details |
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Market CAGR |
20.6% |
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Segments Covered |
By Type, By Authentication Process, By Application, By End-User, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Voice biometrics is the science that uses a person's voice profile as a unique biological trait for identity authentication. Voice biometrics enables fast and secure authentication for critical applications. The voice biometrics system is much more secure than other methods such as text or numerical passwords and fingerprint scanners.
Advancements in technology allow voice biometrics to deter fraudsters and criminals by differentiating impersonation and recorded voices instead of the real person's voice. Voice biometrics can be integrated with existing digital security architectures with minimum interference.
Voice Biometrics Market Growth Drivers
The increasing frequency of the increasing demand for robust digital security measures mainly drives the voice biometrics demand. The security and privacy concerns about voice biometrics are key factors limiting this market's growth.
The increasing demand for robust digital security measures
The frequency and intensity of cybercrimes have risen with the proliferation of digitization across industries. Identity thefts and data thefts are becoming increasingly common. Cybercrimes have resulted in financial losses and loss of intellectual property. The cybersecurity company McAfee, LLC estimated that the world loses more than US$ 1 trillion annually to cybercrime. It has led to a growing demand for robust security measures to prevent and deter cybercrimes.
Companies are increasingly opting for voice biometrics to provide an additional layer of security along with traditional text-based passwords. Unlike text passwords, an individual's voice profile is unique, making it even more secure. Voice biometrics are being adapted for customer and employee authentication and payment processing. Technology advancements such as artificial intelligence (AI) allow the measurement of minute changes in pitch and tone, thereby detecting coercion or impersonation. The rising demand for robust digital security measures is a crucial driver for the global voice biometrics market.
Security and privacy concerns about voice biometrics
The rapid proliferation of voice biometrics in recent years has led to growing questions about privacy and security. Companies use generic security architecture for storing employee or customer voice records. Unlike text-based passwords, a voice signature is unique to each person and the breaching of voice signatures by cybercriminals can lead to troubles for the affected consumer.
Since voice biometrics are mainly used for employee or customer authentication, a breach of voice biometrics might lead to unauthorized access to the system. If unauthorized access occurs in a government or military network, it can escalate to a national security crisis, which has grave implications.
Privacy is another major factor that worries the public. Government regulations have not evolved to catch up with advances in technology. It, therefore, leaves people with fewer protections if there is a misappropriation of voice biometrics by companies. Therefore, security and privacy concerns about voice biometrics are a key challenge for the growth of the global market.
COVID-19 impact on Voice Biometrics Market Growth
The COVID-19 pandemic had a positive impact on the global voice biometrics market. Normal work routines were disrupted, and companies across various industries were forced to institute work-from-home (WFH) and remote work to ensure operational continuity. The reliance on IT services and technology led to a global rise in cybercrimes during the pandemic.
Email phishing, identity thefts, impersonation, and data breaches increased during the pandemic period as nearly all major business functions migrated online. Companies started installing voice biometric software to increase security. Some companies were even adopting facial recognition and voice authentication via laptop microphones and webcams for work attendance during the pandemic of remote work.
Healthcare, manufacturing, banking, and financial services saw major increases in the adoption of voice biometrics. Due to social distancing regulations and staffing shortages, manufacturing industries instituted voice biometrics for work attendance. The healthcare industry used a similar approach in hospitals and clinics to prevent contact and maintain social distancing. Banks and financial institutions increased the usage of voice biometrics for payment processing and customer authentication due to rising cyber thefts and identity impersonation.
The long-term impact of the pandemic has been negligible on the voice biometrics market since cybersecurity concerns will only increase in the coming years. The pandemic is likely to accelerate the adoption of voice biometrics. The demand for voice biometrics remains strong and is expected to grow gradually in the coming years.
Voice Biometrics Market Segment and Shares Analysis
The global voice biometrics market is segmented into type, authentication process, application, end-user, and region. The voice biometrics market by end-user is further segmented into BFSI, retail and e-commerce, manufacturing, IT and telecom, healthcare, transportation and logistics, government and defense, energy and utilities, and others.
BFSI is leading this segmentation since voice biometrics provide an additional layer of security. Due to rising incidences of cybercrimes and the vulnerability of text passwords, banks, and other financial institutions have adopted voice biometrics for payment processing and customer authentication. The voice signature, unique to every individual, provides maximum security against unauthorized access, thereby preventing customer financial losses.
Voice Biometrics Market Geographical Analysis
North America is leading in the global voice biometrics market. The region's leading position is primarily due to the presence of the U.S., a high-income, developed country. It is also home to a well-developed IT industry that develops and markets new types of voice biometric software and services. Due to its culture of innovation and entrepreneurship, the U.S. is generally first in commercializing emerging technologies.
Due to the widespread adoption of cloud computing and other associated technologies, voice biometrics for security has increased across various industrial domains. The usage of voice authentication is primarily prevalent across banking and financial services, healthcare, government, and defense.
The U.S. government and the U.S. military are major users of voice biometrics for authentication and security, given the country's prominence as a global superpower. With rising cyberattacks and data breaches, the adoption of voice biometrics is likely to increase across various industries. Therefore, North America generates massive demand for voice biometrics. North America will continue to have the largest market share in the global voice biometrics market in the coming years.
Voice Biometrics Companies and Competitive Landscape
The global voice biometrics market is competitive due to various voice biometrics software and services that cater to different end-use applications. Some major players contributing to growth in the market are Nuance Communications, Inc., NICE, Verint Systems Inc., Pindrop Security, LexisNexis Risk Solutions Group, Voice Biometrics Group, Aculab, Phonexia, Auraya Inc., and OneVault. The major players in the market adopt several growth strategies such as new product launches, upgradation of existing products, cybersecurity research, collaborations, and government tie-ups to contribute to the growth of the global industry.
Nuance Communications, Inc.
Overview: Nuance Communications, Inc. is a major multinational company developing and marketing speech recognition and artificial intelligence software. The company is adapting its proprietary speech recognition software for various industrial verticals. In 2021, Nuance Communications, Inc. announced an acquisition offer from Microsoft. The acquisition was completed in March 2022. Nuance Communications, Inc. was established in 1992 and is headquartered in Burlington, Massachusetts, U.S.
Product Portfolio:
• Nuance Dragon is the company's proprietary voice biometric and speech recognition software. It is mainly intended for professional, legal, and law enforcement applications. The software is cloud-hosted and has dynamic artificial intelligence (AI) support. The software detects voice with up to 99% accuracy and can be integrated with other cloud-based applications. Nuance Dragon complies with all major U.S. privacy and digital laws.
Key Developments:
• In May 2022, Deutsche Telekom signed an agreement with Nuance Communications, Inc. to use the Nuance Gatekeeper voice recognition software for customer authentication
