Voice Recognition Software Developers in the US Industry Market Research Report Now Available from IBISWorld

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The Voice Recognition Software Developers industry had a few years of static during the recession, but rising disposable incomes and technological advances have helped it rebound strongly. As the healthcare sector increasingly streamlines record keeping and similar tasks, voice recognition software is used to conveniently transfer those records. While strong growth is expected on the back of mobile internet devices, open-source software could stifle traditionally strong profit margins. For these reasons, industry research firm IBISWorld has added a report on the Voice Recognition Software Developers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Increases in private investment and disposable income helped the industry recover

Revenue for the Voice Recognition Software Developers industry is expected to increase an average of 2.3% annually to $1.1 billion over the five years to 2012. In 2012 alone, industry revenue is expected to grow 5.0% due to a 7.9% increase in private investment in computers and software. However, the industry has not experienced growth across the board. “Industry revenue declined during the recession when corporate profits and per capita disposable income fell, causing private investment in computers and software to decline,” said IBISWorld industry analyst Kevin Culbert. Luckily for industry operators, improvements in per capita disposable income and corporate profit are expected to drive industry growth in 2012 as individuals and companies spend more on products that incorporate voice recognition technology. The software developers in this industry license products to companies that produce mobile and consumer devices, including cell phones and global positioning systems. The contracts are often based on a per subscriber or volume base. Consequently, an increasing number of connected devices ultimately boost industry revenue. In 2012, the industry will benefit from a 28.8% increase in the number of mobile internet connections.

In addition to a rising number of mobile internet connections, industry revenue has been boosted by a growing number of healthcare providers that have adopted electronic health records (EHRs). The Health Information Technology for Economic and Clinical Health Act, enacted in February 2009, gives tax incentives for healthcare providers that adopt EHRs. This factor, coupled with a growing number of physician visits, has caused demand from the healthcare sector to rise over the past five years. In the five years to 2017, IBISWorld estimates industry revenue will increase. According to Culbert, industry operators will continue to benefit from increased investment on computers and software, rising demand in downstream markets and a growing number of devices that incorporate voice recognition technology. In spite of this factor, the industry is expected to experience more competition from open source software providers. Although this factor will limit profit margin growth, recent industry consolidation will ultimately mitigate this effect. In the five years to 2012, the number of firms operating in this industry has declined at an annualized rate of 4.6% to 34.

Market share concentration within the Voice Recognition Software Developers industry is moderate. The four largest players account for over 50.0% of industry revenue. The two largest players, Nuance Communications and MModal, have rapidly expanded their share of the market during the past five years. Nuance has grown by an average of 18.2% per year as a result of its aggressive acquisition streak. The company has purchased eight other players to enhance its product offerings and reach new markets. Meanwhile, MModal has increased its US industry-specific revenue at an average annual rate of 5.3% due to its own high level of acquisitions. As such, these players have outpaced industry growth and captured an increasing share of the market. For more information, visit IBISWorld’s Voice Recognition Software Developers in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry develop software for biometric technologies, specifically related to voice recognition.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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