The price of voice recognition software will continue falling over the next three years due to strong competition from free software.
Los Angeles, CA (PRWEB) October 29, 2014
Voice recognition software exhibits a buyer power score of 4.6, representing a high level of buyer negotiation power. The primary factor driving buyer power is the easy access to substitutes. “Windows operating systems come standard with voice recognition software, and buyers can also choose from a handful of free voice recognition software packages,” says IBISWorld procurement analyst Dale Schmidt. “Neither of these options offers the same accuracy and robustness as paid voice recognition software, but they are still viable options for many buyers.”
The existence of no-charge voice recognition software has led to significant consolidation in the market because many vendors have not been able to compete with these options. Nuance Communications has been on an acquisition spree over the last several years and now controls a substantial share of the market. “The consolidation of vendors has had a significant negative effect on buyer power because buyers who demand the accuracy and features of voice recognition software have few options beyond Nuance's offerings,” adds Schmidt.
In addition, voice recognition software is known for its steep learning curve. It can take months for users to fully reap the time-saving benefits of software and its features. Until that point, the difficulty of using software will consume the time the software promises to save. As a result, buyers need to be careful when selecting software because switching to a new program will cost additional training time.
However, despite market consolidation and a steep learning curve for voice recognition software, market conditions still favor buyers. The remaining vendors have been steadily lowering prices to better compete with free offerings, and vendors have strong financial positions with stable supply chains. As a result, buyers do not need to worry about sudden price spikes or service interruptions. For more information, visit IBISWorld’s Voice Recognition Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of voice recognition software, which is designed to turn speech into text for the purpose of documentation or voice commands. This report focuses on programs and software for personal computers and excludes software and programs designed for mobile devices, free voice recognition software and programs that include voice recognition functionality as a secondary feature.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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