Text-to-Speech Market: Current Analysis and Forecast (2023-2030)

Text-to-speech is a kind of service that comprehends natural language and produces audio output full of cadence and intonation. The text language should resemble the voice language to produce synthesized audio output. Text-to-speech technology helps in the conversion of the written content of any website, e-book, mobile app, online document, and e-learning tools to audio output. People suffering from learning disabilities, language problems, and vision problems retrieve the written content without any difficulty. This technology provides a simpler way to reach the worldwide population.

The Text-to-speech Market is expected to grow at a steady rate of around 15% owing to the rising aging population coupled with the increasing number of people with a learning disability. Additionally, the Text-to-speech technology is very helpful for people with reduced vision, as this offers an opportunity to understand the written content well. Furthermore, the rising advancements in the production of digital content and increasing consumption of hand-held devices, coupled with increasing internet penetration, are boosting the demand for text-to-speech technology.

Based on offering, the market is fragmented into software and services. The Software segment dominated the market and is expected to grow at lucrative during the forecasted period due to the rising deployment of software as a tool for the enhancement of learning experience for visually impaired individuals. The software offers help with Text-to-speech technology in listening to text from documents while concurrently working on other things. The availability of free-of-cost software on the Internet is another major factor burgeoning the growth of this segment.

Based on Deployment, the market is bifurcated into on-premises and cloud-based. The cloud-based segment dominated the market and is expected to grow at lucrative during the forecasted period. Implementation of cloud-based technology has enhanced scalability, enabled round-the-clock services, and improved IT security. In addition, the rising adoption of software-as-a-service (SaaS) by large corporations is a key factor driving the growth of the segment.

Based on Voice Type, the market is bifurcated into neural and custom voice and non-neural. The neural & custom voice segment holds the largest share and is expected to register the highest CAGR in the upcoming period. Neural & custom voice allows users to produce branded voices with the application of Machine Learning (ML) technologies. In addition, the application of neural networks allows the production of natural-sounding speech and customized experiences for customers.

Based on Organization Size, the market is bifurcated into SMEs and large enterprises. The large enterprises segment holds the largest share and is expected to register the highest CAGR in the upcoming period owing to the surge in the adoption of Software as a Service (SaaS) by large organizations is a major factor driving the growth of the market. Furthermore, the introduction of innovative and modern technology to enhance customer experience and engagement is also propelling the market growth across the globe. For instance, in Sep 2020, Nuance Communications has partnered with Rakuten Mobile, Inc. to add Nuance Intelligent Engagement AI Services to the Rakuten Communications Platform (RCP). Both companies will use Conversational AI Services and Engagement AI Services as a result of this collaboration. Rakuten's native communication app, which is based on Rich Communication Services (RCS) standards, will also be able to provide Rakuten Mobile customers with the ability to access self-service features via voice or text via the Nuance Conversational IVR.

Based on Vertical, the market is segmented into automotive & transportation, healthcare, education,travel and hospitality, and others. The healthcare segment holds the largest share and is expected to register the highest CAGR in the forecasted period. Text-to-speech technology is extensively used in the healthcare sector to enable patients to understand complicated medical language. It can also improve the functionality of digital health technologies in the healthcare sector by implementing speech-enabled websites, nurse call systems, and human-like voices in mobile health devices.

For a better understanding of the market adoption of the text-to-speech industry, the market is analyzed based on its worldwide presence in countries such as North America (The U.S., Canada, and the Rest of North America), Europe (Germany, The U.K. France, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America is expected to hold a significant share in the forecasted period. The text-to-speech market on account of the rapidly increasing need for text-to-speech technology and the growing adoption of machine learning and Artificial Intelligence in the United States. The extensive usage of advanced electronic devices like smartphones, tablets, smart TVs, and other similar devices is fueling the demand for the text-to-speech market in the region. In the United States, the smartphone category has the highest penetration rate. The region is supported by the presence of large tech companies providing text-to-speech software, such as Nuance Communication, Microsoft, and Google, Inc. Rising government spending in the education sector for physically disabled people offers an impetus to the market growth. Furthermore, the widespread adoption of artificial intelligence and large-scale deployment of neural networks across several end-use verticals drives the regional market growth. For instance, in February 2023, Duolingo, an American language-learning app, used artificial intelligence (AI) to enhance the learner experience by partnering with Microsoft for its Text-to-speech solutions in creating unique text-to-speech voices, making every lesson more engaging for the learner.

Some of the major players operating in the market include: Nuance Communications, Inc.; Microsoft; IBM; Google; Inc.; Sensory Inc.; Amazon.com, Inc.; Readspeaker B.V.; LumenVox; Acapela Group; and CereProc Ltd. Several M&As along with partnerships have been undertaken by these players to boost their presence in different regions.