Speech-to-Text API Market to Reach $21 Billion by 2034

Allied Market Research valued the worldwide speech-to-text API market at $5 billion in 2024 and expects it to grow at a compound annual rate of 15.2 percent through 2034, when it will hit $21 billion.

Key factors fueling this growth include the increasing adoption of artificial intelligence-powered voice recognition, demand for real-time transcription in healthcare and legal sectors, and the rise of voice-enabled smart devices, the research firm said. In addition, advancements in natural language processing (NLP) and cloud-based solutions are accelerating market expansion.

AI has significantly enhanced transcription accuracy, making these solutions indispensable across industries such as healthcare, legal, and customer service, AMR concluded.

According to AMR, the speech-to-text API market is driven by the rising demand for voice-enabled applications in smart devices, virtual assistants, and customer service automation. The shift toward cloud-based solutions and the need for real-time transcription in multilingual environments are further propelling growth. In addition, the increase in remote work trends and the push for accessibility compliance boost market expansion.

However, high development costs and data privacy concerns hinder market growth, especially in regulated industries, AMR said, noting that accuracy challenges with accents, background noise, and dialects limit adoption, as do Integration complexities with legacy systems and a lack of skilled professionals.

Despite these barriers, emerging opportunities in fraud detection, real-time analytics, and multilingual support present significant growth avenues, according to AMR, which noted that the education sector, in particular, offers untapped potential with the rise of e-learning and voice-enabled educational tools. In fact, AMR says the education sector is expected to register the highest growth due to the adoption of voice-enabled e-learning tools, lecture transcription, and accessibility features for students with disabilities.

Other findings by AMR include the following:

• The small and midsized business segment witnessed significant growth due to cost-effective, scalable speech-to-text solutions that enhance productivity, customer engagement, and compliance without heavy infrastructure investment.
• By application, fraud detection and prevention is expected to register the highest growth, due to the rising need for real-time voice analytics, call monitoring, and AI-driven scam detection in financial and telecom sectors.

AMR identified major players in the speech-to-text API market as Amazon Web Services, IBM, Google, VoiceCloud, Descript, Rev.com, Microsoft, Voicebase, Amberscript Global, Speechmatics, Verbit.ai, Sonix.ai, TurboScribe, Otter.ai, Apple, WhisperAPI.com, Deepgram, AssemblyAI, Twilio, and Trint.

Among these vendors, the analyst firm singled out two firms for their recent activity:

• Just last month, Trint launched Trint Live, a feature that offers real-time speech-to-text transcription, enabling users to capture and transcribe live conversations, meetings, and events across both desktop and mobile devices. Trint Live supports more than 30 languages and can automatically detect and transcribe the spoken language.
• And in March, Twilio partnered with Cedar to enhance patient billing experiences using AI-powered solutions. Cedar has integrated Twilio's Voice API for secure phone payments, and Twilio's ConversationRelay service will enable AI-powered voice agents to handle patient billing inquiries.