< Key Hightlight >

 The global voice biometrics market size to grow from USD  1.1 billion in 2020 to USD 3.9 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 22.8% during the forecast period. Factors such as the increasing demand for robust fraud detection and prevention systems across the Banking, Financial Services, and Insurance (BFSI) industry and the need for reducing authentication and identification costs are driving the adoption of voice biometrics solutions across the world. Fraudulent activities have increased alarmingly with the advent of digitalization across the banking industry. Through high-profile data thefts, fraudsters with access to banking credentials may gain access to customers’ bank accounts, thus creating the need for second or third-level security in the whole financial authentication system. Voice biometrics caters to such needs of banks and financial agencies by smartly identifying a user based on his/her voiceprint. 

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COVID-19 Impact on Global Voice Biometrics Market

The voice biometrics market is expected to witness a minor slowdown in 2020 due to the global lockdown. The COVID-19 pandemic has increased the churn rate and shuddered almost every industry. The lockdown is impacting global manufacturing, and supply chains and logistics as the continuity of operations for various sectors are badly impacted. The sectors facing the greatest drawbacks are manufacturing, transportation and logistics, and retail and consumer goods. The availability of the essential items has been impacted due to the lack of manpower to work on production lines, supply chains, and transportation, although the essential items are exempted from the lockdown. The condition is expected to come under control by early 2021, while the demand for voice biometrics solutions and services is expected to increase, which is due to the increased demand for enhanced customer experience and build a personalized relationship with the prospects. Several verticals are already planning to deploy a diverse array of voice biometrics solutions and services to enable digital transformation initiatives that address mission-critical processes, improve operations, and authenticate user’s identification. The reduction in operational costs, better customer experiences, fraud detection and prevention, enhanced authentication processes and operations, and improved real-time decision-making are the key business and operational priorities that are expected to drive the adoption of the voice identification market.

Market Dynamics

Driver: Increasing demand for robust fraud detection and prevention systems across major industries

Fraudulent activities have increased at an alarming rate with the advent of digitalization across the banking industry. Through high-profile data thefts, fraudsters with access to banking credentials may gain access to customers’ bank accounts, creating the need for a second or third level of security in the whole financial authentication system. Voice biometrics solutions cater to such needs of banks and financial agencies by smartly identifying a user based on his/her voiceprint. Unlike traditional text passwords and pins, voiceprints are unique to every individual. Featured with automated calibration, active and passive authentication, liveliness detection, and panic detection, voice biometrics eases user identification and authentication and also improves the Know Your Customer (KYC) management. For instance, Barclays authenticates the caller’s identity with the phrase “My voice is my password,” which has reduced their user verification time by 20 seconds. Similarly, large banks, including HSBC, Wells Fargo, Santander Bank, N. A., and Tangerine Bank, have also adopted voice recognition to speed up the identity verification process at their bank call centers.

Restraint: Security and privacy issues due to advanced technologies

Voice biometrics presents a major privacy problem as samples are being stored locally and are used for purposes other than the primary reason of the collection. Any basic application that is enabled with voice technology may cause fraudsters and hackers to breach the system and steal the voice sample easily. With access to all the customer/user information, fraudsters can easily access any user’s bank accounts and steal money. Further, intelligence agencies with access to this user data might be used by nosy governments to perform global surveillance, which automatically brings in privacy issues. Stolen data can also be used as a masquerade by terrorists and criminals to mislead legal entities. To eliminate such risks, various governments are taking the necessary initiatives for standardizing the use of biometrics across industries; hence, security and privacy concerns are expected to diminish in the near future. The lack of accuracy in voice biometrics solutions can also be one of the reasons why users still do not talk to their personal computers or do not use only voice for giving commands on their smartphones and prefer to type rather than getting false rejections again and again, as the process can be frustrating and time-consuming. Although researchers are trying to make a voice biometrics solution using the neural networks approach that can identify such problems and rectify them on its own, they are not completely successful in this field.

Opportunity: Need to safeguard the privacy of growing healthcare data during COVID-19

While dealing with fraud risks, healthcare firms are often ignored, and breaches to hack medical information are costlier, lethal, and are becoming increasingly prevalent. However, regulatory pressures and compliance guidelines require healthcare providers to handle patient information with utmost privacy and care properly. Voice biometrics solutions prevent the theft of medical information and maintain the privacy of healthcare data through a robust and convenient authentication experience for physicians, doctors, and patients. While complying with the privacy regulations, these solutions ensure patient confidentiality and can be used by patients to access insurance portals and validate received care. This also ensures fraud and data theft prevention through encrypted information exchange.

Challenge: Lack of accuracy in authenticating users

Although the current voice biometrics solutions offer exceptional benefits, a lack of accuracy due to various issues still exists. These issues include poor-quality voice samples; background noise interferences while interacting with the IVR or call system; inconsistency in the speaker's voice due to illness, and mood changes over time, as well as changes in the voice technology, such as speakers and recorders. Similarly, passphrases used by users for authentication purposes can be acquired by vishing to attempt an attack on a voice biometric system securing access to an IVR, all of which create reluctance among organizations to adopt voice biometrics as an authentication or verification system. By whitelisting voiceprints and blacklisting fraudulent voices to compare and authenticate valid users, most of the voice biometrics vendors are constantly improvising their solutions. However, in the current conditions, lack of accuracy is still expected to become one of the biggest challenges in the voice biometrics market.

Among verticals, the healthcare and life sciences segment to grow at the highest CAGR during the forecast period

The voice biometrics market is segmented into the various verticals, particularly verticals, such as BFSI, retail and eCommerce, government and defense, IT and telecom, healthcare and life sciences, transportation and logistics, travel and hospitality, energy and utilities, and others (manufacturing, education, and media and entertainment).  The market size of the healthcare and life sciences vertical is expected to grow at the highest CAGR during the forecast period. Mandatory protection of sensitive data to boost the adoption of voice biometrics solutions in the healthcare and life sciences vertical.

APAC to grow at a higher CAGR during the forecast period

The voice biometrics market has been segmented into five regions: North America, Europe, APAC, MEA, and Latin America. Among these regions, North America is projected to hold the largest market size during the forecast period. APAC is expected to grow at the highest CAGR during the forecast period. The increasing demand for enhanced security for preventing criminal activities from enhancing the market growth in APAC.

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Key Market Players

The voice biometrics vendors have implemented various types of organic as well as inorganic growth strategies, such as new product launches, product upgradations, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Some of the key players operating in the voice biometrics market include Nuance (US), NICE (Israel), Verint (US), Pindrop (US), LexisNexis Risk Solutions (US), Phonexia (Czech Republic), VBG (US), Aculab (UK), Auraya (Australia), OneVault (South Africa), Aware (US), SpeechPro (US), LumenVox (US), Uniphore (India), SESTEK (Turkey), VoicePIN (Poland), QSS Technosoft (India), Voxta (India) Interactions (US), ID R&D (US), Kaizen Secure Voiz (US), HYPR (US), Element (US), Trust Stamp (US), and AnyVision (Israel). The study includes an in-depth competitive analysis of these key players in the voice biometrics market with their company profiles, recent developments, and key market strategies.

Scope of the Report

This research report categorizes the voice biometrics market based on component, type, application, deployment mode, organization size, vertical, and region.

By component:

• Solutions
  • Software
  • Platform
• Services
  • Professional Services
    • Consulting
    • System Integration and  Implementation
    • Support and Maintenance
  • Managed Services

By type:

• Active Voice Biometrics
• Passive Voice Biometrics

By authentication process:

• Automated IVR
• Agent-Assisted
• Mobile Applications
• Employee Authentication

By deployment mode:

• On-premises
• Cloud

By organization size:

• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

By appliction:

• 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 (Speech Therapy, Vocal Passphrase, and Personalized User Experience).

By vertical:

• BFSI
• Retail and Ecommerce
• Government and Defense,
• IT And Telecom
• Healthcare and Life Sciences
• Transportation and Logistics
• Travel and Hospitality
• Energy and Utilities
•  Others (Manufacturing, Education, and Media and Entertainment). 

By region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe 
• APAC
  • China
  • India
  • Japan
  • Rest of APAC
• MEA
  • South Africa
  • UAE
  • KSA
  • Rest of MEA
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In January 2021, Nuance launched Omnichannel Patient Engagement Virtual Assistant Platform to power healthcare's 'Digital Front Door.' Nuance's omnichannel patient engagement platform represents a new integrated philosophy for enabling healthcare's digital front door and a well-thought-out, well-implemented, and highly practical solution for delivering an enhanced level of digital services to patients.
• In February 2021, Onevault extended its footprint into Pakistan. Partnering with ConnectDotNet, Onevault will provide the Pakistan market with the biometric technology and solutions that are ideally suited for the array of market requirements.
• In November 2020,  NICE unveiled ENLIGHTEN Fraud Prevention, an innovative new solution for automatic and continuous fraudster detection and exposure. Bringing together NICE ENLIGHTEN's comprehensive Customer Engagement AI platform with the company’s voice biometrics capabilities, the solution continuously scans millions of calls to accurately pinpoint suspicious behavior and uncover previously unidentified fraudsters.
• In July 2019, Auraya launched EVA for Amazon Connect. EVA enabled organizations to deliver a better customer experience for authenticating customer identity on telephony and digital channels. It allows customers to verify their identity quickly and conveniently without needing to remember passwords, PINs, or needing to provide sensitive private information.
• In May 2020, Nuance partnered with National Australia Bank. National Australia Bank (NAB) is leveraging the biometrics solution for authenticating customers and enabling fraud detection processes. Nuance biometrics and security solutions power NAB's VoiceID service that authenticates NAB customers' voices in seconds, helping prevent fraudsters from accessing bank accounts using a customer's credentials or information.
• April 2020, OneVault signed an agreement with the South African Fraud Prevention Service (SAFPS) to deliver a biometric fraud detection solution for call centers and establish a centralized fraud database in the country.

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