Competition from free voice recognition software has led to annual price declines over the past three years; however, these declines have been slow due to rising business demand and an expanding mobile market. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Voice Recognition Software in its growing collection of procurement category market research reports.
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
About IBISWorld Inc.
IBISWorld is one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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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