Marketing Strategy Market Analysis for Axxessio Voice Strategy
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Marketing Strategy Market Analysis for axxessio Voice Strategy Version: 1.0 Status: Completed Author/Authors: Akshay Deshmukh (AD) Florian Weber (FW) Pratyush Agnihotri (PA) Sascha Peters (SP) Document History Version Date Author/-s Remarks/Status 0.1 25.02.2019 AD, FW, PL, PA Initial Draft. 0.2 28.02.2019 FW, PA Review of chapter 1 and 2. 0.3 06.05.2019 AD, FW, PA Chapter 2, 3, 4, 5 and 7 done 0.4 20.05.2019 AD, FW, PA Chapter 1, 5.2 and 6 0.5 21.05.2019 PA Review – Ch. 7, 6, 5 and 4 0.6 23.05.2019 PA Review – Ch. 1 & 2 0.7 24.05.2019 PA Review – Ch. 1, 2, & 3 0.8 27.05.2019 PA Review – correct formatting 0.9 28.05.2019 PA Integration of voice providers 1.0 30.05.2019 PA Change the structure Table of Contents 1 Summary .............................................................................................. 5 2 Voice Related Terminology and Definitions ....................................... 7 2.1 Terms and their Description................................................................................. 7 2.2 The relation between Terms and Terminologies ................................................ 9 3 Understanding the Speech and Voice AI Solutions ........................ 10 3.1 How Speech and Voice Recognition Works? ................................................... 10 3.2 How does chat bot works? ................................................................................. 12 3.3 Difference between Voice and Speech Recognition ........................................ 12 4 Opportunities in Speech and Voice Recognition ............................. 14 5 Voice Recognition Industry Outlook ................................................ 18 5.1 Voice Recognition Market Segmentation .......................................................... 18 5.1.1 Market Analysis Based on Regional .......................................................................... 18 5.1.2 Smart Speakers Distribution and Usage Study ........................................................ 21 5.1.3 Market Analysis Based on User Needs ..................................................................... 24 5.1.4 Market Analysis based on Components, Technology, and Verticals ...................... 28 5.1.5 Relevant Market Segments ........................................................................................ 29 5.2 Voice Solution Providers Landscape ................................................................ 32 5.3 Competitive Landscape – Voice Consulting Firms in Germany ..................... 36 5.4 Competitive Landscape – Market Leaders ........................................................ 39 5.4.1 Leaders‘ Market Share ................................................................................................ 39 5.4.2 Key Points about Leading Players ............................................................................ 41 5.4.3 Product Offering of Leading Players ......................................................................... 41 5.4.4 Competitive Market Share Analysis........................................................................... 42 5.4.5 Competitive Strategy Adopted by Leading Players .................................................. 42 5.4.6 Analyst View from Leaders’ Competitive Strategy ................................................... 43 03.06.2019 > 20190603_axxessio_MarketingStrategy_Voice_Final 3 / 57 5.4.7 Recommendation – Key Applications to be Targeted .............................................. 43 5.4.8 Short Overview of Company’s Profile ....................................................................... 44 6 Use Cases for Voice........................................................................... 46 7 Go to Market/Marketing ..................................................................... 53 References .............................................................................................. 55 1 Summary The global voice or speech recognition market is an- ticipated to driven new technological advancements in IT sector. The growing use of voice can be seen as the major industry drivers. Studies demonstrate that the global speech and voice recognition mar- ket size is estimated to reach USD 31.82 billion by 2025, according to a new report by Grand View Re- search, Inc., exhibiting a CAGR of 17.2% during the forecast period. Demand for voice-activated sys- tems, voice-enabled devices, and voice-enabled vir- tual assistant systems is slated to increase over the coming years owing to rising applications in the banking, automobile, finance, logistics sectors. A progressive demand and usage of voice in different industry and application sectors can be seen as a new potential market for axxessio. Although, axxes- sio is not new in the voice market. Our contribution to Smart voice hub (SVH) is exemplary and self-evident about the success of axxessio. However, it becomes significantly important to explore the voice market before stepping ahead and position ourselves as a voice competence company. Therefore, we will answer three relevant questions in this market analysis report which can drive the success of axxessio in the voice sector. In this market analysis, we will be answering: Q1: What does voice mean for axxessio? Q2: Where do we stand as a company in a competitive market of voice? Q3: How do we want to target the relevant market of voice? We have explored and analyzed different use cases, the voice sector, and application areas to answer the first question (Q1). We have compared the analysis result with our existing/required competencies before deciding the meaning of the voice of us. Digital and personal voice assistant, Chat/voice-based application sector can define the meaning of voice for axxessio. To answer the Q2 and Q3, we conducted extensive research referring to verified data sources such as independent studies, government and regulatory published material, technical journals, trade magazines, and data sources. This forms the basis of our voice market analysis. We considered parameters such as a) market drivers and restraints along with their current and expected impacts, b) technological scenario and expected developments, c) end-use industry trends and dynamics, and d) trends in the consumer behavior during our relevant voice market research and competitor analysis. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive an expected market growth rate. All our estimates and forecasts were verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include a) Market leading companies and b) System integrators and API/software developers. At the end of our market research, it can be concluded that relevant market segments of voice such as Digital Voice Assistant and Chat/voice bot have great potential and different opportunities to be follow up. axxessio can build its current competencies and target customer in these relevant segments of voice in the near future. 03.06.2019 > 20190603_axxessio_MarketingStrategy_Voice_Final 5 / 57 Conclusion . The overall speech and voice recognition market is estimated to grow from USD 7.5 billion by 2018 to USD 21.5 billion by 2024, at a CAGR of 19.18% during the period of 2019 -2024. The market growth can be attributed to the high growth potential in healthcare application, growing demand for voice authentication in a mobile banking application, the rapid pro- liferation of multifunctional devices or smart speakers, and growing impact of Al on the accu- racy of speech and voice recognition . The market for on-premises/embedded speech and voice recognition is expected to grow attire highest CAGR during the forecast period. The US takes the majority share of the global smart speaker market and will remain the largest market through 2020, based on Canalys forecast. Despite the notable success in the US and Western Europe, China continues to ignore the products of two giants, Amazon and Google. According to Google UK, 75% of consumers said they search more now as they can use voice search, while 83% of consumers agree that voice capabilities will make it easier to search for things and 89% believe voice will enable users to find things more quickly. The demand for digital voice assistants is not only increasing but they are also satisfying con- sumers’ wants and needs. Consumers are starting to interact with brands in the same way they interact with people. It’s informal, intuitive and immediate. The usage of voice assistant was signification higher in Germany in 2016 i.e. approx. 30 million users and it's increasing annually. As competition intensifies, Chinese vendors will expand their product portfolios to hit more price points and offer a greater range of capabilities. China has massive potential, with more than 450 million households, over three times the number in the US. Voice-controlled digital assistants like Amazon Echo are emerging as a new platform for news, already outstripping smartwatches in the US and UK. The partnership with Houndify (SoundHound), Luis.ai (Microsoft), and Nuance can be really profitable as they are the biggest giants in the voice market. However, they are not targeting industries which are looking to develop voice strategy instead of offering voice specific skills. Snips is at the top preference to become a partner. One of the reason, they provide voice- based AI solution which is private-by-design, decentralized voice assistant technology. Snips solution