Automotive Voice Recognition System Market Size
| Study Period: | 2018 - 2028 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | > 8 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Voice Recognition System Market Analysis
The Automotive Voice Recognition System Market was valued at USD 2.01 Billion in 2021, and it is expected to reach USD 3.51 Billion by 2027, registering a CAGR of around 8.07% during the forecast period, 2022–2027.
When the COVID-19 pandemic happened in 2020 the automotive voice recognition system industry was negatively affected due to the resulting manufacturing shutdowns, lockdowns, and trade restrictions. Furthermore, the effects of the pandemic on the automobile industry were amplified due to the fall in automotive production, a decline in automobile sales due to work-from-home routines, and traveling restrictions coupled with a lack of labor.
Since automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.
Over the long term, increasing number of automobile production and sales, increased income level of consumers in most parts of the world which is allowing them to spend more on comfort and luxury services, development of infotainment and technology services to provide safety and comfort to the driver as well as preference of young customers for automobiles equipped with latest connectivity and AI features are some of the factors which are expected to drive the market during the forecast period. The number of models offered with voice recognition capabilities is very limited which may impact the growth of the market in the future.
Key players in the market are expanding their services by tying up with major automobile OEMs to integrate their voice recognition technologies in the OEMs' vehicles . For instance, in September 2022, BMW Group announced that they have selected Cerence Inc., a Microsoft Corp. subsidiary to develop a new voice and AI powered voice assistant to be integrated in the latest version of BMW Intelligent Personal Assistant (IPA) which would be available in new BMW 7 Series and BMW i7. Also in March 2022, Volkswagen AG selected Cerence Inc., a Microsoft Corp. subsidiary to integrate voice conversational and AI technologies in its new infotainment system which will debut in the new VW Golf GTi 8.
Asia-Pacific is the dominant market due to large sales of connected vehicles, willingness on the part of young automobile buyers to opt for latest conectivity features like voice rcognition technology and large prescence of automobile OEMs. Europe and North America are the next largest markets because of the close affinity of car buyers with new age technologies like voice recognition and high sales of connected vehicles.
Automotive Voice Recognition System Industry Segmentation
Automotive voice recognition systems are computer programs and hardware devices used in an automobile to decode the human voice for offering a hands-free communications experience to avoid or minimize the driver's distraction when the driver is driving the vehicle, in the interest of enhanced safety.
Automotive voice recognition systems are controlled by human voice wherein the driver can do routine, mundane tasks like switching on the vehicle's air conditioning just by giving voice-based commands rather than having to physically switch on the airconditioning by taking his hands off the steering wheel. Automotive voice recognition systems have been observed to play a critical role in reducing the number of accidents occurring due to driver error.
The global automotive voice recognition system market has been segmented by vehicle type, vehicle price, and geography. By vehicle type, the market is segmented into IC Engine and Electric Vehicles. By vehicle price, the market is segmented into conomy Vehicles, Mid-Price Vehicles & Luxury Vehicles.
By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment market sizing and forecast have been done on basis of value (USD billion).
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| Mid-Priced Vehicles | |
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Automotive Voice Recognition System Market Trends
This section covers the major market trends shaping the Automotive Voice Recognition System Market according to our research experts:
Increasing Demand for Vehicle Connectivity and Safety is Aiding the Market Growth
Today young customers looking to buy a car attach more significance to the connectivity features than the mechanical specifications of the vehicle because they demand driving comfort and convenience more than the outright power or torque figures. This trend is increasingly observed in markets like Europe and Asia-Pacific which has led to an increase in the demand for features like in-vehicle voice recognition systems. For instance, in 2021 over 13 million passenger vehicles sold in China featured a voice recognition system. This is a Year on Year increase of 13% over 2020.
Customers are increasingly buying connected and autonomous vehicles for the increased assurance of the safety these types of vehicles have on offer. Both connected as well as autonomous have voice recognition technology as a standard feature. Voice recognition systems have been seen to reduce the number of vehicle accidents since they free the drivers from basic, routine tasks so that the drivers can fully concentrate on driving.
Another trend in the markets like India is launching of vehicles featuring voice recognition technologies that support vernacular languages. For instance, the new Hyundai Venue compact SUV launched in India features a voice recognition system which supports 10 Indian languages , in addition to English and Hindi. By vehicle type mid price vehicles dominated the market because the voice recognition technologies which were earlier available in luxury vehicles are now being increasingly offered in mid price vehicles. For instance, Honda Motor Corp. launched fifth generation City in India equipped with Google's Voice Assistant technology.
Thus increasing sales of connected and autonomous vehicles, trend towards greater vehcile safety and availability of voice recognition systems in mid priced vehicles like family sedans and compact SUVs are some of the factors anticipated to drive the market in the forecast period.
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Asia-Pacific Region Anticipated to Dominate the Market During Forecast Period
The Asia -Pacific region expected to be dominant market followed by North America and Europe. Asia -Pacific is a huge market for passenger vehicles. India and China are some of the largest markets for passenger vehicles in the world which contribute to almost 30% of the worldwide passenger vehicle sales thus making Asia-Pacific the most lucrative market for automotive voice recognition systems.
The majority of the vehicles sold in markets like China and South Korea are connected and feature some kind of voice recognition capabilities. For instance, in 2021 68% of the new passenger vehicles sold in China featured voice recognition systems. Thus the high prevalence of connected vehicles in new vehicle sales in markets like China makes Asia-pacific the most dominant region for automotive voice recognition systems.
Europe and North America are also major markets due to the large presence of voice recognition technology developers and the rising sales of connected vehicles in these geographies. Thus, with companies coming up with new innovations in this segment, the market for automotive voice rcognition systems is expected to grow over the forecast period for the commercial vehicles segment. For instance
- In September 2022, Chevrolet launched new Seeker compact SUV in China featuring Xiaoxue operating system with built-in voice recognition technology.
- In May 2022, Lexus premiered its new UX compact crossover in Japan. The vehicle comes with a voice recognition system which can be used to on/off the airconditioning system and music in the vehicle.
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Automotive Voice Recognition System Industry Overview
The automotive voice recognition system is highly consolidated. The market is characterized by the presence of considerably large players who have entered into collaborations with major automotive OEMs. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.
Some of the major players dominating the global market are Apple Inc. Alphabet Inc., Microsoft Corp., Sensory AI Inc., and VoiceBox Technologies Corp. Key players are launching new products and entering into collaborations with automotive OEMs to secure their market position and stay ahead of the market curve. For instance,
- In February 2022, Pioneer Corporation introduced Promatix AI its new dedicated platform for mobility which enables functions like search and control through voice commands.
- In December 2021, Volkswagen AG launched new Golf with improved voice recognition technology which will accept voice commands with Hello Volkswagen phrase.
Automotive Voice Recognition System Market Leaders
Apple Inc.
Alphabet Inc.
VoiceBox Technologies Corp.
Microsoft Corp.
Sensory Inc.
*Disclaimer: Major Players sorted in no particular order
Automotive Voice Recognition System Market News
- In September 2022, Dongfeng Forthing launched the Mach version of T5 SUV in China. Some of the variants of the model offer an openable sunroof, 12.4-inch central infotainment console, and a voice recognition system.
- In September 2022, Cerence Inc. and Microsoft Corp. collaborated to enable access to all Microsoft's tools including Microsft Teams using Cerence's voice recognition technologies in the vehicles. Both companies will jointly promote this new solution to automobile OEMs that are looking to offer the latest voice recognition technologies in their upcoming vehicles.
- In July 2022, LG Electronics Inc. collaborated with SoundHound AI Inc. to incorporate SoundHound's advanced AI-based voice recognition platform into LG's IVI infotainment systems for automobiles. The partnership will enable LG Electronics Inc. to offer SoundHound Inc.'s advanced voice-based AI which has conversational voice controls to ensure a very high degree of convenience for drivers and passengers of the vehicle.
- In June 2022 Mappers Co. Ltd. announced a contract to supply its Altan navigation system to Lexus NX in South Korea. Altan is a a cross functional car browsing system which can be used both online and offline to receive Over the Air (OTA) updates. Altan is works on voice recognition technology.
Automotive Voice Recognition System Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (MARKET VALUE IN USD BILLION)
5.1 Vehicle Type
5.1.1 IC Engine
5.1.2 Electric
5.2 Vehicle Price
5.2.1 Economy Vehicles
5.2.2 Mid-Priced Vehicles
5.2.3 Luxury Vehicles
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Rest of the World
5.3.4.1 Brazil
5.3.4.2 United Arab Emirates
5.3.4.3 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Microsoft Corporation
6.2.2 Apple Inc.
6.2.3 Lumenvox
6.2.4 iNAGO Corporation
6.2.5 Alphabet Inc.
6.2.6 Harman Corporation
6.2.7 Nuance Communications Inc.
6.2.8 Sensory Inc.
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Automotive Voice Recognition System Market Research FAQs
What is the study period of this market?
The Automotive Voice Recognition System Market is studied from 2018 - 2028.
What is the growth rate of Automotive Voice Recognition System Market?
The Automotive Voice Recognition System Market is growing at a CAGR of >8% over the next 5 years.
What is Automotive Voice Recognition System Market size in 2018?
The Automotive Voice Recognition System Market is valued at 2 Billion USD in 2018.
What is Automotive Voice Recognition System Market size in 2028?
The Automotive Voice Recognition System Market is valued at 3 Billion USD in 2028.
Which region has highest growth rate in Automotive Voice Recognition System Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Automotive Voice Recognition System Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Automotive Voice Recognition System Market?
Apple Inc. , Alphabet Inc. , VoiceBox Technologies Corp. , Microsoft Corp. , Sensory Inc. are the major companies operating in Automotive Voice Recognition System Market.
Automotive Voice Recognition System Industry Report
Statistics for the 2023 Automotive Voice Recognition System market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Voice Recognition System analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
