Automotive Voice Recognition System Market Size

Automotive Voice Recognition System Market Analysis

The Automotive Voice Recognition System Market size is estimated at USD 3.06 billion in 2024, and is expected to reach USD 6.09 billion by 2029, growing at a CAGR of 14.77% during the forecast period (2024-2029).

Over the forecast period, the market is expected to be driven by several factors, including increasing automobile production and sales, higher income levels of consumers in most parts of the world, enabling 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 the growing preference of young customers for automobiles equipped with the latest connectivity and AI features.

• According to the International Organization of Motor Vehicle Manufacturers (OICA), new light commercial vehicle sales touched 19.8 million units in 2022 compared to 18.6 million units in 2021 worldwide, recording a substantial Y-o-Y growth of 7%.

Moreover, rapid enhancement in autonomous vehicles and connected vehicle technology will fuel the demand for advanced automotive voice recognition systems as they assist in providing a hands-free experience to drivers. Coupled with that, the increasing penetration of electric vehicles worldwide is also a major contributor to the rising demand for automotive voice recognition systems.

• According to the International Energy Agency (IEA), battery electric vehicle sales worldwide touched 7.3 million units in 2022 compared to 4.6 million units in 2021, representing a Y-o-Y growth of 58.6%.

Key players in the market are expanding their services by tying up with major automobile original equipment manufacturers (OEMs) to integrate their voice recognition technologies into OEMs' vehicles. For instance,

• In August 2023, SoundHound AI Inc. launched its advanced AI technology, including innovative Edge+Cloud connectivity, multiple language capabilities, and a custom-branded voice assistant to be integrated into a new line of smart vehicles from Turkish mobility provider Togg. Further, the company stated that Togg’s in-vehicle AI-powered voice assistant can track and understand speech context in real-time (in instances even before the user has finished speaking). Using SoundHound’s proprietary Speech-to-Meaning® and Deep Meaning Understanding® technologies, it can also address multiple questions and filter results.

• In September 2022, BMW Group announced that it had selected Cerence Inc., a Microsoft Corp. subsidiary, for developing a new voice and AI-powered voice assistant for integration into the latest version of BMW Intelligent Personal Assistant (IPA). These features would be available in the new BMW 7 Series and BMW i7.

Asia-Pacific is expected to become the fastest-growing regional market due to large sales of connected vehicles, young automobile buyers' willingness to opt for the latest connectivity features like voice recognition technology, and a large presence of automakers. Europe and North America are the next largest markets because of the close affinity of car buyers to new-age technologies like voice recognition and high sales of connected vehicles.