Automotive Voice Recognition System Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[234+ Page Report] According to the report published by Facts & Factors, the global automotive voice recognition system market size was valued at USD 2.09 billion in 2022 and is predicted to reach USD 4.02 billion by the end of 2030. The market is expected to grow with a CAGR of 8.09% during the forecast period. The report analyzes the global Automotive Voice Recognition System Market’s growth drivers, restraints, and impact on demand during the forecast period. It will also help navigate and explore the arising opportunities in the automotive voice recognition industry.

Market Overview

Automotive voice recognition system refers to the concept of using speech recognition technology in vehicles. The technology is gaining traction among consumers across the globe due to its growing advancements in recognition algorithms. Manufacturers have developed these algorithms by considering the user’s safety while navigating the vehicle. Many studies had concluded that the distraction level of drivers was comparatively much higher when people were using touch screen elements. The percentage decreased when people adopted voice command recognition systems.

Key Insights

• As per the analysis shared by our research analyst, the global Automotive Voice Recognition System Market is estimated to grow annually at a CAGR of around 8.09% over the forecast period (2023-2030).
• In terms of revenue, the global Automotive Voice Recognition System Market size was valued at around USD 2.09 billion in 2022 and is projected to reach USD 4.02 billion by 2030.
• The growing demand for vehicle connectivity is likely to boost the Automotive Voice Recognition System Market growth.
• Based on the level of autonomous driving, the semi-autonomous segment accounts for the largest share of the global market.
• Based on the technology, the embedded segment is likely to register the highest revenue in the global market.
• Based on the end user, the luxury vehicle segment is estimated to dominate the global market.
• Based on the fuel type, the battery electric vehicles (BEV) segment is estimated to hold the largest market share of the global market.
• Based on the application, the market for non-AI-based applications is estimated to be the fastest-growing segment.
• Based on region, North America is expected to dominate the market during the forecast period.

Growth Drivers

• Growing demand for vehicle connectivity is expected to boost the market's growth.

Youth today are more willing to buy vehicles that have high connectivity features because of the need for convenience and comfort more than the torque or the power figures. The trend is likely to gear up, particularly in the markets like Asia Pacific and Europe, which are currently facing demand for diverse features like in-built voice recognition systems.

For example, 13 million passenger vehicles featuring a voice recognition system were sold in China in 2021. The figure marked an increase of 13% in one year. Consumers are more inclined towards autonomous and connected vehicles for the enhanced assurance of the safety of these vehicles. Another trend marking the growth of the global Automotive Voice Recognition System Market is the launch of vehicles featuring voice recognition technology with our vernacular languages.

For example, the SUV launched by Hyundai Venue offers a voice recognition feature supporting 10 Indian languages other than Hindi and English. Also, the growing adoption of digital technologies among all age groups globally is further likely to drive the growth of the global Automotive Voice Recognition System Market. The tech advancements in voice recognition technology are further likely to foster the demand for automotive voice recognition systems.

Restraints

• High installation cost is likely to restrain the growth of the market.

Automobile manufacturers are constantly striving hard to improve the voice recognition system in automobiles to offer better usability and improved in-car experience. As a result, deploying these features in cars mark them as luxury vehicles, thereby increasing the installation cost. Therefore, such a landscape is expected to limit the growth of the global automotive voice recognition industry in the forthcoming years. However, the growing demand for cars is majorly from the mid and low-priced categories due to the fact that most people in developing countries fall under the middle-class income group. Therefore, such a landscape is anticipated to limit the voice recognition system in the market during the predicted period.

Opportunities

• Growing automobile sales and a high adoption rate of digital technology are expected to expand the growth opportunities in the market.

There has been a significant spike in the production and sales of automobiles in recent years due to the surging income level of end users across the globe. Increasing disposable income and consumers' growing desire for comfort and luxury services are further likely to offer many lucrative growth opportunities in the global Automotive Voice Recognition System Market.

The growing desire for infotainment, high-end technology services well equipped with AI, demand for the latest connectivity features among youth, and growing number of middle-income people are also likely to expand the global market scope during the predicted period.

Challenges

• Inaccuracies and speaker diarization in a multi-linguistic approach are a big challenge in the global market.

With the growth in voice technology, there come several hindrances, like technical words, speaker identification, fluency, accent, punctuation, background noise, etc., in offering seamless performance to customers. According to a report in 2021, around 21.2% and 30.4% of people registered concern about the dialect and accent, respectively. Therefore, overcoming the breakthrough in offering accuracies for different languages is one of the major challenges in the growth of the automotive voice recognition industry.

Segmentation Analysis

The global Automotive Voice Recognition System Market is segmented into the level of autonomous driving, technology, end user, fuel type, application, and region.

By level of autonomous driving, the market can be segmented into semi-autonomous, conventional, and autonomous. The semi-autonomous segment accounts for the largest share of the global market. The primary driver for the growth of the segment is the constant upgradation in the infotainment field along with the growing automation of driving functions. However, the conventional segment is also expected to be the fastest-growing segment in the global market due to the high demand for these vehicles as compared to others.

By technology, the automotive voice recognition industry can be segmented into hybrid and embedded. The embedded segment is likely to register the highest revenue in the global market due to the diverse features offered by it. Embedded technology offers ease of installation to the manufacturers, thereby lowering the level of complexity. Also, the earlier adoption of this technology by manufacturers is likely to offer more advanced features like hands-free access to the customers, which in turn is expected to propel the growth of the segment.

By end users, the market can be segmented into luxury vehicles, mid-priced vehicles, and economy vehicles. The luxury vehicle segment is estimated to dominate the global market.

By fuel type, the Automotive Voice Recognition System Market can be segmented into ICE, BEV, and others. The battery electric vehicles (BEV) segment is estimated to hold the largest market share of the global market.

By application, the market can be segmented into AI-based and non-AI-based. The market for non-AI-based applications is estimated to be the fastest-growing segment.

Recent Developments:

• Chevrolet, in September 2022, launched a new SUV in China, offering a well-developed system with voice recognition technology.
• Lexus, in May 2022, revealed its brand new UX compact crossover in Japan. It is well equipped with a voice recognition system that can be on/off the music and AC systems in the vehicle.
• Pioneer Corporation, in February 2022, revealed its new dedicated platform called Promatix AI for better mobility to offer functions like search and control via voice instructions.

Report Scope

Regional Analysis

• North America is expected to grow significantly in the global market.

In terms of market revenue and share, North America is likely to dominate the global Automotive Voice Recognition System Market in the forthcoming years. The high disposable income of people has thrived the demand for luxury products and services. Therefore, the region is likely to see a significant surge in the demand for automotive recognition systems.

Also, the increase in the requirement for personal vehicles due to the growing issues with public transport is likely to support the growth of the regional market. Furthermore, the growing technology and increased research studies are expected to positively impact the growth of the regional market during the predicted period.

Asia Pacific is expected to grow significantly in the global market due to the rapidly growing urban population and increasing disposable income of the people in the region. Additionally, the developing infrastructure and increasing foreign direct investments are further likely to widen the scope of the regional market.

Competitive Analysis

• Nuance
• Sensory
• Alphabet
• VoiceBox
• Microsoft
• Apple
• Harman
• JStar
• International Business Machines Corporation
• BioTrust ID
• Anhui USTC iFlytek
• Agnitio
• others

The global Automotive Voice Recognition System Market is segmented as follows:

By Level Of Autonomous Driving Segment Analysis

• Semi-Autonomous
• Conventional
• Autonomous

By Technology Segment Analysis

• Hybrid
• Embedded

By End User Segment Analysis

• Luxury Vehicles
• Mid-Priced Vehicles
• Economy Vehicles

By Fuel Type Segment Analysis

• ICE
• BE
• Others

By Application Segment Analysis

• AI-Based
• Non-AI-Based

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America