Key Players
The major players operating in the global automotive voice recognition system market are:
- Apple Inc.
- Nuance Communications Inc.
- Microsoft Corporation
- Alphabet Inc.
- Harman
- BMW
- Daimler
- Pareteum Corporation
- Ford
Market Dynamics
During the forecast period, the market is anticipated to be propelled by a multitude of factors, such as the growing number of automobile production and sales, the rise in consumers' income levels in most regions of the world, which enables them to spend more on luxury and comfort services, the development of infotainment and technology services to enhance the safety and comfort of the driver, and the inclination of younger customers towards automobiles equipped with the latest connectivity and AI features. However, the limited availability of models with voice recognition capabilities may hinder the market's growth in the future.
Major players in the market are expanding their offerings by collaborating with leading automobile original equipment manufacturers (OEMs) to incorporate their voice recognition technologies into the OEMs' vehicles. An example of this is BMW Group's announcement in September 2022 that they have chosen Cerence Inc., a subsidiary of Microsoft Corp., to develop a new voice and AI-powered voice assistant to be integrated into the latest version of the BMW Intelligent Personal Assistant (IPA), which will be available in the new BMW 7 Series and BMW i7.
Additionally, in March 2022, Volkswagen AG selected Cerence Inc. to incorporate voice conversational and AI technologies into its new infotainment system, which will debut in the new VW Golf GTi 8.
Growing Demand for Vehicle Connectivity and Safety is Boosting the Market Growth
Currently, younger customers seeking to purchase a car place greater importance on connectivity features rather than the mechanical specifications of the vehicle. This is due to their preference for driving comfort and convenience over pure power or torque figures. This trend is becoming more prominent in regions such as Europe and Asia-Pacific, resulting in a surge in demand for features like in-vehicle voice recognition systems.
For example, in 2021, more than 13 million passenger vehicles sold in China were equipped with a voice recognition system, marking a 13% increase compared to the previous year.
Customers are progressively purchasing connected and autonomous vehicles to obtain enhanced safety features. These types of vehicles come equipped with standard voice recognition technology, which helps in reducing the number of accidents by freeing drivers from basic and routine tasks, allowing them to focus more on driving. This increase in safety assurance is one of the main reasons for the rising popularity of connected and autonomous vehicles among consumers.
A growing trend in markets such as India is the launch of vehicles featuring voice recognition technologies that support vernacular languages. For example, the recently launched Hyundai Venue compact SUV in India includes a voice recognition system that supports 10 Indian languages, in addition to English and Hindi.
In terms of vehicle type, mid-price vehicles are now dominating the market as voice recognition technologies that were previously only available in luxury vehicles are now increasingly offered in mid-price vehicles as well. As an example, Honda Motor Corp. launched the fifth-generation City in India equipped with Google's Voice Assistant technology.
Segment Analysis
By Technology Type
In 2023, the non-AI-based segment is projected to have the highest market share. Nonetheless, the AI-based voice recognition system is expected to witness the highest growth rate during the forecast period, owing to technological advancements. Furthermore, companies driven by technology are leveraging the AI-based voice recognition system as a tool to create advanced infotainment features for self-driving and partially self-driving cars.
According to estimates, the luxury vehicle segment is expected to dominate the market in terms of both volume and value during the forecast period. However, the economy vehicle segment is anticipated to grow at the fastest rate due to the increasing demand for comfort and convenience features, as well as the integration of technology to support centralized functions within vehicles.
By Level of Autonomous Type
During the forecast period, the semi-autonomous vehicle segment is expected to experience the highest growth rate among different levels of autonomous driving. The main drivers of this growth are the continuous improvement of infotainment features and the increasing automation of driving functions. Despite this, the largest segment of the market during the forecast period is expected to be the conventional segment.
By Fuel Type
The fuel type segment is projected to witness the fastest growth in the market for battery electric vehicles (BEVs) owing to the surge in production of electric vehicles. The largest market in this segment is currently held by internal combustion engine (ICE) vehicles and is expected to remain a lucrative market in the near future due to continued production and sales.
Regional Analysis
The Asia-Pacific region is anticipated to hold the leading position in the market, with North America and Europe following closely behind. With its vast market for passenger vehicles, the Asia-Pacific region is a significant contributor to the global sales of passenger vehicles, with India and China being among the world's largest markets for such vehicles. These two countries account for almost 30% of worldwide passenger vehicle sales, making the Asia-Pacific market the most attractive one for automotive voice recognition systems.
Most vehicles sold in markets such as China and South Korea are connected and equipped with some form of voice recognition technology. In fact, as of 2021, approximately 68% of the new passenger vehicles sold in China were equipped with voice recognition systems. As a result, the widespread use of connected vehicles in new vehicle sales in markets such as China makes the Asia-Pacific region the most dominant market for automotive voice recognition systems.
Research Methodology
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
Customization Options
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Company Profiling
- Detailed profiling of additional market players (up to three players)
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Competitive Benchmarking
- Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances
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Recent Developments
- In October 2022, Toyota partnered with Google to bolster speech recognition AI. The partnership aims to enhance voice recognition in infotainment systems.
- In September 2022, Cerence collaborated with NVIDIA to advance the connected, digital automotive cockpit. Now supported on the NVIDIA DRIVE platform, Cerence Assistant enables AI-powered connected car platforms that is expected to fuel future mobility experiences.
- In September 2022, BMW announced its intention to develop next-generation voice experience on Alexa technology.
