Automotive Voice Recognition System Market Size (2024 - 2029)

The automotive voice recognition system market is projected to experience significant growth over the forecast period, driven by factors such as increased automobile production and sales, rising consumer income levels, and the development of advanced infotainment and technology services. The demand for these systems is further fueled by the rapid advancement of autonomous and connected vehicle technologies, which offer enhanced safety and convenience through hands-free experiences. The growing penetration of electric vehicles also contributes to the market's expansion. Asia-Pacific is anticipated to be the fastest-growing region, supported by a high demand for connected vehicles and a youthful consumer base eager for the latest connectivity features. Europe and North America follow as substantial markets due to their consumers' strong interest in new technologies and high sales of connected vehicles.

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Market Size of Automotive Voice Recognition System Industry

Automotive Voice Recognition System Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 3.06 Billion
Market Size (2029) USD 6.09 Billion
CAGR (2024 - 2029) 14.77 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Automotive Voice Recognition System Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

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 in order to offer a hands-free communication experience to avoid or minimize the driver's distraction while driving the vehicle in the interest of enhanced safety.

The automotive voice recognition system market is segmented by vehicle type, technology, vehicle class, and geography. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By technology, the market is segmented into embedded, cloud-based, and hybrid. By vehicle class, the market is segmented into economy, mid-priced, and luxury. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.

The report offers size and forecasts for the automotive voice recognition system market in value (USD) for all the above segments.

By Vehicle Type
Passenger Cars
Commercial Vehicles
By Technology
Embedded
Cloud-based
Hybrid
By Vehicle Class
Economy
Mid-priced
Luxury
By Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East and Africa
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Automotive Voice Recognition System Market Size Summary

The automotive voice recognition system market is poised for significant growth, driven by the increasing production and sales of vehicles globally, alongside rising consumer income levels that encourage spending on luxury and comfort features. The market is further bolstered by advancements in infotainment and technology services aimed at enhancing driver safety and comfort, as well as the growing demand among younger consumers for vehicles equipped with the latest connectivity and AI features. The rapid development of autonomous and connected vehicle technologies is also a key factor, as these systems provide hands-free experiences that are becoming standard in modern vehicles. The increasing penetration of electric vehicles worldwide is contributing to the demand for these advanced systems, as they are integral to the modern driving experience.

Regionally, Asia-Pacific is expected to be the fastest-growing market, fueled by high sales of connected vehicles and a young consumer base eager for the latest technological advancements. Europe and North America follow as significant markets due to their affinity for new-age technologies and high sales of connected vehicles. The market is characterized by intense competition, with major players forming strategic partnerships with automobile manufacturers to integrate voice recognition technologies into vehicles. Innovations such as AI-powered voice assistants and advanced connectivity features are being rapidly adopted by luxury and premium car manufacturers to maintain a competitive edge. The market's growth is further supported by collaborations and technological advancements, including the integration of AI and virtual assistants, which are set to enhance user experiences in vehicles over the forecast period.

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Automotive Voice Recognition System Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increasing Demand for Luxury and Premium Passenger Cars to Foster Market Growth

    2. 1.2 Market Restraints

      1. 1.2.1 High Purchase and Installation Costs Deter Market Growth

    3. 1.3 Industry Attractiveness - Porter's Five Forces' Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Passenger Cars

      2. 2.1.2 Commercial Vehicles

    2. 2.2 By Technology

      1. 2.2.1 Embedded

      2. 2.2.2 Cloud-based

      3. 2.2.3 Hybrid

    3. 2.3 By Vehicle Class

      1. 2.3.1 Economy

      2. 2.3.2 Mid-priced

      3. 2.3.3 Luxury

    4. 2.4 By Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Rest of North America

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 United Kingdom

        3. 2.4.2.3 France

        4. 2.4.2.4 Italy

        5. 2.4.2.5 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 China

        2. 2.4.3.2 India

        3. 2.4.3.3 Japan

        4. 2.4.3.4 South Korea

        5. 2.4.3.5 Rest of Asia-Pacific

      4. 2.4.4 Rest of the World

        1. 2.4.4.1 South America

        2. 2.4.4.2 Middle East and Africa

Automotive Voice Recognition System Market Size FAQs

The Automotive Voice Recognition System Market size is expected to reach USD 3.06 billion in 2024 and grow at a CAGR of 14.77% to reach USD 6.09 billion by 2029.

In 2024, the Automotive Voice Recognition System Market size is expected to reach USD 3.06 billion.

Automotive Voice Recognition System Market Report Snapshots

Automotive Voice Recognition System Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)