Automotive Voice Recognition System Market Size $11.17 Bn by 2032

Published Date : 02 Feb 2024

The global automotive voice recognition system market size was exhibited at USD 2.50 billion in 2022 and is projected to attain around USD 11.17 billion by 2032, growing at a CAGR of 16.20% during the forecast period from 2023 to 2032.

Automotive Voice Recognition System Market Size and Growth rate from 2023 to 2032

Market Overview

The automotive voice recognition system market refers to the segment of the automotive industry that involves the development, implementation, and integration of voice recognition technologies into vehicles. Speech recognition, sometimes termed voice recognition, is a technology formed by combining the scientific study of language and computer technologies. Voice recognition is often used in collaboration with machine learning (ML) and artificial intelligence (AI). It enables machines and programs to receive speech as input, understand the commands they receive, and finally give results as output.

Automotive voice recognition systems can be enforced to understand words and phrases or to identify a specific individual's voice. Voice recognition system in cars consists of a microphone for collecting the driver's voice, a speech recognition system for processing and analysing the commands, and a control module that executes final actions based on recognitions.

The automotive voice recognition system market offers embedded systems, which are preinstalled in the vehicles and consist of limited commands. Another cloud-based system uses cloud computing to analyse and interpret the input given. Apart from these two, there is another hybrid system, a mixture of embedded and cloud-based technology. It offers a smooth working of the automotive voice recognition system.

Voice recognition is predicted to be a vital feature of the future autonomous vehicles market, with drivers eventually giving up on their ability to control the car mechanically. Other speech recognition applications, including automated drones, two-wheelers, and even taxis, are on the way.

  • In April 2023, SoundHound AI Inc. launched SoundHound Chat AI for Automotive. It is an in-vehicle voice assistant that gives automakers and customers access to the most powerful voice AI technology available nowadays. It offers an in-vehicle voice assistant that combines Generative AI capabilities, like ChatGPT, with an established best-in-class voice assistant.

Regional Analysis

North America has the largest share of the automotive voice recognition system market because of the developers that are present in large numbers and the uplift in sales of connected vehicles among the population as automobile giants are increasingly trying to produce innovative technology, the market of the region is predicted to grow exponentially during the forecast period. The chase for dominance in AI-powered automotive voice recognition is rising in developed economies like the United States and Canada. Some key market players in the region with a global outreach include Nuance, Microsoft, Alphabet, Apple, and Harman.

  • 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.

Asia Pacific is observed to expand at the fastest rate in the automotive voice recognition system market during the forecast period owing to the rapidly evolving automotive industry in the region. Asia Pacific has witnessed a significant increase in automotive sales, driven by rising disposable incomes, urbanization, and changing lifestyles. As more vehicles are equipped with advanced features, including voice recognition systems, the market experiences growth. There is a growing demand for connected vehicles that offer advanced infotainment and connectivity features. Voice recognition systems play a crucial role in enhancing the user experience by providing hands-free control over in-car systems.

Automotive Voice Recognition System Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 2.89 Billion
Projected Forecast Revenue by 2032 USD 11.17 Billion
Growth Rate from 2023 to 2032 CAGR of 16.20%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics


High demand for safety

The voice recognition technology in cars improves safety by permitting drivers to multitask with a focus on the road. Drivers can access many of the car's functions using voice commands, eliminating the need to manually interact with buttons or touch the screens. This increases user comfort and distractions, leading to safe driving. The implementation of global rules prohibiting the use of mobile phones while driving also encourages the use of voice recognition systems. Countries such as the United States, Canada, and India have established rules and regulatory bodies that create less distraction for drivers and improve safety. As the requirement for safety increases, the automotive voice recognition system market is observed to expand.

Adoption of advanced technologies

Consumers are becoming increasingly accustomed to the features and technologies of modern vehicles. The voice recognition system allows drivers to communicate easily with cars. The introduction of natural language processing (NLP) and advances in machine learning in the automotive speech recognition system have improved the accuracy of understanding the human voice and facilitated the processing of various commands and user input. Such adoption of advanced technologies in the industry is observed to fuel the growth of the automotive voice recognition system market.

Nowadays, voice recognition systems can better understand and interpret commands, making them more usable and efficient. This contributes to the growth of automotive speech recognition systems becoming increasingly sophisticated as technology advances and can interpret more complex commands.

  • In August 2023, SoundHound AI Inc. collaborated with Togg to deliver advanced AI technology that includes innovative Edge+Cloud connectivity, multiple language capabilities, and a custom-branded voice assistant to New Smart Vehicles.
  • In February 2022, Pioneer Corporation introduced Promatix AI its new dedicated platform for mobility which enables functions like search and control through voice commands.


High cost

The high cost associated with speech recognition technology is one of the main limitations for the growth of automotive voice recognition system market. The cost of developing and integrating advanced speech recognition systems may limit their adoption, especially in the market, which is sensitive to the high price. Also, integrating speed recognition technology into current automotive platforms can be challenging. It requires complete integration, including information technology, navigation services, and connectivity services, which is complex and difficult for automakers, resulting in other significant issues.

Economic decline

The ongoing economic decline has led to decreased consumer spending for luxurious items, which also affects the automotive industry overall. Consumers are limited to their most essential purchases instead of luxury or advanced technology features. This also impacts the adoption of biometric solutions in vehicles.


Automotive biometric technology

Automotive biometric technology includes facial, fingerprint, iris, and voice recognition. It is a technology required for authentication to provide an extra layer of security. The continuous evolution of biometric technology has resulted in more accurate and reliable systems. The growing awareness and attention to the safety and security of vehicles between consumers and regulatory authorities further fuel the demand.

Browse: Automotive Aftermarket Demand till 2030

Recent Developments

  • In March 2023, Kia Corporation announced the development of a new combined system of infotainment featuring a remote-controlled climate change system and a voice recognition system to uplift its presence in the rapidly growing global car infotainment market.
  • In June 2022, Cerence CTO Prateek Kathpal announced the opening of a new office in Pune, India. He said the company offers three products for cockpit experience in the automotive industry. It also allows one to control the car by voice and AI-based voice assistants.

Key Market Players

  • Apple
  • Microsoft
  • VoiceBox
  • Alphabet
  • Sensory
  • Nuance
  • Harman

Market Segmentation

By Technology

  • Embedded
  • Cloud-Based
  • Hybrid

By Application

  • AI
  • Non-AI

By Vehicle Type

  • ICE
  • BEV

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