Automotive Voice Recognition System Market (By Technology: Embedded, Cloud-Based, and Hybrid; Application: AI and Non-AI; By Vehicle Type: ICE and BEV) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023 – 2032
The global automotive voice recognition system market was valued at USD 2.89 billion in 2023 and is expected to surpass around USD 11.17 billion by 2032, poised to grow at a CAGR of 16.20% during the forecast period 2023 to 2032.
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The U.S. automotive voice recognition system market reached USD 0.57 billion in 2022 and projected to grow around USD 2.54 billion by 2032, at a CAGR of 16.20% between 2023 to 2032.
Based on region, North America dominated the global automotive voice recognition system market in 2022, in terms of revenue and is estimated to sustain its dominance during the forecast period. The increased disposable income, increased demand for luxury products, increased demand for the personal vehicles owing to the low availability of public transport, and increased demand for the latest technologies in the region are the major factors that fueled the demand for the automotive voice recognition system. Moreover, North America is a huge automotive market and the rising popularity of the electric vehicles owing to the increased awareness regarding the global warming among the population is expected to boost the adoption of the advanced EVs installed with latest automotive voice recognition systems.
On the other hand, Asia Pacific is estimated to be the most opportunistic market during the forecast period. This can be attributed to the factors such as rising disposable income, presence of huge population, rapidly growing urban population, rising middle-class, and developing infrastructure in the region.
The growth of the global automotive voice recognition system market is driven by the rising adoption of the digital technologies in the automotive sector and increasing adoption of vehicles across the globe. The technological advancements and rapid growth in the popularity of voice recognition systems across the globe has fostered the adoption of voice recognition systems in the automotive sector. The rising demand for the vehicles across the globe is propelling the production and sales of vehicles, which in turn is driving the growth of the global automotive voice recognition system market. The rising consumer expenditure on premium services, infotainment, and technological advancements for safety and comfort is expected to augment the demand for the automotive voice recognition systems. Moreover, the emergence of cloud-based voice recognition systems owing to the rising penetration of internet and increased demand for the internet connectivity is driving the sale of the automotive voice recognition systems across the globe.
The improved acoustics used in the manufacturing of vehicles has reduced the noise levels inside the vehicle cabin and this improves the functioning of the voice recognition system. Moreover, the rising popularity of the electric vehicles among the population is a major factor that can be held responsible for the rapid growth of the automotive voice recognition system market. Moreover, the growing popularity of the autonomous driving vehicles is also considered to a major driving force of the market. The market players operating in the voice recognition systems market are investing heavily in biometrics and artificial intelligence technologies, which may provide growth opportunities in the automotive recognition system market in the forthcoming years. Furthermore, the increasing adoption of virtual voice assistants such as Siri, Alexa, Maluuba, and Cotana are boosting the usage of the voice recognition systems in the vehicles owing to the convenience it offers to the users.
| Report Highlights | Details |
| Market Size | USD 11.17 Billion by 2032 |
| Growth Rate | CAGR of 16.20% From 2023 to 2032 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Technology, Application, Vehicle, Region |
| Companies Mentioned | Apple, Microsoft, VoiceBox, Alphabet, Sensory, Nuance, Harman |
Based on technology, the embedded segment accounted highest revenue share in 2022. This can be attributed to the ease of installation associated with the embedded technology for the manufacturers. The early adoption of the embedded voice recognition by the car manufacturers and increased number of installations in the vehicles to offer hands-free access to the customers has significantly boosted the growth of this segment in the past.
On the other hand, the cloud-based segment is estimated to be the most opportunistic segment during the forecast period. This can be attributed to the rising demand for the internet connectivity. The rising number of connected devices across the globe is further expected to fuel the segment growth. Moreover, the rising number of autonomous driving vehicles is fulling the growth of the cloud-based voice recognition systems. The cloud-based technology offers various advantages like live access to maps, music, and various other features that is expected to increase its demand among the users during the forecast period.
Based on application, the AI segment accounted largest revenue share in 2022. AI is also considered to be the fastest-growing segment during the forecast period. The car manufacturers were one of the early adopters of the AI based voice recognition systems. This can be attributed to the increased demand and adoption of the virtual voice assistants like Siri and Alexa. The ability to recognize voices and respond to it in real-time is a major feature that fosters the growth of this segment. Moreover, the rising number of autonomous driving vehicles is boosting the adoption of the AI enable voice recognition systems in vehicles across the globe.
Based on vehicle type, the ICE segment dominated the global automotive voice recognition system market in 2022, in terms of revenue. This can be simply attributed to the increased production, sales, and adoption of the ICE vehicles across the globe. The rising disposable income, increased urbanization, and growing need for the private commute has propelled the growth of the ICE segment. Moreover, the manufacturers initially adopted the voice recognition systems in ICE vehicles much before the electric vehicles came to limelight.
On the other hand, the BEV segment is expected to be the fastest-growing segment during the forecast period. This is attributed to the increasing adoption of the electric vehicles owing the rising global warming issues and increased government and corporate initiatives to reduce the carbon footprint across the globe. Moreover, the technological advancements being introduced in the electric vehicles is gaining traction among the global population, which is expected to drive the adoption of EVs in the forthcoming years.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
In January 2020, LG collaborated with Cerence to develop automotive voice recognition system for the connected vehicles.
The various developmental strategies like collaborations, partnerships, mergers, and government policies fosters market growth and offers lucrative growth opportunities to the market players.
Segments Covered in the Report
By Technology
By Application
By Vehicle Type
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Automotive Voice Recognition System Market
5.1. COVID-19 Landscape: Automotive Voice Recognition System Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Automotive Voice Recognition System Market, By Technology
8.1. Automotive Voice Recognition System Market, by Technology Type, 2023-2032
8.1.1. Embedded
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Cloud-Based
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Hybrid
8.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Automotive Voice Recognition System Market, By Application
9.1. Automotive Voice Recognition System Market, by Application, 2023-2032
9.1.1. AI
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Non-AI
9.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Automotive Voice Recognition System Market, By Vehicle
10.1. Automotive Voice Recognition System Market, by Vehicle, 2023-2032
10.1.1. ICE
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. BEV
10.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Automotive Voice Recognition System Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Technology (2020-2032)
11.1.2. Market Revenue and Forecast, by Application (2020-2032)
11.1.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Technology (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Application (2020-2032)
11.1.4.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Technology (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Application (2020-2032)
11.1.5.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Technology (2020-2032)
11.2.2. Market Revenue and Forecast, by Application (2020-2032)
11.2.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Technology (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Application (2020-2032)
11.2.4.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Technology (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Application (2020-2032)
11.2.5.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Technology (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Application (2020-2032)
11.2.6.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Technology (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Application (2020-2032)
11.2.7.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Technology (2020-2032)
11.3.2. Market Revenue and Forecast, by Application (2020-2032)
11.3.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Technology (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Application (2020-2032)
11.3.4.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Technology (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Application (2020-2032)
11.3.5.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Technology (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Application (2020-2032)
11.3.6.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Technology (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Application (2020-2032)
11.3.7.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Technology (2020-2032)
11.4.2. Market Revenue and Forecast, by Application (2020-2032)
11.4.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Technology (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Application (2020-2032)
11.4.4.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Technology (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Application (2020-2032)
11.4.5.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Technology (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Application (2020-2032)
11.4.6.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Technology (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Application (2020-2032)
11.4.7.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Technology (2020-2032)
11.5.2. Market Revenue and Forecast, by Application (2020-2032)
11.5.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Technology (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Application (2020-2032)
11.5.4.3. Market Revenue and Forecast, by Vehicle (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Technology (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Application (2020-2032)
11.5.5.3. Market Revenue and Forecast, by Vehicle (2020-2032)
Chapter 12. Company Profiles
12.1. Apple
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Microsoft
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. VoiceBox
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Alphabet
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Sensory
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Nuance
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Harman
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
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