Status : Published Published On : Aug, 2021 Report Code : VRAT4006 Industry : Automotive & Transportation Available Format : Page : 247

Global Voice Recognition Market in Automotive – Analysis and Forecast (2021-2027)

Industry Insights by Application (Artificial Intelligence and Non-Artificial Intelligence), by Technology (Embedded and Hybrid), End User (Economy Vehicles, Luxury Vehicles and Mid-Price Vehicles), by Fuel Type (Battery Electric Vehicle, Internal Combustion Engine and Others), by Level of Autonomous Driving (Autonomous, Semi-Autonomous and Conventional), and by Vehicles (Passenger Vehicles (PVs) and Commercial Vehicles (CVs))

Industry Overview

The voice recognition market for automotive is to grow to USD 4.12 billion by 2027, at a CAGR of 20.18% during the forecast period 2021-2027. Voice recognition in automotive helps in reducing driver disruption and provides safety and comfort level in the vehicle. The increasing trend towards connected vehicles, rise in the level of autonomous driving, and comprehensive adoption of smartphone environment in cars are the key factors driving the global voice recognition market in automotive. Furthermore, an increase in disposable income, integrating technology to support centralized function, are the other drivers for the growth of the market. With the use of augmented and improved acoustics in vehicles, it is anticipated that the noise in the vehicle cabin will be reduced during the forecast period. This will provide a better user experience, because the unwanted voice will not be mixed with the user's voice, and the VR system will be able to produce better results in a short period of time.

 Different technologies have contributed to the size of the voice recognition market in the automotive industry. The market is anticipated to project high demand for embedded technology during the forecast period owing to the rising traction for connected vehicles, and the advancement of in-vehicle infotainment systems.

The COVID-19 pandemic is anticipated to have an adverse effect on the automotive as various countries are facing cash flow problems and low liquidity. However, after the reopening of economic activities in various countries and robust vaccination drive, the voice recognition market in automotive is anticipated to have a steady growth.

Market Segmentation

Insight by Application

Based on application, the voice recognition market in automotive is bifurcated into artificial intelligence and non-artificial intelligence. Among these two applications, the non-artificial intelligence segment is anticipated to hold the largest share in the market. Furthermore, the artificial intelligence-based voice recognition segment is estimated to grow at the fastest rate in the market due to technological advancement because it is used as a tool for developing infotainment features in autonomous and semi-autonomous vehicles.

Insight by Technology

Based on technology, the voice recognition market in the automotive industry is divided into embedded and hybrid. Of these two technologies, the embedded segment is anticipated to grow at a faster pace in the voice recognition market in automotive due to the rising demand for connected vehicles, development of in-vehicle infotainment systems, the rising need for comfort and convenience, and the growth of semi-autonomous and autonomous vehicles.

Insight by End User

Based on the end-user, voice recognition in automotive is segmented into economy vehicles, luxury vehicles, and mid-priced vehicles. Of all the end-users, luxury vehicles are projected to witness the largest share in the voice recognition market in automotive during the forecast period. In addition, economy vehicles are expected to grow at a faster pace owing to the rising demand for ease and convenience features and the incorporation of technology to reinforce centralized functions in the vehicles.

Insight by Fuel Type

Based on the fuel type, the voice recognition market in automotive is categorized into battery electric vehicle (BEV), internal combustion engine (ICE), and others. Of all the fuel types, the battery electric vehicle (BEV) segment is projected to grow at a faster pace in the voice recognition market in automotive due to the growing production of electric vehicles. In addition, the internal combustion engine (ICE) segment accounts for the largest share in the market due to its production and sale. Owing to the sluggish infrastructural expansion for electric vehicles and hybrid vehicles in developing countries, there is a limited growth of BEV types of vehicles and an upsurge in the demand of the ICE vehicle segment.

Insight by Level of Autonomous Driving

Based on the level of autonomous driving, the market is segregated into autonomous, semi-autonomous, and conventional. Among all levels of autonomous driving, the semi-autonomous segment is projected to be the fastest-growing segment for the voice recognition market in automotive due to constant advancement in infotainment features and the increasing automation in driving functions. In addition, the conventional segment is expected to have the largest share of the market.

Insight by Vehicles

Based on vehicles, the voice recognition market for automotive is classified into passenger vehicles (PVs) and commercial vehicles (CVs). Passenger vehicles include hatchbacks, sedans, multi-purpose vehicles (MPVs), and sport utility vehicles (SUVs). Commercial vehicles include lightweight commercial vehicles (LCVs) and heavy commercial vehicles (HCVs). The passenger vehicles are anticipated to grow exponentially during the forecast period as there is a rising demand for safety and comfort along the integration of technology will fuel the growth of this segment.

Industry Dynamics

Growth Drivers

Extensive use of the smartphone environment in cars, the evolution of technology to support centralized function, the rising need for connected cars, and the increasing traction of autonomous vehicle driving are the important growth drivers for the voice recognition market in the automotive industry. For instance, voice recognition systems in automotive consist of regulators of communication systems assimilated in the car infotainment system comprising a telephone, audio devices, and objective involvements for navigation. Furthermore, the influence of e-commerce in the automotive sector, the growing importance of automotive voice techniques, rising demand for safety features in automobiles, stringent regulatory regulations, consumer awareness is other factors driving the growth of voice recognition in the automotive industry.

Voice recognition systems can expand to an integrated personal assistant system, innovation of connected cars, driverless cars, and electric vehicles in the auto industry and novel prospects for data-driven services are also facilitating the growth for the voice recognition market in automotive.

Challenges

The high price of the high-end voice recognition systems, data security concerns, dual voice, and language and vernacular translation concerns are the major challenges for the growth of the voice recognition market in automotive. However, the cost of the voice recognition system is expected to decline in the future, as a greater implementation rate by vehicle manufacturers to provide passenger cars with voice recognition systems will lead to an upsurge in the demand for voice recognition systems for automotive.

Opportunities

Motorcycle intelligent biometric voice recognition feature and innovation of VR systems to integrate assistant systems are projected to provide promising opportunities in the global market in the future years.

Industry Ecosystem

Globally industry players are leveraging market growth by product launch. However, the high level of capital requirement poses a major threat for the entry of new players. This offers an edge to the established players in the industry competition.

Geographic Overview

Geographically, Asia-Pacific is observed to witness the highest growth in the voice recognition market in automotive owing to the increase in the sale of passenger cars, emerging economies, shifting of industry participants, technological development. Moreover, there is an upsurge in the production of automobiles and substantial implementation of enhancing technologies in automotive electronics, rising disposable income, speedy urbanization and refining lifestyle of consumers are also increasing the demand in the Asia-Pacific voice recognition market in automotive.

Competitive Insight

Key players in the voice recognition market in automotive are catering to the demand by collaborating with small players, investing in R&D by innovating new and advanced products, and investing in technologically advanced voice recognition devices globally.

BMW and Microsoft collaborated to develop an improved in-car voice recognition system. Using the enhanced techniques of machine learning and artificial intelligence.

SoundHound, an audio and speech recognition company collaborated with Hyundai, an automotive company, to introduce Houndify, a voice-enabled AI platform, to the Hyundai Venue SUV. This smart and voice-enabled SUV has been launched in India also.

Nuance, Vocalzoom, Sensory, Apple, Alphabet, Inago, LumenVox, Microsoft, Daimer AG, and Ford Motor Company are the key players offering voice recognition systems in the automotive industry.

Voice Recognition Market in Automotive Size

Source: VynZ Research

Voice Recognition Market in Automotive Analysis

Source: VynZ Research

Frequently Asked Questions

Nuance, Vocalzoom, Sensory, Apple, Alphabet, and Inago are the key players offering voice recognition systems in the automotive industry.
On the basis of application, the voice recognition market in automotive is subdivided into artificial intelligence and non-artificial intelligence. Of the two applications, non-artificial intelligence segment accounted for the largest share in the market.
Voice recognition in automotive help in decreasing the driver disruption and improves the comfort level in the vehicle. Increasing traction towards the connected vehicles and level of autonomous and comprehensive usage of smartphone environment in cars are the major factors driving the global voice recognition market in automotive.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Voice Recognition Market in Automotive