The Automotive Voice Command System Market Projected to Grow at a CAGR of 20.25% and Generate Revenue of $8,681.8 Million by 2031
Download Sample Reports OverviewThe global automotive voice command system market size is predicted to be valued at $8,681.8 million by 2031, surging from $1,487.3 million in 2021, at a CAGR of 20.25%.
COVID-19 Impact on Automotive Voice Command System Market
The COVID-19 pandemic halted several business activities across the globe, leading to a disturbance in the supply chain and civil life. Several original equipment manufacturers (OEM) had shut down their production due to severe supply chain disruption. A fall in vehicle sales was registered in the initial months of 2020, owing to the delay in new vehicle production. The sales of cars in China and India are the most prominent across the globe. However, during the COVID-19 pandemic, the sales of vehicles in both countries declined sharply owing to severe COVID-19 restrictions. Due to all these factors, the automotive voice command system market also experienced a negative impact during the pandemic.
The post-COVID-19 outlook of the automotive voice command system market is optimistic as many countries have relaxed strict lockdowns. Over the last few months, the automotive sector has shown remarkable growth. The sector is registering robust year-over-year growth in new-vehicle sales across the U.S., India, China, and others. The robust vehicle sales are anticipated to boost the automotive voice command system market growth.
Automotive Voice Command System Market Analysis
The cutting-edge concept of speech recognition technology is used in automotive voice command systems in the car. In recent times, speech recognition technology has become an integral part of the in-car experience. The advancements in speech recognition algorithms are necessary to keep drivers secure by eliminating the distraction of looking at smartphones while driving a car. Several studies indicate that driver distraction levels are much higher while using touchscreen gadgets compared to voice command systems. The global automotive voice command system market is mainly driven by the increase in the adoption of digital technologies in the automotive sector. In addition, the surge in demand for electric vehicles globally is also anticipated to drive automotive voice command system market demand. The integration of voice commands in vehicle operation provides ease of use and safety. The increase in safety concerns of vehicle users increases the need for voice recognition systems in vehicles. With all these factors, the global automotive voice command system market is expected to witness significant growth during the forecast period.
The automotive voice command system market is expected to witness a negative impact owing to the high installation cost of the system. Car manufacturers are continuously improving the voice command system in their vehicles to provide driver ease of use, but this increases the overall cost of the vehicle. Hence, the main players in the automotive voice command system market are increasingly collaborating to reduce the cost and improve the voice command system using artificial intelligence (AI) technology. This, in turn, is expected to offer ample opportunities to the major market players.
Global Automotive Voice Command System Market Share, Segmentation
The automotive voice command system market is segmented based on technology, application, vehicle type, and region.
The technology segment is classified into embedded and others. Among these, the others sub-segment is estimated to witness the fastest growth as well as dominate the market during the forecast period. The growth of the others sub-segment is majorly driven by the extensive demand for Internet connectivity across the world. In addition, the increase in the number of connected devices is expected to rise substantially during the forecast period. The others sub-segment is further divided into hybrid and cloud. The cloud-based technology uses recorded data of a user which highly improves the users’ in-car experience and offers comfort. The technology also helps to run the voice command and control mechanism more quickly. The hybrid voice command system has partial cloud connectivity. A hybrid solution is highly desirable in both areas including areas with connectivity and areas without connectivity.
The application segment is classified into AI and non-AI. Among these, the AI sub-segment is expected to have a dominant market share during the forecast period. The increase in popularity of virtual voice assistants such as Google Assistant, Alexa, Siri, and others in the market is one of the major factors responsible for the sub-segment growth. Furthermore, the advancements in autonomous/self-driving cars are also encouraging the adoption of AI-enabled voice command systems across the globe.
The vehicle type segment is classified into Internal Combustion Engine (ICE) and Battery Electric Vehicle (BEV). Among these, the BEV sub-segment is projected to witness the fastest growth during the forecast period, owing to an increase in sales of electric vehicles across the globe. Moreover, improved charging infrastructure, price parity with traditional vehicles, government incentives, and a steep decline in battery prices are driving sales of BEVs. This, in turn, is expected to increase the demand for automotive voice command systems in BEVs.
The automotive voice command system market size in the Asia-Pacific region is projected to witness the fastest growth during the forecast period. The rise in the production of automobiles and the substantial adoption of advanced technologies in the automotive sector are the market drivers in the region. Moreover, there is an increase in the sales of electric vehicles in the Asia-Pacific due to an increase in awareness regarding global warming among the people.
Key Players in the Global Automotive Voice Command System Market
Some of the leading automotive voice command system market players are
Nuance Communications, Inc.
Ford Motor Company