Voice Recognition System Market for Automotive Research Report - Global Forecast to 2030

Automotive Voice Recognition System Market Research Report Information By Technology (Embedded, and Hybrid) By Application (AI, and Non-AI), By Vehicle Type (Passenger Vehicle, and Commercial Vehicle), And By Region (North America, Europe, Asia-Pacific, And Middle East & Africa) - Forecast Till 2030

ID: MRFR/AM/3718-HCR | 111 Pages | Author: Sejal Akre | June 2023         

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Automotive Voice Recognition System Market Overview:


Automotive Voice Recognition System Market Size was valued at USD 5.97 billion in 2022. The Voice Recognition System market industry is projected to grow from USD 7.31 billion in 2023 to USD 16.44 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 22.48% during the forecast period (2022 - 2030). Recent technological advancements in the VR system along with the growing demand for voice biometric systems for user authentication drive the market growth.



Voice Recognition System Market Overview


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Voice Recognition System Market Trends


Growing Technological Advancements to Augment the Market for Voice Recognition System


Several technological advancements are supporting the speech recognition system market growth opportunities. The evolution of VR integrated into assistant systems is also providing growth opportunities for the market. The integration of VR into the assistant system significantly increases productivity and safety in working spaces. Popular voice assistants such as Alexa and Google assistant have tremendous demand.


Also, voice recognition with these popular voice assistants can enhance the safety and operations of the systems. The customer can take advantage of voice shopping through this technological advancement. Voice shopping will be safe due to the identification of the purchaser’s voice. The conversational commerce report suggests around 51% of customers are already utilizing the voice assistant for shopping. Further, the incorporation of voice recognition with the assistant will provide significant growth possibilities for the market. This growth opportunity will prove advantageous for the market. The demand for these products and the market expansion rate will be exceptional during the forecast period.


However, the growing cyber-attacks on various sectors is another factor driving the growth of the VR system market revenue.


Voice Recognition System Market Segment Insights:


Voice Recognition System Type Insights


On the basis of technologies, the market has been further divided into AI and non-AI technologies. The Non-AI segment accounted for a dominant share of the market in 2022. The segment is estimated to hold the leading position growing at a steady CAGR during the forecast period. On the other hand, the AI technology segment is anticipated to record the fastest growth rate during the forecast period. The demand for Artificial intelligence-based technology is increasing as the system automatically recognizes the patterns of speech precisely.


The rising developments in machine learning and natural language processing are expected to boost the growth of the Artificial intelligence-based technology segment. A rising number of Artificial intelligence-based digital assistants, such as Alexa and Cortana, are expected to drive the demand for voice and speech recognition solutions over the forecast period.


February 2017: Facebook improved the Oculus Rift VR platform by integrating speech recognition into the headset.


July 2022: Japanese, Cantonese, and Mandarin voice recognition have been incorporated in Homepod Software 15.6. Over the course of the projected period, situations like these are anticipated to fuel market expansion.


Voice Recognition System Technology Insights


The speech recognition system market segmentation, based on technology, includes embedded, and hybrid. The hybrid segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the cost-effectiveness and ease of use make single-factor VR systems. The key drivers of the segment include the convenience of voice recognition, demand from the automotive industry, and growing security concerns. Also, the technological advancements in the product category and new product launches are also supporting the market growth.  Hence, rising applications of hybrid technology positively impact the market growth.


Figure 1: Automotive Voice Recognition System Market, by Technology, 2022 & 2030 (USD Billion)


Voice Recognition System Market, by Technology, 2022 & 2030


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Voice Recognition System Regional Insights


The market has been further split into North America, Europe, Asia-Pacific, the Middle East, and Africa based on geography. The largest portion of revenue in 2022 was generated in North America. The region is anticipated to continue to grow at a constant CAGR and hold the leading market position during the forecast period. The market in the North American area is anticipated to be driven by the increasing use of voice-enabled applications in smartphones and voice & speech recognition in mobile banking, consumer electronics, and IoT devices.


Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: AUTOMOTIVE VOICE RECOGNITION SYSTEM MARKET SHARE BY REGION 2022 (USD BILLION)


VOICE RECOGNITION SYSTEM MARKET SHARE BY REGION 2022


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe speech recognition system market accounts for the second-largest market share due to the growing trend of linked devices in automotive and home automation, to see greater applications in the consumer electronics and retail industries. Further, the Germany speech recognition system market held the largest market share, and the UK speech recognition system market was the fastest growing market in the European region


The Asia-Pacific speech recognition system Market is expected to grow at a CAGR of 28.9% from 2023 to 2030. The expansion of the APAC regional market is also anticipated to be aided by the increasing adoption of voice-enabled devices in the automotive and healthcare sectors. Moreover, China speech recognition system market held the largest market share, and the India speech recognition system market was the fastest growing market in the Asia-Pacific region


China, which has the biggest population in the world, is anticipated to embrace voice recognition technologies at a rapid rate. Voice recognition software will be even more necessary in 2021, when CNNIC estimated that 903.63 million mobile users would use payment services on their smartphones. The amount of voice-based searches has expanded as a result of the region's expanding retail and e-commerce sectors. Businesses like Alibaba, Baidu, Google, and Amazon saw a surge in sales of their individual voice-activated smart gadgets. For instance, the most recent Ascential Digital Commerce report predicted that Southeast Asia's eCommerce sales will rise by 18% to USD 38.2 billion in 2022.  Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.


Automotive Voice Recognition System Key Market Players & Competitive Insights


Major market players are spending a lot of money on R&D to increase their product lines, which will help the speech recognition system market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the speech recognition system industry must offer cost-effective solutions to expand and survive in an increasingly competitive and rising market environment.


One of the primary business strategies adopted by manufacturers in the speech recognition system industry to benefit clients and expand the voice recognition system market sector is to manufacture locally to reduce operating costs. In recent years, speech recognition system has provided solutions with some of the most significant benefits. In order to acquire a competitive advantage, market vendors are concentrating on growing their consumer base. As a result, important players are undertaking a number of strategic activities, including collaborations and mergers.


The entry of new market players will change the speech recognition system market outlook. The market players are establishing new strategies, market expansion measures and acquisitions in the forecast period. Also, there are high possibilities for product launches and technological advancements.


For instance, Microsoft and Nuance Communications introduced Nuance Dragon Ambient experience (DAX) in September 2020. This Ambient Clinical Intelligence (ACI) solution is now integrated into Microsoft Teams and enables large-scale virtual consultations with the goal of improving physician wellness and patient health outcomes.


Key Companies in the Voice Recognition System market includes



  • Nuance (US)

  • Microsoft (US)

  • Alphabet (US)

  • Harman (US)

  • Apple (US)

  • BMW (Germany)

  • Daimler (Germany)

  • Ford (US)

  • IBM Corporation (US)


Automotive Voice Recognition System Industry Developments


June 2022: EveryWord Voice Control, which contains the Sensory TrulyHandsfree SDK software stack, was released by ArkX Laboratories. The innovative far-field speech recognition and voice acquisition technologies from the two companies, when combined with the manufacturing EveryWord Audio Front End (AFE) or Voice Component, enable OEMs to develop custom wake-words, small to moderate control sets (21 dialects), and speech validation designs for voice interfaces.


March 2018: A smart enterprise voice recognition and assistant system powered by AI, cloud, and IoT was introduced by IBM.


Automotive Voice Recognition System Market Segmentation:


Automotive Voice Recognition System Technology Outlook



  • Embedded

  • Hybrid


Automotive Voice Recognition System Application Outlook



  • AI

  • Non-AI


Automotive Voice Recognition System Vehicle Type Outlook



  • Passenger Vehicle

  • Commercial Vehicle


Automotive Voice Recognition System Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Middle East and Africa

    • Middle East

    • Africa





Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 5.97 billion
Market Size 2023 USD 7.31 billion
Market Size 2030 USD 1644 billion
Compound Annual Growth Rate (CAGR) 22.5% (2022-2030)
Base Year 2022
Forecast Period 2023-2030
Historical Data 2020 & 2021
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Technology, Application, Vehicle Type and Region
Geographies Covered North America, Europe, Asia Pacific, and Middle East and Africa
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Nuance (US), Microsoft (US), Alphabet (US), Harman (US), Apple (US), BMW (Germany), Daimler (Germany), and Ford (US)
Key Market Opportunities Evolution of VR systems to integrated assistant systems
Key Market Dynamics Increasing demand for safety features in automobiles Stringent government norms Rapidly rising safety awareness


Frequently Asked Questions (FAQ) :

The voice recognition systems market was USD 4.87 billion in 2022.

The voice recognition systems market in the U.S. was USD 1.62 in 2022

The voice recognition systems market is anticipfavorablyated to develop favourably with a CAGR of 22.48%.

The key players of the market are Ford, Nuance, Daimler, Alphabet, BMW, Harman and Apple.

Key Questions Answered

  • ✅ Global Market Outlook
  • ✅ In-depth analysis of global and regional trends
  • ✅ Analyze and identify the major players in the market, their market share, key developments, etc.
  • ✅ To understand the capability of the major players based on products offered, financials, and strategies.
  • ✅ Identify disrupting products, companies, and trends.
  • ✅ To identify opportunities in the market.
  • ✅ Analyze the key challenges in the market.
  • ✅ Analyze the regional penetration of players, products, and services in the market.
  • ✅ Comparison of major playersโ€™ financial performance.
  • ✅ Evaluate strategies adopted by major players.
  • ✅ Recommendations
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