Automotive Voice Recognition System Market is Growing
by Increasing Demand for Convenient Driving Experience

Automotive voice recognition systems allow users to control
functions in their vehicle using voice commands instead of buttons or switches.
It recognizes speech and completes tasks such as making phone calls, selecting
music, getting directions, and controlling climate control. The growing need
for convenient driving experience and the rising demand for advanced in-vehicle
infotainment systems are fueling the adoption of automotive voice recognition
systems. Automotive voice control provides a safer and more convenient way to
operate vehicle functions while driving and keeping eyes on the road.



The Global Automotive Voice Recognition
System Market is estimated to be valued at US$ 6.5 Billion in 2024 and is
expected to exhibit a CAGR of 15% over the forecast period 2024-2031.



Key Takeaways

The Automotive
Voice Recognition System Companies are Nuance Communications,
Microsoft, Alphabet (Google), Sensory, VoiceBox Technologies, Iflytek Co,
Fuetrek, AMI, and LumenVox.



The increasing awareness regarding safety while driving and convenience offered
by voice control is driving the demand for automotive voice recognition systems
globally. Advanced systems provide features such as navigation, call controls,
and media controls to enhance driving experience.



Major automotive companies are focusing on expanding their footprint in
emerging markets of Asia Pacific and Latin America. Partnerships with
technology companies for advanced systems and availability of compact and
affordable solutions will accelerate the adoption of automotive voice
recognition globally.



Market Key Trends

Continuing innovation in natural language processing technology is the Automotive
Voice Recognition System Market Trend. Advanced algorithms powered by
deep learning and AI are improving speech recognition accuracy in noisy vehicle
environments. Systems can now understand complex commands and contextual cues
for more intuitive interactions. Integration of smart virtual assistants and
enhanced personalization as per driver profile and preferences are also gaining
traction. This is expanding the scope of tasks that can be managed through
simple voice commands.

Porter’s
Analysis

Threat of
new entrants: Low investment need for new companies to enter the market but
established players dominate through patents and economies of scale.

Bargaining power of buyers: Automakers have significant bargaining power over
voice recognition system providers as they can influence supply but demand size
prevents excessive exploitation.

Bargaining power of suppliers: Major technology companies that provide the
voice recognition software and semiconductors have strong bargaining power due
to differentiated products and significant switching costs for automakers.

Threat of new substitutes: Alternatives like physical buttons are being
replaced but voice commands still have limitations over touchscreens,
restricting threat currently from new substitutes.

Competitive rivalry: Intense competition amongst technology giants to lead
innovations in voice recognition capabilities and partnerships with automakers.



The automotive voice recognition system market in North America accounts for
the largest share in terms of value owing to early adoption by major automakers
and presence of global technology leaders. United States contributes most to
the North American market due to large automotive production and high average
selling price of vehicles.

China is expected to emerge as the fastest growing market
for automotive voice recognition systems over the forecast period. This can be
attributed to increasing sales of premium vehicles, government investments to
develop connectivity and autonomy technologies, and design improvements by
domestic automakers to integrate voice interfaces for Chinese language.

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Voice Recognition System Market

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Author:

Ravina
Pandya, Content
Writer, has a strong foothold in the market research industry. She specializes
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