The Automotive Voice Recognition System Market is anticipated to register a CAGR of about 8 %, during the forecast period (2020 - 2025).
- The major factors that will drive the market growth during the forecast period such as increasing number of automobile production and sales, increased income level of consumers in most parts of the world which is allowing them to spend more on comfort and luxury services, development of infotainment and technology services to provide safety and comfort to the driver.
- Cloud-based voice recognition (VR) systems are expected to capture significant share in the market during the forecast period. With the increase in internet usage and improved internet connectivity and speed all around the world with technologies like 4G and 5G. Also, the cloud-based VR system is expected to be the market leader during the forecast period as the cloud storage providing more improved and exact results based on historic results of the user, which is currently enhancing the user experience and delivering comfort and smooth operations of the vehicle systems thereafter.
- With the use of enhanced and improved acoustics in the vehicles the noise inside the vehicle cabin is expected to reduce during the forecast period. This will provide better experience to the user as no unwanted voice will mix with the user voice and the VR system will be able to produce better results in short duration of time.
Key Market Trends
High Cost Restraining the Market Growth
The OEMs across the globe are consistently improving the voice recognition system in their vehicles to provide the users with the most luxurious experience. But this increasing the overall cost of the vehicle. Back in 2017, the system has been mostly equipped in high-end luxury cars and was not able to find its place in the mid and low-end cars because of the price constraint.
In the developing nations, the demand for passenger cars is in the mid and low segment because the majority of people living in the developing region are middle class and are attracted by the low cost of vehicles that can fulfill their purpose. However, with rapid innovation in technology and concepts like connected cars and driverless cars are coming to life, the voice recognition technology is expected to become a necessity rather than a luxury.
Asia Pacific Witnessing Higher Demand
The region accounts for almost 60% of the world’s population and major developing economies of the world like China and India. During the forecast period, these economies are expected to grow much faster owing to the activities in construction, transportation, industrialization, etc. With these trends, the demand for automobiles increased in the Asia-Pacific and driven several governments in the region to mandate few active and passive safety features in vehicles which in turn boosted the automotive voice recognition system market growth in Asia-Pacific.
With the presence of many major players in the region both in the automobile and technology for automobiles, many innovations and strategic partnerships have been developing better products, to capture major share in the market. For instance, in January 2020, LG and Cerence collaborated to develop a voice recognition system for connected vehicles. The companies will develop new software that will integrate LG’s in-vehicle infotainment system with Cerence’s new voice recognition platform with an aim to improve the user experience for passengers and drivers.
The automotive voice recognition system market is highly fragmented, with several players accounting for significant shares in the market. Some of the prominent companies in the automotive voice recognition system market are Microsoft, Apple, Alphabet, Harman and others. Companies are investing heavily in research and development for the innovation of new and advanced products.
In May 2019, BMW and Microsoft collaborated to develop an improved in-car voice recognition system. Using the enhanced techniques of machine learning and artificial intelligence.
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1.2 Scope of the Study
4.2 Market Restraints
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.1 IC Engine
5.2 Vehicle Price
5.2.1 Economy Vehicles
5.2.2 Mid-Priced Vehicles
5.2.3 Luxury Vehicles
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.3.3 Asia Pacific
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.4 Rest of the World
22.214.171.124 United Arab Emirates
126.96.36.199 Other Countries
6.2 Company Profiles
A selection of companies mentioned in this report includes: