Speech in Cars Primed for Huge Growth
The voice recognition system market for automotive is estimated at $941 million today and is expected to reach $3.89 billion by 2025, growing at a compound annual rate of 19.4 percent, according to data from ResearchandMarkets.
The research firm found that the majority of consumers now demand advanced comfort and convenience features, which largely influence their purchase decisions. The rising trend of premium vehicles equipped with advanced convenience features is also an important factor to be considered for the growth of voice recognition system market.
Automotive voice recognition systems help drivers access infotainment features, such as navigation and music, and can link smartphones to the central functions of the vehicle. Increasingly, such systems are also being integrated with a growing number of digital personal assistants, like Amazon Alexa, through smartphone and Bluetooth connectivity, which is helping to fuel industry growth.
Currently, North America is the largest market for voice recognition systems, due to its high demand for premium-segment vehicles and additional safety and convenience features in mid-variant vehicles. But Asia-Pacific is expected to gain ground and take over the lead by 2025, due to expected increases in disposable income in developing countries like India and China and rising demand for premium cars as well as comfort features in vehicles.
But while the car voice systems market is rife with opportunities, there are also a number of challenges, least of which is the high cost of such technologies and the small number of firms developing systems that use neural networking and cloud-based technologies, according to ResearchandMarkets. The market is expected to continue struggling with data security concerns, designing a user-friendly system to mitigate driver distraction, and language and translation issues, the firm also predicts.
Among the companies leading the industry, the report identifies Alphabet (Google), Apple, Harman, Inago, Lumenvox, Microsoft, Nuance Communications, Sensory, Vocalzoom, and Voicebox.