Voice Assistant Application Market to Grow by $21.93 Billion Through 2028
Research firm Technavio expects the global voice assistant application market to grow by $21.93 billion through 2028, representing a compound annual growth rate of 40.94 percent.
Digital transformation is driving this market growth,with growing demand for smart homes and development of smart cities, according to Technavio. However, data privacy and security concerns associated with voice assistant applications pose a challenge, it said further.
The voice assistant application market is experiencing significant growth as consumers prioritize convenience with electronic devices in their homes, the firm reported, noting that voice-enabled control of appliances through applications like Amazon Alexa and Google Home is becoming increasingly popular.
According to Juniper Research, the number of voice assistant users is expected to reach 8.4 billion by 2024. This growth is being fueled by advancements in speech recognition and machine learning, making voice-based systems more efficient and effective for customer engagement, it said.
Also driving some of the market growth is the development of smart cities, with global companies like Microsoft, IBM, and Alphabet delivering innovative solutions, according to Technavio. Cities like Amsterdam, Barcelona, Stockholm, and Santa Cruz are already considered smart cities. Developing countries like India are also investing in smart city projects.
Voice assistants are also being used by businesses to track user habits, behaviors, and activities to personalize products and data. Customer service chatbots, using natural language processing, engage customers and solve basic queries, improving the overall customer experience.
Technavio found that the cloud segment is a popular deployment type for these applications due to its scalability and cost-effectiveness, particularly as voice assistant applications are also being integrated into networked devices, making them bandwidth hogs.
The research firm warned, though, that in the voice assistant application market, data privacy and security are significant concerns. With the increasing use of voice assistants over mobile and cloud networks, cybersecurity and data breach issues have emerged. The IoT revolution has led to a large-scale combination of physical and virtual worlds, increasing the number of connected devices and potential entry points for hackers.
Technavio's report identified Alibaba Group, Alphabet, Amazon, Apple, Artificial Solutions International, Baidu, Huawei Technologies, IBM, Microsoft, Oracle, Orbita, Robin Labs, RoboBot Studio, Salesforce, Samsung Electronics, SAP, SoundHound AI, Verbio Technologies, Voiceflow, and Xiaomi Communications as key players in the voice assistant market.
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Technavio credits digital transformation for the expansion of the voice assistant market.
16 Oct 2023