Voice Assistant Market is Expected to Attain a Valuation of USD 42.8 Billion by 2032: MRFR

Market Research Future has published a Cooked Research Report on the Global Voice Assistant Market.

Overview

The global voice assistant market is projected to reach USD 42.8 billion by 2032, registering a CAGR of 9.9% during the forecast period 2024–2032. In this report, Market Research Future (MRFR) includes the segmentation and dynamics of the market to offer a better glimpse of the coming years.

A voice assistant is a digital assistant that is developed using artificial intelligence (AI), machine learning (ML), and voice recognition technology. It can understand and follow human voice commands and assist in performing routine tasks, such as scheduling an appointment, placing an online order for tangible goods, and acting as a hands-free facilitator for texting. Apple’s Siri, Google Assistant, Amazon’s Alexa, and Microsoft Cortana are some most popular voice assistants available in the market.

The growing popularity of connected devices, increasing adoption of smart homes, rising instances of voice search, and high demand for self-service applications are anticipated to boost the market growth. However, limited integration of voice assistants with devices hampers the market growth. Meanwhile, the development of AI is expected to create opportunities for the global voice assistant market playersto increase their revenue streams in the near future.AI has witnessed significant strides in recent years, boosting its potential in several applications. Natural Language Processing (NLP)is one of AI's applications utilized in voice assistant technology. Voice assistants employ cloud computing to combine AI and can converse with users in natural language. Voice assistants are easy to use, and thus, millions of devices incorporate them in households nowadays.

Segmental Analysis

The global voice assistant market has been segmented based onthe technology, hardware products, application, enduser, and region.

Based on technology, the global voice assistant market is segmented into natural language processing, speech/voice recognition, and text to speech recognition.The natural language processing segment accounted for the largest market share of 53.6% in 2020, with a market value of USD 3,484.2 million; it is expected to register a CAGR of 17.2% during the forecast period. This is mainly attributed to the capability of NLP to integrate statistical, machine learning, and deep learning models with computational linguistics rule-based modeling of human languagein the form of text or speech data and 'understand' its whole meaning, including the speaker or writer's intent and sentiment. Whereas the speech/voice recognition segment was the second-largest market in 2020, valued at USD 1,776.8 million; it is projected to exhibit a CAGR of 17.9%. However, the text to speech recognition segment is expected to register the highest CAGR of 18.4%.

On the basis of hardware products, the voice assistant market is categorized into smart speakers & personal assistant, laptop, smartphones & tablets, set-top box (covering remote control with mic and far-field mic), and others-PC, wearable device, and healthcare. The smart speakers & personal assistant segment accounted for the largest market share of 75.2% in 2020, with a market value of USD 4,890.4 million; it is expected to register a CAGR of 17.5% during the forecast period. The laptop, smartphone & tablet segment was the second-largest market in 2020, valued at USD 877.4 million; it is projected to exhibit a CAGR of 17.9%. However, the set-top box (covering remote control with mic and far-field mic) segment is expected to register the highest CAGR of 19.2%.

By application, the voice assistant market has been divided into messenger bots, websites, contact centers, and others.A voice-activated messenger bot allows users to complete tasks on various gadgets without the need of using their hands, whereas chatbot widgets enablecommunication directly through browser-based bots even while they are offline with the help of integrated Web Speech API compatibility in browsers. However, the websites segmentaccounted forthe largest market share of 49.6% in 2020 and is expected to reach a market valuation of USD 9,734.9 million by the end of the forecast year 2027 with a CAGR of 17.5%.

Byend user,the global voice assistant market is divided into individual users, large enterprises, and SMEs.The individual users segment accounted for the largest market share of 60.2% in 2020, with a market value of USD 3,916.4 million; it is expected to register a CAGR of 17.6% during the forecast period. This was mainly due to the continuous shift in preference for smart home appliances and the growing demand for smart appliances integrated with IoT. Additionally, the large enterprises segment was the second-largest market in 2020, valued at USD 1,559.9 million; owing to the need of reducingthe human load and make mundane tasks more manageable, mainly across large enterprises operating in the healthcare, government, banking, financial services, insurance, and retail, among other sectors.

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Competitive Analysis

The prominent players operating in the voice assistant market include IBM Corporation (US), Nuance Communications Inc. (US), Amazon.Com, Inc. (US), Microsoft Corporation (US), Google LLC (US), Apple Inc. (US), Samsung Electronics (South Korea), Cisco Systems Inc. (US), Orange S.A. (France), Verint Systems Inc. (US), and Creative Virtual Ltd. (UK).

Regional Analysis

The regional analysis for the global voice assistant has been conducted for North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.

North America dominates the voice assistant marketdue to the existing infrastructure, quick technology adoption, and presence of major players,including IBM Corporation, Google LLC, Amazon, and Samsung Electronics, in this region that provides the regional market with ample opportunities for significant growth in the forecast period.Although the US accounted for the largest market share of 79.6% in 2020, with a market value of USD 598.9 million. Moreover, Canada stood secondprojected to exhibit a CAGR of 5.8% during the forecast period.

The European countries such as the UK, Germany, France, Italy, and Spainare noticing the increasing demand for smart contact centers and personalized customer experience. However,the industrial and IT sectors in the region are expected to adopt voice assistant-based solutions to make voice automation while developing new solutions for complex use case scenarios.Additionally, the UK and Germany accounted for the highest market shares of 25.1% and 22.1%, respectively, in 2020.

In the case of Asia-Pacific, voice assistant technology is gaining pace exponentially owing to the booming IT sector in the region and countries opting for smart contact-based solutions for reliability and increasing efficiency of the market.China accounted for the largest market share of 43.8%in 2020, with a market value of USD 588.6 million,with India expected to register thehighest CAGR of 22.8% during the forecast period.