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Voice assistants have gained immense popularity, especially with the rise of the Internet of Things (IoT). Amazon.com Inc. dominates the voice assistant market with its Echo, closely followed by Google Home in the voice-enabled speaker sector. The surge in IoT adoption has led to a significant increase in connected devices and IoT data generation. In the realm of connected home services, voice assistants are emerging as the primary interface for users, delivering personalized services through voice commands. This shift is transforming the way customers interact with devices, providing a seamless user experience that maximizes the value of connected devices and enhances customer service.
Integrating artificial intelligence (AI) with IoT-connected devices is seen as a pivotal development, creating new opportunities for market players. The evolution of voice assistants in connected devices marks a technological advancement. While initially confined to smartphones for voice recognition, voice assistants now extend across various devices. Looking ahead, devices like thermostats, cars, refrigerators, televisions, and security systems are anticipated to be controlled through voice assistants.Â
The global adoption of IoT has reached every corner of the world, with over 50% of homes in certain continents having at least one IoT device. However, the popularity of device types and manufacturers varies by location. North American homes, for instance, exhibit a prevalence of internet-connected TVs and streaming devices, whereas South Asian homes have a mere 3%, primarily using surveillance cameras. IoT advancements have seamlessly integrated voice assistants into virtually all connected devices, allowing them to move from room to room without requiring a voice-capable device in each location. Siri and other assistants are commonly employed for tasks such as controlling music, checking the weather, and speech-based searches, with a majority of users engaging with these features.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Emerging demand for smart homes and the development of smart cities Growing demand for AI-based digital voice assistant applications across various industry verticals |
| Market Dynamics | Increased advancements in voice-based AI technologies Surging adoption of voice-enabled devices Enhanced focus on customer engagement |
Voice Assistant Market Highlights:
Voice Assistant Market Overview
The Voice Assistant Market is projected to grow from USD 20.1 billion in 2024 to USD 42.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.9% during the forecast period (2024 - 2032). Additionally, the market size for Voice Assistant was valued at USD 18.3 billion in 2023.
The development of voice-based AI technologies, the rising popularity of voice-enabled devices, and the growing emphasis on customer engagement are all expected to drive growth in the voice assistant market.
Figure 1: Voice Assistant Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Voice Assistant Market Trends
Rapid adoption of voice-enabled devices to drive growth
The increasing number of voice-enabled devices is helping to drive the growth of the voice assistant market share. The voice-activated device can recognize spoken requests and commands, and it frequently uses text-to-speech technology to play back a response. Voice activation technology has helped to assist, manage the customer experience, and boost productivity over time. Adding an app with access to Google Assistant, Siri, Alexa, and Cortana has enhanced customer assistance and interactions. People increasingly use voice assistants in their daily lives as voice assistant technologies advance, and this trend is expected to continue.
According to a 2019 PWC survey, more than 90% of consumers aged 18-64 sought information about voice technology, and more than 70% used it at least once. A new era for voice assistance has begun due to this massive consumer adoption of voice technology for convenience and home improvement. The new consumer pattern has also positively impacted the business world. Voice recognition has become essential to service delivery as more connected devices enter the market and artificial intelligence and machine learning spread globally. Enterprise-ready virtual assistants are now replacing previous-generation speech recognition systems that failed to replicate the natural human voice experience. Voice-enabled technologies and devices are convenient for various activities, including music listening, appointment booking, online shopping, financial services, and bill payment.
Voice Assistant Market Segment Insights
Voice Assistant Product Insights
Based on the product, the voice assistant market segmentation includes smart speakers and personal assistants. The smart speaker segment held the largest share in 2021, accounting for approximately 60-64% of the voice assistant market revenue. Voice assistants and smart speakers introduce a new dynamic to the home. Their speech recognition functionality and convenience make daily tasks such as booking appointments, playing music, and making online purchases easier. Their ease of use allows us to keep our heads up and our hands-free. The popularity of smart speakers has grown, and users now expect faster responses, a more private design, and ultra-reliable interoperability. Most smart speakers use various microphones to pick up voices while playing music. Most smart speakers are equipped with up to four microphones. These enable voice commands to be called out from a distance and over background noise from any location in the room.
Voice Assistant Technology Insights
Based on the technology, the voice assistant market includes natural language processing, speech/voice recognition, and text-to-speech recognition.The speech/voice recognition segment had the largest market revenue share in 2021 due to its ease of use, increasing demand for smart homes, and adoption of voice-enabled devices. Increased smartphone penetration and consumer demands for speech recognition technologies in their devices boost speech recognition technology acceptance. Furthermore, speech recognition technology provides intuitive and interactive communication features, which benefit the speech recognition segment and propel it forward. As a result, accessibility, natural language understanding, and the growing popularity of speech recognition technologies are critical market drivers.
Figure 2: Voice Assistant Market, by Technology, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Voice Assistant End User Insights
Based on the end user, the voice assistant market segmentation includes individual users, large enterprises, and small & medium enterprises. The large enterprise segment had the largest market revenue share in 2021 owing to its ability to offer flexible pricing, boost growth potential, and create high-quality jobs. This can be attributed to enterprises' early shift toward automation and the need to manage massive amounts of data in less time. Nevertheless, in light of the COVID-19 pandemic, the government and SMEs are frantically investing in technologies like voice assistance, natural language processing (NLP), Chabot, etc. For instance, in April 2020, a French research institute will launch AI-based voice assistants to assist COVID-19 patients. With the rise in COVID-19 cases, the voice assistant has made its way into the healthcare industry. Similar features have been quickly added to Google's Home Assistant, Apple's Siri, and Amazon's Alexa for virtual human assistance.
Voice Assistant Application Insights
Based on the application, the voice assistant market segment includes messenger bots, websites, and contact centers. In 2021, the contact centers segment had a huge market revenue share. The combination of voice assistants in contact centers, which tends to help understand customer insights better and improves employee performance, is attributed to the growth of this segment. A virtual assistant with intelligence can benefit many different industries. It provides personalized financial advice to all its customers around the clock. It also addresses customer support issues and service sign-up issues. The use of deep learning algorithms in voice and speech solutions to improve search results is expected to be a driving factor in the growth of the contact centers segment.
Voice Assistant Regional Insights
By Region, the study provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. The North American voice assistant market is expected to grow at a significant CAGR during the projection period, accounting for USD 1.52 billion in 2021. The presence of many established players in the United States, a growing proportion of investments in the adoption of AI, an increasing preference for automated operations in contact centers, massive investment in IT, and increasing adoption of emerging technologies like natural language processing, machine learning, and deep learning in the region are all contributing to the voice assistant market's growth.
In addition, the major countries covered in the voice assistant market are the United States, Germany, Canada, France, the United Kingdom, Italy, Spain, Japan, India, Australia, China, South Korea, and Brazil.
Figure 3: VOICE ASSISTANT MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe has the second-largest voice assistant market in the world owing to the growing use of connected devices, merger and acquisition activity, significant IT expenditure, rising investments by major market players, and recent technological advancements. Big data growth has led to a huge demand for intelligent virtual assistants across Europe. Besides, large & medium-sized businesses increased focus on improving customer relationships to improve customer retention is creating several development opportunities for the European voice assistant industry. Further, the U.K. voice assistant market held the largest market share, and the German voice assistant market was the fastest-growing market in the European region.
The Asia Pacific voice assistant market is predicted to expand at the fastest CAGR in the forecast period due to increased IT investments in developing countries such as Japan, China, and India and an increase in the number of contact centers in the region. A further benefit of advanced AI is that it ensures every request is sent to the assistant to offer the best and most enjoyable interaction. Voice assistant application solutions and services are expected to be integrated and deployed to enterprises by virtual assistant solutions and services across Asia Pacific. For instance, the voice assistant application industry has the largest market shares among regional market leaders like Google, Amazon, IBM, Microsoft, and Apple.
Voice Assistant Key Market Players & Competitive Insights
Key industry players such as Amazon.com, IBM Corporation, Microsoft Corporation, and Google are forming strategic alliances and collaborations to grow their businesses at the level. Industry participants are focusing on new product launches and enhancements to accelerate the growth of the voice assistant market. The leading companies in the digital voice assistant application market further focus on research and development to provide highly innovative technological solutions. Tech firms are increasingly focusing their product strategies on voice assistants, integrating them into further products to expand their respective ecosystems. Major voice assistant app developers are concentrating on creating AI-based voice commands to give users another way to communicate with their range of business apps.
Alphabet Inc provides voice assistant applications for devices such as Google Home, phones, and others. It is accessible via a long press home on Android, Ok Google, or a squeeze on Pixel phones, under the Google brand. Alphabet Inc collaborated with Casino Group in July 2021 to accelerate its digital voice assistant application strategy.
The Microsoft voice assistant service enables fast and dependable interaction among a device and an assistant incorporation that uses Direct Line Speech (via Azure Bot Service) to add voice functionality to bots or Custom Commands for voice-command occurrences. Cortana is a Microsoft virtual assistant that utilizes the Bing search engine to set reminders and answer questions. Microsoft Corporation bought Nuance Communications Inc. in April 2021. It is a forerunner and a top supplier of ambient clinical intelligence powered by the cloud for healthcare providers and conversational AI.
Key Companies in the voice assistant market include
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IBM Corporation (US)
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Nuance Communications Inc (US)
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Amazon.com (US)
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Microsoft (US)
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Google LLC (US)
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Apple Inc (US)
Voice Assistant Industry Developments
Samsung, the 17-year global No. 1 television brand, today announced the arrival of its Crystal Vision 4K UHD TV in India in 2023. For a genuinely connected home experience, this most recent addition to the Crystal UHD TV lineup includes flagship smart technologies like Multi Voice Assistant, Video Calling with SlimFit Cam, Solar Remote, built-in IoT Hub with Calm Onboarding, and IoT Light Sensors for auto brightness adjustment.
A Direct-to-Consumer (D2C) fitness company called Flexnest recently entered the music market in 2023 with the release of their new FlexDubs truly wireless Bluetooth headphones. These earphones are special and incredibly practical for consumers because they have an AI-powered voice assistant. With this introduction, Flexnest intends to provide its clients a whole wellness package that addresses both the issues.
Infinix has revealed an entirely new, improved version of Folax, their intelligent voice assistant, for 2023. With the inclusion of AI-generated content service (AIGC), which will give Infinix users natural, individualised, and high-quality information and help, the improved Folax has a highly expressive 3D digital human character and enhanced linguistic abilities.
The payments and shopping platform Klarna today unveiled new features and improvements for 2023 with the goal of providing users with a more individualised shopping experience. This features, among other new tools, "Ask Klarna," a personal assistant that allows customers to communicate with actual fashion professionals; "Creator Shops," a special storefront for content creators; an AI-powered discovery shopping feed; and a resell functionality.
The first virtual shopping assistant of its kind, Bolt Shopper Assistant, will be available in 2022 from Bolt, a leading provider of checkout technology. It will allow retailers to convert anonymous guest shoppers into account-holding customers, speed up login for frequent customers, and boost conversion through personalised shopping experiences.
May 2022: Sonos launched its digital voice assistant to stay competitive with Alexa and Siri.
May 2020: Cerence Inc introduced the 'Cerence ARK Assistant,' an advanced turnkey automotive voice assistant in American English. This newly announced solution is built on Cerence speech and AI technologies, and it is backed up by the company's first assistant for the Chinese market, which also debuted last year.
April 2020: The Google LLC Connected Homes kit for software development is now widely available. This advancement toolkit will help linked device manufacturers improve the responsiveness of their products.
Voice Assistant Market Segmentation
Voice Assistant Product Outlook
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Smart Speakers
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Personal Assistant
Voice Assistant Technology Outlook
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Natural Language Processing
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Speech/Voice Recognition
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Text-to-Speech Recognition
Voice Assistant End User Outlook
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Individual Users
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Large Enterprises
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Small & Medium Enterprise
Voice Assistant Application Outlook
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Messenger Bots
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Websites
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Contact Centers
Voice Assistant Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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