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The voice assistant application market size is estimated to increase by USD 10.33 billion and grow at a CAGR of 30.4% between 2022 and 2027. Market expansion hinges on various factors, such as digital transformation, the rising prominence of autonomous vehicles, and the growing adoption of technologically advanced mobile devices. However, challenges persist, including concerns regarding data privacy and security related to voice assistant applications, as well as system integration and interoperability issues. Additionally, the reliability of systems and uncertainties surrounding user acceptance pose significant hurdles for voice assistant applications. Overcoming these challenges requires proactive measures, including robust data privacy and security protocols, seamless system integration strategies, and efforts to enhance system reliability and user acceptance. By addressing these obstacles, businesses can leverage the opportunities presented by digital transformation and the increasing popularity of autonomous vehicles and advanced mobile devices to drive growth in the market for voice assistant applications.
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The market is experiencing exponential growth, fueled by the proliferation of voice-enabled devices and the seamless integration of cloud-based infrastructure. With the worldwide population increasingly embracing voice-based systems, businesses capitalize on voice assistant applications to enhance customer engagement and streamline operations. Leveraging AI technologies and speech recognition advancements, voice assistant applications cater to diverse sectors, including banking, financial services, insurance, healthcare, media, and entertainment. Low code platforms facilitate the development of innovative solutions tailored to SMEs, while Juniper Research forecasts a surge in smart speaker adoption, further propelling the market's expansion. Voice assistant applications revolutionize online purchasing experiences, optimize appointment scheduling, and enable efficient communication through texting and calling. As networked devices proliferate and edge computing enables real-time processing, voice assistant applications deliver precise data and drive efficiency across industries.
One of the key factors driving the global market growth is digital transformation. OTT services enable users to view online videos at home through laptops/desktops or TV screens, using different devices, and most such device providers are offering inbuilt voice assistant applications. The emergence of advanced Internet technologies such as high-speed broadband and the introduction of voice over Internet protocol (VoIP) services on the cell phone has changed the user preference for Internet services and propelled the adoption of new technologies.
Moreover, online learning transforms traditional educational processes through the implementation of advanced technologies such as IoT, cloud computing, Big Data analytics, and augmented reality. Such developments help vendors to integrate the horizontal and vertical structures of the organization with advances in IT, which will drive the market growth during the forecast period.
Growing demand for smart homes and the development of smart cities is one of the key market trends that is expected to impact the market growth positively in the forecast period. The smart home concept has the highest penetration in North America and Europe, with developing economies in APAC also adopting the concept. Alphabet Google Home is a smart speaker that also controls all the features of a smart home. Moreover, global companies such as Microsoft, IBM, and Alphabet are aiding in the development of smart cities through innovative initiatives and solutions.
Moreover, in India, Godrej Interio of Godrej Industries Ltd. (Godrej) is developing connected homes. Amazon Alexa, an intelligent personal assistant developed by Amazon, enables voice-enabled control of smart home devices. A few major cities, such as Amsterdam, Barcelona, Stockholm, and Santa Cruz, already fall under the smart city category. Such factors are expected to further support market growth during the forecast period.
One of the key challenges to global market growth is data privacy and security concerns. Earlier, cybersecurity was concentrated on a limited number of connected devices. However, due to the IoT revolution, there will be a large-scale combination of both physical and virtual worlds during the forecast period. In many countries, network security in high-security zones is assumed to be threatening to national security, as these network areas may be exposed to terrorist attacks.
Some of the nations have restricted a few areas of voice assistant applications, including vehicle and infrastructure communication, due to security breaches. For instance, in 2016, Charlie Miller and Chris Valasek hackers hacked a Jeep Cherokee via its onboard diagnostics II port. They took control of the steering wheel, electronic parking brake, cruise control, and transmission system. Therefore, the security threat is expected to limit market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers voice assistant application called Google Assistant for setting up alarms, schedule management, controlling smart home offline, and navigating through Google search.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
This market report extensively covers market segmentation by application (individual users, SMEs, and large enterprises), deployment (cloud and on-premise), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the individual users segment will be significant during the forecast period. The increasing adoption of smart appliances and connected home environments using devices such as smart speakers are another factor for the growth of the segment.
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The individual users segment was valued at USD 556.59 million in 2017 and continue to grow by 2021. The personal segment is expected to grow fastest during the forecast period, mainly due to the increasing adoption of smartphones and smart connected devices by individual users. Increased use of digital content platforms such as over-the-top (OTT), increased adoption of online gaming by individuals, and use in emerging markets such as India and China were the significant segments during this period. is expected to drive the growth of the forecast period. For example, the use of advanced features of smartphones and PCs (such as game speech-to-text and voice commands) leads individual users to opt for advanced applications software and voice assistant services. This will support market growth during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The United States and Canada are the major contributors to the market in this region. End-user industries in the region, such as automotive, retail, healthcare, media and entertainment, hospitality, and BFSI, are deploying in their operations to gain a competitive advantage in the market and improve operational performance. In addition, individual users are also becoming technologically mature and adopting in their living spaces. For instance, in 2018, nearly 20% of US adults and more than 47 million active users used smart speakers, and Amazon and Alphabet accounted for nearly 90% of the market share. The increasing adoption of vehicle-to-everything (V2X) communication systems and advanced technologies, such as 5G, and the growing production of autonomous vehicles are the key drivers for the growth of the market in the region.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing rapid growth, driven by advancements in AI technologies and the widespread adoption of voice-enabled devices. Customers increasingly engage with businesses through voice assistants, enhancing customer engagement and streamlining interactions. Low code platforms facilitate the development of voice-enabled applications, catering to the needs of various sectors, including banking, financial services, and insurance. Juniper Research predicts a surge in voice assistant users worldwide, fueled by the increasing population of networked devices. Cloud-based infrastructure and edge computing ensure efficient voice recognition technologies, delivering precise data for improved safety instructions and patient experience in the healthcare vertical. Merger acquisitions and innovative solutions shape the technology provider landscape, propelling growth in the voice assistant application market. The market is witnessing substantial growth driven by the widespread adoption of voice-enabled devices and advancements in speech recognition technology.
Moreover, businesses leverage voice-based systems to enhance efficiency and cater to rising demands, particularly in online purchasing and the media and entertainment sector. Machine learning algorithms enable voice assistants to handle appointments, texting, and calling tasks seamlessly. Cloud-based infrastructure supports voice assistant applications, catering to diverse deployment types and enterprise sizes, including small and medium enterprises in the IT and telecommunication sector. Natural Language Processing enhances user experience, especially in smart retail and eCommerce environments. Voice assistant applications also play a crucial role in chronic disease management, offering personalized support to patients worldwide.
As rising case trends underscore the need for efficient solutions, the voice assistant application market continues to evolve, driving innovation and transforming various industries. Voice-enabled devices are increasingly popular, particularly in the cloud segment, where voice-based systems can sometimes be bandwidth hogs. Cloud-based infrastructure offers scalability and flexibility, with deployment type and enterprise size influencing the choice of voice enabled devices, Voice based systems, and also Cloud based infrastructure.
Voice Assistant Application Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.4% |
Market growth 2023-2027 |
USD 10.33 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
28.9 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading vendors, market positioning of vendors, competitive strategies, and industry risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., Artificial Solutions International AB, Huawei Technologies Co. Ltd., International Business Machines Corp., Microsoft Corp., Nuance Communications Inc., Oracle Corp., Orbita Inc., Robin Labs, RoboBot Studio, Salesforce.com Inc., Samsung Electronics Co. Ltd., SAP SE, SoundHound Inc., Verbio Technologies SL, Voiceflow Inc., Xiaomi Communications Co. Ltd., and Baidu Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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