Voice Assistant Market by Component (Solution and Services), by Technology (Speech Recognition, Voice Recognition, and Natural Language Processing), by Application (Messenger Bots, Websites, Contact Centers, and Smart Speakers), by Deployment (On-Premises and Cloud), and by Industry (BFSI, Retail & E-Commerce, Healthcare, Automotive, and Others)- Global Opportunity Analysis and Industry Forecast 2022-2030

Market Definition

The Voice Assistant Market was valued at USD 2.73 billion in 2021 and is predicted to reach USD 36.35 billion by 2030 with a CAGR of 33.6% from 2022-2030.

A voice assistant is a digital assistant that is developed using artificial intelligence, machine learning, and voice recognition technologies. Natural language processing (NLP) is the foundation of voice assistant software, which recognizes a user's speech and enables voice control of a device. Voice assistants can understand and follow human voice commands and assist in performing routine tasks such as scheduling an appointment, placing an online order, and acting as a hands-free assistant for texting. Voice assistant software can be found in mobile phones, smart speakers, smartwatches, tablets, and other electronic devices. Apple’s Siri, Google Assistant, Amazon’s Alexa, and Microsoft Cortana are some of the most popular voice assistants available in the market.

Market Dynamics and Trends

The demand for voice assistants is increasing due to the rising adoption of smartphones, expanding digitalization, and the need for enhanced customer experience.  Also, the fast-paced urbanization and growing disposable income coupled with a higher focus on the development of digital infrastructure is boosting the growth of voice assistant market. According to UN-Habitat, more than 2.2 billion people live in urban Asia which is equal to 54% of the global urban population and the urban population in Asia is expected to grow by 50% by 2050.

Furthermore, the growing adoption of voice assistants in the healthcare industry to monitor patient conditions along with the dosage of medicine and track the status of recovery is further boosting the growth of the voice assistant market. The AI-based voice assistant systems provide accurate data utilizing patient information and comprehend the patterns of chronic disease, which is further driving the demand for voice assistants in the healthcare industry.

The voice assistants are always listening for their wake word, which implies that they constantly listen to everything that is said by people in their surroundings. This can raise concerns about privacy and data security, which is expected to restrain the growth of the market. On the other hand, the integration of edge computing in voice assistants is expected to create ample growth opportunities for the market in the future. Edge computing will enable faster and more efficient interactions with voice assistants, which will be particularly useful in areas with limited internet connectivity or high latency.

Market Segmentation and Scope of Study

The global voice assistant market is segmented based on component, technology, application, deployment, and industry. On the basis of components, the market is segmented into solution and services. Solutions are further subdivided into integrated and standalone. Services are further subdivided into support & maintenance and consulting. On the basis of technology, the market is segmented into speech recognition, voice recognition, and natural language processing (NLP). On the basis of application, the market is segmented into messenger bots, websites, contact centers, and smart speakers. On the basis of deployment, the market is segmented into on-premise and cloud. On the basis of industry, the market is segmented into BFSI, retail & E-commerce, and others. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominated the global voice assistant market in 2021 and is potently expected to remain dominant in the market throughout the forecast period. This is attributed to the Increased adoption of connected devices such as smartphones, smart wearables, and smart speakers among the millennials and GenZ population in the region. According to a report published by Harvard Business Review on September 2022, nearly 50% of internet users in the US have a smart speaker.

Also, the presence of key market players such as IBM Corporation, Google LLC, Amazon, and Samsung and their strategic approach toward market expansion including collaborations and launches are further fueling the industry growth of the voice assistant market in the region.  For instance, on September 2021, IBM launched ‘IBM Watson assistant’ with AI and automation features to enhance seamless customer service through phone, SMS, online, or any messaging channel.  

Overall, the dominance of North America in the global voice assistant market is expected to continue in the forecast period, driven by the widespread adoption of connected devices and the presence of key market players in the region. The launch of new technologies and products, along with strategic collaborations and partnerships, is expected to further fuel the growth of the industry in North America.

Europe is projected to exhibit substantial growth in the global voice assistant market during the forecast period, due to the growing adoption of smart home gadgets such as Amazon Echo, Google Home, and Phillips Hue in the region. According to a survey conducted by the German industry group Bitkom, in 2021, 41% of all Germans installed at least one smart home gadget. Moreover, the increasing investments in artificial intelligence (AI) technologies, such as natural language processing (NLP) and machine learning by various market players such as IBM corporation and Samsung Electronics are driving the voice assistant market in Europe.

Competitive Landscape

The voice assistant market includes several market players such as Nuance Communications, IBM Corporation, Amazon.com, Alphabet Inc., Microsoft Corporation, Apple Inc, Samsung, Alibaba.com, Verint Systems Inc., and Baidu, Inc. among others. These market players are adopting various strategies such as collaboration and acquisition to maintain their dominance in the global voice assistant market.

For instance, in March 2022, Microsoft acquired Nuance Communications’ AI-powered digital contact center platform. The platform includes a comprehensive yet adaptable contact center solution, offering best-in-class AI that drives self-service experiences, live customer engagements, collaborative agent experiences, business process automation, sophisticated telephony, and fraud protection capabilities.

Also, in July 2021, Google funded the Indian voice assistant start-up Slang Labs to execute online transactions in their apps using a voice assistant in their preferred language. The investment was aimed to emphasize the importance of voice-enabled apps and highlights the most significant technology trends.

KEY BENEFITS

• The voice assistant market report provides a quantitative analysis of the current market and estimations through 2022-2030 that assist in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the voice assistant market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints, and opportunities and their impact on the voice assistant market is provided in the report.

• The competitive analysis of the market players along with their market share in the voice assistant market. 

• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

KEY MARKET SEGMENTS

By Component

• Solution

  • Integrated

  • Standalone

• Services

  • Support & Maintenance

  • Consulting

By Technology

• Speech Recognition

• Voice Recognition

• Natural Language Processing

By Application

• Messenger Bots

• Websites

• Contact Centers

• Smart Speakers

By Deployment

• On-Premises

• Cloud

By Industry

• BFSI

• Retail & E-Commerce

• Healthcare

• Automotive

• Others

By Geography

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Italy

  • Germany

  • Spain

  • Netherlands

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Taiwan

  • Vietnam

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East 

  • Africa

REPORT SCOPE AND SEGMENTATION:

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