The Voice Assistant Application Market is set to grow by USD 21.94 Billion from 2024-2028, driven by digital transformation and AI-powered market evolution - Technavio

NEW YORK, Sept. 20, 2024 /PRNewswire/ -- The global voice assistant application market size is estimated to grow by USD 21.94 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 40.94% during the forecast period. digital transformation is driving market growth, with a trend towards growing demand for smart homes and development of smart cities. However, data privacy and security concerns associated with voice assistant application poses a challenge - Key market players include Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Apple Inc., Artificial Solutions International AB, Baidu Inc., Huawei Technologies Co. Ltd., International Business Machines Corp., Microsoft Corp., Oracle Corp., Orbita Inc., Robin Labs, RoboBot Studio, Salesforce Inc., Samsung Electronics Co. Ltd., SAP SE, SoundHound AI Inc., Verbio Technologies SL, Voiceflow Inc., and Xiaomi Communications Co. Ltd..

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Market Driver

The voice assistant application market is experiencing significant growth as consumers prioritize convenience with electronic devices, particularly in the context of the smart home concept. In regions with the highest penetration, such as North America and Europe, voice assistant applications are integrated into home appliances to execute tasks based on human commands. Developing economies in Asia Pacific are also adopting this technology. For instance, Godrej Interio, a subsidiary of Godrej Industries Ltd., is developing connected homes in India. However, the company anticipates it will take some time for the concept to gain traction. Amazon Alexa and Google Home are popular voice assistant applications that enable voice-controlled smart home devices. These devices allow users to manage various functions, such as turning on lights or adjusting thermostats, using simple voice commands. Vendors are continuously integrating these smart home devices with voice assistant applications to create a more user-friendly environment. Voice assistant applications are also transforming transportation, urban planning, and city safety by utilizing AI platforms to track user habits, behavioral characteristics, and activities. This data can be used to personalize products and services to meet evolving user needs. Customer service chatbots, powered by voice assistant applications and natural language processing, instantly handle queries and resolve basic issues, enhancing the overall customer experience. Major global companies like Microsoft, IBM, and Alphabet are driving the development of smart cities through innovative initiatives and solutions. Cities such as Amsterdam, Barcelona, Stockholm, and Santa Cruz are already considered smart cities. Developing countries, including India, are implementing smart city projects, focusing on predictive risk management and consumer experience management to monitor consumer data and provide analytics to end-user enterprises. The number of smart cities is projected to increase during the forecast period, leading to the development of new devices and applications tailored to smart cities, further fueling the global voice assistant application market growth. 

Voice assistant applications have become a hot trend in the tech world, driven by the widespread adoption of AI technologies and voice-enabled devices. According to Juniper Research, the number of voice assistant users is expected to reach 8.4 billion by 2024. This growth is fueled by the increasing use of smart speakers, speech recognition, and natural language processing in various industries. SMEs and large enterprises in sectors like banking, financial services, insurance, media and entertainment, healthcare, and more are leveraging voice assistant applications for customer engagement, online purchasing, appointment scheduling, texting, and calling. Machine learning and voice recognition technologies enable precise data collection and analysis, leading to improved efficiency and better patient experience in healthcare verticals. Cloud segment and edge computing are key deployment types for voice assistant applications, ensuring low bandwidth usage and safety instructions. Mergers and acquisitions among technology providers continue to shape the voice assistant application landscape, offering innovative solutions for networked devices and voice-based systems. The future of voice assistant applications lies in their ability to enhance user experience, streamline processes, and cater to the needs of the worldwide population in various industries. 

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Market Challenges

• Voice assistant applications have gained significant popularity in recent years, offering convenience and efficiency to users. However, the market faces notable challenges related to data privacy and security. With the increasing use of voice assistant applications over mobile and cloud networks, concerns surrounding network security, particularly in high-security zones, have emerged. The IoT revolution has led to a large-scale combination of physical and virtual worlds, increasing the number of potential entry points for cyber attacks. Some nations have restricted certain applications, such as vehicle and infrastructure communication, due to security concerns. Hackers may target voice assistant systems due to their reliance on machine intelligence and sensors, posing a significant threat to data breaches. These factors may hinder the growth of the voice assistant application market during the forecast period. Organizations and individuals must prioritize robust security measures to mitigate these risks and ensure the safe adoption of voice assistant technology.
• Voice assistant applications have gained significant traction in today's digital world, with worldwide population relying heavily on machine learning and voice recognition technologies for convenience. However, challenges persist in delivering seamless user experience. Appointment scheduling, texting, and calling functionalities require precise data and efficient processing, which can be bandwidth-intensive. Cloud-based infrastructure and edge computing are popular solutions, but networked devices and voice-based systems can strain resources. Rising case trends include healthcare verticals, where voice assistants improve patient experience and enable chronic disease management. Mergers and acquisitions shape the technology provider landscape, offering innovative solutions for large enterprises in IT and telecommunications. Natural Language Processing (NLP) and deployment type (cloud) are key considerations for businesses of all sizes. Safety instructions and voice assistant users on mobile devices further expand the market scope. Voice assistant applications continue to evolve, addressing the needs of a growing user base.

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Segment Overview

This voice assistant application market report extensively covers market segmentation by

1. Application 
• 1.1 Individual users
• 1.2 SMEs
• 1.3 Large enterprises
2. Deployment 
• 2.1 Cloud
• 2.2 On-premise
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Individual users- The individual user segment is poised for the fastest growth in the voice assistant application market during the forecast period. This growth is driven by the increasing adoption of smartphones and connected devices, digital content platforms like OTT, and the rising popularity of online gaming. Advanced features in smartphones and PCs, such as speech-to-text and voice commands for gaming, are encouraging individual users to opt for advanced voice assistant application software and services. In 2020, over 2 billion gamers were present worldwide, with significant growth in emerging economies like India and China. The trend of gamers viewing esports as a career option and investing in advanced gaming equipment is driving the demand for voice assistant applications. Additionally, the increasing adoption of smart appliances and connected home environments, particularly smart speakers, is another growth factor. Major vendors like Amazon and Alphabet dominate this market, with the global voice assistive smart speaker market projected to reach USD11.90 billion by 2023. The number of smart speakers in US households is expected to grow by nearly 80% during the forecast period, and over 50% of web searches are already being done through voice assistants. The global smart kitchen appliance market is expected to reach USD24,931.26 million by 2023, and the integration of AI in voice assistant applications will further drive individual user adoption. Technological advances in smart TVs, such as Amazon's Fire TV Stick Basic Edition with a voice assistant, are also contributing to market growth.

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Research Analysis

Voice assistant applications are revolutionizing the way we interact with technology, powered by advanced AI technologies and speech recognition. With the widespread adoption of voice-enabled devices, customer engagement is at an all-time high. Low code platforms are making it easier for businesses, even SMEs, to develop and deploy voice assistant applications. According to Juniper Research, the worldwide population of voice assistant users is expected to reach 8.4 billion by 2024. Smart speakers and networked devices are driving the growth of voice-based systems. However, they can be bandwidth hogs, making cloud-based infrastructure and edge computing essential. Machine learning and voice recognition technologies are key components of voice assistant applications, enabling features like appointment setting, texting, and calling. Industries like banking, financial services, insurance, media and entertainment, healthcare, and more are leveraging voice assistant applications for enhanced customer experiences and precise data.

Market Research Overview

The voice assistant application market is experiencing rapid growth, fueled by the increasing adoption of AI technologies and voice-enabled devices. Customer engagement through voice-based systems is becoming a priority for businesses, with low code platforms simplifying development. Juniper Research predicts that the number of voice assistant users will reach 8.4 billion by 2024. Smart speakers and other networked devices are driving the demand for voice recognition technologies. Online purchasing, appointment scheduling, texting, and calling are common use cases. SMEs and large enterprises in sectors like banking, financial services, insurance, media and entertainment, healthcare, and IT and telecommunication are investing in cloud-based infrastructure and edge computing for precise data and efficiency. The technology provider landscape is evolving with innovative solutions, including machine learning and natural language processing. The healthcare vertical is a rising case trend, with voice assistant applications improving patient experience, managing chronic diseases, and providing safety instructions. Mergers and acquisitions are shaping the market, with companies focusing on delivering voice assistant applications that cater to the worldwide population's diverse needs. Despite the benefits, challenges remain, such as bandwidth hogs and the need for cloud-based infrastructure. The technology's integration with various industries and deployment types, along with enterprise size considerations, requires a thoughtful approach.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Individual Users
• SMEs
• Large Enterprises
• Deployment
• Cloud
• On-premise
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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SOURCE Technavio