Dublin, Aug. 01, 2025 (GLOBE NEWSWIRE) -- The "In Car Voice Assistant Global Market Report 2025" report has been added to ResearchAndMarkets.com's offering.
The in car voice assistant market size has grown rapidly in recent years. It will grow from $2.86 billion in 2024 to $3.22 billion in 2025 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period can be attributed to regulatory push for hands-free solutions, increasing emphasis on driver safety, rising penetration of internet, increase in regulatory compliance, and rising consumer expenditure on premium services.
The in car voice assistant market size is expected to see rapid growth in the next few years. It will grow to $5.31 billion in 2029 at a compound annual growth rate (CAGR) of 13.3%. The growth in the forecast period can be attributed to increasing need for connected car technologies, rising adoption of digital technologies, rising popularity of connected cars, growing demand for smart automobiles, and rising consumer demand for enhanced in-car experiences. Major trends in the forecast period include technological advancements, deployment of artificial intelligence (AI) technologies, in-car service personalization, personalized and adaptive experiences, and cloud-based solutions.
The forecast of 13.3% growth over the next five years reflects a modest reduction of 0.6% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on speech recognition chips, AI processors, and multilingual NLP software modules sourced from Asian suppliers, raising costs for integrating voice-enabled features in vehicles.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing demand for smart automobiles is expected to drive the expansion of the in-car voice assistant market. Smart automobiles are vehicles equipped with advanced technologies that improve communication, navigation, and operation efficiency. The increasing demand for these vehicles is largely driven by the need for safer driving, as these technologies help minimize human errors, prevent accidents, and enable hands-free operation for added convenience. This demand is encouraging the adoption of in-car voice assistants, which allow drivers to interact with navigation, communication, and entertainment features without the need for physical engagement.
Companies in the in-car voice assistant market are increasingly focusing on innovations such as artificial intelligence (AI)-powered navigation assistance. This technology helps drivers find optimal routes using voice commands, providing real-time guidance and location-based recommendations. For instance, in January 2025, Kogo Tech Labs Pvt. Ltd., an India-based tech company, collaborated with C.E. Info Systems Ltd., a digital mapping and navigation company, to launch India's first automotive voice assistant. This system offered voice-enabled navigation and mobility solutions, allowing hands-free access to real-time traffic updates and route suggestions. By incorporating AI-powered voice technology, the assistant enabled users to control their vehicles with natural language, reducing distractions and enhancing safety.
In July 2022, SoundHound Inc., a US-based technology company, partnered with LG Electronics Inc. to integrate its AI-powered voice platform into LG's in-vehicle infotainment systems. This collaboration aimed to develop a more advanced in-car voice assistant, further enhancing the driving experience through seamless voice-controlled features. LG Electronics is a South Korea-based company that provides infotainment systems for vehicles, which integrate advanced voice assistant technologies.
An in-car voice assistant is a hands-free, AI-powered system integrated into a vehicle, enabling drivers and passengers to control various car functions and access information through voice commands. This technology enhances safety, convenience, and entertainment by reducing the need for manual interactions while driving.
The main components of an in-car voice assistant include software, hardware, and services. The software consists of a set of programs and algorithms that enable the system to perform specific tasks, process inputs, execute commands, and facilitate communication between different components of the vehicle's digital ecosystem. In vehicles, this software is essential for running applications and managing system operations. Technologies such as speech recognition, natural language processing (NLP), and artificial intelligence (AI) are used in various vehicle types, including passenger cars and commercial vehicles. These technologies support applications such as navigation, entertainment, communication, and information services.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
North America was the largest region in the in-car voice assistant market in 2024. The regions covered in in car voice assistant report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the in car voice assistant market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Scope
Markets Covered:
- Component: Software; Hardware; Services
- Technology: Speech Recognition; Natural Language Processing (NLP); Artificial Intelligence (AI)
- Vehicle Type: Passenger Cars; Commercial Vehicles
- Application: Navigation; Entertainment; Communication; Information; Other Applications
Subsegments:
- Software: Embedded Software; Cloud-Based Software; AI-Powered Software
- Hardware: Microphones; Speakers; Control Units; Display Panels
- Services: Integration And Deployment; Maintenance And Support; Consulting Services
Key Topics Covered:
1. Executive Summary
2. In Car Voice Assistant Market Characteristics
3. In Car Voice Assistant Market Trends And Strategies
4. In Car Voice Assistant Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics, Trade Wars and Tariffs, And Covid And Recovery On The Market
4.1. Supply Chain Impact from Tariff War & Trade Protectionism
5. Global In Car Voice Assistant Growth Analysis And Strategic Analysis Framework
5.1. Global In Car Voice Assistant PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
5.2. Analysis Of End Use Industries
5.3. Global In Car Voice Assistant Market Growth Rate Analysis
5.4. Global In Car Voice Assistant Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
5.5. Global In Car Voice Assistant Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
5.6. Global In Car Voice Assistant Total Addressable Market (TAM)
6. In Car Voice Assistant Market Segmentation
6.1. Global In Car Voice Assistant Market, Segmentation By Component, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Software
- Hardware
- Services
6.2. Global In Car Voice Assistant Market, Segmentation By Technology, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Speech Recognition
- Natural Language Processing (NLP)
- Artificial Intelligence (AI)
6.3. Global In Car Voice Assistant Market, Segmentation By Vehicle Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Passenger Cars
- Commercial Vehicles
6.4. Global In Car Voice Assistant Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Navigation
- Entertainment
- Communication
- Information
- Other Applications
6.5. Global In Car Voice Assistant Market, Sub-Segmentation Of Software, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Embedded Software
- Cloud-Based Software
- AI-Powered Software
6.6. Global In Car Voice Assistant Market, Sub-Segmentation Of Hardware, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Microphones
- Speakers
- Control Units
- Display Panels
6.7. Global In Car Voice Assistant Market, Sub-Segmentation Of Services, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
- Integration And Deployment
- Maintenance And Support
- Consulting Services
7. In Car Voice Assistant Market Regional And Country Analysis
7.1. Global In Car Voice Assistant Market, Split By Region, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
7.2. Global In Car Voice Assistant Market, Split By Country, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Companies Featured
- Amazon Inc.
- Apple Inc.
- Google LLC
- Microsoft Corporation
- Ford Motor Company
- Hyundai Motor Company
- Robert Bosch GmbH
- Denso Corporation
- NVIDIA Corporation
- Mercedes-Benz Group AG
- Baidu Inc.
- Aptiv PLC
- NXP Semiconductors N.V.
- Panasonic Automotive Systems Company
- Nuance Communications Inc.
- Cerence
- SoundHound Inc
- Harman International Industries Inc
- Sensory Inc
- Hi Auto Ltd
- iNAGO Inc.
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